Deck 8: Collaboration Strategies

Question 1

Solo internal development is,on average,a relatively fast and inexpensive way of developing a technology.

Answer 1

False

Question 2

After licensing a technology,a firm typically has limited discretion over what it can do with the technology.

Answer 2

True

Question 3

Which of the following is an advantage of collaborating?

A) It increases the in-house development time for projects.
B) It increases a product's cycle time.
C) It gives firms more flexibility.
D) It causes firms to commit to assets that will rapidly become obsolete.

Answer 3

C

Question 4

Joint ventures are less appropriate than strategic alliances when a firm places great importance on access to other firms' competencies.

Question 5

A firm cannot collaborate with its competitor.

Question 6

A joint venture between two companies often results in a new separate company.

Question 7

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

Question 8

Some firms avoid collaboration for fear of giving up their proprietary technologies.

Question 9

Product life cycles shorten with high-speed technological changes.

Question 10

Some collaboration agreements include provisions for periodic auditing either by the partner organizations or by a third party.

Question 11

Firms can use strategic alliances to exploit their own capabilities by leveraging them in another firm's development efforts.

Question 12

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

Question 13

Collective research organizations can take the form of trade associations.

Question 14

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

Question 15

Obtaining some of the necessary capabilities or resources from a partner rather than building them in-house will increase a firm's asset commitment.

Question 16

When technology is progressing rapidly,firms are more likely to:

A) commit themselves to fixed assets that will rapidly become obsolete.
B) avoid forming alliances for projects that are risky and complex.
C) use linkages with other specialized firms to access resources they do not possess.
D) avoid becoming more narrowly specialized.

Question 17

Greyer Corp.has developed a special drug that kills cancer cells.While the scientists at Greyer have the knowledge,they are short on equipment,money,and marketing know-how.In this situation,the most appropriate step for Greyer would be to:

A) give up the idea of selling the drugs altogether.
B) find a partner to collaborate with to sell the drug.
C) forge forward and develop the drug on its own.
D) come up with a completely new drug.

Question 18

The pooling of supplementary resources can enable partners to achieve market power.

Question 19

Which of the following is an advantage of collaborating at the development stage of a technology?

A) It increases asset commitment to obsolete products.
B) It ensures cooperation in the commercialization stage.
C) It increases a product's cycle time.
D) It facilitates the emergence of multiple competing standards for a product.

Question 20

Which of the following is a feature of joint venture that differentiates it from other forms of alliances?

A) It usually does not result in the creation of a new business entity.
B) It increases asset commitment to products that will become rapidly obsolete.
C) It increases cycle time of a technology.
D) It involves a significant equity stake by the partners.

Question 21

What are the characteristics of collective research organizations?

Question 22

Which of the following collaborative arrangements is the most appropriate when firms place great importance on access to other firms' competencies?

A) Licensing in
B) Joint venture
C) Licensing out
D) Sole internal development

Question 23

Allured Architecture Inc.collaborated with Maze & Matiz Corp.to form a new architecture firm called AllureAmaze Inc.Both the firms had a significant equity stake in the new entity.This collaboration would most accurately be termed a(n)_____.

A) licensing project
B) joint venture
C) outsourcing maneuver
D) contract alliance

Question 24

Greyer Corp.manufactures surgical instruments.Systems Medico Inc.enters into a contractual arrangement with Greyer that allows it to use Greyer manufacturing methods and management structure to produce and sell surgical instruments.Systems Medico must pay a yearly fee to Greyer for the use of its manufacturing processes.In this scenario,Systems Medico is the _____.

A) licensor
B) contract manufacturer
C) licensee
D) intrapreneur

Question 25

_____ refers to the degree to which partners have compatible objectives and styles.

A) Resource fit
B) Strategic fit
C) Capability complementation
D) Contractual fit

Question 26

Gerden Price Corp.and New Ware Systems Inc.formed an alliance to develop a new line of technologically advanced cooking stoves.Which of the following would be the most likely outcome of this alliance?

A) Faster product delivery to the market
B) Increased market development and penetration times
C) Lesser opportunities to pursue other projects
D) Reduced overall flexibility

Question 27

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

Question 28

Easymake Corp.developed a new Web design software to build Web pages for its clients.However,Easymake soon realized it could make more money by selling this software to those who wish to quickly build Web pages to sell their products.Which of the following would be the most appropriate strategy for Easymake?

A) It should not sell the Web design software as it will give rise to competition on the Internet.
B) It should become a licensor of the new Web design software.
C) It should become a licensee of the new Web design software.
D) It should make the Web design software available to users as open source software.

Question 29

How can firms evaluate potential partners?

Question 30

_____ offers a fast way for a firm to extend the reach of its technology that is nearly free and offers the potential for royalties.

A) Licensing out a technology
B) Forming a joint venture
C) Solo internal development
D) Vertical integration

Question 31

Self-enforcing norms based on goodwill,trust,and reputation of the partners is known as _____.

A) capability complement
B) alliance contract
C) equity ownership
D) relational governance

Question 32

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

Question 33

When each partner of an alliance contributes capital and owns a specified right to a percentage of the proceeds from the alliance,the collaborative relationship is referred to as _____.

A) equity ownership
B) relational governance
C) alliance contracts
D) solo internal development

Question 34

Which of the following statements is true of a collective research organization?

A) It does not help firms to leverage their competencies.
B) It is a short-term commitment.
C) It is an effort to rapidly access capabilities or technology.
D) It allows a firm to share the cost and risk of basic research.

Question 35

Why do licensing agreements impose restrictions on the licensee? How does licensing enable a firm to opt for a steady stream of royalties rather than risk losing the dominant position of its technology?

Question 36

Which of the following statements is true of contract manufacturing?

A) It requires companies to increase its labor force to meet the scale of market demand.
B) It requires firms to meet the scale of market demand by committing to long-term capital investments.
C) It enables a firm to tap the greater economies of scale.
D) It decreases organizational responsiveness to the environment.

Question 37

Alumplus 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.Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal.This collaborative arrangement is most likely to be classified as _____.

A) outsourcing
B) disintermediation
C) capability complementation
D) solo internal development

Question 38

Combining the capabilities and other resources of partner firms but not necessarily transferring those resources between the partners is referred to as _____.

A) capability transfer
B) capability complementation
C) resource modification
D) disintermediation

Question 39

Allured Cosmetics Corp.enters into a contractual agreement with Pure Cosmetics Inc.,a manufacturing firm in the West Coast.According to the contract,Pure Cosmetics can use the manufacturing processes of Allured Cosmetics to produce cosmetics in return for a specific fee.Pure Cosmetics is bound to use the manufacturing process only to make complementary products for the cosmetics manufactured by Allured Cosmetics.This collaborative arrangement is most accurately classified as _____.

A) licensing
B) outsourcing
C) a joint venture
D) capability complementation

Question 40

Which of the following statements is true of outsourcing?

A) It involves significantly low amounts of transaction costs.
B) It is the most viable option for companies seeking to avoid becoming hollow.
C) It is the best way for a company to develop in-house manufacturing capabilities.
D) It carries a risk of proprietary technology being expropriated by the contract manufacturer.