Merger and Acquisition (12:30-2)

Two firms agree to integrate their operations relatively co-equal.

• Acquisition

• Hostile Takeover

• Merger

• Takeover

One firm buys a controlling, or 100% interest, in another firm with the intent of making the acquired firm a subsidiary business within its portfolio.

• Acquisition

• Hostile Takeover

• Merger

• Takeover

An acquisition in which the target firm did not solicit the acquiring firm's bid for outright ownership.

• Acquisition

• Hostile Takeover

• Merger

• Takeover

Market power is derived primarily from the

• Core competencies of the firm

• Size of a firm and its resources and capabilities

• Quality of a firm’s top management team

• Depth of a firm’s strategy

When a firm acquires its supplier, it is engaging in a/an

• Vertical acquisition

• Unrelated acquisition

• Horizontal acquisition

• Related acquisition

Different cross-border acquisitions that are being pursued or have been completed recently are products of different strategic rationales.

• True

• False

The outcomes of an internal product development can be estimated more easily and accurately than the outcomes of an acquisition.

• True

• False

The higher the barriers to market entry, the greater the probability that a firm will acquire an existing firm to overcome them.

• True

• False

Factors associated with a market, or the firms currently operating in it, that increase the expense and difficulty new firms encounter when trying to enter a particular market

• Cross-border Aquisition

• Strategic Rationale

• Barriers to Entry

• Acquisition Strategy

Increasing a company’s dependence on specific products or markets, shapes the firm’s competitive scope.

• True

• False