$.$

$$Select a real

$-$

world company that is not on the off

$-$

limits list

$($

The Walt Disney Company

$($

including Disney

$+$

$)$

$,$

$$Pepsi$,$ Coca

$-$

Cola, General Electric

$($

GE

$)$

$,$

$$Coursera$,$ Walmart, car sellers, universities

$($

including University of Illinois

$)$

$,$

$$automobile companies, ITT, Xylem, Excelsis, John Deere, Alphabet

$($

including Google, Waymo

$)$

$,$

$$Amazon

$($

including Whole Foods and Washington Post

$)$

$,$

$$video games

$($

software and hardware

$)$

$2$

$.$

$$What objective

$($

s

$)$

$$was the company trying to pursue with its scope decision

$($

identify the likely reason

$($

s

$)$

$$based on your research and analysis

$)$

$?$

$3$

$.$

$$Identify one alternative to the scope decision the company made, such as

if the company chose to vertically integrate, the alternative might have been to

to

$]$

$$outsource or form an alliance with a supplier or downstream firm, or

if the company chose to diversify, the alternative might be to not diversify

$($

or to divest

$)$

$$or to license out its resources

$/$

capabilities to another firm operating in the industry

$/$

market it diversified into.

$4.$Explain whether the scope decision made by the company

$($relative to the alternative you identified above$)$was the right one or not, and why.

Link your logic explicitly to the transaction costs and administrative costs.

Transaction cost and administrative cost considerations apply to both types of integration: vertical integration and diversification

$($horizontal integration$)$