PART I

Directions: Please answer each of the following questions in complete sentences. Your submitted paper should be three APA formatted pages. Be sure to reference your textbook to indicate your sources.

1. The Fortune 500 firms are very large and many of them have significant product diversification. Do you believe these large firms are overdiversified? Do they experience lower performance than they should? Explain your opinion and rationale and cite at least two sources.

2. Use the Internet to read about acquisitions that are currently underway and choose one of these acquisitions. Based on the firms' characteristics, experiences, and the reasons cited to support the acquisition, do you feel it will result in increased strategic competitiveness for the acquiring firm? Why or why not? Is this transaction between domestic companies or is this a cross-border acquisition? What accounts for the nature of what you found? Be sure to cite at least two references that you identify as case studies or scholarly sources.

PART II

Directions: Please review the question(s) below and write a two-page essay. Please apply APA formatting with in-text citations, a reference list, and double-spacing. Please visit the Academic Resource Center for help with APA format.

1. Search the Websites of CMGI (http://www.cmgi.com), Cisco Systems (http://www.cisco.com), EMC (http://www.emc.com), and ICG (http://www.internetcapital.com). Compare their business models and explain the type of strategy and level of diversification that describes each one. In the extremely fast-cycle Internet economy, these companies run exceptional risks. Track the success of each company's stocks over the past six months. Can you pinpoint changes within the industry that have affected the rise and fall of stock prices? What advancements in information technology and electronic commerce have had the greatest effect on the continuing strategies of these companies? Does this type of collaboration amongst Internet companies foster growth and value within the industry?

PART III:Position Paper

After watching the video from four entrepreneurs this week, think about an idea that you or someone you know has had for a business. Did they want to be acquired or did they want to continue running the business? What played a role in that decision? Please be as specific as possible. What factors would determine what your own personal goal with a small business? Submit a two page APA formatted paper as a response.