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California fluid milk standards, established by government regulators, are the highest in the United States. California produces and sells the most nutritious milk in the country. California law requires milk producers to add milk solids and extra nutrients to milk before it can go on to grocery store shelves. The state’s rationale for the law is that the state is trying to maintain the good health of its residents, and is especially interested in preventing osteoporosis. The state’s regulations impose the same requirements on out-of-state milk producers. All milk sold in California must meet the state’s nutrition requirements. A nonprofit organization based in Wisconsin, Mad-About-Milk, wants to challenge California’s regulations as unconstitutional. Mad-About-Milk points out that Wisconsin milk producers would have to make serious changes in processing plants before they could meet California’s requirements. California is newer to milk production, so plants in California were initially built to comply with the state’s high standards. Mad-About-Milk argues that, in effect, California is “taxing” out-of-state milk producers by asking them to change their processing plants so they can produce milk that meets California’s requirements.
Question: What is strong or weak about Milk’s claim? Explain.
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When Wal-mart decided to incorporate grocery stores into some locations and created "super centers," was this business-level strategy of differentiation or corporate-level strategy of diversification? Why?
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