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The Key Lesson to Be Drawn from the Failures That

question 25

True/False

The key lesson to be drawn from the failures that Hewlett-Packard has experienced in acquiring software and services companies EDS and Autonomy is that acquisitions that aim to change a company's business model are more risky than acquisitions that seek to leverage the existing business model.


Definitions:

Organizational Pressure

The internal or external forces that influence the behaviors, performance, and strategies of an organization.

Complacency Trap

The mistake of being carried along by the flow of events.

Flow Of Events

The sequence and progression of activities or occurrences, often outlined to understand or manage processes or operations.

Ecological Fallacy

The error in reasoning that occurs when assumptions are made about individuals based on aggregate data for a group.

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