Podcast
Questions and Answers
Explain how acquiring a company with a strong brand name can provide benefits for a business entering a new international market. Provide two distinct advantages.
Explain how acquiring a company with a strong brand name can provide benefits for a business entering a new international market. Provide two distinct advantages.
Acquiring a company with a strong brand name provides instant brand recognition and established brand loyalty in the new market. This limits competition and avoids the risks associated with launching a new product.
Describe the potential risks associated with acquiring another company's brand, even if that brand is well known.
Describe the potential risks associated with acquiring another company's brand, even if that brand is well known.
A key risk is brand destruction due to a lack of care post-merger. This includes failing to maintain employee confidence and customer satisfaction, which can erode the brand's value and reputation.
What are the main ways a business can obtain Intellectual Property?
What are the main ways a business can obtain Intellectual Property?
Intellectual Property can be obtained in 2 main ways: development internally, through in-house research and development, or externally via acquisition or joint venture agreement.
Explain how legal processes such as patents and copyrights protect Intellectual Property. Provide an example of each.
Explain how legal processes such as patents and copyrights protect Intellectual Property. Provide an example of each.
A company has developed a new technology but lacks the resources to enforce its patent internationally. How could a joint venture help overcome this limitation?
A company has developed a new technology but lacks the resources to enforce its patent internationally. How could a joint venture help overcome this limitation?
Flashcards
Acquisition
Acquisition
The process of buying another company or its assets.
Merger
Merger
Combining two or more companies into a single entity.
Joint Venture
Joint Venture
A collaborative project between two or more companies.
Patent
Patent
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Intellectual Property
Intellectual Property
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Study Notes
- Businesses aiming for global presence might acquire existing brands or patents to overcome recognition challenges or prevent product replication.
- Mergers, acquisitions, and joint ventures facilitate gaining a strong market presence and accessing protected ideas and inventions.
- These strategies offer brand recognition, customer loyalty, and reduced competition.
- They also mitigate risks, costs, and uncertainties linked to launching new products.
- Post-merger care is vital to maintain employee morale and customer satisfaction, safeguarding the brand's strength.
- Choices include adopting the strongest brand, or creating a portfolio of brands for differentiation.
Intellectual Property
- Developing intellectual property internally is time-consuming and financially risky.
- Intellectual property includes inventions and creative works protected from unauthorized use.
- Legal protection for intellectual property includes patents, copyrights, and trademarks.
- Acquiring intellectual property through acquisitions or joint ventures can be more efficient and cheaper than developing it.
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Description
Businesses may acquire brands or patents for global presence and to prevent product replication. Mergers, acquisitions, and joint ventures help gain market presence and access protected ideas. Post-merger care is vital for employee morale and customer satisfaction.
