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:

Sales Commissions

Payments made to sales personnel, often calculated as a percentage of the sales they generate.

Unethical Sales Practices

Business methods that are deceptive, manipulative, or otherwise morally dubious, aimed at persuading customers to make purchases.

CEO's Salaries

The compensation awarded to chief executive officers of corporations, often comprising a mix of salary, bonuses, shares, and other benefits.

Industrial Nations

Countries that are characterized by a significant level of industrialization, with a major part of their economy coming from manufacturing and services.