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:

Transactional Leadership

A leadership style focused on the exchanges between leaders and followers, where performance is rewarded and non-performance might be punished.

Contingent Reward Behaviours

Actions taken by leaders to reward employees only when specific performance criteria are met.

Agentic Traits

Characteristics associated with an individual's ability to act as an agent for themselves, exerting influence and control over their environment.

Communal Traits

Characteristics associated with a tendency to be friendly, empathetic, cooperative, and nurturing.