Strategic Management 4e
4th Edition
ISBN: 9781260779646
Author: Frank T. Rothaermel
Publisher: Mc graw hill
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Chapter 9, Problem 1ESI
Summary Introduction
To explain: The ways to counter principal-agent problems and the reason for poor performance.
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Students have asked these similar questions
(a) Managers have different motivations to acquire another company. When is a merger likely to be beneficial for the shareholders of both firms? (b) When is a merger likely to be not beneficial for shareholders of the acquiring company? (c) What roles do investment banks play when there is an acquisition? Who else are also involved? (d) How do the stock prices of target firms respond to a takeover offer on average?
During the dot-com era, mergers among some brokerage houses resulted in the acquiring firm paying a premium on the order of $100 for each of the acquired firm’s customers.
Is there a business rationale for such a strategy?
Do you think these circumstances are met in the brokerage business? Explain.
What functions does a business plan perform?
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- Why might a specific replacement CEO candidate be a good or poor choice for a firm with an existing mission and vision?arrow_forwardLive Nation operates music venues, provides management services to music artists, and promotes more than 40,000 shows and 100 festivals in 40 countries annually. The company acquired House of Blues, merged with Ticketmaster, and has also acquired concert and festival promoters in the United States, Australia, and Great Britain. How has the company used horizontal mergers and acquisitions to strengthen its competitive position? Are these moves primarily offensive or defensive? Has either Live Nation or Ticketmaster achieved any type of advantage based on the timing of its strategic moves?arrow_forwardReview the following hypothetical scenario and answer the following question: Growth seems to be an important goal to provide return to our shareholders. We would like to identify potential merger prospects in order to grow Time Warner Cable’s reach and market power. However, a merger with Comcast was challenged by the Department of Justice on the basis that it might have been anti-competitive. Please put together a brief memo outlining some of the concerns that were raised with the proposed 2015 merger between Comcast and Time Warner. In what ways was the government concerned that competition would be diminished? How might the merger have increased value to our customers and shareholders? Then, put together a short list of two or three potential targets for merger or acquisition. What advantages would each company bring Time Warner Cable?arrow_forward
- You need to pick a company for your strategic renewal analysis. It should be a company that has room for improvement - don't pick a company that's doing really well. It should either be a public company or a company that we know about or can easily learn about. That's so that when you post ideas later in the course it's easy for your group to provide feedback. I strongly recommend you do not do your own company (students tend to be too granular with their own company.) If you have questions about which firm to choose, reach out to me. This deliverable is just a paragraph. List the company and tell me why you choose itarrow_forwardCan you explain the two-way symmetrical model? and why it is good for a company?arrow_forwardExplain Four advantages and Four disadvantages of Non-equity strategic alliance!arrow_forward
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