BUS 536 Week 11 Final Exam – Strayer New
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Chapter 7 Through 12
Chapter
7 – MAKING STRATEGIC ALLIANCEE AND NETWORKS WORK
TRUE/FALSE
QUESTIONS
- Examples
of equity-based alliances include strategic investment.
- A
non-JV, equity-based alliance can be regarded as two firms “getting
married,” but not having “children.”
- The
term “strategic networks” is derived from the term “social networks”
highlighting the social aspects of interfirm relationships.
- In regards to strategic alliances and
networks, in the traditional industry-based view, firms are dependent
players.
- From the view of industry structure, in
oligopolistic industries, there are an above average number of available
players as potential partners.
- From the perspective of network position,
firms located in the center of interfirm networks accumulate less power
and influence.
- Firms with a high degree of network centrality
are likely to be more attractive partners.
- Successful alliances and networks normally
avoid socially complex relations among partners.
- The ad hoc approach to organization allows
firms to systematically learn from the experience.
- Since firms act to enhance or protect their
legitimacy, copying other reputable organizations is not a way to gain legitimacy.
- In
finding organizational partners, it is desirable to identify candidates
that present both strategic fit and organizational fit.
- The more tacit the resources and capabilities
are, the less likely firms will prefer equity involvement in establishing
relationships.
- A firm would prefer equity relationships if it
fears that its intellectual property may be expropriated by partners.
- As each firm is likely to have multiple
interfirm relationships, it is important to not manage the relationships
as a corporate portfolio.
- Possible ways to minimize the threat of
opportunism include
swapping critical skills and technologies through credible
commitments.
- In international alliances, setting up a
parallel and reciprocal relationship in the foreign partner’s home country
may decrease the incentives for both partners to cooperate.
- Weak ties excel at connecting with distant
others who possess unique and novel information.
- Strong ties are more beneficial to
environments conductive for exploitation whereas weak ties are more
suitable for exploration.
- An increase in the experience of one partner
may bring instability into the relationship as it reduces the need to rely
on the other partner.
- Higher level shared technology is associated
with lower profitability for parent firms.
MULTIPLE CHOICE QUESTIONS
1. Strategic alliances involve:
a. Voluntary
agreements between firms.
b.
Compromises
between short-term transactions and long-term solutions.
c.
Contracts.
d.
Equity-based
arrangements.
e.
All
of the above.
2. Contractual alliances include all
of the following except:
a.
Co-marketing.
b.
Research
and development (R&D) contracts.
c.
Cross-shareholding.
d.
Turnkey
projects.
e.
Licensing/franchising.
3. A joint venture can be described
as:
a.
A
special case of equity-based alliance.
b.
A
new legally independent entity.
c.
A
“corporate child” given birth by two (or more) parent firms.
d.
All
of the above.
e.
None
of the above.
4. Which represents an alliance with
suppliers?
a.
Horizontal alliances.
b.
Upstream vertical.
c. Downstream
vertical.
d. All of
the above.
e. None
of the above.
5. Which
is not an advantage of strategic alliances and networks?
- Reduce costs, risks
and uncertainties.
- Costs of negotiation
and coordination.
- Gain access to
complementary assets and capabilities.
- Opportunities to
learn from partners.
- Possibilities to use
alliances and networks as real options.
6. Which
of the following are not true regarding managers involved in alliances and
networks?
a. They
require relationship skills which foster trust with partners.
b.
They must guard against opportunism.
c. They
must recognize that interests of the firms fully overlap.
d. They
have to represent the interests of their respective firms.
e.
They must attempt to make the complex relationship
work.
7. Institution-based
considerations regarding organization include:
a. Collusion
concerns.
b. Entry
requirements.
c. The
social pressures to find partners.
d. The
internalized beliefs in the value of collaboration.
e.
All
of the above.
8. Cooperation
between rivals is usually suspected of being:
a. Tacit
collusion.
b. Explicit
collusion.
c. Socialism.
d. All of
the above.
e. None
of the above.
9. Emerging
trends concerning formal government policies on entry mode requirements
include:
a.
More liberal policies.
b. Imposing
considerable requirements.
c. A and
B above.
d. Welcoming
wholly owned subsidiaries.
e.
Banning joint ventures.
10. Which
(if any) of the following are not involved in the stages of forming business
relationships?
- The decision to
cooperate.
- The decision to not
cooperate.
- The choice of
contract or equity.
- Positioning the
Relationship.
- All of the above are involved.
11. The
strategic choice concerning whether to form cooperative interfirm relationships
or to rely on pure market transactions or M&As to grow the firm is part of:
a. Stage
One.
b. Stage
Two.
c. Stage
Three.
d. Stage
Four.
e. Stage
Five.
12. In
comparing M&As with alliances and networks, which of the following is not
correct?
- M&As are costly.
- M&As have
significant transaction costs.
- Many M&As end up
destroying value.
- Alliances and
networks preclude future upgrading into possible M&As.
- Alliances and
networks can be considered as a flexible intermediate solution.
13. Strategic
fit refers to whether the partner firm possesses:
- Technology.
- Capital.
- Distribution
channels.
- A through C above.
- Goals, experiences,
and behaviors that facilitate cooperation.
14. The
first concern in determining whether a relationship should be based on contract
or equity is:
- The kind of
resources and capabilities that are shared.
- Direct monitoring
and control.
- Real options.
- Institutional
constraints.
- None of the above.
15. Weak
ties in organizational relationships:
a.
Are more trustworthy and are cultivated over a long
period of time.
b. Are
associated with exchanging finer-grained information.
c. Provide
an informal, social control mechanism.
d. A
through C above.
e.
Are less costly to maintain.
16. As a
type of relationship tie, exploitation refers to such things as:
a. Selfishness.
b. Choice.
c. Efficiency.
d. Execution.
e. B
through D above.
17. In
measuring the performance of strategic alliances and networks, subjective
measures include:
- Market performance.
- Stability.
- A and B above.
- The level of
managers’ satisfaction.
- Longevity.
18. Which
(if any) of the following will not influence the performance of alliances and
networks?
- Equity.
- Learning and
experience.
- Nationality.
- Relational
capabilities.
- All can have an influence.
19. A
lower level of ____contribution may indicate a firm’s relative lack of
commitment:
- Equity
- Learning and
experience
- Nationality
- Relational
capabilities
- All of the above
20. The stock
market responds favorably to alliance activities, but only under which
circumstances?
a.
Complementary resources.
b.
Previous alliance experience.
c.
Ability to manage the host country’s political
risk.
d. Partner
buyouts.
e. All of
the above.
SHORT ANSWER ESSAY QUESTIONS
- How can an organizational alliance be
“win-win?” How can the concept of
“cooperative specialization” help?
- Why and how might a “real option” be useful in
a joint venture?
- A
friend of yours stated: “I would never want to be dependent on an
alliance. I prefer an acquisition so that everything would be under my control.” How would you respond?
- What are the limitations in trying to clearly
identify rights and expectations for alliances and acquisitions among
global corporations?
- What can be done to maintain a successful
alliance among global firms?
Chapter
8 – MANAGING GLOBAL COMPETITIVE
DYNAMICS
TRUE/FALSE QUESTIONS
- Strategy
involves planning for actions rather than reactions or interaction.
a.
True b. False
AACSB:
BUSPROG: Analytic; DISC: Strategy
LO:
8-1; Bloom’s: Knowledge; Difficulty: Moderate
- Multimarket
competition occurs when firms engage the same rivals in multiple markets.
a.
True b. False
AACSB:
BUSPROG: Analytic; DISC: Strategy
LO:
8-1; Bloom’s: Knowledge; Difficulty: Easy
- Multimarket
competition destroys mutual forbearance.
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