Narrative 7-1
India has the fastest-growing demand for consumer products in the world. In recent years,Coca-Cola attempted to enter the Indian market once again. Coca-Cola's first attempt to enter the Indian market a decade earlier was grossly mismanaged,which led to the company losing 20 billion Indian rupees. In that first attempt,Coca-Cola purchased Thumbs Up,the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke while maintaining the Thumbs Up distribution strategy. For its return to the market,Coca-Cola built five plants,cut costly staff,revamped transport,shrunk bottles,and made the bottles lighter to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market.
-Refer to Narrative 7-1. To increase distribution,Coca-Cola provided the financing needed for the retailers to purchase refrigeration units,and the refrigeration manufacturer gave deep price discounts. What type of agreement did Coca-Cola enter into with this manufacturer?
A)franchise agreement
B)direct investment
C)strategic alliance
D)brokered agreement

Question

Narrative 7-1
India has the fastest-growing demand for consumer products in the world. In recent years,Coca-Cola attempted to enter the Indian market once again. Coca-Cola's first attempt to enter the Indian market a decade earlier was grossly mismanaged,which led to the company losing 20 billion Indian rupees. In that first attempt,Coca-Cola purchased Thumbs Up,the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke while maintaining the Thumbs Up distribution strategy. For its return to the market,Coca-Cola built five plants,cut costly staff,revamped transport,shrunk bottles,and made the bottles lighter to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market.
-Refer to Narrative 7-1. To increase distribution,Coca-Cola provided the financing needed for the retailers to purchase refrigeration units,and the refrigeration manufacturer gave deep price discounts. What type of agreement did Coca-Cola enter into with this manufacturer?
A)franchise agreement  
B)direct investment  
C)strategic alliance  
D)brokered agreement

Quizplus · Accepted Answer

This is a strategic alliance between Coca-Cola and the refrigeration manufacturer, as the two companies are working together to achieve a mutually beneficial outcome - Coca-Cola increases its distribution while the manufacturer gets sales from discounted units. A franchise agreement typically involves a company giving another company the right to use its brand and business model, but this is not evident from the given information. Direct investment involves a company investing money to establish its own operations in a foreign market, which is not the case here. A brokered agreement involves a third party facilitating a deal between two other parties, but again, this is not evident from the given information.

Narrative 7-1 India Has the Fastest-Growing Demand for Consumer Products in the in the World