MGMT 434 Exam 3
Which of the following is a result of horizontal integration in terms of Porter's five forces model
There is a reduction of excess capacity in the market.
Which of the following is true of acquisitions?
acquisitions can be friendly or hostile
The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. All the hotels previously owned by Red Brick Hotels are now managed by the Mansion Hotel Group and are known as Mansion hotels. What does this scenario best illustrate?
an acquisition
How does horizontal integration within an industry affect the surviving firms?
by strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers
Olympia Autos Inc. merged with its competitor Vaca Autos Inc. This allowed Olympia Autos to use its technological competencies along with Vaca Autos' marketing capabilities to capture a larger market share than what the two entities individually held. What does this scenario best illustrate?
horizontal integration
Disney became the world's leading media company to a large extent by pursuing a corporate strategy of
related-linked diversification
When does a merger between companies typically occur?
when two firms of comparable size join to form a combined entity
Which of the following best illustrates a merger between the two companies GD Inc. and VS Inc.?
GD Inc. and VS Inc. join together to form a single new company called GDVS Inc.
Which of the following scenarios best illustrates horizontal integration?
Regal Autos Inc. joins with Marcus Motors Inc., one of its direct competitors
The success of the Pixar-Disney strategic alliance demonstrated that
The success of the Pixar-Disney strategic alliance demonstrated that
When large, incumbent firms buy start-up companies, the transaction is generally described as a(n)
acquisition