Deck 6: Strategy and Alliances

Question 1

Pitelis defines a quasi-stable and durable, formal or informal arrangement between two or more independent firms, aiming to further the perceived interests of the parties involved as ______.

A) inter-firm cooperation
B) subcontracting
C) market exchange
D) both inter-firm cooperation and subcontracting

Answer 1

A

Question 2

Which of the following approaches address inter-firm collaboration?

A) the industrial organization (IO) approach
B) institutional theory
C) contingency theory
D) the Machiavellian approach

Answer 2

A

Question 3

According to the Industrial Organization approach, firms cooperate because of the incentive for ______.

A) price collusion
B) efficiency
C) value
D) none of these

Answer 3

A

Question 4

Coase argued that the existence of the firm, as an alternative to market transactions, can be attributed to ______.

A) high market transaction costs
B) the benefits of a unified organizational cultural
C) economies of scale
D) economies of scope

Question 5

For Penrose (1959), firms are superior to markets in terms of their ______.

A) management
B) innovation
C) endogenous creation of knowledge, innovation and value
D) none of these

Question 6

Firms collaborate in order to:

A) access knowledge
B) learn from each other
C) overcome trade barriers
D) all of these

Question 7

According to Gulati, ______ are defined as purposive linkages between organizations that cover collaborations involving an exchange, a co-development or a sharing relationship.

A) franchise agreements
B) copyright agreements
C) intellectual property intangibles
D) strategic alliances

Question 8

Which of the following are types of strategic partnership?

A) comprehensive alliances
B) functional alliances
C) production alliances
D) all of these

Question 9

In a marketing alliance, two or more firms share ______.

A) production facilities
B) marketing expertise
C) advertising features
D) all of these

Question 10

A public-private partnership is a special type of alliance that involves ______.

A) private firms and government organizations
B) listed public companies and unlisted private firms
C) collusion and corruption for mutual self-interest
D) none of these

Question 11

For MNCs, which of the following may be reasons for establishing joint ventures?

A) reducing transaction costs
B) reducing status hierarchies
C) gaining knowledge
D) sharpening brand image

Question 12

According to Barney, which of the following mechanisms is important in how firms create value?

A) stock-picking
B) competitive positioning
C) capability-building
D) none of these

Question 13

Which of the following are typical problems for strategic alliances?

A) inability to match resources and align cultures, decision-making processes and systems
B) inability to integrate different languages
C) inability to agree shared goals
D) all of these

Question 14

The ways in which alliance partners integrate their interests, use combined resources and relate is called ______?

A) alliance synergy
B) alliance management
C) alliance governance
D) none of these

Question 15

______ provides partners with more managerial control than ______ by virtue of the establishment of an administrative hierarchy that allows partners to exercise a right of control.

A) A contract/an informal agreement
B) Good will/a legal contract
C) Equity alliance/non-equity alliance
D) All of these

Question 16

Which of the following are routinely used to manage alliances?

A) shared management agreement
B) courts
C) consultants
D) both shared management agreement and consultants

Question 17

What is a joint venture?

A) a long-term franchise agreement
B) the merger of two firms into a new legal entity
C) an entity owned by two or more parent firms that is legally distinct from the parent firms
D) a long-term partnership agreement

Question 18

How do joint ventures differ from mergers?

A) They don't differ because they are the same thing.
B) They are informal rather than formal agreements.
C) The entity has access only to a limited set of each partner's activities or operations.
D) There is more complexity with the former than the latter.

Question 19

What do firms need to consider when entering an alliance?

A) choose and integrate the alliance management team and team members
B) know when best to exit the partnership
C) the financial capacity of the partner firm
D) both choose and integrate the alliance management team and team members and know when best to exit the partnership

Question 20

What are the strategic aspects of inter-organizational collaboration that are important for partners to consider?

A) assessing whether or not collaboration is a viable strategy to gain access to important resources
B) finding suitable partners and negotiating terms and conditions
C) implementing governance structures, processes and policies
D) all of these

Question 21

______ are commonly defined as purposive linkages between organizations that cover collaborations involving an exchange, a co-development or a sharing relationship.

A) Strategic alliances
B) Networks
C) Joint ventures
D) Licensing agreements

Question 22

Strategic alliances do NOT include:

A) strategic supplier relationships
B) joint ventures
C) cross-licensing arrangements
D) mergers and acquisitions

Question 23

What is a defining feature of an alliance?

A) An alliance brings two or more individual organizations together.
B) An alliance requires these parties to be interconnected in some way with resource dependencies.
C) Interconnectedness involves reciprocal relations.
D) all of these

Question 24

Which is NOT a key benefit a firm may seek to realize from engaging in collaboration with other firms?

A) reducing risk
B) entering new markets more easily
C) preserving brand identity
D) obtaining new knowledge

Question 25

Alliances can help partners control ______ because they imply that two or more organizations work together and share, for example, investment in crucial technologies.

A) risk
B) employees
C) infrastructure
D) technology

Question 26

Collaborating with local partners can help firms to:

A) surmount regulations regarding entry modes that are imposed by the host government
B) obtain essential information about local customers, distribution networks and suppliers
C) circumvent legal obligations
D) both surmount regulations regarding entry modes that are imposed by the host government and obtain essential information about local customers, distribution networks and suppliers

Question 27

______ from alliance partners can help build capabilities within the alliance and be transferred to other parts of the organization.

A) Learning
B) Copying
C) Buying
D) Both learning and copying

Question 28

The ______ strength of alliance partners can result in synergies that allow for more efficient and effective use of resources and, thereby, provide a source for competitive advantage.

A) reciprocal
B) opposing
C) complementary
D) mutual

Question 29

Alliances between firms that are also competitors in another sphere is an example of:

A) synergy
B) co-opetition
C) cooperation
D) organic networks

Question 30

A firm can grow through which of the following means:

A) organically through internal investment
B) by purchasing necessary assets and capabilities through acquisitions
C) by collaborating with one or more firms through strategic alliances
D) all of these

Question 31

A key criterion that makes a firm choose 'to ally' is:

A) the shortage of critical resources within the current reach of the firm
B) its orientation towards marketing to non-customers
C) its strategic foresight
D) both its orientation towards marketing to non-customers and its strategic foresight

Question 32

Which of the following is a factor that is necessary to consider when entering alliances?

A) lack of necessary internal capabilities and assets
B) unavailability of needed resources for purchase in the open marketplace
C) high cost or risk associated with purchasing a firm
D) all of these

Question 33

Which of the following factors is NOT typically listed as a factor in developing collaborative strategies?

A) speed
B) opinion of employees
C) risk
D) access to capital

Question 34

In the last few decades, ______ has been a preferred way for many organizations to deal with a lack of knowledge about foreign local environments and entry into such markets.

A) collaboration
B) takeover
C) acquisition
D) merger

Question 35

Equity alliances:

A) involve the creation of a separate, new organizational entity
B) do not create a new entity
C) are associated with greater control
D) both involve the creation of a separate, new organizational entity and are associated with greater control

Question 36

Non-equity alliances:

A) involve contractual agreements
B) refer to any form of cooperative relationship between two or more firms
C) both involve contractual agreements and refer to any form of cooperative relationship between two or more firms
D) are not based on contractual agreements

Question 37

Which of the following is an example of an equity alliance:

A) joint venture
B) long-term supply relationship
C) licensing arrangement
D) distribution agreement

Question 38

Alliances can be classified according to their strategic rationale. Which of the following are types of strategic rationale for alliances:

A) a sales alliance
B) a solution-specific alliance
C) a geographic alliance
D) all of these

Question 39

Competency traps lead firms to fall unconsciously into:

A) adherence to routines
B) denial of the need for change
C) relying on past successful processes
D) all of these

Question 40

The network form of organization can be defined as:

A) a collection of two or more actors engaged in repeated and enduring exchange relations with one another, but that lacks a legitimate organizational authority to resolve disputes that may arise during exchange
B) casual relations between people who know each other and do business together
C) a collection of individual organizations that are all owned by the same parent company
D) all of these

Question 41

A network co-evolution approach argues that:

A) Networks shape institutions but institutions sculpt networks and direct their growth.
B) Networks develop through distinct stages from embryo to organism.
C) Networks evolve from a chrysalis.
D) all of these

Question 42

Digitally networked economies have been seen as increasing:

A) monopoly capitalism
B) the sharing economy
C) post capitalism
D) all of these

Question 43

Alliancing success depends on which of the following factors?

A) creating an alliance designer culture
B) having the right machine tools
C) tight legal control of the contract conditions
D) all of these