Determining the similar distribution outlet

Assignment Help Business Management

Reference no: EM131804787

Sports Inc. has developed a shoe to compete with Air Jordans. In order to keep up with competitors and minimize competitor market power, the firm decides to sell branded sports equipment as well. By introducing another new business so soon outside of its shoe products, the firm stands to lose value. Sports Inc.'s reason for diversifying itself is to:

a. neutralize another firm's advantage by acquiring a similar distribution outlet.

b. decrease another firm's advantage by acquiring a similar distribution outlet.

c. increase its value by acquiring a similar distribution outlet as a competitor.

d. decrease another firm's value by acquiring a different distribution outlet.

What is the distinction between value-neutral reasons and value-increase reasons for a firm to diversify?

a. Value-neutral reasons seek to help the firm develop a more competitive position, whereas value-increase reasons seek to serve the managers of the firm.

b. Value-neutral reasons seek to serve the managers of the firm, whereas value-increase reasons seek to establish a more competitive position.

c. Value-neutral reasons seek to improve the firm overall, whereas value-increase reasons seek to establish a more competitive position.

d. Value-neutral reasons seek to help the firm develop a better competitive position, whereas value-increase reasons seek to improve the firm overall.

Reference no: EM131804787

Questions Cloud

Statement of cash flows is prepared under indirect method : is considered only when the operating activities section of a statement of cash flows is prepared under the indirect method

Discussion on environmental sustainability issues : Discussion on environmental sustainability issues, we now return to finding andsummarizing an issue from your chosen business news source

What was the cost of completing a unit during current period : Frank Inc., has the following information available: What was the cost of completing a unit during the current period?

What does jane risk in making false claims in ads : Does the Federal Trade Commission address this issue? Go to http://www.ftc.gov and search for guidelines for small business advertising or e-commerce.

Determining the similar distribution outlet : By introducing another new business so soon outside of its shoe products, the firm stands to lose value. Sports Inc.'s reason for diversifying itself is to:

Prepare journal entries to record the events : The Village of Harris issued $5,000,000 in 6 percent general obligation, tax supported bonds on July 1, 2011, at 101. Prepare journal entries to record events

Discuss wolfgang issue shares via installment : What journal entry should be entered on 30th September

The nature of social issue that domestic manufacturers face : Discuss the nature of social and labor issues that domestic manufacturers will likely face with their international suppliers.

Prepare a crossover chart : Are the factors Gardner selected for evaluation reasonable and complete? What others might be included?

User Account

All Pages