One of the Divisions of Procter & Gamble (P&G)manufactures and Markets

question 52

Multiple Choice

One of the divisions of Procter & Gamble (P&G) manufactures and markets health and beauty aids.It handles products like Olay lotions and Old Spice fragrances.This part of the business has its own accounting,engineering,manufacturing,and marketing departments,separate from the rest of the organization.This division also has its own mission statement,target markets,and planning committees.This segment of P&G would be termed a:

• A) product market niche
• B) diversified division
• C) heterogeneous element
• D) strategic alliance
• E) strategic business unit

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Definitions:

Evaluation Period

The designated timeframe during which the performance, efficiency, or effectiveness of a project, program, or strategy is assessed.

Revenue-sharing Contract

An agreement between two or more parties that stipulates the proportion of revenue generated by a business venture to be distributed among the partners.

Consumer Demand

The desire and willingness of buyers to purchase goods and services at various price points.

Vertically Integrated

A company structure where the company owns its supply chain, from raw materials to the sale of the finished product, to control costs and quality.