7_M&As and strategic alliances Flashcards
1
Q
What could be reasons for following an acquisition strategy?
A
- Defensive: maintain position, economies of scale
- New products: lacking internal capability
- New markets: expansion strategy
- Diversification: accepting risks
2
Q
How much percent of M&A fail to achieve their objectives five years later?
A
70-80%
3
Q
What is the main reason why strategic alliances fail?
A
Differences in partner cultures
4
Q
What is the difference between ‘alliance capability research’ & ‘traditional research’?
A
Alliance capability research looks at:
- Experience with alliance
- Knowledge of alliances
- Management tools
5
Q
What is the most and second most important tool for alliance success?
A
1) Individual evaluation
2) Joint evaluation
6
Q
Is traditional research or alliance capability research best for success?
A
Alliance capability research
