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While Cisco Systems Has Been Successful in Selecting and Buying

Question 21

Multiple Choice

While Cisco Systems has been successful in selecting and buying both big and small technology ventures, HP had to write off some of its recent technology acquisitions.Which of the following statements best explains this scenario?


A) Cisco was successful due to its unrelated diversification, whereas HP failed by pursuing a related-linked diversification strategy.
B) Cisco treated the management of the larger firms it took over more like acquisitions, whereas HP treated its acquisitions as strategic alliances.
C) The acquisitions were successful as the learning and experience curve effects were low.
D) Acquisition and integration capabilities were not equally distributed across firms.

Correct Answer:

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