Question 1

Which of the following is a common drawback of a non-equity alliance?

Accepted Answer

A)  lack of trust between partners 
B)  difficulty initiating the contract 
C)  difficulty terminating the contract 
D)  lack of flexibility for the partners 
A)  lack of trust between partners 
B)  difficulty initiating the contract 
C)  difficulty terminating the contract 
D)  lack of flexibility for the partners

Question 2

Why did incumbent pharmaceutical firms enter into hundreds of strategic alliances with biotech start-ups?

Accepted Answer

A)  to pursue an unrelated-options perspective without disrupting existing market economics 
B)  to make small-scale investments in ventures poised to disrupt existing market economics 
C)  to invest their excess cash flow in the superior technology of the biotech start-ups 
D)  to share their continuously updated research technology with the biotech start-ups 
A)  to pursue an unrelated-options perspective without disrupting existing market economics 
B)  to make small-scale investments in ventures poised to disrupt existing market economics 
C)  to invest their excess cash flow in the superior technology of the biotech start-ups 
D)  to share their continuously updated research technology with the biotech start-ups

Question 3

Wave Motors Inc.,a Kempa-based automobile company,has entered into a partnership with Sphere Autos Inc.,headquartered in United Cadvia.The parent companies,together,have established a stand-alone firm called Genuine Autos Inc.This arrangement best exemplifies a

Accepted Answer

A)  joint venture. 
B)  partnership. 
C)  non-equity alliance. 
D)  proprietorship. 
A)  joint venture. 
B)  partnership. 
C)  non-equity alliance. 
D)  proprietorship.

Question 4

How does horizontal integration within an industry affect the surviving firms?

Accepted Answer

A)  by increasing the threat the surviving firms will face from new entrants 
B)  by strengthening the rivalry among existing firms 
C)  by requiring the surviving firms to shift their focus from non-price to price competition 
D)  by strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers 
A)  by increasing the threat the surviving firms will face from new entrants 
B)  by strengthening the rivalry among existing firms 
C)  by requiring the surviving firms to shift their focus from non-price to price competition 
D)  by strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers

Question 5

Which of the following is not a reason why firms enter alliances?

Accepted Answer

A)  to replace competitive advantage with competitive parity 
B)  to strengthen competitive position 
C)  to enter new markets, either in terms of geography or products and services 
D)  to learn new capabilities 
A)  to replace competitive advantage with competitive parity 
B)  to strengthen competitive position 
C)  to enter new markets, either in terms of geography or products and services 
D)  to learn new capabilities

Question 6

_____ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new,and potentially disruptive,technologies.

Accepted Answer

A)  Corporate venture capital investments 
B)  Greenfield ventures 
C)  Joint ventures 
D)  Loan sharks 
A)  Corporate venture capital investments 
B)  Greenfield ventures 
C)  Joint ventures 
D)  Loan sharks

Question 7

The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.

Accepted Answer

A)  real-options perspective 
B)  stakeholder strategy 
C)  relational view of competitive advantage 
D)  non-differentiation strategy 
A)  real-options perspective 
B)  stakeholder strategy 
C)  relational view of competitive advantage 
D)  non-differentiation strategy

Question 8

Adidas acquired Reebok primarily to

Accepted Answer

A)  overcome its competitive disadvantage against Nike. 
B)  get access to the superior technology of Reebok. 
C)  overcome its principal-agent problems. 
D)  pursue an unrelated diversification strategy. 
A)  overcome its competitive disadvantage against Nike. 
B)  get access to the superior technology of Reebok. 
C)  overcome its principal-agent problems. 
D)  pursue an unrelated diversification strategy.

Question 9

_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning,but the rate at which the firms learn may vary.

Accepted Answer

A)  Learning races 
B)  Learning networks 
C)  Learning effects 
D)  Learning matrices 
A)  Learning races 
B)  Learning networks 
C)  Learning effects 
D)  Learning matrices

Question 10

Luxura Inc.is a large cosmetics company that made an initial small investment in a start-up company,GreenDream,that was developing an organic face lotion.This gave Luxura controlling interests in the start-up company.However,GreenDream soon began to have financial difficulties because of principal-agent problems.As a result,Luxura did not invest in the next stage of development and pulled out of the company.This approach to strategic alliance is referred to as a

Accepted Answer

A)  break-even analysis. 
B)  partial joint venture. 
C)  credible commitment. 
D)  real-options perspective. 
A)  break-even analysis. 
B)  partial joint venture. 
C)  credible commitment. 
D)  real-options perspective.

Question 11

Which of the following corresponds to the use of tacit knowledge?

Accepted Answer

A)  Pedro studies a fact sheet about France. 
B)  Heather reads a demographic report about minorities in Texas. 
C)  John assembles the motorcycle from memory. 
D)  Henrietta uses a scientific article to defend her thesis about global warming. 
A)  Pedro studies a fact sheet about France. 
B)  Heather reads a demographic report about minorities in Texas. 
C)  John assembles the motorcycle from memory. 
D)  Henrietta uses a scientific article to defend her thesis about global warming.

Question 12

Which alliance type is the Renault-Nissan alliance,where Nissan owns 15 percent of Renault,and Renault owns 44.4 percent in Nissan?

Accepted Answer

A)  equity alliance 
B)  non-equity alliance 
C)  greenfield venture 
D)  joint venture 
A)  equity alliance 
B)  non-equity alliance 
C)  greenfield venture 
D)  joint venture

Question 13

Which of the following types of strategic alliances is the least common in terms of frequency?

Accepted Answer

A)  mergers 
B)  acquisitions 
C)  equity alliances 
D)  joint ventures 
A)  mergers 
B)  acquisitions 
C)  equity alliances 
D)  joint ventures

Question 14

Which of the following is a drawback of joint ventures?

Accepted Answer

A)  They produce weak ties, trust, and commitment between the partners. 
B)  They are based on contractual agreements rather than partial ownership. 
C)  They do not enable the transfer and sharing of tacit knowledge. 
D)  They necessitate the sharing of rewards between the partners. 
A)  They produce weak ties, trust, and commitment between the partners. 
B)  They are based on contractual agreements rather than partial ownership. 
C)  They do not enable the transfer and sharing of tacit knowledge. 
D)  They necessitate the sharing of rewards between the partners.

Question 15

With regard to New United Motor Manufacturing,Inc.(NUMMI),why did General Motors (GM)enter into a strategic alliance with Toyota?

Accepted Answer

A)  to transfer its knowledge of a completely new production system 
B)  to learn the lean manufacturing system pioneered by Toyota 
C)  to better understand the American workforce 
D)  to get access to Toyota's distribution system and marketing expertise 
A)  to transfer its knowledge of a completely new production system 
B)  to learn the lean manufacturing system pioneered by Toyota 
C)  to better understand the American workforce 
D)  to get access to Toyota's distribution system and marketing expertise

Question 16

Terranova Autos Inc.,a large automobile company,made an initial small investment in a start-up company that was developing a solar-powered car.This gave Terranova Autos controlling interests in the start-up company.However,Terranova Autos had no obligations to make continued investments in the experiments of the start-up company.It could invest in small amounts depending on the new product's success at each stage of its development.If the product proved to be successful,Terranova Autos would have the right to buy out the start-up company.This approach to strategic alliance is referred to as

Accepted Answer

A)  a break-even analysis. 
B)  a real-options perspective. 
C)  credible commitment. 
D)  transaction cost economics. 
A)  a break-even analysis. 
B)  a real-options perspective. 
C)  credible commitment. 
D)  transaction cost economics.

Question 17

In Eli Lilly's Office of Alliance Management,who is responsible for providing alliance training and development?

Accepted Answer

A)  the alliance champion 
B)  the alliance leader 
C)  the alliance manager 
D)  the alliance boss 
A)  the alliance champion 
B)  the alliance leader 
C)  the alliance manager 
D)  the alliance boss

Question 18

A drawback involved in using cross-border strategic alliances to enter new foreign markets is that

Accepted Answer

A)  the foreign firm will need to make larger investments when compared to entering the new market on its own. 
B)  some of the firm's proprietary know-how may be appropriated by the foreign partner. 
C)  all potential business risks in the new market will have to be faced alone by the foreign firm. 
D)  the shareholder value of the foreign partner will decline drastically. 
A)  the foreign firm will need to make larger investments when compared to entering the new market on its own. 
B)  some of the firm's proprietary know-how may be appropriated by the foreign partner. 
C)  all potential business risks in the new market will have to be faced alone by the foreign firm. 
D)  the shareholder value of the foreign partner will decline drastically.

Question 19

Amiware Inc.,a manufacturer of ceramic cookware,has entered into a contractual agreement with Micoware Inc.The agreement involves vertical strategic alliances connecting different parts of the industry value chain.This arrangement between the two companies best illustrates a(n)

Accepted Answer

A)  joint venture. 
B)  acquisition. 
C)  non-equity alliance. 
D)  greenfield venture. 
A)  joint venture. 
B)  acquisition. 
C)  non-equity alliance. 
D)  greenfield venture.

Question 20

Which of the following statements is true of strategic alliances?

Accepted Answer

A)  They are always focused on joining the same value chain activities. 
B)  They enable firms to achieve goals faster, but at higher costs. 
C)  They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. 
D)  They are most beneficial when they join together resources and knowledge in a combination that obeys the VRIO principles. 
A)  They are always focused on joining the same value chain activities. 
B)  They enable firms to achieve goals faster, but at higher costs. 
C)  They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. 
D)  They are most beneficial when they join together resources and knowledge in a combination that obeys the VRIO principles.

Which of the following is a common drawback of a non-equity alliance?

Why did incumbent pharmaceutical firms enter into hundreds of strategic alliances with biotech start-ups?

Wave Motors Inc.,a Kempa-based automobile company,has entered into a partnership with Sphere Autos Inc.,headquartered in United Cadvia.The parent companies,together,have established a stand-alone firm called Genuine Autos Inc.This arrangement best exemplifies a

How does horizontal integration within an industry affect the surviving firms?

Which of the following is not a reason why firms enter alliances?

_____ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new,and potentially disruptive,technologies.

The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.

Adidas acquired Reebok primarily to

_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning,but the rate at which the firms learn may vary.

Which of the following corresponds to the use of tacit knowledge?

Which alliance type is the Renault-Nissan alliance,where Nissan owns 15 percent of Renault,and Renault owns 44.4 percent in Nissan?

Which of the following types of strategic alliances is the least common in terms of frequency?

Which of the following is a drawback of joint ventures?

With regard to New United Motor Manufacturing,Inc.(NUMMI),why did General Motors (GM)enter into a strategic alliance with Toyota?

In Eli Lilly's Office of Alliance Management,who is responsible for providing alliance training and development?

A drawback involved in using cross-border strategic alliances to enter new foreign markets is that

Amiware Inc.,a manufacturer of ceramic cookware,has entered into a contractual agreement with Micoware Inc.The agreement involves vertical strategic alliances connecting different parts of the industry value chain.This arrangement between the two companies best illustrates a(n)

Which of the following statements is true of strategic alliances?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation and Entrepreneurship

Corporate Strategy: Vertical Integration and Diversification

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

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

Which of the following is a common drawback of a non-equity alliance?

Why did incumbent pharmaceutical firms enter into hundreds of strategic alliances with biotech start-ups?

Wave Motors Inc.,a Kempa-based automobile company,has entered into a partnership with Sphere Autos Inc.,headquartered in United Cadvia.The parent companies,together,have established a stand-alone firm called Genuine Autos Inc.This arrangement best exemplifies a

How does horizontal integration within an industry affect the surviving firms?

Which of the following is not a reason why firms enter alliances?

_____ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new,and potentially disruptive,technologies.

The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.

Adidas acquired Reebok primarily to

_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning,but the rate at which the firms learn may vary.

Which of the following corresponds to the use of tacit knowledge?

Which alliance type is the Renault-Nissan alliance,where Nissan owns 15 percent of Renault,and Renault owns 44.4 percent in Nissan?

Which of the following types of strategic alliances is the least common in terms of frequency?

Which of the following is a drawback of joint ventures?

With regard to New United Motor Manufacturing,Inc.(NUMMI),why did General Motors (GM)enter into a strategic alliance with Toyota?

In Eli Lilly's Office of Alliance Management,who is responsible for providing alliance training and development?

A drawback involved in using cross-border strategic alliances to enter new foreign markets is that

Amiware Inc.,a manufacturer of ceramic cookware,has entered into a contractual agreement with Micoware Inc.The agreement involves vertical strategic alliances connecting different parts of the industry value chain.This arrangement between the two companies best illustrates a(n)

Which of the following statements is true of strategic alliances?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation and Entrepreneurship

Corporate Strategy: Vertical Integration and Diversification

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters