When Fun Bun,an international fast food chain,first moved into China,it had to teach farmers how to grow a particular variety of potatoes and bakers had to be taught to make hamburger buns.This is an example of:
A) corporate social responsibility.
B) an undeveloped supply channel.
C) incumbent inertia.
D) monopoly rents.

Question

Quizplus · Accepted Answer

The need to teach farmers how to grow a particular variety of potatoes and bakers how to make hamburger buns indicates that there was an undeveloped supply channel. The company could not rely on existing suppliers to provide the necessary ingredients and products to meet their standards, so they had to invest in educating and developing new suppliers. This is a common challenge for companies entering new markets. Corporate social responsibility, incumbent inertia, and monopoly rents do not accurately describe this situation.

When Fun Bun,an International Fast Food Chain,first Moved into China,it