Q1 / Strategic alliances have the potential to affect a firm’s competitive advan
ID: 2721656 • Letter: Q
Question
Q1 / Strategic alliances have the potential to affect a firm’s competitive advantage by increasing value and lowering costs. List and describe the primary reason why Disney formed a strategic alliance with Pixar.
In your opinion, was the strategic alliance a success? Why or why not?
Did one partner benefit more from the alliance? Explain your reasoning.
Q2. Many mergers and acquisitions (M&As) actually destroy shareholder value. Name and describe two ways that M&As destroy shareholder value.
Many firms choose to pursue M&As even though they know that these strategic actions often lead to a reduction in shareholder value. Name and describe two reasons why firms pursue M&As despite evidence suggesting they are harmful.
Q3. Most of the costs and risks involved in expanding beyond the domestic market are created by distance. The CAGE distance framework determines the relative distance between home and foreign target country along four dimensions: cultural distance, administrative and political distance, and economic distance.
Mercedes-Benz is considering the possibility of opening several factories in Austria. Using the CAGE distance framework, describe, the relative distance (large vs. small) for Mercedes-Benz entering into Austria. Make sure to provide an analysis for each dimension of the framework, and justify each aspect of your response.
Based on your analysis, do you recommend entering into this new market? Why or why not?
Explanation / Answer
Ans-1 Ownership of world most famous computer animation studio and its talent, Perfect timming for disney as his own animation picture were failing . Yes stragic alliance between walt and disney was successful.
Ans-2 Many failures occur, though, simply because the acquiring company paid too much for the acquisition. Secondly cultural issue and intergreation of operation. It wasn’t a good deal on the day it was made—and it never will be. A good example is Quaker Oats’ acquisition of Snapple. Some industry analysts estimated that the $1.7 billion purchase price was as much as $1 billion too much. The stock price of both companies declined the day the deal was announced. Problems with implementation and a downturn in the market for New Age drinks quickly led to performance problems. Just 28 months later, Quaker sold Snapple to Triarc Companies for less than 20% of what it had paid. Quaker Oats’ and Triarc’s stock prices went up the day that deal was announced.
Ans-3
Yes i recommed and is having following benefit as follows
Market Expansion
The most obvious advantage of marketing internationally is the expansion of a company's market. Expanding the places where a company does business and advertises its products and services opens up a larger customer base and potentially greater profit margins. While small businesses may find that marketing internationally is cost prohibitive, technology such as social media and online newspapers and advertising services have made the process of international marketing even more attractive. Customers can now buy from virtually anywhere in the world via the Internet, making market expansion through international marketing a highly useful skill for businesses to master.
Brand Reputation
International marketing can have a unique advantage of helping to boost a brand's reputation. Right or wrong, customers perceive a brand that's selling in multiple markets to be of higher quality and better service than brands that just sell locally. Major technology companies, global automobile models and multinational banks are proof of this. People are keen to buy products that are widely available
Global Networking
Expanding into a global market gives a business the distinct advantage of connecting with new customers and new business partners. A company doing business in Eastern Europe, for instance, may find a cheaper workforce, less-stringent tax laws or even less-expensive modes of advertising in local newspapers, television stations and radio programs. In other words, the opportunities for networking internationally are limitless. The logic behind this is simple: the more "places" your business is, the more connections it can make
Opening the Door for Future Opportunities
International marketing can also open the door to future business expansion opportunities. Not only does global marketing expand a company's sales base, it also helps the business to connect to new vendors, a larger workforce and new technologies and ways of doing business. American companies investing in Japan, for instance, have found programs such as Six Sigma and Theory Z to be highly useful in shaping their business strategies. Being in a new market improves the business's efficiency and helps open the management's eyes to previously undiscovered opportunities for growth
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