Mergers and acquisitions are often driven by such strategic objectives as to

A. facilitating a company's shift from a low-cost leadership strategy to a focused low-cost strategy.

B. expanding a company's geographic coverage or extending its business into new product categories.

C. reducing the number of industry key success factors.

D. reducing the number of strategic groups in the industry.

E. lengthening a company's value chain and thereby putting it in a better position to deliver superior value to buyers.

Question

Theodore Molina

Business

5 June, 19:35

Mergers and acquisitions are often driven by such strategic objectives as to

A. facilitating a company's shift from a low-cost leadership strategy to a focused low-cost strategy.

B. expanding a company's geographic coverage or extending its business into new product categories.

C. reducing the number of industry key success factors.

D. reducing the number of strategic groups in the industry.

E. lengthening a company's value chain and thereby putting it in a better position to deliver superior value to buyers.

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Answers (1)

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Patrick Wong · Answer 1

B.

Explanation:

Mergers refer to when a two companies unite all their resources in order to pursue a common goal, while an acquisition refers to when one company's assets and resources are transferred to another. These two strategies are usually done with the main goal of expanding a company's geographic coverage or extending its business into new product categories.