According to When to Ally, When to Acquire:

a) When the ratio of soft to hard resources is high, an acquisition would be more appropriate so that the soft resources do not leave the company.

b) When the resources are similar in both the target and acquiring firms, an acquisition would be more appropriate so that there is more control over the resources.

c) When the level of competition for a target company is high, an alliance would be more appropriate so as not to overpay for the target.

d) all of the above

Question

Terrance Huerta

Business

22 July, 18:48

According to When to Ally, When to Acquire:

a) When the ratio of soft to hard resources is high, an acquisition would be more appropriate so that the soft resources do not leave the company.

b) When the resources are similar in both the target and acquiring firms, an acquisition would be more appropriate so that there is more control over the resources.

c) When the level of competition for a target company is high, an alliance would be more appropriate so as not to overpay for the target.

d) all of the above

+2

Answers (1)

Know the Answer?

Tobias · Answer 1

Answer: b) When the resources are similar in both the target and acquiring firms, an acquisition would be more appropriate so that there is more control over the resources.

Explanation:

According to When to Ally, When to Acquire, it is best to embark on an Acquisition drive if the company being acquired uses similar resources to the one buying.

That way Acquisition will bring both resources together and lead to a command of a larger market share and profit margin and less competition.