How Was Nestle Able to Reduce the Complexity of Its

question 6

Multiple Choice

How was Nestle able to reduce the complexity of its environment?

• A) Reduced the number of suppliers it used
• B) Expanding both products and markets
• C) Reduced the number of countries it operated in
• D) Contracted for financing at a low interest rate

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Definitions:

E-mail Correspondence

Exchanges of messages via electronic mail, commonly used for personal, professional, and legal communication.

Electronic Copies

Digital formats of documents or materials, which can be accessed via computers or other electronic devices.

Lerner Index

A measure of a firm's market power, calculated as the difference between price and marginal cost, divided by price.

Monopoly Power

The ability of a single supplier to control the market price and exclude competitors.