Question

Best Burger is a major fast food chain. Its managers are motivated to grow the firm in order to increase their market power and change the industry structure in their favor. Which of the following strategies is most associated with their motive for growth?a. employing celebrity spokespeople b. implementing automated burger-making machinery c. purchasing competitors d. increasing executive salaries

Answer 1

Answer:

C. Purchasing competitors

Explanation:

Since the motivation behind the managers is to increase their market power and change the industry structure in their favor, would be purchasing competitors. By purchasing competitors, the company will keep increasing in size whilst also reducing significantly the amount of competitors in the industry. It will give best burger a greater competitive advantage and higher brand level which are all in like with the managers motivation. Another advantage is that larger organizations have bigher purchasing power with both the suppliers and the buyers.