Deck 8: Collaboration Strategies

Question 1

Hammerschmidt Copiers has developed and patented a new copy machine.It wishes to penetrate a wider market and is short on funds.A licensing arrangement would be a good way to accomplish this goal.

Answer 1

True

Question 2

The objectives of collaboration may change over time,requiring modification of the terms of the collaboration or the termination of it.

Answer 2

True

Question 3

Effective collaboration agreements should be flexible enough to provide a graceful exit strategy for members that no longer wish to participate in the collaboration.

Answer 3

True

Question 4

When two companies enter into a joint venture the result is often a new separate company that is formed.

Question 5

Currently,the use of strategic alliances is on the rise.

Question 6

When Dynamite Pictures formed an alliance with Independence Studios to market movies it produced,this freed up badly needed capital for Dynamite to put into other projects,exemplifying a benefit of an alliance.

Question 7

In licensing,a firm loses a significant amount of control over the technology.

Question 8

It is unusual for a company to lack certain complementary assets required to transform a body of technological knowledge into a commercial product.

Question 9

Fisher Athletics and Truly Great Deals entered into an alliance.Fisher wanted access to online sales but did not know how to do it as well as Truly Great Deals.Truly Great Deals wanted to sell Fisher exercise mats from its online website.This is an example of quadrant C-individual alliance with capability transfer.

Question 10

Some firms avoid collaboration as they do not wish to expose their proprietary technologies.

Question 11

Solo internal development is,on average,a relatively faster way of developing a technology.

Question 12

A strategic alliance may not offer potential for accessing another firm's competencies.

Question 13

The National Cooperative Research Act (NCRA)of 1984 restricted collaborative research among firms in the same industry.

Question 14

A firm cannot collaborate with its competitor.

Question 15

Licensing a technology from another firm is typically more expensive for a licensee than developing a new technology in-house.

Question 16

A firm's effectiveness at managing its collaborations will increase with the number of collaborations to which it is committed.

Question 17

A periodic audit of the members of a strategic alliance may be conducted by a partner organization or a third party in order to ensure adherence to the collaboration agreement.

Question 18

Strategic fit refers to the degree to which potential partners have resources that can be effectively integrated into a strategy that creates value.

Question 19

A trade association can take the form of a collective research organization.

Question 20

Stapler Corporation is developing a superior prosthetic leg and has world-renowned researchers on staff.It also has the financial and marketing resources to take the product to market as it has done in the past.Most likely,Stapler will not take on a partner.

Question 21

Virtual Baskets wants to develop its technology very fast,but with low cost and medium control.It would like to leverage its existing competencies,not develop new competencies,and may need to access the competencies of other firms.Which is the best mode of development for Virtual Baskets to meet these criteria?

A) Strategic alliance
B) Joint venture
C) License out
D) Collective research organization

Question 22

Brintle Enterprises entered into an alliance with Surry Trucking Company to use high tech communications to manage its trucks across the nation more effectively.In this arrangement,both firms will help each other keep track of trucks of the each other and will share their knowledge about other ways to make the businesses more effective and efficient.This would be consider in

A) quadrant A-individual alliance with capability complementation
B) quadrant B-network alliances with capability complementation
C) quadrant C-individual alliance with capability transfer
D) quadrant D-network alliances with capability transfer

Question 23

Gerusa is a company of former Soviet scientists who have developed a special chemical to kill cancer cells.It has decided to not take on a partner in developing Photodynamic Therapy for cancer.This will

A) give Gerusa exclusive control over the technology.
B) prevent Gerusa from leveraging its capabilities.
C) reduce Gerusa's potential profit.
D) destroy Gerusa's competitive advantage.

Question 24

Glory Cosmetics wants to sell its products on the West Coast,but does not have either the manufacturing facility or the labor force to meet the increase in demand.It also is worried that building such a big facility could impose a lot of risk on the firm if it turns out that the products are not successful on the West Coast.Glory should probably

A) outsource production by using contract manufacturing.
B) slightly decrease the quality of the product and use the money saved to hire new workers for a second shift.
C) use its credit cards to meet the first couple of payrolls of newly hired workers and then when profits come in from increased sales, pay off the credit cards.
D) seek a small business development loan from the local bank.

Question 25

Fisher Athletics and Truly Great Deals entered into an alliance.Fisher wanted access to online sales but did not know how to do it as well as Truly Great Deals.Truly Great Deals wanted to sell Fisher exercise mats from its online website.This is an example of

A) quadrant A-individual alliance with capability complementation
B) quadrant B-network alliances with capability complementation
C) quadrant C-individual alliance with capability transfer
D) quadrant D-network alliances with capability transfer

Question 26

In 1983,Niraldy Systems and Obermeir Products wanted to collaborate on research but could not.In 1985 they entered into a collaborative research arrangement.What change made this possible?

A) Passage of the National Cooperative Research act (NCRA) of 1984
B) Repeal of the Sherman Anti-Trust Act in 1984
C) A Supreme Court Decision of Niraldy versus the United States
D) The Open Mobile Architecture Act of 1984

Question 27

Eden Enterprises and Brushco Systems formed an alliance to develop a new line of technologically advanced stoves for cooking.What outcomes can they expect from this alliance?

A) Getting the product to the market faster
B) Increased security of proprietary knowledge
C) Less opportunities to pursue other projects
D) Fewer resources to cope with contingencies

Question 28

Gerusa is a company of former Soviet scientists who have developed a special chemical to kill cancer cells.While the scientists have the knowledge,they are short on equipment,money,and marketing know-how.It would seem that Gerusa should

A) give up the idea altogether.
B) find a partner with which to collaborate.
C) forge forward and develop this technology on their own.
D) come up with a new concept in which they possess all the necessary capabilities.

Question 29

Contract manufacturing:

A) enhances a firm's in-house capabilities.
B) allows firms to meet the scale of market demand by committing to long-term capital investments.
C) enables a firm to tap the greater economies of scale.
D) decreases organizational responsiveness to the environment.

Question 30

When technology is progressing rapidly,firms are more likely to

A) commit themselves to fixed assets.
B) focus on developing the necessary skills in-house.
C) use linkages with other specialized firms to access resources they do not possess.
D) focus on broadening their capabilities.

Question 31

Which of the following collaborative arrangements is usually thought to offer the most opportunity for firms to learn from each other?

A) Strategic alliance
B) Joint venture
C) Licensing
D) Sole internal development

Question 32

Which of the following collaborative arrangements is usually considered to be the most complex and expensive?

A) Strategic alliance
B) Joint venture
C) Licensing
D) Outsourcing

Question 33

Gerusa has developed a technology called Photodynamic Therapy (PDT)for cancer treatment.The scientists who started the company want to learn how to set up clinics and actually treat patients with this technology; hence they want to begin opening clinics quickly.To meet this objective Gerusa should

A) collaborate with a company who has gone through a similar process to learn from them.
B) hire marketing professionals to market the product and managers to run the clinics.
C) go ahead with the project on its own to develop the desired capabilities and skills.
D) seek the help of consultants.

Question 34

Cardoff Aluminum Company has come up with a new type of metal.However,producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products.An appropriate mode of producing this new product would be

A) outsourcing.
B) a joint venture.
C) licensing in.
D) solo internal development.

Question 35

Which of the following is not true regarding outsourcing?

A) It involves significant transaction costs.
B) It is a way to meet market demand without a long-term commitment.
C) It is a great way for a company to develop needed manufacturing capabilities.
D) There is some risk of the contract manufacturer exposing the technology to other customers.

Question 36

Dreyfuss WebMakers Company developed a template for a web page that included a shopping cart and other capabilities to market its software.However,Dreyfuss soon realized it could make more money by selling this template in modules to others wishing to quickly build web pages to sell their products.Dreyfuss should

A) forget about this idea because it will just be creating its own competition on the Internet.
B) become a licensor of web page template modules.
C) become a licensee of web page template modules.
D) start a joint venture with any other company wishing to use its template.

Question 37

Brintle Enterprises entered into an alliance with several other trucking companies to use high tech communications to manage its trucks across the nation more effectively.In this arrangement,firms will help each other keep track of trucks of the entire alliance,but will share no other information.This alliance would be considered in

A) quadrant A-individual alliance with capability complementation.
B) quadrant B-network alliances with capability complementation.
C) quadrant C-individual alliance with capability transfer.
D) quadrant D-network alliances with capability transfer.

Question 38

Red Hat Systems is a small company started by two computer programmers who have come up with a medical diagnosis software program that is truly amazing.They can try to market it themselves,but there are only two of them and they have very little money for mass marketing efforts as well as no contacts in the medical field.They have heard that other companies are developing similar products.They have decided to form an alliance with United Medical Systems.What would seem to be the major reason for doing so?

A) To gain rapid access to the market
B) To maintain control of the product
C) To reduce the potential level of competition
D) To challenge itself to develop the necessary capabilities

Question 39

One result of collaborative research has been

A) more anti-trust cases being prosecuted.
B) more legal barriers being put into place due to seepage of patented information among collaborators.
C) more innovation than before.
D) less individual motivation to be innovative.

Question 40

A firm that chooses to engage in solo development of a project usually

A) lacks the required capabilities.
B) can better protect its intellectual property.
C) relinquishes some amount of control over the use of technology.
D) lacks the opportunity to challenge the abilities of its employees.

Question 41

Frantol Laboratory is planning on entering into a collaboration agreement with Acgra Pharmaceuticals but is concerned about how much effort Acgra will put into the effort.What would you suggest that Frantol do to overcome this problem?

Question 42

Which of the following is not true of a collective research organization?

A) It will help the firm leverage its own competencies.
B) A company can learn from other participating organizations.
C) It is a great way to gain immediate returns.
D) It allows the firm to share the cost and risk of basic research.

Question 43

Parker Computer Company is considering entering into collaboration with Sandlot Software Company,but is not sure if the resources of Sandlot are a good fit.How would you address this concern?

A) Do not enter into the agreement until you are 100 percent sure of the fit.
B) It may be difficult to determine the fit. Research it the best you can and then go with it.
C) Resource fit does not matter; all that really matters is cooperativeness.
D) Purchase insurance to cover any uncertainty you feel.

Question 44

Gerusa is a company of former Soviet scientists who have developed a method of killing cancer cells with light in a process called Photodynamic Therapy (PDT).While the scientists have the medical knowledge,they are short on equipment,money,and marketing know-how.As a consultant what would you advise Gerusa to do?

Question 45

Dreyfuss WebMakers Company developed a template for a web page that included a shopping cart and other capabilities to market its software.However,Dreyfuss soon realized it could make even more money by selling this template in modules to others wishing to quickly build web pages to sell their products.Dreyfuss is considering using licensing to distribute its templates.Discuss the advantages and disadvantages to this approach.

Question 46

Which of the following elements would not be included in a collaboration contractual agreement?

A) Levels of contribution
B) Authority and control
C) Distribution of proceeds
D) Level of competition

Question 47

One way to minimize the risks associated with collaboration is to

A) increase the number of collaborations in which the company engages in order to gain experience in managing them.
B) use quantitative tools to screen out unsuitable partners.
C) establish appropriate monitoring and governance mechanisms.
D) incorporate no-liability clauses in all collaboration contracts.

Question 48

What are the advantages and disadvantages of collaborating for research and product development?

Question 49

Dr.Low,a chemistry professor at Purdue University,has been working on a new cancer treatment method.She has formed her own company to develop and market her results.She has heard about collective research organizations and is considering joining one sponsored by a medical society.Explain to her the factors she should consider in making this decision.

Question 50

Even though JetShoes is doing fine on the East Coast in the shoe gliding market,it has decided to collaborate with FastShoes before tackling the West Coast market and trying to compete with SunShoes who is currently the market leader on the West Coast.This is the pooling of

A) supplementary resources.
B) complementary resources.
C) scarce resources.
D) monopolistic resources.