Weekly Review Quiz as of 2008-07-24
Strategic Management
Roche Considers Bid to Buy Full Stake in Genentech
by Dana Cimilluca, Jeanne Whalen and Matthew Karnitschnig
07/21/2008
1. The strategic motivation for Roche to acquire full control of Genentech seems to be the goal of
a) obtaining a majority stake.
b) installing its own management team to turn Genentech around.
c) imposing greater financial discipline on Genentech.
* d) improving Roche's share of new pipeline products.
e) gaining access to the lucrative US pharmaceutical market.
2. Until now Roche has been considered savvy in dealing with Genentech because Roche
a) waited for Genentech's price to decline rather than buying when Genentech was "hot."
b) avoided development of similar, redundant drugs.
c) acted like a US company whenever required.
d) abetted its bargaining position by always having alternative acquisition candidates.
* e) accorded Genentech a high degree of autonomy.
Icahn Ends Feud With Yahoo, Setting Up an Uneasy Truce
by Merissa Marr and Jessica E. Vascellaro
07/22/2008
3. Yahoo gave a board seat to Carl Icahn
a) to demonstrate willingness to sell to Microsoft.
b) as a substitute measure for selling to Microsoft.
* c) as a compromise to end a proxy fight.
d) to co-opt Carl Icahn into supporting Yahoo's leadership.
e) to signal to CEO Jerry Yang that his departure would be desirable.
4. The risk of this arrangement for Yahoo's present management is that Carl Icahn
* a) may end up influencing other board members.
b) may use inside knowledge to buy out the company.
c) may acquire inside knowledge and pass it on to competitors like Microsoft.
d) may have conflicts of interest.
e) lacks experience actually serving on company boards.
5. The Yahoo settlement is characteristic of which of the following trends?
a) Value-based strategies
* b) Investor activism
c) Financial appeasement
d) Shareholder value
e) Proportional representation on company boards