Week 6 - Ch. 11

Question 1

acquisition

Answer 1

is achieved by purchasing a majority of shares in a target company

Question 2

co-evolution

Answer 2

underlines the way in which partners, strategies and capabilities need to evolve in harmony in order to reflect constantly changing environments

Question 3

collaborative advantage

Answer 3

is about managing alliances better than competitors

Question 4

collective strategy

Answer 4

how the whole network of alliances, of which an organization is a member, competes against rival networks of alliances

Question 5

corporate entrepreneurship

Answer 5

refers to radical change in an organization’s business, driven principally by the organization’s own capabilities

Question 6

divestiture

Answer 6

when a business no longer fits the corporate strategy it may be sold

Question 7

merger

Answer 7

the combination of two previously separate organizations in order to form a new company

Question 8

organic development

Answer 8

is where a strategy is pursued by building on and developing an organization’s own capabilities

Question 9

organisational fit

Answer 9

refers to the match between the management practices, cultural practices and staff of characteristics between the target and the acquiring firms

Question 10

strategic alliance

Answer 10

where two or more organizations share resources and activities to pursue a common strategy

Question 11

strategic fit

Answer 11

the extent to which the target firm strengthens or complements the acquiring firm’s strategy

Question 12

trust

Answer 12

becomes highly important to the success of alliances over time