Chapter 7 Flashcards
1
Q
Explain why merger and acquisition strategies are popular with many firms competing in the global economy
A
- increase market power
- overcome entry barriers to new markets or regions
- reduce the risk of entering a new business
- ## become more diversified
2
Q
Describe some of the primary problems that can adversely affect a firms effort to successfully use an acquisition strategy
A
- diffciulty of integrating the new firm
- creating debt loads
- creating a firm that is too diversified
- creating an internal environment/culuture clashes
