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The Daily Telegraph News in Action 4
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News in Action 4 (1999)(Daily Telegraph)[Mac-PC].iso
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00047_Text_A Level.txt
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1999-02-05
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664b
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Doing the splits throws spotlight on Hanson weakness
1 Hanson Trust is a conglomerate. What is a conglomerate?
2 What are the advantages of being a conglomerate?
3 What strategy has the company used to grow?
4 Why would Lord Hanson wish to dismember the corporation?
5 Draw a supply and demand diagram to show the City's reaction to the
news from Hanson Trust.
6 One argument against a conglomerate is that it may experience diseconomies of scale. Draw a long-run average cost curve and label it
to show diseconomies of scale.
7 Identify one other reason why a conglomerate may experience problems
in the long term.