The terms mergers and acquisitions are synonymous and may be used interchangeably
Southwest Airlines operates at a significantly lower cost than its competitors.
Achieving high levels of local responsiveness will almost always lead to lower cost
structure.
Synergy occurs when the value of two firms combined is greater than the sum of the
values of the two firms independently.
Shareholders have very little direct control over what happens with a firm.
The ability of a single partner to learn increases the collective benefits derived by every
partner in the alliance.
Divestiture is a simple form of acquisition.
Not all of the world’s largest corporations are global.
There is a common set of factors underlying most business failures.
Escalation of commitment can lead to an overestimation of the value believed to be
derived from the acquisition.
The productivity declines after a company downsizes are usually minimal and correct
within the following year.
Organizational stakeholders include shareholders, banks, and other financial
intermediaries.
A new venture allows a firm to capitalize on its initial success and gain access to
financial resources.
Partners foster interorganizational trust by using unpredictable processes.
A firm’s corporate strategy usually stays close to the same over time.
International strategy affects a firm’s economic logic through its implications for
economies of scope and scale.
The relative stability of context affects the objectives that partners set for an alliance.
Some of the more important levers to achieve successful diversification include
knowledge-transfer mechanisms, coordination mechanisms, rewards, and corporate
oversight. Discuss the benefits of knowledge transfer.
Explain the five levels of the Level 5 Hierarchy.
What is the difference between SBU strategy and business strategy?
Why might a firm choose alliance as an entry vehicle and not greenfield investment?
Discuss the larger scale that accompanies global expansion in terms of competitive
advantage.
Discuss the two concepts that demonstrate the dynamic aspects of resources and
capabilities.
Briefly explain the four stages of an acquisition.