Imagine you are advising a local low-cost commercial construction business that is considering diversifyingvia acquisition into affordable residential construction. What would you not say is a typical strategicobjective or benefit that could be derived from a merger or an acquisition with an existing residentialconstruction company?O to gain quick access to new technologies or other resources and capabilities○ to create a more cost-efficient operation out of the combined companies○ to extend a company's business into new product or service categories and/or expand a company's geographiccoverage○ to fundamentally alter a company's trajectory and improve its business outlook○ to expedite shifting from one strategy to another and gain better access to additional financial capital

In the realm of mergers and acquisitions (M&A), the strategic objectives and anticipated…

Answered: Imagine you are advising a local…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Develop a scenario where you are planning to start your own business.Type of business▪ Size of the business▪ Location of the business▪ Any other markets in which it will operate▪ Examples of products and services▪ Key competitors▪ Main customer segments/target markets
129) What can late movers do to capture market share once the early mover has established its brand in the industry? a) The late mover can advertise more frequently and extensively than the incumbent firm b) The late mover can produce a superior product to that of the incumbent firm c) The late mover can acquire or merge with the incumbent firm d) A and B e) A and B and C
Your CEO wants to divest the Northern business unit because unit sales are decreasing. She directs you to evaluate a potential sale. Which of the following analyses should you conduct? A. Identify buyers that might value the business unit more than your company does. B. Calculate the NPV of the unit's future projected cash flows. O C. Identify which of the company's other business units rely on the unit for sales leads. O D. A, B and C. O E. A and C.
1
What options are available to John to grow and manage his business? How does each option fit with 401 Games, the competitive situation, and their customer segments? What resources are required to pursue each option? If you were John Park, which option(s) would you decide to do? Why?
2. Consider the market for musical theatre. Some shows are showing for the first time, others are revivals of previous shows. Discuss at least 3 information issues that face one of these types of shows, but not the other. How would these information issues cause new shows to be sold/marketed differently from revivals?
Read the following statements and select if they are true or false. a. The achievement of economies of scope is the most important benefit of unrelated product diversification. True False b. In a related constrained diversification at least 95% of the revenues comes from a single business True False c. Unrelated diversification is when more than 70% of the revenues come from different business. True False d. In related linked diversification all businesses are linked. False True
On your own or with a classmate, research one of the following large corporations. Select several product lines andclassify each in the BCG matrix.a. ExxonMobilb. Johnson & Johnsonc. Starwood Hotels & Resortsd. DuPont
Business plans are developed for both internal and external purposes. The most commonexternal purpose for a business plan is to raise capital.a. State two (2) internal purpose of a business plan b. Explain two (2) business planning principles c. State and explain three (3) components of a business plan
Which of the following statements is true? A) Strengths are synonymous with competitive advantage. B) Every company resource or capability is a strength and leads to competitive advantage. C) A strength is not necessarily a source of competitive advantage. D) Strengths are always inimitable. E) None of the above.
True-False Questions Select the correct answer. 1. T F When buyers, sellers, marketing intermediaries, and facilitating agencies work together, the cooperative relationship results in compromise and adjustments that meet customer needs. 2. T F Under a contractual vertical marketing system, the largest channel member is contracted to manage the production and distribution within the channel. 3. T F Producers assist wholesalers by furnishing them with information regarding the wholesalers' competition and consumer buying patterns. 4. T F As competition among discount stores has increased, some discounters have assumed the characteristics of higher-priced department stores. 5. T F The wheel of retailing hypothesis suggests that new retail operations usually begin at the top-in price, profits, and prestige. Multiple-Choice Questions Circle the letter before the most accurate answer. The use of only a single retail outlet in each geographic area for distribution purposes is called 6.…
A Firm’s history is given in a timeline from its inception in Year 1995 to Current Year: 1995 Invented and filed patent for software that improved production process.1997 Introduced new innovations that went on the market at low price.Major sales growth with expansion of the market share.2000 Anotherfirm emerges as a serious competitor with new technology.2003 Management observing its products are not doing good business decides to diversify.2006New chief executive takes up position.2097Firm abandons its low profit businesses to begin to invest in new products.2010 Firm filed a petition against anti-competitive trade practices but lost the case.2012 Becomes a high-cost manufacturer with a growing portfolio of products which was losinghundreds of millions of dollars annually.Restructuring that eliminated 10,000 jobs and cut more than $1 billion from annual costs.2015New CEO took over reigns of the firm. To raise money, begins selling patent of select portfolio and concentrates on narrow…

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS