SEVI Quiz 6

The Konex Hotel Group purchased Green-Plus Hotels for an estimated value of $120 billion. All the hotels previously owned by Green-Plus Hotels are now managed by the Konex Hotel Group and are known as Konex hotels. What does this scenario best illustrate?

an acquisition

What is the term for the process of merging with a competitor at the same stage of the industry value chain?

horizontal integration

When does a merger between companies typically occur?

when two firms of comparable size join to form a combined entity

Daniela wishes to strengthen her firm's marketing department by partnering with a large marketing firm that can complement her existing value chain. However, she fears potential legal repercussions, including potential lawsuits filed by U.S. federal agencies such as the Federal Trade Commission. Which of the following strategic options should Daniela pursue?

Daniela should consider forming a strategic alliance with the marketing firm.

Which of the following statements is true of an equity alliance?

In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.

________, which captures the cultural fit between different firms, is one key element needed when selecting an alliance partner.

Partner compatibility

NoRu Inc. is a publicly traded firm that does not wish to be acquired by FRESHPoP Corporation, a much larger publicly traded firm, who is planning an acquisition of NoRu Inc. This is an example of a

hostile takeover.

The acquisition by Disney of such firms as Marvel, Pixar, and Lucasfilm strengthened its competitive position by

increasing the differentiation of its product and service offerings.

Mars Tennis Equipment, Inc. wishes to pursue international markets such as Spain and France. In order to do this, it may wish to consider a possible

joint venture with another firm already established in those markets.

What causes the winner's curse?

overpaying for an acquisition