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(d) Assess why Microsoft might decide to take over another business such as Nokia. (12)Indicative content Knowledge 2, Application 2, Analysis 4, Evaluation 4 .

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(d) Assess why Microsoft might decide to take over another business such as Nokia. (12)Indicative content Knowledge 2, Application 2, Analysis 4, Evaluation 4 . Takeovers occur when a business buys a controlling interest in the share ownership of another business. Takeovers often give a competitive advantage. A competitor may have technology that has been patented. Takeover of Nokia increases Microsoft's market share by nearly 20%. Microsoft saw an opportunity in Nokia to buy a phone manufacturer. May be vertical integration as Nokia manufacture phones. Economies of scale can also result from takeovers. Possible counterbalance Takeovers are often unsuccessful in achieving their stated aims. . Microsoft might not have the knowledge and understanding of the mobile handset sector. Nokia's technology and intellectual property may be quickly out of date. Clash of cultures. Duplication of roles and resources

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