Question

A manager in your company is proposing the acquisition of Taylor Company, which has developed a new, innovative product instead of a strategy of developing new products in-house. All of the following arguments are correct EXCEPT: a. the outcomes of acquisitions can be estimated more easily and accurately than the outcomes for an internal product development process. b. acquisitions could become a substitute for innovation within your firm. c. the acquisition of Taylor should be primarily for defensive rather than strategic reasons. d. research suggests that acquisition strategies are a common means of avoiding risky internal ventures.

Answer 1

Answer:

The answer is c.the acquisition of Taylor should be primarily for defensive rather than strategic reasons.

Explanation:

The acquisition of Taylor may not be mainly because of defensive reasons as it may arise from the acquirer's strategies to boost growth ( in term of market share or revenue) in a short period of time; to quickly diversify its products and services helping them less dependent on single source of income/ market share; or to complete their supply chain so they are able to serve customers from the beginning to the end of their Products/ services thus increase their profit margin by saving costs paid to suppliers.