Instead of entering into an alliance or partnership, Verizon Wireless opts to merge with Yahoo! What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.
What will be an ideal response?
There are circumstances when other organizational mechanisms are preferable to alliances and partnering. Mergers and acquisitions are especially suited for situations in which strategic alliances or partnerships do not go far enough in providing a company with access to needed resources and capabilities. Ownership ties are more permanent than partnership ties, allowing the operations of the merger or acquisition participants to be tightly integrated and creating more in-house control and autonomy. Other organizational mechanisms are also preferable to alliances when there is limited property rights protection for valuable know-how and when companies fear being taken advantage of by opportunistic partners.
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Trainor Company estimates bad debt expense using a percentage of credit sales (5%). The company began its current year with an $8,500 balance in the allowance account. During the current year, $10,500 of accounts receivable were written off, and $1,200 of previously written off accounts were collected. Credit sales for the year were $255,000. The bad debt expense for the year was
A) $12,750 B) $11,550 C) $10,500 D) $8,500
Relationship marketing assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in their search for value
Indicate whether the statement is true or false. a. True b. False
Virtue ethics:
a. focuses on what human beings are capable of being. b. develop from learning how to make choices in difficult situations. c. accepts that individuals rarely reach moral excellence. d. are based on the concept that a person's ethical beliefs are developed in childhood and do not change.
Which of the following bank accounts has the highest effective annual return?
A. An account that pays 8% nominal interest with monthly compounding. B. An account that pays 8% nominal interest with annual compounding. C. An account that pays 7% nominal interest with daily (365-day) compounding. D. An account that pays 7% nominal interest with monthly compounding. E. An account that pays 8% nominal interest with daily (365-day) compounding.