* Allocating capital
* Intermediate products
Chapter 9 – Strategic Alliances
* Know the 3 types of Alliances and how they work as well as an example of each type * What are the 3 broad ways Alliances should help create value for a firm and what is involved in each? * What is tacit collusion?
* What are network industries and why are they important * How does the concept of Real Options relate to Alliances * What are the three major threats to Alliances?
* How do you determine the potential of an Alliance to lead to Sustained Competitive Advantage? * When might you substitute an Alliance by ‘Going at it Alone’ or with Acquisitions? * Understand the 5 key elements to organizing to implement an Alliance.
Chapter 10 – Mergers & Acquisitions
* Know the difference between Mergers & Acquisitions
* How are Acquisitions paid for by firms and what does controlling interest mean? * What are the 2 types of Acquisitions and how do you determine the potential price/value of an acquisition target in each? * What are the categories of the FTC relating to M&A? * What are other economies of scope that can make acquisitions valuable? * At the time of acquisition and just after, who normally achieves the greatest economic gains from the acquisition? * If economic value is hard to achieve at the time of acquisition, why do firms still engage in acquisitions? Know the 5 reasons and what they mean. * What is the Market for Corporate Control?
* Understand the 3 conditions where...