Scenario - SendToMe.com
SendToMe.com is a large, diversified distributing company. The company is organized into three divisions: personal products, diagnostic equipment, and office equipment. The personal products division consists primarily of toiletry products for the individual consumer. The products include shampoos, conditioners, bath soaps, and mouthwash. All of the products are sold under store brand labels; typically, the company signs an agreement with a discount store, and the products are sold under the store's label. Sales of this division (and in the industry) have been relatively stable for the past ten years, and the division enjoys a dominant market share. Due to increased efficiencies in manufacturing and distribution, profits from the division have risen.
The diagnostic equipment division specializes in developing and marketing medical equipment, specifically equipment used in blood analysis. National sales for medical diagnostic equipment have been growing over 20 percent per year for the last five years. However, sales for this division are stagnant and there has been some discussion among senior management about divesting this division.
The office equipment division manufactures a high quality line of office furniture. The products are distributed through better office equipment stores and interior design firms. Sales in this division have more than doubled over the past five years.
-Refer to the scenario above.Threats to the diagnostic equipment division's problems may lie in:
A) new entrants into the field
B) the development of nanotechnology
C)multiple core competencies
D) growth in the hospital industry
E) all of these

Question

Scenario - SendToMe.com
SendToMe.com is a large, diversified distributing company. The company is organized into three divisions: personal products, diagnostic equipment, and office equipment. The personal products division consists primarily of toiletry products for the individual consumer. The products include shampoos, conditioners, bath soaps, and mouthwash. All of the products are sold under store brand labels; typically, the company signs an agreement with a discount store, and the products are sold under the store's label. Sales of this division (and in the industry) have been relatively stable for the past ten years, and the division enjoys a dominant market share. Due to increased efficiencies in manufacturing and distribution, profits from the division have risen.
The diagnostic equipment division specializes in developing and marketing medical equipment, specifically equipment used in blood analysis. National sales for medical diagnostic equipment have been growing over 20 percent per year for the last five years. However, sales for this division are stagnant and there has been some discussion among senior management about divesting this division.
The office equipment division manufactures a high quality line of office furniture. The products are distributed through better office equipment stores and interior design firms. Sales in this division have more than doubled over the past five years.
-Refer to the scenario above.Threats to the diagnostic equipment division's problems may lie in:
A) new entrants into the field
B) the development of nanotechnology 
C)multiple core competencies
D) growth in the hospital industry
E) all of these

Quizplus · Accepted Answer

The diagnostic equipment division's problems may be due to new entrants into the field, which could increase competition and affect sales.

Scenario - SendToMe.com SendToMe.com Is a Large, Diversified Distributing Company. the Company Is