Deck 7: Partnering

Question 1

Which of the following is not a trend in partnering?

A) the diffusion of manufacturing practices
B) global integration
C) the diffusion of Japanese management practices
D) the growth of outsourcing in services

Answer 1

the diffusion of manufacturing practices

Question 2

Which of the following is generally is not a motivation for the formation of technology partnerships among large firms?

A) interfirm learning of process innovations
B) patent sharing
C) coalition building in the context of standards competition
D) all of the above

Answer 2

coalition building in the context of standards competition

Question 3

Which of the following is a key practice in a strategic sourcing relationship?

A) integrate financial strategies
B) join marketing organizations
C) build a strong purchasing organization
D) write a series of limited short-term contracts

Answer 3

build a strong purchasing organization

Question 4

Which of the following is a source of strategic inflexibility in partnerships?

A) a partner's current management capabilities
B) a partners' commitments to relationship-specific investments
C) a partner's reputation for delivery expertise
D) all of the above

Question 5

In which of the following ways must a potential partner exhibit competence?

A) strength in top management compensation
B) its experience in outsourcing simple projects
C) the ability to grow its operations at a rate consistent with the partnership's goals
D) all of the above

Question 6

When does the ability of a potential partner to cooperate effectively become apparent?

A) when the network of partnerships in the industry develops
B) when it is certified by an appropriate agency
C) when it promises to follow the rules of the alliance
D) all of the above

Question 7

An options strategy provides what kind of benefit from a partnership?

A) knowledge about developing and expanding projects
B) the construction of a viable new business
C) information on new technologies
D) all of the above

Question 8

Which of the following types of technology partnership is most appropriate for a window strategy?

A) a joint venture
B) an R&D contract
C) a strategic sourcing arrangement
D) none of the above

Question 9

Which of the following generally is not essential to successful cooperation for managing complementary assets in a partnership?

A) compatible organizational cultures
B) shared beliefs about the economic value added by the partnership
C) the life of the project the partnership is based on
D) consistency in managerial expectations

Question 10

Which of the following alleviates antitrust concerns regarding an alliance?

A) technology sharing within the project
B) predicted loss of market share by the firms
C) demonstration of greater efficiency than harm to competition
D) regional benefits within the U.S.

Question 11

Industry partnerships based on patent sharing are prevalent in the semiconductor industry.

Question 12

The emergence of regional networks of cooperating firms is one trend associated with the rise of partnerships.

Question 13

The goal of altering industry structure is usually not sufficient for a firm to form a partnership.

Question 14

Large scale operations in partnerships rarely provide learning benefits.

Question 15

Partnerships in general lower flexibility in strategic decision-making.

Question 16

Partnerships in concentrated industries often raise antitrust concerns.

Question 17

Types of technology partnership (e.g., R&D partnership, licensing, joint venture) are generally mutually exclusive.

Question 18

When a firm's motivation for partnership shifts from window to option to positioning, its degree of control decreases.

Question 19

Partnerships tend to be more effective when there is a convergence of purpose among the partners.

Question 20

Constraints on a firm's cooperative behavior typically emerge as the industry evolves.

Question 21

In July, 2014, two firms that were once intense rivals in PCs, Apple Inc. and IBM, announced that they would form a partnership to create easy to use business apps and to sell iPhones and iPads to IBM's corporate customer base. IBM is recognized by its strong relationships with corporate customers whereas Apple traditionally, has devoted less attention to serving the enterprise market. The partnership will bring together Apple and IBM engineers to develop more than 100 apps for a variety of industries. In addition, IBM's employees will provide on-site support and service of Apple products to corporate customers. According to the WSJ (Clark, D. 12/10/14): "Under the partnership, IBM is handling the nitty-gritty programming work associated with developing the mobile apps, while Apple employees provide input in areas that include esthetic design and ease of use."
Is this partnership likely to receive anti-trust scrutiny? Why or why not?

Question 22

Why do partnerships frequently appear in industries with high technological uncertainty?

Question 23

How can market forces cause volatility in alliances?