Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, Coca-Cola has announced that it wants to puy China Huiyuan Juice Group in an effort to expand its activities in one of the world's fastest-growing beverage markets. Such acquisitions are claimed to "work miracles." However, given the volatility of the stock market and the slowing down of the business, many companies are not sure whether such acquisitions involve too much risk. At the same ime, they also wonder if they are missing out on a great business opportunity if they fail to take such a risk. Some research is needed here!

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter6: Category Strategy Development
Section: Chapter Questions
Problem 7DQ
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Given the situation beiow,
(a) Discuss with reasons, whether this situation falls into the category of Applied or Basic research,
(b) Explain with reasons who will conduct the research.
Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, Coca-Cola has announced that it wants to
buy China Huiyuan Juice Group in an effort to expand its activities in one of the world's fastest-growing beverage markets. Such acquisitions are claimed to "work miracles."
However, given the volatility of the stock market and the slowing down of the business, many companies are not sure whether such acquisitions involve too much risk. At the same
time, they also wonder if they are missing out on a great business opportunity if they fail to take such a risk. Some research is needed here!
Transcribed Image Text:Given the situation beiow, (a) Discuss with reasons, whether this situation falls into the category of Applied or Basic research, (b) Explain with reasons who will conduct the research. Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, Coca-Cola has announced that it wants to buy China Huiyuan Juice Group in an effort to expand its activities in one of the world's fastest-growing beverage markets. Such acquisitions are claimed to "work miracles." However, given the volatility of the stock market and the slowing down of the business, many companies are not sure whether such acquisitions involve too much risk. At the same time, they also wonder if they are missing out on a great business opportunity if they fail to take such a risk. Some research is needed here!
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