When Are Capabilities-Motivated Acquisitions Essential

question 32

Multiple Choice

When are capabilities-motivated acquisitions essential?

• A)when industry conditions, like technology advances, are central to growth and rivalry is intense
• B)when first-mover advantages for products or services can be added to the portfolio lineup
• C)when the acquired firm can be purchased at a discount due to underperformance
• D)when a market opportunity can slip by faster than a needed capability can be created internally
• E)when the capabilities involve tacit knowledge and complex routines

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Definitions:

Erikson

Erik H. Erikson, a developmental psychologist and psychoanalyst known for his theory on the social development of human beings and coined the phrase "identity crisis".

Sense of Competence

Describes an individual's belief in their own abilities to successfully execute tasks.

Psychosocial Development

The theory proposed by Erik Erikson that human development occurs in eight predetermined stages from infancy to adulthood, each characterized by a specific psychological struggle.

Autonomy

The right or condition of self-government, often used in the context of individuals’ ability to make their own decisions.