Exam 13: International Strategic Alliances

Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture. Which of the following choices would defeat the purpose of the joint venture?

Bayer AG formed alliances with smaller biotechnology companies like Millennium Pharmaceuticals and MophoSys to develop miracle drugs. What type of alliance is this an example of?

A strategic alliance between Ford and Mazda experienced problems when Mazda refused to allow Ford officials to visit the Mazda research laboratory. What was the source of this problem?

Which of the following advantages might an organization gain by participating in a strategic alliance?

Under a delegated arrangement, partner firms are highly involved in the day-to-day operations of the venture.

Public-private ventures are most important in market-driven economies.

General Mills and Nestle formed a functional alliance that allowed the joint venture, Cereal Partners Worldwide, to achieve synergy through its size and resources.

A production alliance is formed when ________.

When a firm involved in a strategic alliance wants to maintain confidential information about its operations, which pitfall of strategic alliances is likely to occur?

Cross-licensing of proprietary technology, sharing of production facilities, cofounding research projects, and the marketing of each other's products using existing distribution networks is known as ________.

________ refers to the value achieved through the combination of market entry, risk sharing, and learning potential that is greater than what the firm could have done alone.

What types of financial conflicts are likely to occur in a strategic alliance? How can many of these disagreements be avoided?

A financial alliance is formed primarily for the purpose of ________.

How was General Mills able to gain 25 percent of the European cereal market?

Incompatibility among partners can be anticipated through discussion and due diligence prior to forming a strategic alliance.

Company X and Company Z have established a business arrangement whereby the two firms will cooperate for their mutual benefit. Which of the following has most likely been established?

The degree of collaboration in a strategic alliance primarily depends on the ________ of each partner firm.

Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.

A comprehensive alliance is formed when two or more firms ________.

What is a public-private venture?