iness. For example, Coca‐Cola has announced that it wants to buy China Huiyuan Juice Gr
Discuss, with reasons, whether they fall into the category of applied or
basic research.
Scenario 1 To acquire or not to acquire: that is the question
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
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 risks. Some research is needed here!
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