Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin America. To that end, Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary. Keith Moon, Blickinstock's vice president of global business development, will be making a presentation to the board outlining the company's options.
-Why should Blickinstock consider building its own subsidiary?
A) The company may inherit obsolete equipment if it goes ahead with the purchase.
B) Blickinstock may find relations are poor with workers at the proposed acquisition.
C) The proposed acquisition is located in a somewhat unsuitable location because of its remoteness.
D) All of the above.

Question

Quizplus · Accepted Answer

By building its own subsidiary, Blickinstock can ensure that it has up-to-date equipment and avoid any potential issues with poor worker relations at the proposed acquisition. Additionally, the remote location of the proposed acquisition may not be ideal for Blickinstock's operations. Therefore, building its own subsidiary may be the best option.