Exam 6: Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries

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Formulating an agreement with respect to the termination of the venture at the outset of the collaboration demonstrates that the partners are not fully dedicated to the success of the alliance.

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Most stable alliances often involve

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Interface managers should be well acquainted with the company's internal organizational processes and should have access to key managers in different parts of the organization.

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A vast majority of successful cross-border collaborations are founded and maintained by firms that acquire the other partner's knowledge without sharing their own knowledge.

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Alliances are the only feasible way to develop a position in multiple countries and regions.

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An effective interface manager is someone who

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Sunny is the CEO of a large corporation that wants to enter a partnership with another organization.What should Sunny consider when choosing his partner?

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Partners should be selected on the basis of comfort rather than competence.

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International joint ventures continue to be a primary means to enter foreign markets.

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Alexa is the CEO of a large corporation that wants to partner with a competitor to develop a new technology.Explain the potential risks that Alexa's company may encounter by collaborating with a rival.

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Pre-alliance analysis is sufficient to ensure the success of a collaborative agreement.

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The objectives of an alliance are more difficult to achieve when there is a greater number of joint activities,equity cross-holdings and cross-functional coordination.

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Equity joint ventures are the preferred mode of arranging an alliance and should be employed whenever multiple companies are intending to collaborate.

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Alliances that are more complex require:

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The risks associated with collaboration are limited to the inability of both firms to agree on the terms of the partnership.

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A firm is entering a strategic alliance and the CEO is worried about managing the firm's boundaries.What would you recommend to the firm and why?

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Flexibility is often the key in a strategic alliance.Please comment.

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