1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which company re locate in the us ?
Lubov Fominskaja [6]

walmart, hole this helps

8 0
3 years ago
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating act
kondor19780726 [428]

Answer:

Indicate how each item should be classified in the statement of cash flows using these four major classifications

Explanation:

Cash flows from operating activities

Profit before taxation

Adjustments for:

Depreciation

Investment income

Interest expense

Profit / (Loss) on the sale of property, plant & equipment

Working capital changes:

(Increase) / Decrease in trade and other receivables

(Increase) / (Decrease) in inventories

Increase / (Decrease) in trade payables

Cash generated from operations

Interest paid

Income taxes paid

Dividends paid

Net cash from operating activities

Cash flows from investing activities

Business acquisitions, net of cash acquired

Purchase of property, plant and equipment

Proceeds from sale of equipment

Acquisition of portfolio investments

Investment income

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of share capital

Proceeds from long-term borrowings

Payment of long-term borrowings

Net cash used in financing activities

4 0
2 years ago
Louise has been a child care provider for one year. She works out of her home and cares for five children. She completed a train
Lerok [7]

Answer: D

Explanation:

6 0
2 years ago
Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station
blagie [28]

B. legal and regulatory requirements

8 0
3 years ago
In year 1, Kris purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with
blondinia [14]

Answer: D. $7,500

Explanation:

Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.

Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.

4 0
2 years ago
Other questions:
  • Waste that comes from the production of consumer goods, mining, agriculture, and petroleum extraction and refining is
    6·1 answer
  • What are some ways you can 's protect yourself financially in today's digital world of online banking and shopping?
    6·1 answer
  • It is Micah's role at the company to plan, organize, and control the functions within the human resource department. Based on th
    15·1 answer
  • PLEAS HELP!!!!!!!! I NEED ANSWERS ASAP!!!!!​
    14·1 answer
  • A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol
    10·1 answer
  • Outsourcing of jobs from large corporations to domestic subcontractors has been one reason job have been become more insecure in
    8·2 answers
  • Information needed by external entities in order to evaluate business performance is provided by:
    12·1 answer
  • From the bank reconciliation no entry was recorded for a debit memo for a new check fee expense. this would cause:________
    10·1 answer
  • What is the process of giving keys to a third party so that they can decrypt and read sensitive information?
    12·1 answer
  • if a 35 percent increase in price of golf balls led to an 42 percent decrease in quantity demanded, then the demand for golf bal
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!