1. Agenda Marketing & Finance EIN
Block 2
November 12th: Guest lecture & Set-up / X-ray
November 26th: Strategic fit?
December 3rd: Making alliances work!

2. ALLIANCES AND ACQUISITIONS
How do firms choose between alliances and acquisitions?
Alliances
- create value by combining complementary resources
- more suitable under high levels of uncertainty
Acquisitions
- derive most value by eliminating redundant resources
- preferable when the level of uncertainty is low
Source: Global business, chapter 11

5. MOTIVES FOR ACQUISITIONS
(1) synergistic - response to formal institutional constraints and transitions in search of synergy
(2) hubris - manager’s overconfidence in his or her capabilities - may unknowingly overpay for targets
(3) managerial motives - self-interested reasons –
some managers may have deliberately over diversified
their firms through M&As in their quest for more power, prestige, and money

9. Assignment during class
What makes your alliance work?