Exam 13: International Strategic Alliances

How does the Star Alliance primarily benefit customers?

A formal management organization allows a joint venture to be broader in purpose, scope, and duration than other types of strategic alliances.

Kodak's strategic alliance with its Japanese competitors reduced its risks, but perhaps negatively affected its profits.

Toyota wanted an opportunity to learn about U.S. labor practices and GM wanted to learn about Japanese management practices when they created NUMMI. What benefit were both partners seeking?

The government of Abu Dhabi formed a joint venture with Exxon Mobil in 2006. What type of joint venture is this an example of?

The Japanese company Bandai and the U.S. toymaker Mattel entered into a strategic alliance. Bandai agreed to distribute Mattel products like Barbie dolls in Japan while Mattel agreed to distribute Power Rangers in Latin America. What type of alliance is this an example of?

A(n) ________ alliance occurs when partners share expertise or services related to distribution, pricing, and communications.

Marketing alliances are relatively common in the international airline industry.

Feldman Insurance wants to enter the Brazilian market but is concerned about hostile government regulations in Brazil. Which of the following would most likely help Feldman overcome this problem?

Rubbermaid ended a joint venture in Europe when the partner firm refused to reinvest its profits into the development of new products. What was the source of this problem?

Under a(n) ________, one partner assumes primary responsibility for the operations of the alliance.

What is a functional alliance?

How does a shared management agreement work?

Star Alliance, which includes United Airlines, US Air, Air Canada, and Singapore Airlines, is a marketing alliance that encourages consistent customer service policies and high service standards.

Partnerships should be formed between firms whose products ________.

What benefits may accrue to firms participating in strategic alliances?

What is a comprehensive alliance?

Which pitfall of alliances exists when the economic circumstances that motivated the alliance no longer exist?

Of the potential pitfalls of strategic alliances, which one is the primary cause of failure?

A joint venture is a type of strategic alliance.