Question Description
I’m working on a management writing question and need an explanation and answer to help me learn.
Please answer the following questions. You are not required to write an essay – a few coherent phrases or bullet points could suffice if well conceived. Please do keep your answers for each question to under 100 words. You may be penalized if you go over the limit. The following is based on the relevant concepts discussed in our lectures and in the Chapter 6-9 PowerPoint.
1) Please briefly comment on when, why, and how firms seek to employ related diversification to acquire new products, product lines, and/or new businesses. Give brief examples.
2) When might it be advantageous for a firm to be highly vertically integrated (e.g Tesla) vs. competing instead in only one or two parts of the value chain (e.g. Apple) ?
3) Why did Ecolab acquire Nalco? Also, why did they seek to acquire Nalco instead of either developing the necessary capabilities themselves or forming instead a strategic alliance. According to the case, how did Ecolab approach the acquisition in order to try and make it work?