Acquisitions work well when the ratio of soft to hard assets is relatively high, whereas alliances may be preferred when such a ratio is low.

Question

Quizplus · Accepted Answer

Acquisitions are often preferred when the ratio of hard assets is high, as they allow for full control and integration, while alliances are more suitable when soft assets like knowledge and skills are important, allowing for collaboration without full ownership.

Acquisitions Work Well When the Ratio of Soft to Hard