Beruflich Dokumente
Kultur Dokumente
HOMEWORKS
(Business & Management)
Martin Zurita
1bach B
24/06/15
Questions
Sony Ericsson
a. Define the terms Joint Venture and profits as started in the case
study above.
Joint Venture is when two or more business decide to split the cost,
risks, control and rewards of s business project as Sony Ericsson
made, where they agree to set up a new legal entry. Also between
the firms will involve Sony Ericsson has been very successful in
reducing the market share of more established mobile
manufactured.
b. Explain the reasons why a merger between the two companies
may not be appropriate.
Because when a business decide this method of growth they allow
organize to enjoy some of the benefits of merger of acquisitions
such as higher scale and market share but without having to lose
their corporate identity in other words, lose, divide the profit.
c. Examine the benefits of the joint venture to Sony Ericsson.
Talents and resources of the firms in collaboration should create
synergy, spreading of cost and risk on this organizations, entry to
foreign markets, relatively cheap, have a competitive advantages,
have an exploration of local knowledge, and also have a high
success rate. These are all the benefits of the joint venture to
Sonny Ericsson
Questions
Disneys Takeover of Pixar
Questions
Pizza Hut
a. Explain the reasons for Pizza Huts decision to use franchising
as its much form of growth.
Franchising allows a business to have a national or
international presence, reputation without the relatively
Review Questions:
1. Outline four ways in which the size of a market can be
measured.
The sales revenue (sales turnover), market share the sales
revenue of the nosiness as a percentage of industrys scales,
capital employed, the number of employees hired by the
business).
2. Why do business seek to grow in size?
Because to reap the benefits of larger scale production know as
economic of scale, to gain a larger market share in other to gain
better markets and industries.
3. Using examples explain economies of scale
Refers to the lower average costs of production as a firm
operates on a larger scale due to an improvement in productive
efficiency.
For example, the Airbus 300 Hyper Jumbo is reported to have
351 more seats than the Boeing 747 jumbo jet but burns it less
fuel per seat.
4. Distinguish between internal and external economies of
scale.
The internal are within the organizations control and the
external occur within the industry that the business operates
and are largely beyond the control of the business.
5. What is meant by the optimize size of a business?
Depend on its internal structure, its costs and the size of the
market the most appropriate size for a business also depends
on its aims and objectives.
6. Distinguish between internal and external growth.
Internal growth occurs when a business grows internally, using
its own resources to increase the scale of its operations and