Exam 9: Cooperative Implications for Strategy

The alliance between Nokia and Microsoft (Chapter 9 Strategic Focus) calls for Nokia to transition its smartphone portfolio to Microsoft's Windows phone platform. This is an example of using an alliance in a ____________ to speed up development of new products and services.

According to the Chapter 9 Opening Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.

Moon Flower cosmetics company executives are aware that their Asian customer base is interested in advanced skin care treatments beyond Moon Flower's traditional herbal and organic compounds. Moon Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm which would create skin care treatments based on innovative chemical formulations which would be marketed both in Asia and in the U.S. Beyond being a cross-border alliance, this partnership can be called a(an)

Network cooperative strategies among Silicon Valley firms have been successful, in part, because they are geographically close together.

A competitive advantage that is developed through a cooperative strategy is called a collaborative or a ____ advantage.

Firms participate in strategic alliances for all the following reasons EXCEPT to

In a(an) ____, two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage.

The Microsoft/Nokia alliance (Chapter 9 Strategic Focus) which had hundreds of pages to specify each partner's responsibilities would be closest to the _______ approach to managing cooperative ventures. In contrast, the Renault/Nissan alliance (Chapter 9 Strategic Focus) was based on trust, respect and transparency and is an example of the ________ approach to managing cooperative ventures.

Reduction of competition can be accomplished through all of the following EXCEPT

One disadvantage of developing effective monitoring systems to manage a strategic alliance is that

Because of U.S. legal restrictions concerning large foreign acquisitions, American firms can only enter into diversifying alliances with other U.S. firms.

Hewlett-Packard licenses some of its intellectual property through strategic alliances. Which of the following is correct about this relationship?

Close monitoring, formal contracts, and constant vigilance against opportunism increase the probability of alliance success.

The advantages of alliances designed to respond to competition and to reduce uncertainty are more temporary than those developed through complementary alliances, such as vertical and horizontal strategic alliances.

The global airline industry is one in which

Firms in slow-cycle markets can use alliances to enter restricted markets or to establish franchises in new markets.

Identify and define the two different types of network strategies.

The equity strategic alliance between GE's NBC Universal, News Corporation, and Walt Disney (Hulu.com) was formed to develop new sources of competitive advantages in the fast-cycle entertainment business.

The primary responsibility of the franchiser is to transfer capital to the franchisee.

The Renault Nissan approach to managing its collaboration involves less reliance on contracts and more reliance on trust, respect, and transparency (i.e., the opportunity-maximization approach to managing cooperative strategies).