Vidyalelo
Management · Q261

Strategic Management

Graduate and Post Graduate · Management · question 261

Q261

Acquisitions often fail to deliver the successes that were predicted prior to acquisition. What is the main reason for this failure?

A.
Premium price
B.
Poor strategic leadership
Answer
C.
Goodwill
D.
Synergy

Answer: Option B

Solution

Answer: Option B
Solution:
Acquisitions often fail to deliver the successes that were predicted prior to acquisition. Poor strategic leadership is the main reason for this failure. Strategic leaders act in ways that manage the tension between success in daily tasks and success in the long term. They facilitate other's strategic actions, too, by providing a balance of direction and autonomy, of learning from actions and rewarding appropriate risk-taking.