B. Suppose Boeing acquires GE’s engine division. Assume after the acquisition, Boeing turns the engine division into a cost center. The cost center will charge cost when it transfers engines to the assembly plant. This means that the engine division makes no profits, as it is evaluated based on cost, not profits. Under these arrangements how many planes would Boeing sell and at what price? What is Boeing’s profit under these arrangements? Compare this amount of profits to the sum of profits for Boeing and GE that you calculated in part (a) above. What is the difference, and what do you attribute the difference to?

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

What two categories do strategic choices fall within? a. generic business strategies and cost leadership strategies b. business-level strategies and corporate-level strategies c. cost leadership strategies and corporate-level strategies d. diversification strategies and leadership strategies e. pricing strategies and cost-leadership strategies

Usually, government officials make the decisions on the best ways to spend public money true or false