Problem 1: As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based?
Problem 2: You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income. (You expect your salary, bonus, and stock option to double next year). However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail. How would you proceed?
- What institution-based issues would you encounter? Discuss.
- What resource-based issues would you face? Describe.
- What are your managerial motives? Explain.
- Do you possess hubris? Explain your answer
- How would you ensure the success of your acquisition?