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In 2015 eBay spun-off PayPal. As one justification for this spin-off, the board stated “The benefits of the existing relationships between eBay and PayPal will naturally decline over time and can be optimized in arm’s length operating agreements between the two entities. Arm’s length operating agreements can formalize the existing relationships between the two companies and capture ongoing synergies.”

4. Question 4 In 2015 eBay spun-off PayPal. As one justification for this spin-off, the board stated “The benefits of the existing relationships between eBay and PayPal will naturally decline…

Corporate Strategy | Online Course Support

Gamma analyzed all its businesses and concluded they will divest none of them. Which statement can we infer?

2. Question 2 Gamma analyzed all its businesses and concluded they will divest none of them. Which statement can we infer? 1 / 1 point   The businesses have synergies with each other…

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One difference between a sell-off, spin-off, and equity carve out is the owners of the divested business. Which statement about these owners is correct?

1. Question 1 One difference between a sell-off, spin-off, and equity carve out is the owners of the divested business. Which statement about these owners is correct? 1 / 1 point   Sell-off:…

Corporate Strategy | Online Course Support

Step 2 “Identifying resource gaps” and Step 3 “Identifying candidates” Read the press release, see the reading “Microsoft – LinkedIn (press release)”. What is the key resource for which Microsoft acquired LinkedIn?

2. Question 2 Step 2 “Identifying resource gaps” and Step 3 “Identifying candidates” Read the press release, see the reading “Microsoft – LinkedIn (press release)”. What is the key resource…

Corporate Strategy | Online Course Support

Step 4 “Ally or acquire” Discussing slide 11 “Connecting the professional world” of the investor presentation, see the reading “Microsoft – LinkedIn (investor presentation)”, Satya Nadella, CEO Microsoft, and Jeff Weiner, CEO LinkedIn, said the following:

3. Question 3 Step 4 “Ally or acquire” Discussing slide 11 “Connecting the professional world” of the investor presentation, see the reading “Microsoft – LinkedIn (investor presentation)”, Satya Nadella, CEO…

Corporate Strategy | Online Course Support

Step 1 “Finding synergies” In a conference call with financial analysts, Satya Nadella, CEO Microsoft, said: “Great, and so let me now sort of take you through a couple of illustrations to bring this home. I want to start, in fact, with talking about more of the usage of Office 365 and LinkedIn and how that will get lit up and really help drive engagement on both sides.

1. Question 1 Step 1 “Finding synergies” In a conference call with financial analysts, Satya Nadella, CEO Microsoft, said: “Great, and so let me now sort of take you through…

Corporate Strategy | Online Course Support

You run a software business. One of your competitors enters a food delivery business through a non-equity alliance with HappyEat. Which statement about this diversification move is most plausible?

6. Question 6 You run a software business. One of your competitors enters a food delivery business through a non-equity alliance with HappyEat. Which statement about this diversification move is…

Corporate Strategy | Online Course Support

After a careful analysis of Alpha (a company active in business A) and Beta (a company active in business B), you conclude that (i) synergies exist between Alpha and Beta and that (ii) synergies are one-sided (i.e. one party benefits but the other does not). Which governance mode would you recommend?

2. Question 2 After a careful analysis of Alpha (a company active in business A) and Beta (a company active in business B), you conclude that (i) synergies exist between…

Corporate Strategy | Online Course Support

You are the Chief Executive Officer (CEO) and considering a diversification. Your Chief Financial Officer (CFO) recommends an acquisition, whereas an external advisor recommends an alliance. Historically, your company has been equally successful in acquisitions as in alliances. Should you therefore be indifferent between these two options?

1. Question 1 You are the Chief Executive Officer (CEO) and considering a diversification. Your Chief Financial Officer (CFO) recommends an acquisition, whereas an external advisor recommends an alliance. Historically,…

Corporate Strategy | Online Course Support

In 2017, a merger was announced between Essilor (a French producer of lenses) and Luxottica (an Italian producer of frames for glasses). Below are some statements from the joint press release

5. Question 5 In 2017, a merger was announced between Essilor (a French producer of lenses) and Luxottica (an Italian producer of frames for glasses). Below are some statements from…