Question

Miller Brewing was related to Philip Morris’s tobacco business because it was possible to create important marketing commonalities: both beer and tobacco are mass-market consumer goods in which brand positioning, advertising, and product development skills are crucial to creating successful new products.

This is an example of which of the following?

a. Transferring competencies
b. Leveraging competencies
c. General organizational competencies
d. Economies of scope
e. Organizational design skills

Answer 1

a. Transferring competencies

Step-by-step explanation:

This is an example of transferring competencies, as the two industries are very similar in some key points (FMCG, non-essential goods...). Since that was the case, the most of marketing activities could be looked at as one - they reflected a similar industry and it would be easier to use the same know-how and leverage it to the higher scope level.