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_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning,but the rate at which the firms learn may vary.


A) Learning races
B) Learning networks
C) Learning effects
D) Learning matrices

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

Correct Answer

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Adidas acquired Reebok primarily to


A) overcome its competitive disadvantage against Nike.
B) get access to the superior technology of Reebok.
C) overcome its principal-agent problems.
D) pursue an unrelated diversification strategy.

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

Correct Answer

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Which of the following is not a reason why firms enter alliances?


A) to replace competitive advantage with competitive parity
B) to strengthen competitive position
C) to enter new markets, either in terms of geography or products and services
D) to learn new capabilities

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

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Which alliance type is the Renault-Nissan alliance,where Nissan owns 15 percent of Renault,and Renault owns 44.4 percent in Nissan?


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

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

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Which of the following types of strategic alliances is the least common in terms of frequency?


A) mergers
B) acquisitions
C) equity alliances
D) joint ventures

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

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Luxura Inc.is a large cosmetics company that made an initial small investment in a start-up company,GreenDream,that was developing an organic face lotion.This gave Luxura controlling interests in the start-up company.However,GreenDream soon began to have financial difficulties because of principal-agent problems.As a result,Luxura did not invest in the next stage of development and pulled out of the company.This approach to strategic alliance is referred to as a


A) break-even analysis.
B) partial joint venture.
C) credible commitment.
D) real-options perspective.

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

Correct Answer

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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 B)
F) A) and C)

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Which of the following is a drawback of joint ventures?


A) They produce weak ties, trust, and commitment between the partners.
B) They are based on contractual agreements rather than partial ownership.
C) They do not enable the transfer and sharing of tacit knowledge.
D) They necessitate the sharing of rewards between the partners.

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

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Terranova Autos Inc.,a large automobile company,made an initial small investment in a start-up company that was developing a solar-powered car.This gave Terranova Autos controlling interests in the start-up company.However,Terranova Autos had no obligations to make continued investments in the experiments of the start-up company.It could invest in small amounts depending on the new product's success at each stage of its development.If the product proved to be successful,Terranova Autos would have the right to buy out the start-up company.This approach to strategic alliance is referred to as


A) a break-even analysis.
B) a real-options perspective.
C) credible commitment.
D) transaction cost economics.

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

Correct Answer

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With regard to New United Motor Manufacturing,Inc.(NUMMI) ,why did General Motors (GM) enter into a strategic alliance with Toyota?


A) to transfer its knowledge of a completely new production system
B) to learn the lean manufacturing system pioneered by Toyota
C) to better understand the American workforce
D) to get access to Toyota's distribution system and marketing expertise

E) None of the above
F) A) 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 stand-alone 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) B) and C)

Correct Answer

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How does horizontal integration within an industry affect the surviving firms?


A) by increasing the threat the surviving firms will face from new entrants
B) by strengthening the rivalry among existing firms
C) by requiring the surviving firms to shift their focus from non-price to price competition
D) by strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers

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

Correct Answer

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Which of the following corresponds to the use of tacit knowledge?


A) Pedro studies a fact sheet about France.
B) Heather reads a demographic report about minorities in Texas.
C) John assembles the motorcycle from memory.
D) Henrietta uses a scientific article to defend her thesis about global warming.

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

Correct Answer

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The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.


A) real-options perspective
B) stakeholder strategy
C) relational view of competitive advantage
D) non-differentiation strategy

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

Correct Answer

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Why did incumbent pharmaceutical firms enter into hundreds of strategic alliances with biotech start-ups?


A) to pursue an unrelated-options perspective without disrupting existing market economics
B) to make small-scale investments in ventures poised to disrupt existing market economics
C) to invest their excess cash flow in the superior technology of the biotech start-ups
D) to share their continuously updated research technology with the biotech start-ups

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

Correct Answer

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Which of the following is a common drawback of a non-equity alliance?


A) lack of trust between partners
B) difficulty initiating the contract
C) difficulty terminating the contract
D) lack of flexibility for the partners

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

Correct Answer

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

Correct Answer

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Amiware Inc.,a manufacturer of ceramic cookware,has entered into a contractual agreement with Micoware Inc.The agreement involves vertical strategic alliances connecting different parts of the industry value chain.This arrangement between the two companies best illustrates a(n)


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

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

Correct Answer

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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) A) and B)

Correct Answer

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In Eli Lilly's Office of Alliance Management,who is responsible for providing alliance training and development?


A) the alliance champion
B) the alliance leader
C) the alliance manager
D) the alliance boss

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

Correct Answer

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Showing 81 - 100 of 110

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