Deck 12: Building and Managing Global Strategic Alliances Gsas

Question 1

Goal complementarity is the extent to which one party's contributed resources are complementary to the other party's resources, resulting in synergies pursued by both.

Answer 1

False

Question 2

Which of these is not included in capability?

A) strategy
B) development
C) financial
D) organizational

Answer 2

B

Question 3

GSAs allow smaller firms to share financial resources with greater ___________ that enables them to compete with larger firms in the industry.

A) inventory
B) economies of scale
C) trust
D) cash flows

Answer 3

B

Question 4

This term is often used to describe what a foreign firm might be doing by starting a GSA with a local partner to gain access to the local market.

A) piggybacking
B) manipulating
C) taking advantage of
D) leapfrogging

Question 5

Which of these is not a result of an economic benefit?

A) knowledge acquisition
B) market entry
C) Both of these
D) Neither of these

Question 6

What are other names for ownership structure?

A) sharing arrangement
B) equity ownership
C) equity distribution
D) all of the above

Question 7

What two areas are learning opportunities manifested into?

A) managerial and technological
B) operational and organizational
C) operational and managerial
D) technological and organizational

Question 8

Comparative joint ventures are attractive for what reason?

A) freedom to structure assets
B) organize production processes
C) managing of operations
D) all of the above

Question 9

What is the biggest factor for most companies thinking about becoming a GSA?

A) knowledge
B) open markets
C) too costly to do alone
D) taxes

Question 10

Access to a partner's _______________ enables a firm to enjoy the fruits of research and development while avoiding the rapid escalating R&D costs.

A) finished product
B) equipment
C) technology
D) stocks

Question 11

Joint exploration is a special type of non-equity co-operative alliance where the foreign partner assumes the exploration costs and ______________ costs are later shared by the local entity.

A) sunk
B) hidden
C) development
D) labor

Question 12

Which is not a sub-form of a cooperative joint venture?

A) joint exploration
B) co-production
C) research and development consortia
D) independent marketing

Question 13

What type of venture is it when each partner is responsible for manufacturing a particular part of the product?

A) joint exploration
B) co-marketing
C) co-production
D) joint management

Question 14

The greater the resource complementarity between foreign and local parents, the higher the new value added owing to superior integration of complementary resources pooled by different parents.

Question 15

Strategic capabilities of a partner firm generally include such areas as market power, marketing competence, technological skills, relationship building, industrial experience, and corporate image.

Question 16

Financial capabilities include organizational skills, previous collaboration, learning ability, and foreign exchange experience.

Question 17

A majority equity holding means that the partner has more at stake in the alliance than the other partner(s)

Question 18

To acquire partner knowledge, a firm needs to first identify what knowledge it needs and then extract and transfer this knowledge from its partner to its own organization.

Question 19

There are several ways to protect core knowledge from uncompensated leakage to partner firms. One method is that the design, development, manufacture, and service of a product manufactured (or a service rendered) by an alliance may be structured to protect the most sensitive technologies.

Question 20

What type of control regulates most of the GSAs activities?

A) managerial
B) organizational
C) parent
D) technological

Question 21

All GSAs are

A) permanent.
B) successful.
C) transitional.
D) none of the above

Question 22

What type of Global Strategic Alliance is an agreement whereby profits and responsibilities are assigned to each party according to stipulations in a contract?

A) equity
B) cooperative
C) contractual
D) both B and C

Question 23

In GSAs, _____________ and ________________ costs are generally heightened.

A) production and research
B) raw materials and production
C) coordination and governance
D) none of the above

Question 24

The agreement made between Delta and Air France is an example this kind of agreement.

A) co-service
B) long-term supply
C) short-term supply
D) contractual

Question 25

_________________ have freedom to structure their assets, organize their production processes, and manage their operations.

A) Non-equity joint venture
B) Cooperative joint venture
C) Non-equity cooperative ventures
D) Equity joint venture

Question 26

______________ projects are a special type of non-equity cooperative alliance whereby the exploration costs are borne by the foreign partner, with development costs later shared by a local entity.

A) Uncooperative joint venture
B) Joint exploration
C) Non-equity joint venture
D) None of the above

Question 27

The ______________ arrangement provides a platform in which each party can reach a larger pool of international consumers.

A) R&D
B) co-management
C) co-marketing
D) long-term supply

Question 28

A co-management arrangement is a loosely structured alliance in which cross-national partners collaborate in _________.

A) production management
B) information systems development
C) value-chain integration
D) all of the above

Question 29

__________ means additional economic benefits arising from cooperation between two parties that provide each other with complementary resources or capabilities.

A) Synergy
B) Cooperativeness
C) Joint Venture
D) None of the above

Question 30

Synergies and related economic benefits can NOT be the result of which of the following?

A) risk reduction and knowledge acquisition
B) economies of scale and rationalization and market entry
C) competition mitigation and improved local acceptance
D) none of the above

Question 31

________________ refers to the congruence of strategic goals set for an alliance between its parent firms.

A) Compatibility of goals
B) Complementarity of resources
C) Cooperative culture
D) Commitment

Question 32

_____________ concerns the extent to which each party's corporate culture is compatible, thus leading to a more cooperative atmosphere during GSA operations.

A) Compatibility of goals
B) Complementarity of resources
C) Cooperative culture
D) Commitment

Question 33

_________ capabilities are reflected in risk management, exposure hedging, financing, and cash-flow management.

A) Organizational
B) Financial
C) Strategic
D) Management

Question 34

The _____________ is a contractual agreement whereby profits and responsibilities are assigned to each party according to stipulations in a contract.

A) non-equity joint venture
B) cooperative joint venture
C) FDI
D) equity joint venture

Question 35

Two companies, each partner contributes cash, facilities, equipment, materials, intellectual property rights, labor, or land-use rights. This is an example of _______.

A) non-equity joint venture
B) cooperative joint venture
C) FDI
D) equity joint venture

Question 36

IBM and Microsoft, each contributed cash, facilities, and intellectual property rights in a joint venture project. This is an example of _________.

A) non-equity joint venture
B) cooperative joint venture
C) FDI
D) equity joint venture

Question 37

GM and Toyota have made a GSA. What benefit is the driving factor for GM?

A) reduce competition
B) maximize profits
C) provide jobs
D) increase the stock price

Question 38

Siemens AG is

A) a phone company.
B) one of the world's largest and oldest electrical engineering company.
C) a trucking company.
D) an airline company.

Question 39

Caterpillar Tractor linked up with _______ in Japan to put pressure on the profits and market share that their common competitor Komatsu.

A) IBM
B) Siemens
C) Sony
D) Mitsubishi

Question 40

Many of IKEA's foreign suppliers are committed to becoming ________.

A) short-term suppliers
B) wealthy
C) long-term exclusive suppliers
D) none of the above

Question 41

GE and Snecma combined to build what?

A) Commercial Aircraft engines
B) Panasonic semiconductors
C) Blenders
D) Joint propulsion modules

Question 42

Who is Mitsubishi's biggest competitor?

A) Sony
B) Hitachi
C) Komatsu
D) Honda

Question 43

Which of the following is NOT a component of a synergy and related economic benefits?

A) risk increase
B) knowledge acquisition
C) economies of scale and rationalization
D) competition mitigation

Question 44

Which of the following is NOT a criterion for selecting a partner?

A) compatibility of goals
B) complementarity of resources
C) cultural differences
D) commitment

Question 45

The _____________________ is a legally and economically separate organizational entity created by two or more parent organizations that collectively invest financial as well as other resources to pursue certain objectives.

A) equity joint venture
B) non-equity joint venture
C) cooperative joint venture
D) FDI

Question 46

If ownership is equal to 50 per cent, the joint venture is considered _________.

A) co-owned
B) split-over
C) minority-owned joint venture
D) both A and B

Question 47

Managerial control is realized through equity control and parent control.

Question 48

Additional economic benefits arising from cooperation between two parties which provide each other with complementary resources or capabilities are known as competitive mitigation.

Question 49

Partnership provides an organizational vehicle for firms to slowly, yet efficiently acquire the skills that cannot be bought from a public market.

Question 50

Redefinition is one of the forms of terminating a partnership.

Question 51

Synergies can be the result of risk reduction, knowledge acquisition, economies of scale, and rationalization.

Question 52

One of the things that an alliance does not do is cut the cost of leaving a business.

Question 53

To ensure goal compatibility, MNEs often partner with those that have been co-operated in the past.

Question 54

Commitment frompartners' opportunism fosters cooperation.

Question 55

Siemens AG is one of the world's largest and oldest electrical Engineering and electronics companies based in Germany.

Question 56

To acquire partner knowledge, a firm needs to identify what kinds of knowledge it needs and then actively extract and transfer this needed knowledge from its partner towards its own organization.

Question 57

Risk of possible leakage, potential global competitors, and differences in strategic goals are some challenges facing GSAs.

Question 58

A GSA allows a company to enter into activities that might be too costly to pursue on its own.

Question 59

Financial, Operational, and Technological are all economic benefits in Synergy.

Question 60

A GSA allows a firm to bypass entry barriers into a target foreign country.

Question 61

GSA stands for Great Strategy Assignment.

Question 62

To set up an equity joint venture, each partner contributes cash, facilities, equipment, material, intellectual property rights, labor, or land-use rights.

Question 63

In a cooperative joint venture, the profits and responsibilities are split in half.

Question 64

In no way can alliances help to cut the costs of leaving a business.

Question 65

Goals behind the alliance and the individual parents have to be the same.

Question 66

The majority split between equity holders is 60/40.

Question 67

The three ways to terminate an alliance are by acquisition, dissolution, and redefinition.

Question 68

Parent control is the process through which a parent company ensures that the way an alliance is managed conforms to its own interests.

Question 69

Negotiating tactics of alliance contracts do not affect the bargaining process as well as outcomes.

Question 70

International managers should make a strategic assessment about the necessity of building GSAs in the course of feasibility study.

Question 71

The co-marketing arrangement is another form of cooperative joint venture.

Question 72

The co-marketing arrangement provides a platform in which each party can reach a larger pool of international consumers.

Question 73

In a typical short-term supply agreement, the manufacturing buyer provides the supplier with updated free information on products, markets, and technologies, which in turn helps ensure the input quality.

Question 74

Cooperative Joint Venture means additional economic benefits (financial, operational, or technological) arising from cooperation between two parties that provide each other with complementary resources or capabilities.

Question 75

Risk reduction, knowledge acquisition, economies of scale and rationalization are examples of FDI.

Question 76

Committing distinctive resources is often necessary for gaining a competitive edge in a foreign market.

Question 77

Many GSAs have been successful in owing the ability to overcome inherent challenges such as loss of control, knowledge leakage, goal incongruence, cultural clashes, differences in managerial philosophies, and emerging competition between partners.

Question 78

Compatibility of goals is one of the criteria that should be considered in selecting a company to partner with.

Question 79

Cultural compatibility refers to the congruence of strategic goals set for an alliance between its parent firms.

Question 80

IBM and Hewlett Packard have made an agreement at which each company will be offering consulting services for specific type of service. This is an example of Coservice Agreement.