Management Strategy:

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Question 5 One implication of Nestle's unusual approach to diversification is that Economies of scale will be a major component of their competitive advantage. The lack of ties between their business units increases the importance of core competencies. There is unlikely to be much struggle in internal capital markets. Economies of scope will be a major component of their competitive advantage. Question 7 if Anheuser-Busch entered the marijuana industry, where will it most likely be able to find shared activities? Distribution Sourcing and supplier relationships Production and processing Marketing