The manager of Firm X watches the manager of a competing firm (Firm Y) successfully pursue some vertical integration up the supply chain; Firm A's manager immediately begins acquiring companies in its supply chain. At first glance, the manager's motives appear to be:
A)Synergistic.
B)Risk reducers.
C) Hubris.
D) Self-interest.

Question

The manager of Firm X watches the manager of a competing firm (Firm Y) successfully pursue some vertical integration up the supply chain; Firm A's manager immediately begins acquiring companies in its supply chain. At first glance, the manager's motives appear to be:
A)​Synergistic.
B)​Risk reducers.
C) ​Hubris.
D) ​Self-interest.

Quizplus · Accepted Answer

The manager's motives appear to be hubris because they are imitating the actions of another firm without necessarily having a strategic reason or evidence that it will benefit their own firm.

The Manager of Firm X Watches the Manager of a Competing