Question

Jetstream airway's decision to acquire rex fuels inc. proved to be ill-fated because its managers had overestimated their abilities and skills. they believed that they had the skills to manage such diversified businesses and create additional shareholder value. however, the acquisition failed to create the anticipated synergies because the managers' capabilities were restricted to the airlines industry. what does this scenario best illustrate

Answer 1

When they phrase "managers had overestimated their abilities and skills. they believed that they had the skills to manage such diversified businesses and create additional shareholder value. however, the acquisition failed to create the anticipated synergies" This best illustrates Managerial Hubris. Hubris is the characteristic of excessive confidence or arrogance, which leads a person to believe that he or she may do no wrong.