Emerson Electric Formed an Operating Group of Several Otherwise Autonomous

question 22

Multiple Choice

Emerson Electric formed an operating group of several otherwise autonomous business units that make different types of electrical motors and tools.By sharing production facilities,marketing activities and a common sales force,the group was able to reduce the costs of both per-unit production and marketing.Emerson Electric is trying to:

• A)gain operating synergies through sharing resources
• B)preserve its position in established product markets
• C)generate excess cash to support its product and market development efforts
• D)devote a proportion of resources to the development of new product markets

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Definitions:

Neophobia

The fear of anything new or unfamiliar.

Basal Metabolic Rate

How quickly the body burns energy to support fundamental processes like breathing and temperature maintenance while in a state of rest.

Energy Expenditure

The amount of energy a person uses to conduct daily activities and bodily functions.

Unfamiliar Foods

Foods that are not recognized or commonly eaten by an individual, often due to cultural or personal unfamiliarity.