Question

While Cisco Systems has been successful in selecting and buying both big and small technology ventures, HP had to write off some of its recent technology acquisitions. Which of the following statements best explains this scenario?

A. Cisco was successful due to its unrelated diversification, whereas HP failed by pursuing a related-linked diversification strategy.
B. Cisco treated the management of the larger firms it took over more like acquisitions, whereas HP treated its acquisitions as strategic alliances.
C. The acquisitions were successful as the learning and experience curve effects were low.
D. Acquisition and integration capabilities were not equally distributed across firms.

Answer 1

The correct option is D. Acquisition and integration capabilities were not equally distributed across firms.

The difference in success between Cisco Systems and HP in their technology acquisitions can be explained by their different acquisition and integration capabilities.

Step-by-step explanation:

Acquisitions and mergers can have different outcomes depending on various factors. In the case of Cisco Systems and HP, the difference in success can be attributed to the companies' acquisition and integration capabilities. The statement that best explains this scenario is D. Acquisition and integration capabilities were not equally distributed across firms.

Cisco Systems has been successful in selecting and buying both big and small technology ventures because they had better acquisition and integration capabilities. This means they were able to effectively assimilate the acquired companies into their existing operations. On the other hand, HP had to write off some of its recent technology acquisitions because their acquisition and integration capabilities were not as strong, leading to unsuccessful outcomes.