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Flashcards in Chapter 7 Deck (2)
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1
Q

Explain why merger and acquisition strategies are popular with many firms competing in the global economy

A
  • increase market power
  • overcome entry barriers to new markets or regions
  • reduce the risk of entering a new business
  • ## become more diversified
2
Q

Describe some of the primary problems that can adversely affect a firms effort to successfully use an acquisition strategy

A
  • diffciulty of integrating the new firm
  • creating debt loads
  • creating a firm that is too diversified
  • creating an internal environment/culuture clashes