Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a failed diversification effort.

Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a failed diversification effort.

Explanation:

Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:

-failing to integrate acquisitions

-unable to understand how the acquired organization’s assets would fit with their own lines of business

-paying high premium for the target's common stock

-not acting in best interest of shareholders

The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.

Exchange influence tactic

It means to express one's promise or trading favours

Explanation:

Influence tactics are the strategies a leader or an organization adopts so as to get people committed to them, such strategy could be positive and negative, hard or soft.

Examples of influence tactics includes rational persuasions, exchange, personal appeals, pressure, consultation, Ingratiation, etc.