CORPORATE VIEWPOINT IN BUSINESS COMBINATIONS. Porter Enterprises is considering acquiring all the stock of Sullivan Corporation so that it can immediately expand its operations into the Northeast. Both corporations produce dairy products for retail grocery stores. a REQUIRED:

1. From Porter’s perspective, compare the potential benefits of acquiring facilities through a business combination with the benefits of constructing new processing facilities.

2. From Porter’s perspective, identify the potential risks or disadvantages of acquiring facilities versus those of constructing new ones.

3. What concerns might the management of Sullivan have about a combination?

4. Why might the management of Sullivan regard a business combination as more desirable than continued existence as a separate enterprise?