When P & G Bought Gillette It Thought That There

question 22

Multiple Choice

When P & G bought Gillette it thought that there was a strategic fit between the companies.This was a good fit because they had _______________.

• A) The same ad agency.
• B) Sophisticated supply chain systems including international markets.
• C) Similar price structures.
• D) Great brand awareness.
• E) None of the above.

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Definitions:

Cost Changes

Adjustments in the financial outlays associated with different business activities or over time.

Break-even Point

The level of sales at which total revenues equal total expenses, resulting in no net profit or loss.

Sales Mix

The combination of different products or services a company sells, usually expressed in terms of the proportion of total sales volume each constitutes.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and loan payments.