Alliances may fail because partners have overly formalized monitoring systems.
Acquisitions are generally regarded as a means of managing competitive uncertainty.
In the majority of U.S. public firms, the CEO also serves as the chair of the board of
directors.
Coordination difficulties in international firms increase as international diversification
increases.
An alliance is deemed a failure when one of more of the partners does not achieve its
objectives.
In most cases of overcapacity mergers, both companies are usually already large
enough to be operating at a minimum efficient scale.
Employees are sometimes called a firm’s human capital.
Industries with consistently higher than average profitability are usually characterized
by low entry barriers.
The main costs associated with exporting are transportation and research and
development.
There is a perception that annual bonuses are the best forms of governance.
Customization of products and services is a major way to exploit various targeted
arenas.
Rent and equipment are examples of variable costs.
Synergy value is a function of the strategic fit of the acquiring and the target firms.
What are restricted stock grants?
Differentiate between external- and internal-based views of strategy.
According to the CAGE framework, what are some of the possible products/industries
most affected by geographic distance?
What are the four possible ways in which international expansion can contribute to a
firm’s competitive advantage?
List the five stages of the turnaround process.
What are the two ways in which a firm may increase its horizontal scope?
What are the two actions that firms pursuing the differentiation strategy may take?
Discuss some of the requirements for successful strategic change.
Explain why failure rates are high for alliances.
What are some basic solutions to the agency problem?