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The a) part requirement asks to explain the rationale behind aquiring first leisure (FL)and boatland.
The revision kit answer talks about synergies which developed after the acquisition which got profitable for MMI as they enjoyed economies of scope.
My question is why r they mentioning about the synergy which developed after the acquisition which was accidental and not intentional when MMI was thinking of acquiring FL.
And the answer key also talks about the unrelated diversification which was criticised by many buy later turned out to be a brilliant investment.
Why are they talking about all this unwanted information which doesnt add to the point of understanding the rationale behind the acquisition?
Only the first few paragraph I felt relevant to the question..whats ur take on this?
I don’t have access to thw BPP kit. If this is an ex exam question, let me know which and I will take a look.
A I agree with you. The rationale for acquiring FL was weak and the company maxe a success of it only because of good luck. There is more rarionale fpr acquiring Boatland.
B My answer would warn them off acquiring a failing software company. No symergy, no expertise.
You didnt quite answer my question
I was not looking for an answer for part A and B rather i was asking whether the amount of irrelevant information in the answer key add any mark ?Consider the answer for part A FL.when asked about the rationale for acquisition of FL the ans key talks about the economies of scope which developed because of an accidental synergy later
Also as an ans for the assessment of the performance of the companies the answer key talks about the portfolio management model(ashridge)which was adopted by MMI in case of FL.
Doesnt these information in the ans key not directly answer the question ?
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