Exam 9: Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

It is necessary for government authorities such as the Federal Trade Commission (FTC)and/or the European Commission to approve any large horizontal integration activity because

The managers at Movo Automobile Inc.want to diversify their business by acquiring a consumer electronics company.This acquisition would mean increased job security,higher compensation,and greater decision-making authority for the managers.The managers correlate this acquisition to greater power for them rather than to the appreciation in shareholder value.In this scenario,this acquisition by Movo Automobile is most likely a result of

Which of the following best explains why Disney showed superior post-merger integration capabilities?

A(n)_____ occurs when firms enter into a partnership based on contractual agreements,which results in vertical strategic alliances that connect different parts of the industry value chain.

When does a merger between companies typically occur?

Which of the following best illustrates an equity alliance?

FR Pharmaceuticals Inc.,BioCure Pharma Inc.,and Regime Pharma Inc.are three rival firms who have set up an alliance to conduct research and find a cure for cancer.They have made almost equal contributions to the research,and they also share their expertise with each other.However,the three firms will continue to behave as competitors in markets for other drugs and vaccines.What is this arrangement best referred to as?

Olympia Autos Inc.merged with its competitor Vaca Autos Inc.This allowed Olympia Autos to use its technological competencies along with Vaca Autos' marketing capabilities to capture a larger market share than what the two entities individually held.What does this scenario best illustrate?

Comfort Shoes Inc.and InStep Shoes Inc.,two competing shoe brands,entered into a strategic alliance to study and acquire each other competencies.Comfort Shoes entered the strategic alliance to acquire the production system pioneered by InStep Shoes.Similarly,InStep Shoes agreed to the strategic alliance to study the designing process of Comfort Shoes.However,Comfort Shoes was more successful and faster than InStep Shoes in accomplishing its alliance goal.What does this scenario best illustrate?

When entering a foreign market,it is advisable for a new venture that has a core competency only in R&D to form a strategic alliance with a local partner because

Equity alliances are less common than non-equity alliances because they

A consumer electronics company is in the process of evaluating whether it should pursue an internal development strategy or an external growth strategy.To make this decision,the management needs to assess whether the company's internal resources are superior to those of competitors in the targeted area.Which of the following strategic management models would be most useful in this assessment?

A drawback of joint ventures is that they are characterized by

In a non-equity alliance,which of the following types of information would firms most likely share?

The downside of equity alliances is

Which of the following is a disadvantage of equity alliances?

In 1984,GM and Toyota formed a joint venture called New United Motor Manufacturing Inc.Each partner was motivated to learn new capabilities.This joint venture is an example of

Which of the following statements is true about managing alliances-related tasks?

Horizontal integration through mergers and acquisitions can help firms strengthen their competitive positions by increasing

When should mergers and acquisitions (M&A)be considered the "buy" option for a strategist trying to determine which corporate strategy to implement?