Chapter 9 03/28/2016
-stock value increases as organization grows
-early investors make most money during acquisition situations
-when organization is acquired, premium is paid
why do acquisitions fail?
Culture clash
Cooperative Strategy
Two firms working together to achieve a shared objective
Can help establish a positive position relative to competition
Toys
Hasbro takes Disney princesses from Mattel
Disney brings market, characters
Mattel was cannibalizing their own sales
Strategic Alliance
Boeing and Blackberry- self destructive phone
Firms combining some of their resources to create mutual
competitive advantage
Mutual interests in designing, manufacturing can come out of it
Joint venture
Two or more firms create a legally independent company by sharing
resources, capabilities
Equity Strategic Alliance
Partners own different percentages of equity
