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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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5 0
1 year ago
Laminated wood is sometimes used in the construction of highly stressed aircraft components. This wood can be identified by its
Marta_Voda [28]

Answer:

Increased resistance to deflection or external force.

4 0
3 years ago
Read this scenario, and then answer the question that follows. richard is excited to start his trucking business. after taking o
Damm [24]

Some potential economic consequences that Richard did not consider before making his decision are:

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These are the factors that will affect the profitability and viability of a business.

In Richard's case, he needed to have considered various costs such as the higher cost of maintaining used trucks and the cost of gasoline that he will incur for living so far from big cities.

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8 0
1 year ago
A set of speakers may be purchased now for $1000 or by making a down payment of $150 and additional payments of $100 at the end
victus00 [196]

Answer:

the nominal annual interest rate on the payment plan is 15%

Explanation:

According to the question, a one-time payment for the speakers will cost $1,000

An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.

Calculating the total payment at tthe end of the payment plan will give

$150 + ($100 x 10months)

we have, $150 + $1,000 = $1,150.

This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.

Step 2:

To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.

$1,150-$1,000 = $150

then we have,

($150 ÷ $1,000) × 100%

= 0.15 × 100%

- 15%

The nominal annual interest rate is 15%.

Cheers.

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