MGMT 681:GE Innovates from the base of the Pyramid Case Studies


M&A’s have emerged as the primary mode of foreign market entry for Chinese and Indian as investment levels have been rising among both Chinese and Indian firms. Second, prospective investments are not equally cost effective across different countries so it becomes necessary to undertake strategic diversification through acquisition activities.

Q 2

According to the case study, the information shows that in the Chinese market, multinational acquirers are determined to follow the resource-based view (RBV) to succeed in its operation. On the other hand, Indian multinational acquirers followed industry-based view (IBV). The countries have a preference for building long-term relationships with their clients and also strive to gain good reputation within their industries. However, the two countries are growing have different views and practices among multinational acquirers.

Q 3

First, it is necessary to consider two basic reasons for the criticism. One is that shareholders dislike the irrational spending of their money. The other is that shareholders are worried about losing control of the company’s future when it expands into new markets or acquires other firms. From a financial perspective, if opponents do not have power to force a deal’s cancellation, the shareholders will try to undermine it in every way possible. Therefore, even I feel this acquisition is worth doing, I should expect strong opposition to my plan. For the sake of stakeholders’ trust, I should consider how to handle opposition by using moral leadership.



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