Nike Engaged in Dual Distribution When It Began

question 1

Multiple Choice

Nike engaged in dual distribution when it began:

• A) to sell through its own retail outlets as well as independent retailers.
• B) to sell to retailers competing with its existing retailers.
• C) to encourage two different distributors to serve the same retailer.
• D) to offer two different prices to retailers, based on volume purchased.
• E) to produce private label brands for the retailers currently selling Nike shoes.

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Definitions:

Administration Costs

Expenses associated with the general operation of a business, including office supplies, utilities, and executive salaries, but excluding production and marketing costs.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Benefits Vendors

Companies or service providers that offer and manage benefits such as health insurance, retirement plans, and other perks for employees on behalf of employers.

Benefits Costs

The expenses incurred by an organization in providing non-wage compensations such as health insurance, pensions, and paid leave to its employees.