Exam 12: Making Alliances and Acquisitions Work

The informal institution-based view that stresses the cognitive pillar is centered on the internalized taken-for-granted values and beliefs that guide firm behavior.

In the context of acquisitions,synergistic motives destroy value while hubris and managerial motives add value.

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.

Describe how partners in an alliance can combat opportunism.

_____ alliances are based on ownership or financial interest between the firms.

The "imitability" of an alliance is based on the trust and understanding between the partners.

In an alliance,keeping critical skills and technologies not meant to be shared a secret helps prevent _____.

In which type of equity-based alliance does one firm invest in another? 

The ability to successfully manage interfirm relationships is called _____.

Describe the stages in the formations of alliances.

The alliance dissolution is a four-step process.

Who benefits the most from the acquisition premium valued during an acquisition? 

Managers involved in alliances require collaborative relationship skills.

Equity alliance relationships tend to have less direct control over joint activities on a continual basis than contractual relationships.

How does the VRIO framework affect acquisitions?

Equity,learning and experience,relational capabilities,and nationality are four factors that may influence alliance performance.

Importance of direct organizational monitoring and control is low in equity-based alliances.

Antitrust authorities provide easy approvals for both alliances and acquisitions with less intervention.

One of the merits of alliances is to use them as real options.Elaborate.

The more tacit the capabilities of a firm in an alliance,the greater the preference for equity involvement.