Chapter 7: Acquisition and Restructuring StrategiesChapter 8: International StrategyChapter 9: Cooperative StrategyChapter 7: Acquisition and Restructuring StrategiesMerger: a strategy through which two firms agree to integrate their operations on a relatively coequal basis.Acquisition: a strategy through which one firm buys a controlling, or 100 percent, interestin another firm with the intent of making the acquired firm a subsidiary business within its portfolio.Takeover: A special type of an acquisition strategy wherein the target firm does not solicitthe acquiring firm’s bid.Due Diligence: A process through which a potential acquirer evaluates a target firm for acquisition.Restructuring: A strategy through which a firm changes its set of businesses or financial structure.Downsizing: Reduction in the number of a firm’s employees or operating unitsDownscoping: Refers to divestiture, spin-off, or some other means of eliminating businesses that are unrelated to a firm’s core business. Causes the firm to strategically refocus on its core businessesLeveraged Buyouts: A restructuring strategy whereby a party buys all of a firm’s assets inorder to take the firm private. No more publicly traded stock.Chapter 8: International StrategyInternational Strategy: a strategy through which the firm sells its goods or services outside its domestic market.Four basic benefits:Increased market sizeGreater return on major capital investments or on investments in new products and processesGreater economies of scale, scope, or learningA competitive advantage through location (ex: access to low cost labor, critical resources,customers)Multidomestic Strategy: An international strategy in which strategic and operating decisions are decentralized to the strategic business unit in each country so as to allow that unit to tailor products to the local market.Global Strategy: An international strategy through which the firm offers standardized products across country markets, with competitive strategy being dictated by the home officeTransnational Strategy: An international strategy through which the firm seeks to achieve both global efficiency and local responsivenessGreenfield Venture: The establishment of a new wholly owned subsidiaryInternational Diversification: A strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into different geographic locations or markets.Chapter 9: Cooperative StrategyCooperative Strategy: a strategy in which firms work together to achieve a shared objective.Strategic Alliance: A cooperative strategy in which firms combine some of their resourcesand capabilities to create a competitive advantage.Three types:Joint Venture: A strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage.Equity Strategic Alliance: An alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities to create a competitive advantage.Nonequity Strategic Alliance: An alliance in which two or more firms develop a contractual relationship to share some of their unique resources and capabilities to create a competitive advantage.Business-Level Cooperative Strategy: Used to help the firm improve its performance in individual product markets.Four types:Complementary strategic alliances: Business-level alliances in which firms share some oftheir resources and capabilities in complementary ways to develop competitive advantages.Vertical: Firms share their resources and capabilities from different stages of the value chain to create competitive advantageHorizontal: Firms share some of their resources and capabilities from the same stage of the value chain to create a competitive advantage.Competition Response StrategyUncertainty Reducing StrategyCompetition Reducing StrategyCorporate-Level Cooperative Strategy: Used by the firm to help it diversify in terms of products offered or markets served, or both.Three types:Diversifying Strategic Alliance: Firms share some of their resources and capabilities to diversify into new product or market areas.Synergistic Strategic Alliance: Firms share some of their resources and capabilities to create economies of scope.Franchising: A firm (the franchisor) uses a franchise as a contractual relationship to describe and control the sharing of its resources and capabilities with partners (the franchisees)Cross-Border Strategic Alliance: An International Cooperative Strategy in which firms with headquarters in different nations combine some of their resources and capabilities to create a competitive advantage.Network Cooperative Strategy: A cooperative strategy wherein several firms agree to form multiple partnerships to achieve shared