100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Strategic Management Final Exam Questions &Answers(RATED A+) $13.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Strategic Management F
  4.  
  5. Strategic Management F

Exam (elaborations)

Strategic Management Final Exam Questions &Answers(RATED A+)
 0 purchase
  • Course
  • Strategic Management F
  • Institution
  • Strategic Management F

Chapter 9 - ANSWERCorporate Strategy: Acquisitions, Alliances and Networks Merger - ANSWERTwo independent companies form a combined entity (tend to be friendly) Ex) Disney merged with Pixar Acquisition - ANSWERPurchase or takeover of one company by another Hostile takeover (when a fir...

[Show more]

Preview 3 out of 18  pages

Document information

  • November 2, 2024
  • 18
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • strategic management final exam questions answers
  • strategic management stuvia 2024
  • chapter 9 answercorporate strategy acquisition
  • merger answertwo independent companies form a c

Written for

  • Strategic Management F
  • Strategic Management F

Seller

avatar-seller
papersbyjol

Reviews received

Content preview

Strategic Management Final Exam
Questions &Answers(RATED A+)

Chapter 9 - ANSWERCorporate Strategy: Acquisitions, Alliances and Networks



Merger - ANSWERTwo independent companies form a combined entity



(tend to be friendly) Ex) Disney merged with Pixar



Acquisition - ANSWERPurchase or takeover of one company by another



Hostile takeover (when a firms does not want to be acquired)



Ex) Vodaphone takeover of german based Mannesmann



Horizontal Integration - ANSWERProcess of acquiring and merging with competitors, leading to
industry consolidation



Type of corporate strategy designed to improve a firms strategic position



Ex) Music industry --> Live Nation bought Ticketmaster



4 Main benefits of Horizontal integration - ANSWER1. Reduction of competitive intensity

2. Lower Costs

3. Increased differentiation

4. Access to new markets and distribution channels



Reduction in competitive intensity - ANSWERExcess capacity is taken out of the market and
competition decreases

,oligopolistic industry structure, focus is on non-price competition --> greater chance for profitability



How it affects 5 Forces Model:



Strengthening bargaing power with suppliers & buyers



Reduce the threat of entry, rivalry among firms



Lower Costs - ANSWERHorizontal integration is used to lower costs through ECONOMIES OF SCALE



Enhance economic value creation, enhance performance



Industries that have high fixed costs, achieving economies of scale through large output is critical in
lowering costs



Ex) Pharmaceutical companies



Increased Differentiation - ANSWERStrengthen competitive positions by increasing differentiation of
their product and service offerings



Fill gaps in firms product offering by leveraging the combined entity core competencies



Access to new markets and distribution channels - ANSWERGain access to new markets and
distribution channels both US and Globally



Do mergers & acquisitions create competitive advantage? - ANSWERIn most cases they do not.
Destroy shareholder value because the anticipated synergies never materialize



3 Reasons why we see so many M&A's - ANSWER1. Desire to overcome competitive disadvantage

2. Superior acquisition and integration capability

3. Principal-agent problems

, Desire to overcome competitive disadvantages - ANSWERMay put the organization on the road to
gaining a competitive advantage



Ex) Adidas acquiring Reebook achieved economies of scale and scope that were unachievable before



Superior acquisition & integration capability - ANSWERFirms that are able to identify, acquire, and
integrate target companies to strengthen their competitive positions



If it is valuable, rare, difficult to imitate, a superior acquisition & integration can lead to competitive
advantage



Ex) Cisco Systems



Principal-Agent Problems - ANSWERIncentive to grow firms through acquisitions but not for
shareholder value.



Power, Prestige, Pay, Perks, Larger organization, job security



Managerial Hubris: a form of self-delusion in which managers convince themselves of their superior
skills in the face of clear evidence to the contrary



Strategic Alliances - ANSWERArrangement between firms that involve the sharing of knowledge,
resources, and capabilities with the intent of developing processes, products, or services to lead to
competitive advantage



Why do firms enter strategic alliances - ANSWER1. Strengthen competitive position



2. Enter new markets



3. Hedge against uncertainty



4. Access critical complementary assets

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller papersbyjol. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$13.99
  • (0)
Add to cart
Added