Exam 15: External Growth Strategies: Mergers,acquisitions,and Alliances

The fact that acquisitions impose substantial costs on acquiring firms (including both the acquisition premium and legal and advisory fees)implies that:

Cross-border acquisitions tend to have the strongest strategic logic,but give rise to the greatest challenges of post-merger integration.

Acquisition is the preferred mode of diversification for most firms because:

Compared to alliances between domestic partners,international alliances typically offer:

The key lesson to be drawn from the failures that Hewlett-Packard has experienced in acquiring software and services companies EDS and Autonomy is that acquisitions that aim to change a company's business model are more risky than acquisitions that seek to leverage the existing business model.

Acquiring companies often pay excessive prices to acquire target companies because:

Mergers,acquisitions,and alliances may be viewed not just as instruments of corporate strategy but as strategies in themselves.

Which of the following was not a contributory factor to the success of Disney's post-acquisition integration of Pixar?

The concentration of Hollywood film industry in Los Angeles and electronics and IT companies in Silicon Valley is for different reasons than those which created the industrial districts of Italy.

The speed at which many decisions over corporate acquisitions are made as contributed to the disappointing outcomes of most mergers and acquisitions.

The continuing popularity of mergers and acquisitions among companies despite the lack of empirical evidence of their benefits suggests:

The main reason that empirical evidence of shareholder returns fails to provide conclusive evidence on the performance outcomes of mergers and acquisition is that:

In Capron and Mitchell's decision framework for selecting the right growth path,if a firm finds that its resources and capabilities do not fit with its current strategy,then acquisition should be first option considered and internal development the last option.

The wave of mergers and acquisitions in the beer industry that have created giants such as Anheuser Busch Inbev,SAB Miller and Heineken have been motivated primarily by the desire to:

The "lemons problem" in the market for companies refers to the fact that the sellers of companies have better information about the company than do would-be buyers.

Internal business venture rather than external mergers,acquisitions and alliances is the preferred means by which most established firms achieve major extensions in the scope of their activities.