MGMT 503 HBS Case HW 1.
Describe the internet advertising industry. Across the internet, there are many advertisements to be found. This online advertising industry is one that changings very rapidly with new trends and consumer tastes. It is an industry that involves the rapid creation of promotions. In this industry, it’s crucial to be able to have multiple methods of delivery for your promotions. There are big players in this industry, with Google, Microsoft, and Facebook being the biggest. This industry is incredibly effective as they are able to target the right audience for their products. It’s a great tool overall for companies and businesses to reach their desired consumer base. 2.
Why did MS not develop their own product instead of acquiring aQuantive? They didn’t develop their own product because at the time, it was crucial for them to get into the market fast. Google in 2007 already had a strong presence in the internet advertising industry. Acquiring aQuantive was the right move for them in their eyes as they were already established and had existing market share. If they chose to make their own product, it would take time and a lot of resources which would set Microsoft way behind their competitors. As I said earlier, this industry is fast moving, and that time to develop their own product would not be the right decision to make. Acquiring aQuantive allowed them to jump into the market and gain the benefits to be had from this industry. 3.
Journal entries: account
dr
cr
merger
5,857.00
$ liquidation of merger
5,857.00
$ cash
342.00
$ account receivable
273.00
$ other CA
6.00
$ intangible assets
938.00
$ ppe
50.00
$ long term assets
7.00
$ goodwill
5,225.00
$ accrued comp
37.00
$ liabilities
638.00
$ long term liabilities
80.00
$ deffered income tax
229.00
$ merger
5,857.00
$ journal entries
