Concept explainers
Case summary:
Company C sells many software and hardware products and does its services in over 40 various types. Company C follows 3 prolonged approach for the development of the vast product catalog. Primarily, it gives a vigorous research and development effort to create its own designs.
Secondly, the main business of Company C is the networking technologies, which lets the people to share the information of all kinds over internet. Thirdly, Company C maintains an active program for acquisition, searching for the firms, which could assist in creating new markets, increasing emerging markets, or maximizing the existing markets.
To discuss: The reason for Company C to put more emphasis on the place of potential targets of acquisition.
Explanation of Solution
As one of the rules of Company C for acquisition is retaining talent employees working at a target firm. The closer the proximity of the firm to its headquarters, the more possibly it may be for the employees to decide to be retained after acquisition. Through this closer proximity, it provides a larger ability for Company C to smoothly combine the new acquisition.
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