Company Z has not expanded in recent years possibly due to preferring a small size to have low costs and flexibility. Company X plans to acquire a leather supplier for $10m, which is a vertical integration that could reduce costs through bulk purchasing and increase control over raw materials. Company Y plans to merge with a retail shoe shop chain, with the manufacturer Company Y operating in the primary sector by transforming raw materials, and the retail shops operating in the tertiary sector through face-to-face customer service.