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10 Cards in this Set

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  • Back
Choice of when to ally or acquire depends on what three factors?
1) resources & capabilities
2) market factors
3) collaboration capabilities
What organizational barriers often cause companies not to consider alternatives (i.e. ally or acquire)?
M&A group reports to CFO whereas business development group is separate and handles alliances
Which is better for modular resource interdependency, ally or acquisition?
Non equity alliances are best
Which is better for sequential resource interdependency, ally or acquisition?
rigid contracts or equity alliances
Which is better for reciprocal resource interdependency, ally or acquisition?
acquisitions are better than alliances
Which is better for hard resources, ally or acquisition?
acquisitions work better
Which is better for soft resources, ally or acquisition?
avoid acquisitions when human resources are critical
Which is better when there is resource redundancy between firms, ally or acquisition?
acquisitions are better
Which is better when market uncertainty exists, ally or acquisition?
alliances are better as they limit exposure
When there are competing suitors to a deal, what should a firm do?
Firm may have no choice but to buy another firm in order to preempt the competition.