application

Question 1

Example of a demerger that has lead to job insecurity/loss

Answer 1

Sportsworld selling dunlop - sold one of its divisions

Question 2

Example of how a demerger increased specialisation

Answer 2

Pepsi splitting into pepsi food and pepsi drink

Question 3

example of verticle integration

Answer 3

waitrose

Question 4

example of horizontal integration

Answer 4

disney and pixar

Question 5

example of conglomerate integration

Answer 5

Tata group - nearly 100 companies, info systems, energy

Question 6

example of principal-agent problem

Answer 6

Tim Cook using profits to produce a computer that made very little profit and was not released

Question 7

example of organic growth

Answer 7

ocado

Question 8

how long did it take ocado to make profit

Answer 8

15 years

Question 9

external economies of scale example

Answer 9

formula 1 car companies red bull , mclaren

whole network of industry and their research and development operations

Question 10

example of demerger

Answer 10

PayPal splitting from eBay in 2014.

Question 11

price war examples

Answer 11

Asda, Morrisons and Tesco

Question 12

predatory pricing examples

Answer 12

Busways (owned by Stagecoach from July 1994) a new entrant into the deregulated bus markets, offered free bus travel to try and force the rival Darlington Bus company out of business.

Question 13

rationalisation example

Answer 13

T-mobile and orange making EE firing duplicate accountants

Question 14

what percentage of tax does the top 1% pay

Answer 14

25%

Question 15

what wage cap did jeremy corbyn propose

Answer 15

20X to lowest paid worker