The British Fashion Company,Burberry,is Considering Diversifying into the Hotel Business

question 27

Multiple Choice

The British fashion company,Burberry,is considering diversifying into the hotel business.Its optimal strategy is to:

• A)Set up its own luxury hotel chain-that way it can appropriate all the profits from the venture
• B)License its brand to an existing hotel operator-that way it can avoid the costs and risks of having to invest in all the resources and capabilities required by the hotel business
• C)Stay away from hotels all together since this business is unrelated to Burberry's core fashion business
• D)Establish a separate start-up company,Burberry Hotels,in which Burberry Group retains a minority equity holding

---

Definitions:

High School

An educational institution that provides secondary education, typically for students aged 14 to 18 years old.

Regression Model

A statistical technique that models and analyzes the relationships between a dependent variable and one or more independent variables, used to predict the outcome of the dependent variable.

Number of Predictors

The total count of independent variables used in statistical models to predict an outcome.

Model Fit

The extent to which a statistical model describes the observed data effectively.