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Anastasy [175]
4 years ago
6

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.
Business
1 answer:
KiRa [710]4 years ago
8 0

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion 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 <u>failed diversification effort</u>.

<u>Explanation</u>:

Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:

- failing to integrate acquisitions

- unable to understand how the acquired organization’s assets would fit with their own lines of business

- paying high premium for the target's common stock

- not acting in best interest of shareholders

The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.

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3 0
4 years ago
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a
Talja [164]

Answer:

$40

Explanation:

Target cost is the cost per unit arrived at after having deducted the required profit margin from the competitive market price.

It is a management technique that makes management think about ways to achieve a set target cost rather than forcing their actual cost plus profit margin on customers.

In this case, the competitive market price is $54 per unit of hard drive whereas the company expects to achieve a total profit of $14  per unit  

Profit margin per unit=$14

competitive market price=$54

Target cost=competitive market price-profit margin per unit

Target cost=$54-$14

Target cost=$40

7 0
4 years ago
Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers
gtnhenbr [62]

Based on writing standards, the inquiry letter for purchase should begin with the sender's address and be written like a formal letter.

<h3>Structures of Letter of Inquiry.</h3>
  • The sender's address should be written at the beginning of the letter, followed by the receiver's address.

  • The letter must contain all the elements of the enquiring item, including their quantities.

  • There must be the date and address of the receiver included.

  • The letter's subject must be written clearly before the letter's content.

  • Ensure you provide the expected salutation at the beginning of the letter.

  • Write clearly and straightforward.

  • Provide reasons and inquiry descriptions.

  • Add your signature, name, and designation at the end of the letter.

Hence, in this case, it is concluded that there are specific ways to write a good inquiry letter.

Learn more about Inquiry Letter here: brainly.com/question/4208084

4 0
3 years ago
Following the birth of his first child, Mike Simpson, a software designer for Microsoft, wished to spend more time with his fami
pashok25 [27]

Answer:

sorry just answering to get points

Explanation:

sorry just answering to get points

7 0
4 years ago
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $6.3 million, and the 2015 balance sheet showe
Zigmanuir [339]

Answer:

$1,484,000

Explanation:

For calculation of operating cash flow first we need to compute the cash flow from assets which is shown below:-

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

= $20,000 + $75,000

= $95,000

Cash flow assets = OCF - Net capital spending - Change in net working capital

= $95,000 = OCF - $1,480,000 - (-$91,000)

= $95,000 = OCF - $1,480,000 + $91,000

= $95,000 = OCF - $1,389,000

OCF = $1,484,000

3 0
3 years ago
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