Exam 7: Making Strategic Alliancee and Networks Work

Which if any) of the following are not involved in the stages of forming business relationships? a. The decision to cooperate. b. The decision to not cooperate. c. The choice of contract or equity. d. Positioning the Relationship. e. All of the above are involved.

A friend of yours stated: "I would never want to be dependent on an alliance. I prefer an acquisition so that everything would be under my control." How would you respond?

In regards to strategic alliances and networks, in the traditional industry-based view, firms are dependent players.

Strategic alliances involve: a. Voluntary agreements between firms. b. Compromises between short-term transactions and long-term solutions. c. Contracts. d. Equity-based arrangements. e. All of the above.

What can be done to maintain a successful alliance among global firms?

Weak ties in organizational relationships: a. Are more trustworthy and are cultivated over a long period of time. b. Are associated with exchanging finer-grained information. c. Provide an informal, social control mechanism. d. A through C above. e. Are less costly to maintain.

Weak ties excel at connecting with distant others who possess unique and novel information.

From the view of industry structure, in oligopolistic industries, there are an above average number of available players as potential partners.

In finding organizational partners, it is desirable to identify candidates that present both strategic fit and organizational fit.

From the perspective of network position, firms located in the center of interfirm networks accumulate less power and influence.

A non-JV, equity-based alliance can be regarded as two firms "getting married," but not having "children."

Successful alliances and networks normally avoid socially complex relations among partners.

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Contractual alliances include all of the following except: a. Co-marketing. b. Research and development R&D) contracts. c. Cross-shareholding. d. Turnkey projects. e. Licensing/franchising.

The ad hoc approach to organization allows firms to systematically learn from the experience.

A joint venture can be described as: a. A special case of equity-based alliance. b. A new legally independent entity. c. A "corporate child" given birth by two or more) parent firms. d. All of the above. e. None of the above.

The more tacit the resources and capabilities are, the less likely firms will prefer equity involvement in establishing relationships.

An increase in the experience of one partner may bring instability into the relationship as it reduces the need to rely on the other partner.

In international alliances, setting up a parallel and reciprocal relationship in the foreign partner's home country may decrease the incentives for both partners to cooperate.

Which is not an advantage of strategic alliances and networks? a. Reduce costs, risks and uncertainties. b. Costs of negotiation and coordination. c. Gain access to complementary assets and capabilities. d. Opportunities to learn from partners. e. Possibilities to use alliances and networks as real options.