Question

Windy Day Flags is a growing company that produces decorative flags and other whimsical garden accessories. Charla, owner and CEO, plans to purchase the small company that already provides their flag material; the purchase will cut Windy Day’s materials cost by half and bring over a few employees with very specialized knowledge and skills. Which knowledge acquisition is Charla using?a. reverse engineering.
b. grafting.
c. experimenting.
d. environmental scanning.

Answer 1

Answer:

Grafting

Explanation:

Grafting is the Acquiring of high-technology firms to gain access to their capabilities to innovate

It is a  capability-based acquisition— a strategy that requires firms to integrate various dispersed knowledge-based resources and thus  share knowledge to transfer the capability in question.

Since Charla, owner and CEO, plans to purchase the small company that already provides their flag material; and bring over a few employees with very specialized knowledge and skills; Charla is obviously practicing grafting.