In relation to an external growth strategy, the material suggests human capital issues are not the primary focus.

In relation to an external growth strategy, the material suggests human capital issues are not the primary focus.

• A. True
• B. Not Applicable
• C. True
• D. False

Answer: (C)

When pursuing an external growth strategy, the emphasis is on adding external assets or capabilities—through acquisitions, mergers, alliances, or licensing—rather than building capabilities from within. The main decision drivers are strategic fit, potential synergies, market access, and the financial upside, evaluated through due diligence and deal value. Human capital issues, such as talent gaps or culture, are important to handle during integration, but they are not the primary reason for pursuing the external move. The statement that human capital issues are not the primary focus aligns with this perspective, making the answer True.

When pursuing an external growth strategy, the emphasis is on adding external assets or capabilities—through acquisitions, mergers, alliances, or licensing—rather than building capabilities from within. The main decision drivers are strategic fit, potential synergies, market access, and the financial upside, evaluated through due diligence and deal value. Human capital issues, such as talent gaps or culture, are important to handle during integration, but they are not the primary reason for pursuing the external move. The statement that human capital issues are not the primary focus aligns with this perspective, making the answer True.