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Why did Coca Cola buy Columbia Pictures?

A. Diversification
B. Film Production
C. Content for Marketing
D. Vertical Integration

User LMaker
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Final answer:

Coca Cola's acquisition of Columbia Pictures was primarily for diversification, to expand its business beyond beverages. Social Darwinism is not a management strategy used by Rockefeller; rather, it was a prevailing business mindset of the age.

Step-by-step explanation:

The reason why Coca Cola bought Columbia Pictures is most accurately characterised as A. Diversification. Companies often diversify their business holdings to spread risk, tap into new markets, and leverage existing resources in new ways. In the case of Coca Cola, the acquisition of Columbia Pictures in 1982 was a move to diversify beyond its core business of beverage production into the entertainment industry. While Coca Cola may use content from Columbia Pictures for marketing and there could be elements of vertical integration if they were to tie in promotions, the primary reason for the purchase was to diversify its portfolio.

5. Which of the following does not represent one of the management strategies that John D. Rockefeller used in building his empire? The answer is C. social Darwinism. Rockefeller utilized techniques such as horizontal integration, where he bought out his competitors; vertical integration, where he controlled every aspect of the production and distribution process; and the holding company model, where his holdings were managed through a centralized organization. While social Darwinism might have been a philosophy that influenced the business practices of the era, it was not a tangible management strategy employed by Rockefeller.

User Valerio Cocchi
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