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FR Pharmaceuticals Inc., BioCure Pharma Inc., and Regime Pharma Inc.are three rival firms who have set up an alliance to conduct research and find a cure for cancer.They have made almost equal contributions to the research, and they also share their expertise with each other.However, the three firms will continue to behave as competitors in markets for other drugs and vaccines.What is this arrangement best referred to as?


A) Takeover
B) Buyout
C) Co-opetition
D) Acquisition

E) A) and C)
F) B) and C)

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Wave Motors Inc., a Kempa-based automobile company, has entered into a partnership with Sphere Autos Inc.headquartered in United Cadvia.The parent companies, together, have established a standalone firm called Genuine Autos Inc.This arrangement best exemplifies a _____.


A) joint venture
B) partnership
C) non-equity alliance
D) proprietorship

E) A) and B)
F) A) and C)

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A _____ is best described as an approach to strategic decision making that breaks down a larger investment decision into a set of smaller decisions that are staged sequentially over time.


A) cost-leadership approach
B) break-even analysis
C) market risk framework
D) real-options perspective

E) A) and D)
F) B) and C)

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Which of the following best illustrates a merger between the two companies GD Inc.and VS Inc.?


A) GD Inc. purchases VS Inc. for $80 billion despite VS Inc. being against the purchase.
B) GD Inc. and VS Inc. join together to form a third new entity, while they also operate separately.
C) GD Inc. outsources a few of its business activities to VS Inc. for competitive advantage.
D) GD Inc. and VS Inc. join together to form a single new company called GDVS Inc.

E) None of the above
F) A) and D)

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Provide a real-world example of how recent horizontal integration has brought about reduction in competitive intensity.

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Students' answers will vary.
Recent hori...

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When does co-opetition occur?

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Firms enter strategic alliances because ...

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Which of the following statements is true of strategic alliances?


A) They are always focused on joining the same value chain activities.
B) They enable firms to achieve goals faster, but at higher costs.
C) They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage.
D) They are most beneficial when they join together resources and knowledge in a combination that obeys the VRIO principles.

E) A) and D)
F) A) and C)

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A drawback involved in using cross-border strategic alliances to enter new foreign markets is that:


A) the foreign firm will need to make larger investments when compared to entering the new market on its own.
B) some of the firm's proprietary know-how may be appropriated by the foreign partner.
C) all potential business risks in the new market will have to be faced alone by the foreign firm.
D) the shareholder value of the foreign partner will decline drastically.

E) A) and C)
F) C) and D)

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The partnership between Toyota and Tesla Motors, in which Toyota has made a $50 million investment in the California startup company to learn new knowledge and gain a window into new technology, is an example of a(n) _____.


A) acquisition
B) joint venture
C) non-equity alliance
D) equity alliance

E) B) and C)
F) C) and D)

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_____ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new, and potentially disruptive, technologies.


A) Corporate venture capital investments
B) Greenfield ventures
C) Joint ventures
D) Loan sharks

E) A) and D)
F) C) and D)

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When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to:


A) borrow via a contractual agreement.
B) pursue internal development.
C) enter into a licensing agreement.
D) consider an outright acquisition.

E) A) and C)
F) All of the above

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Which of the following is a disadvantage of a horizontal integration corporate strategy?


A) It increases competitive intensity within an industry.
B) It increases the potential for legal repercussions.
C) It increases the costs associated with increasing value.
D) It increases the threat of new entrants in an industry.

E) A) and B)
F) A) and C)

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The success of the Pixar-Disney strategic alliance demonstrated that:


A) Disney was in desperate need of Pixar's graphic display systems.
B) the two entities' complementary assets matched.
C) it was easier for the alliance partners to reduce the value gap created.
D) the companies were effectively managing an unrelated diversification strategy.

E) B) and C)
F) A) and C)

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While Cisco Systems has been successful in selecting and buying both big and small technology ventures, HP had to write off some of its recent technology acquisitions.Which of the following statements best explains this scenario?


A) Cisco was successful due to its unrelated diversification, whereas HP failed by pursuing a related-linked diversification strategy.
B) Cisco treated the management of the larger firms it took over more like acquisitions, whereas HP treated its acquisitions as strategic alliances.
C) The acquisitions were successful as the learning and experience curve effects were low.
D) Acquisition and integration capabilities were not equally distributed across firms.

E) C) and D)
F) None of the above

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What does the relational view of competitive advantage propose?

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A strategic alliance has the potential t...

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New United Motor Manufacturing, Inc.(NUMMI) , formed between General Motors (GM) and Toyota in 1984 was the first _____ in the U.S.automobile industry.


A) joint venture
B) non-equity alliance
C) hostile takeover
D) equity alliance

E) C) and D)
F) A) and B)

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FlyOne Airway's decision to acquire TrueGear Fuels Inc.proved to be ill-fated because its managers had overestimated their abilities and skills.They believed that they had the skills to manage such diversified businesses and create additional shareholder value.However, the acquisition failed to create the anticipated synergies because the managers' capabilities were restricted to the airlines industry.What does this scenario best illustrate?


A) Managerial empathy
B) Managerial feasibility
C) Managerial hubris
D) Managerial capitalism

E) A) and D)
F) B) and D)

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What is a strategic alliance?

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A strategic alliance is a voluntary arra...

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In Eli Lilly's Office of Alliance Management, the _____ is a senior, corporate-level executive responsible for high-level support and oversight.


A) alliance manager
B) alliance leader
C) alliance regulator
D) alliance champion

E) B) and D)
F) A) and D)

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In 1990, Roche, a Swiss pharmaceutical company, initially invested $2.1 billion to purchase a controlling interest in the biotech startup Genentech.In 2009, after witnessing the success of Genentech's drug discovery and development projects, Roche spent $47 billion to purchase the remaining minority interest in Genentech, making it a wholly owned subsidiary.In terms of strategic alliances, this scenario best indicates _____.


A) the real-options perspective
B) co-opetition
C) explicit knowledge
D) the stakeholder strategy

E) A) and B)
F) All of the above

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Showing 101 - 120 of 126

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