Exam 8: Strategic Alliances

Teal Inc., forms a strategic alliance with White Corp.In their contract, they specify how governance issues, operating issues, and termination issues would be resolved.Which of the following is likely to be covered under the clause that deals with governance issues?

Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry.In return, the company is willing to pay a percentage of revenue to the agro-based industry.In this case, which of the following contractual alliances should be adopted by Sepia?

What are the four kinds of inputs and activities that might qualify as strategic inputs, which merit forming an alliance relationship? Explain the four inputs with suitable examples.

Which of the following statements is true about firms that establish strategic alliances?

Borpon Inc.and Biocolog Corp.are well-established biotechnology companies.They enter into a strategic alliance in which they create and own a legally independent company.The new company is created from resources and assets contributed by the parent firms.Revenues, expenses, and profits are equally shared by both firms.Which of the following strategic alliances is adopted by Borpon and Biocolog?

A graphic design firm and an advertising firm form a contractual alliance.In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved.In the second clause, they specify how intellectual property will be shared and protected.Which category of issues does the second clause address?

Redwood Inc., has an arm's-length relationship with Blue Ink Corp.Which of the following is likely to be true in this case?

A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa.The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality.The alliance between the two firms is an example of _____.

Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base.It forms a strategic alliance with Gray Inc.to produce new instruments designed to attract students.Gray helps design products that change how Victor is perceived by young customers.Which of the following is the primary objective of this strategic alliance?

The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease.It requires additional resources to complete the process.To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process.Which of the following is being exemplified in this case?