Business 1893rdMid-term Exam, Fall 2009 [email protected]Dr. Mark Fruin[email protected]Short questions: Answer twoquestions; each question has multiple parts. 25 points and 35 minutes per answer; a total of 50 points and 70 minutes on short questions. 1)In 2001, HP acquired Compaq for $25 billion, a huge strategic gamble. What corporate-level strategic circumstances recommended a purchase of this magnitude? Was this a good acquisition for HP; why or why not? What would Michael Porter say about this acquisition?2)More and more American firms, including Silicon Valley firms, are outsourcing. In your estimation, what are the 2-3 best reasons and the 2-3 worst strategic reasons to outsource? If there are good and bad reasons to outsource, how do firms choose between one or the other?3)Three different diversification strategies, internal development, acquisition, and partnership, are available to firms. Why should companies choose one of these as compared with the others? In other words, when it is wise to choose: a)
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Eastman Kodak, 21st century, Photographic film, George Eastman