Deck 15: Acquisitions and Global Expansion

Question 1

Why was it advantageous for Google to acquire the U.K based AI company DeepMind?

A) Expand to the U.K market
B) Purchase DeepMind's customers
C) Infuse Google with valuable knowledge and expertise
D) Eliminate potential competitiveness in search

Answer 1

Infuse Google with valuable knowledge and expertise

Question 2

Which of the following is not a main step for acquiring a company?

A) Target identification and screening
B) Address potential synergies
C) Bidding strategy
D) Integration of acquisition

Answer 2

Address potential synergies

Question 3

The price of an acquisition subtracted from the value of the newly vitalized firm is a:

A) Integration
B) Value-add
C) Synergy
D) Expected value

Answer 3

Synergy

Question 4

Microsoft acquired LinkedIn as part of an "acquihire,"
where the main reason for acquisition was the talented employees LinkedIn had.

Question 5

What is the book value valuation of the firm?

A) Total assets minus intangible assets
B) Equity plus liability
C) Intangible assets plus earnings
D) Revenue minus costs

Question 6

What most hampers an acquisition's success?

A) Incompatible technology
B) Geographic similarities
C) Underestimation of the value-add of the firm
D) Incompatible cultures

Question 7

Medtronic purchased the cardiovascular division of this major company it now competes with:

A) Pfizer
B) Merck
C) Novartis
D) Johnson & Johnson

Question 8

The difference between a merger and acquisition is the degree of ________.

A) competitiveness
B) price
C) scale
D) control

Question 9

Most of the time, mergers occur between relatively equal-sized organizations.

Question 10

An oligopoly is an industry characterized by just a few ________.

A) buyers
B) sellers
C) traders
D) monopolies

Question 11

An oligopoly is always undesirable for customers.

Question 12

Which two current tech moguls fused their companies into PayPal?

A) Reid Hoffman, Marissa Mayer
B) Elon Musk, Peter Thiel
C) Joe Lonsdale, John Doerr
D) Bill Gates, Jeff Bezos

Question 13

Studies show that about 2/3 of mergers do not have synergies produced.

Question 14

The merger between Bank of America and Merrill Lynch would be an example of a(n):

A) Vertical merger
B) Horizontal merger
C) Diagonal merger
D) Acquisition

Question 15

Of the five types of mergers and acquisitions, Sirius and XM Radio would be an example of:

A) Product or market extension
B) Geographic extension
C) Technology acquisition
D) Industry convergence

Question 16

Why should new ventures be careful to not globalize too quickly?

A) So they can better understand their customers and product
B) It will be easier to acquire customers and resources
C) Foreign markets offer competitive disadvantages
D) Globalization is a dangerous force

Question 17

What is an advantage of a multi-domestic strategy?

A) Ability to reduce costs
B) Ability to customize products for local markets
C) Transfer of unique competencies internationally
D) Ability to learn from other nations

Question 18

What is a disadvantage of an international strategy?

A) Difficult to coordinate
B) Many independent organizations
C) Failure to appropriate learnings from other cultures
D) Low-local responsiveness

Question 19

A truly global firm operates as a single integrated organization.

Question 20

An example of one of Alibaba's acquisitions is Alipay.