GCE O Level/ IGCSE Business Studies: Business Expansion There are several ways to grow a business. A business can expand through 1) horizontal merger, 2) vertical merger or 3) Conglomerate merger 1) A horizontal merger is when a firm merges with or takes over another one in the same industry at the same stage of production. 2) A vertical merger is when one firm merges with or takes over another one in the same industry but at a different stage of production. Vertical integration can be either forward- when a firm integrates with another firm that is at a later stage of production, or backward- when a firm integrates with another firm at an earlier stage of production, ie. closer to the raw material supplies. A conglomerate merger is when one firm merges with or takes over a firm in a completely different industry, also known as diversification. Over the weekend : New Discovery Last weekend, I have discovered this stall that offer yummy-licious little pancakes located off PJ paramoun