Final

A buyer assesses whether a target is interested in being acquired by all of the following except:

?

Hollywood studios' current global strategy attempts to combine the benefits of a localization strategy (high local responsiveness) while responding to pressure for cost reductions. This is an example of ____________________ strategy on the Integration-Responsiveness framework.

?

In searching for entities to acquire, ______________ portfolio companies seek businesses in which they believe they can build a leadership position, or they can leverage their skills.

?

Company's ____________ defines HOW the organization will compete in the chosen markets to sustain a competitive advantage.

M & A Strategy

When one company acquires another, staff reductions can occur due to all of the following except for:

Market expansion

Janet hires Vanessa to perform a critical task in her organization. However, Vanessa has misrepresented her knowledge, skills and abilities and Janet has no way of knowing whether Vanessa can indeed perform well. This is an example of:

?

Organizations with a revenue growth strategy can increase their opportunities for success by paying special attention to their:

?

Zwilling is a company that expanded into other European countries with its products and added products to its portfolio through acquisitions. This is an example of:

?

_________________ allow for different ways to exploit acquired assets in alternative future scenarios.

?

_______________________ is a situation in which information asymmetry increases the incentive of one party to take undue risks or shirk other responsibilities because the costs incur to the other party.

?

Which of the following are considered stakeholders with regards to college football in the United States?

All of the options

The following two types of portfolio companies are focused on transformational interventions at the acquired companies:

Architect and Surgeon

When one company acquires another, the following steps are executed in implementing a new culture, except for:

Auditing the current culture

Jonathan is interested in building the centerpiece of his firm's corporate governance, and so hires a ________ that is made up of individuals from both inside and outside the firm.

Board of directors

In December 2016, ByteDance took an equity stake in Babe, an Indonesian news aggregator. This is an example of what part of the Build-Borrow-Buy Framework?

Borrow

GE leadership and management share best practices across its holdings. This is an example of a(n) ________________ portfolio company.

Coach

Berkshire Hathaway is an excellent example of a(n) ___________ portfolio company because it counts on the businesses that it looks to acquire to have a strong management in place.

Controller

In searching for entities to acquire, ______________ portfolio companies look for large, well-managed companies that may be undervalued.

Controller

_________ answers questions such as: Where the company will compete, why it chooses to compete there, and on what basis it will compete to sustain its competitive advantage.

Corporate governance

Companies need to pay special attention to the following risk when entering a new country with existing products.

Cutural clashes in the new country

In 2002, eBay acquired PayPal. In 2015, eBay spun off PayPal and exited the Payment business. This is an example of ____________ options.

Divestiture

_________________ mitigate risk by enabling a company to "unacquire" all or part of an acquisition in the future.

Divestiture Options

is creating a __________________ options perspective for himself and his fellow investors.

Flexibility options

An overseas airline acquiring a US airline to break into the US market and increase traffic on potential future routes. This is an example of ________ options.

Growth

________________ provide the potential to pursue alternate markets in the future.

Growth options

With a new apartment building next to their brewery, the owners of 300 Suns have acquired new customers and consumption currently served by a competitor. This is an example of:

Growth within the current market with current market offerings

Companies form strategic alliances to:

Hedge against uncertainty. Learn new capabilities. Enter new markets.

Dow Chemical's acquisition of DuPont, one of its competitors, is an example of:

Horizontal Integration

When an enterprise is evaluating the potential acquisition of one of its competitors, it is primarily considering:

Horizontal oppurtunities

Acquirers organize the information about their targets in the following key categories, except for:

Industry regulation

Grace wants to form a voluntary arrangement with another firm in order to gain more flexibility in her supply chain, complement a few of her support activities, and strengthen her firm's overall competitive position. Grace is looking for a simple and common type of alliance, like a(n)

Nonequity alliance

Facebook's strategy to integrate Instagram with Facebook's Messenger demonstrates Facebook is an example of a(n) _________ portfolio company.

Orchestrator

This strategic analysis tool provides a method for a strategist to gain an overall understanding of the external environment that the organization is facing.

PESTEL

In the Restructuring Hexagon framework, the ____________ is the difference between the market value and the intrinsic value of the company.

Perception Gap

A company that is entering new markets with new products should first capitalize on the existing ___________ and __________ aspects of its Marketing strategy before rationalizing these elements.

Place and Product

What is the global disadvantage that's been highlighted in the US with the short supplies of PPE and ventilators at the start of the pandemic?

Possible disruption to the supply chain

____________________ must be executed well in order for a buyer to achieve the value it expected after it has made its acquisition.

Post-merger integration

_________________ is a key element in keeping the focus and attention of the Post Merger Integration team on the right aspects of the program, by planning, executing and measuring the project along the way, until the value expected with the merger or acquisition has been realized.

Project Management

__________________ are choices that afford managers the right but not the obligation to make further investments, breaking down a larger investment decision into a set of smaller decisions.

Real Options

At Disney, <70% of businesses share competencies. Disney has been pursuing a _______________________ diversification strategy.

Related-linked

This framework helps the leadership of a company determine how the enterprise could achieve its optimal value.

Restructuring Hexagon

One hypothesis as to Walmart's interest in TikTok is that Walmart could sell their cheaper products directly to the audience on TikTok. This is an example of growth by _____________ for Walmart:

Selling existing products to a new market

An investment in TikTok would allow Oracle to sell its products to customers/consumption currently being served by a competitor, Facebook. This is an example of growth by ____________________ for Oracle:

Selling existing products to an existing market

________________are best described as voluntary arrangements 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.

Strategic Alliances

Macy's is improving its internal capabilities by partnering with Google to enhance its search-engine results. This is an example of Macy's investment in a(n):

Strategic alliance

In searching for entities to acquire, ______________ portfolio companies look for under-performing companies that they can transform.

Surgeon

Hewlett Packard spun off Agilent, its measurement instruments business unit because:

The business unit had a higher value as a stand-alone business than as part of HP.

EDS, an information technology company, acquired A.T. Kearney, a management consulting firm in an effort to expand the scope of its practice into strategy consulting. That deal was eventually undone. This growth strategy failed mainly because EDS tried to sell its services:

Through unsuitable channels

T/F: Creating Shared Value places social and environmental issues at the CENTER of how businesses work.

True

T/F: Due to changes in the US M&A regulations in the early 21st century, there is no longer the possibility of "mergers of equals" in the US.

True

T/F: Organizational Inertia is a firm's resistance to change the status quo, which can set the stage for the firm's subsequent failure.

True

T/F: The Change Curve and Tuckman's Team Development Cycle follow the same path. The Change Curve demonstrates this path at the individual level. Tuckman's Team Development Cycle shows this path at the team level.

True

T/F: The King Brothers sold their company, ReadyTalk because their industry, collaboration, became highly competitive and it became difficult to sustain growth.

True

T/F: The strategy of revenue growth within a market with new products is best achieved when a customer pain point is addressed.

True

t/f: Companies and investors are motivated to seek out Real Options if there's a chance for deregulation or opportunity for the creation of a new market.

True

Kroger grocery store chain was early to move into the milk bottling business, processing roughly 90% of the milk its stores sell. This is an example of:

Vertical integration

When an enterprise is evaluating potential acquisition opportunities up and down the value chain, it is considering:

Vertical opportunities

Scenario Analysis has all of the following characteristics except for:

involves subjective analysis

An organization that is organized according to strategic business units (SBUs) AND also along organizational structures is most likely using a ________ structure.

matrix

Companies that drive consolidation in their industry, typically have:

strong financials and high market value.