In the chapter Opening Case, the sharing of marketing and distribution in the beer and wine business at Foster's Group was intended to create _______________.
A) financial economies
B) vertical integration
C) economies of scope
D) conglomerate discount

Question

Quizplus · Accepted Answer

The sharing of marketing and distribution in the beer and wine business at Foster's Group was intended to create economies of scope, which is the cost savings that a company can achieve by producing two or more products together rather than separately. By sharing marketing and distribution, Foster's could save money on promotional and logistical efforts while also offering a wider range of products to consumers.

In the Chapter Opening Case, the Sharing of Marketing and Distribution