ConAgra, a Diversified Food Producer, Increases Its Power Over Suppliers

question 63

Multiple Choice

ConAgra, a diversified food producer, increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all of its food divisions. This is an example of using

• A)related diversification to acquire economies of scope by leveraging pooled negotiating power.
• B)related diversification to acquire market power by leveraging pooled negotiating power.
• C)unrelated diversification to acquire financial synergies through portfolio management.
• D)unrelated diversification to acquire parenting, restructuring, and financial synergies through restructuring and parenting.

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Definitions:

Power Lifters

Athletes who compete in powerlifting, a strength sport consisting of three attempts at maximal weight on three lifts: squat, bench press, and deadlift.

Intermediate Lifters

Individuals who have surpassed the novice stage in weightlifting and have developed a moderate level of strength and proficiency in lifting techniques.

Mass Lifters

Devices or mechanisms designed to lift or move heavy loads efficiently.

Thesis Statement

A concise summary of the main point or claim of an essay or research paper.