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jolli1 [7]
3 years ago
14

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 bil

lion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a failed diversification effort.True / False.
Business
2 answers:
Cloud [144]3 years ago
8 0

Answer:

False

Explanation:

This is an example of a failed vertical integration, not failed diversification. Coca Cola generally doesn't produce any Coke itself, it mostly licenses it Coke production. It started to vertically integrate bottlers during the 2008-2010 financial crisis, since the largest Coke bottler in the world operated in Greece (it supplied Coke to most of Europe). After Greece collapsed, Coca Cola purchased the bottler and relocated its headquarters to Switzerland.

Since the bottlers themselves only sell Coke and related products (diet Coke, Coke zero, Fanta, Sprite, etc.) it cannot be considered a product diversification because no new product was added to Coca Cola's product line and no new market was served.

Svet_ta [14]3 years ago
7 0

Answer:

True

Explanation:

Coke tried to diversify into the bottling industry by acquiring their bottlers and in the process creating a vertically integrated business. However, 5 years later, they did find out how difficult it was and it led to a failed diversification effort when sold off their bottling operations. This was majorly due to the fact that the bottling business required too much capital investment and time. Capital investment and time that an already large enterprise like coca cola couldn't afford at that period. The initial aim was to have control over the whole production process, but soon after the diversification failed, they went back to producing just the concentrates.

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Ballooshu, a large dairy cooperative, organizes its labor force into different divisions for the manufacture of butter, cheese,
diamong [38]

Answer:

B) Product departmentalization

Explanation:

Ballooshu is using product departmentalization because it is dividing the company according to product lines.

As a diarly cooperative, management probably believes that the most efficient form of organization is according to the products that it makes.

The cheese department will focus on producing cheese, the ice cream department will focus on making ice cream, the milk department will focus on the production of milk, and so on.

3 0
3 years ago
Use the drop-down menu to complete each statement. The property in a mixed market economy likely is . Most of the property in co
spin [16.1K]

1. Private and public

2. Government

3. less

7 0
3 years ago
Read 2 more answers
Breezy Company is disposing of equipment that was originally purchased for $550,000 and has $145,000 of accumulated depreciation
BARSIC [14]

Answer:

$405,000

Explanation:

The calculation of total amount is shown below:-

If the company disposes of the equipment to buy the new equipment, the sunk cost will be the old equipment's book value.

Sunk cost = Book value of the old Equipment

Sunk cost = Cost of equipment - Accumulated Depreciation

= $550,000 - $145,000

= $405,000

Therefore for computing the sunk cost we simply deduct the accumulated Depreciation from cost of equipment

7 0
3 years ago
g Given the information below: ASSETS LIABILITIES Cash and cash equivalents $10,000 Current debts for the year $15,000 Other liq
artcher [175]

Answer:

The solvency ratio is closest to: B. 33%.

Explanation:

<em>The solvency ratio = After tax Net Operating Income ÷ Total Debt</em>

Thus,

The solvency ratio = $75,000 ÷ ($15,000 + $200,000)

                               = 35.88%

Therefore this is closest to B. 33%.

6 0
3 years ago
LO 2.2Which of the following are prime costs?
sesenic [268]

Answer:

OPTION D: Direct Labor and Direct Material

Explanation:

Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS .

                 Prime Cost = Direct Material Cost + Direct Labor Cost

Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.

4 0
3 years ago
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