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In an effort to explain why business acquisitions often fail, scholars

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Re: In an effort to explain why business acquisitions often fail, scholars  [#permalink]

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New post 09 Feb 2019, 02:02
Hi

IN question 429
Can someone please explain why option E is a statement that is agreed by Bergh and UEP?

I eliminated this option since I inferred that UEP doesnot talk about preference between high ranked top executives and low ranked top executives. 

My understanding:

Uep is one of the theories that are presented as part of the objection to the following explanation:

 Retaining the highest-level top executives is related more positively to post-acquisition success than retaining lower-ranked top executives.

UEP states that low tenure leads to more postacquision success.

Now Bergh conducted research whose findings suggested that high ranked top executives (long tenure) are more successful than other top executives(short tenure) in post-acquisition success.




Now in both these explanations, it doesnot talk about the preference of higest level top executives to lower ranked top executives.

then how can both of them agree on option E?


Regards

Nitesh

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Re: In an effort to explain why business acquisitions often fail, scholars  [#permalink]

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New post 09 Feb 2019, 03:06
nitesh50 wrote:
Hi

IN question 429
Can someone please explain why option E is a statement that is agreed by Bergh and UEP?

I eliminated this option since I inferred that UEP doesnot talk about preference between high ranked top executives and low ranked top executives. 

My understanding:

Uep is one of the theories that are presented as part of the objection to the following explanation:

 Retaining the highest-level top executives is related more positively to post-acquisition success than retaining lower-ranked top executives.

UEP states that low tenure leads to more postacquision success.

Now Bergh conducted research whose findings suggested that high ranked top executives (long tenure) are more successful than other top executives(short tenure) in post-acquisition success.




Now in both these explanations, it doesnot talk about the preference of higest level top executives to lower ranked top executives.

then how can both of them agree on option E?


Regards

Nitesh]

Hi Nitesh.

RC questions can be set up to challenge test takers by involving concepts that seem the same or can somehow be confused with each other by test-takers. So, to correctly answer RC questions, one has to be sure to keep concepts straight.

In this case we have two concepts that can be confused with each other. They are:

- level within the company.

- length of tenure (or length of time spent) at the company.

If you go back through the passage, you will see that RBV, and specifically Bergh, and UEP actually agree on the need to retain high level executives and that their disagreement centers on executive tenure, in other words, how long the executives have been at the companies.

So, (E) mentions something that they agree on, while (D) mentions something that they disagree on.
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Re: In an effort to explain why business acquisitions often fail, scholars  [#permalink]

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New post 09 Feb 2019, 03:28
MartyTargetTestPrep wrote:
nitesh50 wrote:
Hi

IN question 429
Can someone please explain why option E is a statement that is agreed by Bergh and UEP?

I eliminated this option since I inferred that UEP doesnot talk about preference between high ranked top executives and low ranked top executives. 

My understanding:

Uep is one of the theories that are presented as part of the objection to the following explanation:

 Retaining the highest-level top executives is related more positively to post-acquisition success than retaining lower-ranked top executives.

UEP states that low tenure leads to more postacquision success.

Now Bergh conducted research whose findings suggested that high ranked top executives (long tenure) are more successful than other top executives(short tenure) in post-acquisition success.




Now in both these explanations, it doesnot talk about the preference of higest level top executives to lower ranked top executives.

then how can both of them agree on option E?


Regards

Nitesh]

Hi Nitesh.

RC questions can be set up to challenge test takers by involving concepts that seem the same or can somehow be confused with each other by test-takers. So, to correctly answer RC questions, one has to be sure to keep concepts straight.

In this case we have two concepts that can be confused with each other. They are:

- level within the company.

- length of tenure (or length of time spent) at the company.

If you go back through the passage, you will see that RBV, and specifically Bergh, and UEP actually agree on the need to retain high level executives and that their disagreement centers on executive tenure, in other words, how long the executives have been at the companies.

So, (E) mentions something that they agree on, while (D) mentions something that they disagree on.





Hi MartyTargetTestPrep
If you go back through the passage, you will see that RBV, and specifically Bergh, and UEP actually agree on the need to retain high level executives and that their disagreement centers on executive tenure, in other words, how long the executives have been at the companies.

^^^
THis is what i have not been able to find conclusively.





furthermore, existing research suggests that retaining the highest-level top executives, such as the CEO (chief executive officer) and COO (chief operating officer), is related more positively to postacquisition success than retaining lower-ranked top executives. However, this explanation, while insightful, suffers from two limitations.

The However in the text indicates the contrast/limitations of the theory.
the 2nd limitation presents 2 theories that do not agree on tenure aspect to achieve postacquisition success.
Bergh agrees with the former theory.(RBV).


How can we infer that both of RBV and UEV positions agree on highest-level top executives of acquired companies is more important than retaining lower-ranked top executives?

Can you try quoting the passage to try and explain me the inference?

Thank you for your time

Regards
Nitesh
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In an effort to explain why business acquisitions often fail, scholars  [#permalink]

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New post 09 Feb 2019, 04:05
1
nitesh50 wrote:
Hi MartyTargetTestPrep
If you go back through the passage, you will see that RBV, and specifically Bergh, and UEP actually agree on the need to retain high level executives and that their disagreement centers on executive tenure, in other words, how long the executives have been at the companies.

^^^
THis is what i have not been able to find conclusively.





furthermore, existing research suggests that retaining the highest-level top executives, such as the CEO (chief executive officer) and COO (chief operating officer), is related more positively to postacquisition success than retaining lower-ranked top executives. However, this explanation, while insightful, suffers from two limitations.

The However in the text indicates the contrast/limitations of the theory.
the 2nd limitation presents 2 theories that do not agree on tenure aspect to achieve postacquisition success.
Bergh agrees with the former theory.(RBV).


How can we infer that both of RBV and UEV positions agree on highest-level top executives of acquired companies is more important than retaining lower-ranked top executives?

Can you try quoting the passage to try and explain me the inference?

Thank you for your time

Regards
Nitesh

"existing research suggests that retaining the highest-level top executives, such as the CEO (chief executive officer) and COO (chief operating officer), is related more positively to postacquisition success than retaining lower-ranked top executives."

Neither RBV nor UEP is described as disagreeing with the above suggestion. Rather the more logical interpretation of the passage is that they are examples of schools of thought in that that agree with that suggestion as the passage describes the two schools of thought as different in their takes on retaining "top executives."

At the same time the passage describes the two as disagreeing as described below.

"The resource-based view (RBV) suggests that keeping acquired company top executives with longer organizational tenure would lead to more successful outcomes, as those executives have idiosyncratic and nontransferable knowledge of the acquired company that would be valuable for the effective implementation of the acquisition. The opposing position, offered by the upper echelons perspective (UEP). suggests that retaining top executives having short organizational tenure would lead to more successful outcomes ..."

We can concede that the passage never directly states that the two schools of thought agree on the point related to level of executives. However, by introducing the highest-level top executives conclusion and then the two schools of thought, and by associating both schools of thought with "top executives" it does seem to indicate that they agree on the point related to level of executives. At the same time, what you are saying makes some sense, and perhaps I went slightly too far in saying that the passage indicates that they agree on that point.

At the same time, question 429, does not ask us whether they agree on that point. Rather it asks us to identify a point of DISAGREEMENT, and the passage clearly does not indicate that they disagree on the the point related to levels of executives. It indicates that they disagree on the point related to tenure.

Vision, finding key details, and clarity are key.
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In an effort to explain why business acquisitions often fail, scholars   [#permalink] 09 Feb 2019, 04:05

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