Companies are very interested in acquiring other firms , even when the latter operate in totally unrelated realms of b

[answerhappygod]

Companies are very interested in acquiring other firms , evenwhen the latter operate in totally unrelated realms ofbusiness . For eg Coca-cola has announced that it wants tobuy China Huiyan juice Group in an effort to expand itsactivities in one of the worlds fastest growing beverage markets . Such acquisitions are claimed to ‘ work miracles ‘. However given the volatility of the stock market and slowing down of business ,many companies are not sure whethersuch acquisitions involve too much risk . At the same time,they also wonder if they are missing out on a great businessopportunity if they fail to take such risks. Some research isneeded here !
This Applied research or Basic research ? Why ?