Question

Question 1: When a firm purchases another with a combination of cash and stock, it is:

1. Merger
2. Acquisition

Your Answer:

Question 2: True or False: Growth is always the best strategic alternative for every organization.

1. True
2. False

Your Answer:

Question 3: What are the differences between horizontal and vertical integration? (In less than 200 words)

Your Answer:

Question 4: Which one of the following emphasizes innovation and encourages initiative?

1. Adaptive Cultures
2. Inert Cultures

Your Answer:

Answer 1

1. Acquisition

It is the process of purchasing or acquiring another organization and take ownership and this can be done through cash, stock or a combination of the two.

2. False

Growth may be considered as quite an effective alternative strategy although it may not be the best because there will be situations in which the organization may not have the opportunity or scope to grow and hence they need to sustain

3. The primary difference between the two is their way of acquiring and moving towards success because Horizontal Integration is the type of business expansion strategy, where the company acquire another company in tge same business line or at the same level of value chain and the basic objective here would be to eliminate competition in the industry. On the other hand Vertical Integration is used to work over the industry as a whole and that is done by using the supply chain as well. The objective here would be to reduce cost and waste if any.

4. Adaptive culture

It is the culture that promote and embrace change in order to ensure effective innovation and creativity for the same.