1. Explain why firms engage in acquisitions. ¦ Firms engage in acquisitions to (1) access new…

1. Explain why firms engage in acquisitions.

■ Firms engage in acquisitions to (1) access new markets and distributions channels, (2) gain access to a new capability or competency, and (3) preempt rivals.

2. The chapter identifies three governing mechanisms for strategic alliances: non-equity, equity, and joint venture. List the benefits and downsides for each of these mechanisms.

 

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