1.     I1.   In class we talked about firm profits and two perspectives of how to explain them – an internal resource based view and a more external view focused on the industry the firm competes in. Two questions related to firm profits:

a.     If you were asked to explain why Coke and Pepsi are so profitable, which perspective would you take and how would you explain their elevated profitability?

b.     How do you explain the difference in profitability between the concentrate business (Coke and Pepsi) and the bottling industry?

2.     If you could buy a bottling business for Coke or Pepsi for $1, and you were offered either NYC or Oklahoma City, which would you choose and why? (assuming similar revenue from the two areas)

3 page, double spaced. The size of the type should be 12 points. Page number on every page of the text and the text should be left-justified.

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