Narrative 7-1 India Has the Fastest-Growing Demand for Consumer Products in the in the World

question 37

Multiple Choice

Narrative 7-1
India has the fastest-growing demand for consumer products in the world. In recent years,Coca-Cola attempted to enter the Indian market once again. Coca-Cola's first attempt to enter the Indian market a decade earlier was grossly mismanaged,which led to the company losing 20 billion Indian rupees. In that first attempt,Coca-Cola purchased Thumbs Up,the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke while maintaining the Thumbs Up distribution strategy. For its return to the market,Coca-Cola built five plants,cut costly staff,revamped transport,shrunk bottles,and made the bottles lighter to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market.
-Refer to Narrative 7-1. To increase distribution,Coca-Cola provided the financing needed for the retailers to purchase refrigeration units,and the refrigeration manufacturer gave deep price discounts. What type of agreement did Coca-Cola enter into with this manufacturer?

• A)franchise agreement  
• B)direct investment  
• C)strategic alliance  
• D)brokered agreement

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Definitions:

Moving To Opportunity

A research initiative in the United States investigating the effects of offering families from high-poverty communities the chance to move to areas with lower poverty levels.

Housing Vouchers

Government-funded coupons that allow low-income families to rent housing in the private market at an affordable cost.

High-Poverty

refers to areas or populations experiencing widespread economic hardship, where a significant portion of the community lives below the poverty line.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not necessarily imply causation.