Question 1

A rational acquisition process involves five steps:

Accepted Answer

A)  corporate espionage, option ranking, valuation, demand profiling, deal closure 
B)  intelligence gathering, share trading, ASX announcement, Part A Offer, Part B Acceptance 
C)  terms of payment, due diligence, negotiation, valuation, search for a target 
D)  advertise for acquisitions, data analysis, cash flow model, terms of endearment, purchase 
A)  corporate espionage, option ranking, valuation, demand profiling, deal closure 
B)  intelligence gathering, share trading, ASX announcement, Part A Offer, Part B Acceptance 
C)  terms of payment, due diligence, negotiation, valuation, search for a target 
D)  advertise for acquisitions, data analysis, cash flow model, terms of endearment, purchase

Question 2

Haspeslagh and Jemison argued that the four types of capabilities that create value for acquisitions are:

Accepted Answer

A)  resource-splitting, functional skill transfer, operational skill transfer, combination transfer 
B)  translation, resource transfer, functional skill-sharing, general management skill-sharing 
C)  functional upskilling, general management upskilling, resource upskilling, outsourcing 
D)  general management skill transfer, resource-sharing, functional skill transfer, combination 
A)  resource-splitting, functional skill transfer, operational skill transfer, combination transfer 
B)  translation, resource transfer, functional skill-sharing, general management skill-sharing 
C)  functional upskilling, general management upskilling, resource upskilling, outsourcing 
D)  general management skill transfer, resource-sharing, functional skill transfer, combination

Question 3

Joint venture is NOT formed to:

Accepted Answer

A)  gain benefits over other partners 
B)  allow a firm to achieve economies of scale 
C)  allow a firm to access to resources 
D)  provide a firm with joint research and development opportunities 
A)  gain benefits over other partners 
B)  allow a firm to achieve economies of scale 
C)  allow a firm to access to resources 
D)  provide a firm with joint research and development opportunities

Question 4

Ownership of 51% of shares gives same level of control as 100% ownership.

Accepted Answer

A) True 
 B)False

Question 5

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

Accepted Answer

In a rational acquisition process,the fo

Question 6

Hubbard,Rice and Galvin define an acquisition as:

Accepted Answer

A)  the sale of 50.1% of shares by an organisation on floatation 
B)  a mutually agreed consolidation under joint ownership of two organisations 
C)  the purchase of enough shares to obtain decision-making control over an organisation 
D)  majority ownership by 51% of directors 
A)  the sale of 50.1% of shares by an organisation on floatation 
B)  a mutually agreed consolidation under joint ownership of two organisations 
C)  the purchase of enough shares to obtain decision-making control over an organisation 
D)  majority ownership by 51% of directors

Question 7

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

Accepted Answer

A)  each parent has equal influence over both the strategic and day-to-day operations of the venture 
B)  none of the parent firms has influence over both the strategic and day-to-day operations of the venture 
C)  one parent has a lot of influence over both the strategic and day-to-day operations of the venture 
D)  none of the above 
A)  each parent has equal influence over both the strategic and day-to-day operations of the venture 
B)  none of the parent firms has influence over both the strategic and day-to-day operations of the venture 
C)  one parent has a lot of influence over both the strategic and day-to-day operations of the venture 
D)  none of the above

Question 8

One of the factors assessed by Haspeslagh and Jemison in their model of an integration process is:

Accepted Answer

A)  need of strategic independence 
B)  need for organisational autonomy 
C)  need to preserve brand equity 
D)  need to maximise financial return 
A)  need of strategic independence 
B)  need for organisational autonomy 
C)  need to preserve brand equity 
D)  need to maximise financial return

Question 9

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

Accepted Answer

A) True 
 B)False

Question 10

According to Hubbard,Rice and Galvin,the Coles acquisition and later divestment of Myer was an example of:

Accepted Answer

A)  a value-accruing transaction for both organisations 
B)  an effective turnaround process 
C)  a misaligned cultural fit that eventually led to divestment 
D)  all of the above 
A)  a value-accruing transaction for both organisations 
B)  an effective turnaround process 
C)  a misaligned cultural fit that eventually led to divestment 
D)  all of the above

Question 11

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

Accepted Answer

A) True 
 B)False

Question 12

The reason for using M&A for most diversification is that it is a much faster process of growth and expansion.

Accepted Answer

A) True 
 B)False

A rational acquisition process involves five steps:

Haspeslagh and Jemison argued that the four types of capabilities that create value for acquisitions are:

Joint venture is NOT formed to:

Ownership of 51% of shares gives same level of control as 100% ownership.

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

Hubbard,Rice and Galvin define an acquisition as:

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

One of the factors assessed by Haspeslagh and Jemison in their model of an integration process is:

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

According to Hubbard,Rice and Galvin,the Coles acquisition and later divestment of Myer was an example of:

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

The reason for using M&A for most diversification is that it is a much faster process of growth and expansion.

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Dynamic competitive strategy

Corporate/multi-business strategy

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters

Exam 10: Acquisitions and alliances

A rational acquisition process involves five steps:

Haspeslagh and Jemison argued that the four types of capabilities that create value for acquisitions are:

Joint venture is NOT formed to:

Ownership of 51% of shares gives same level of control as 100% ownership.

Consider the distinct steps of the acquisition process and explain if all steps are equally important.

Hubbard,Rice and Galvin define an acquisition as:

Hubbard,Rice and Galvin present that the joint venture will be arguably most effective when:

One of the factors assessed by Haspeslagh and Jemison in their model of an integration process is:

The first step of the rational acquisition process is 'conducting due diligence' of the target organisation.

According to Hubbard,Rice and Galvin,the Coles acquisition and later divestment of Myer was an example of:

According to Hubbard,Rice and Galvin,an alliance is a cooperative and positively competitive relationship between organisations.

The reason for using M&A for most diversification is that it is a much faster process of growth and expansion.

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Dynamic competitive strategy

Corporate/multi-business strategy

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters