SEVI 3013 Final Exam UARK questions
& answers graded A+
Build
Internal organic growth through development
Borrow
External growth through a contract/strategic alliance
Buy
External growth through acquiring new resources, capabilities, and competencies
Strategic Alliances can be governed by:
non-equity alliances, equity alliances, and joint ventures
Non-Equity Alliances
Partnerships based on contracts
Equity Alliances
One partner takes partial ownership of the other
Joint Ventures
A standalone organization; Jointly owned by two or more companies
Partner Compatibility
Captures aspects of cultural fit between different firms
, Partner Commitment
Concerns the willingness to make available necessary resources and to accept short-term
sacrifices to ensure long-term rewards
What is acquisition in business?
The purchase or takeover of one company by another
What happens when acquisition occurs?
Forms a combined entity
What is a hostile takeover?
When the target firm does not wish to be acquired
Merger
The joining of two independent companies; Forms a combined entity; Tends to be friendly
Horizontal Integration
The process of merging with a competitor; Occurs at the same stage of the value chain
& answers graded A+
Build
Internal organic growth through development
Borrow
External growth through a contract/strategic alliance
Buy
External growth through acquiring new resources, capabilities, and competencies
Strategic Alliances can be governed by:
non-equity alliances, equity alliances, and joint ventures
Non-Equity Alliances
Partnerships based on contracts
Equity Alliances
One partner takes partial ownership of the other
Joint Ventures
A standalone organization; Jointly owned by two or more companies
Partner Compatibility
Captures aspects of cultural fit between different firms
, Partner Commitment
Concerns the willingness to make available necessary resources and to accept short-term
sacrifices to ensure long-term rewards
What is acquisition in business?
The purchase or takeover of one company by another
What happens when acquisition occurs?
Forms a combined entity
What is a hostile takeover?
When the target firm does not wish to be acquired
Merger
The joining of two independent companies; Forms a combined entity; Tends to be friendly
Horizontal Integration
The process of merging with a competitor; Occurs at the same stage of the value chain
