Question 1

Using business-level strategic alliances to hedge against risk and uncertainty is most common in the slow-cycle markets.

Accepted Answer

A) True 
 B)False  False

Question 2

Identify and define the two different types of network cooperative strategies.

Accepted Answer

A network cooperative strategy is a strategy where several firms agree to form multiple partnerships to achieve shared objectives.Stable alliance networks (primarily found in mature industries) usually involve exploitation of economies of scale or scope.In this type of network, the firms try to extend their competitive advantages to other settings while continuing to profit from operations in their core industries.Dynamic alliance networks (witnessed mainly in rapidly changing industries) are used to help a firm keep up when technologies shift rapidly by stimulating product innovation and successful market entries.Dynamic alliance networks explore new ideas and typically generate frequent product innovations with short product life cycles.

Question 3

The fact that the prices consumers pay for branded breakfast cereals are above the prices that would exist if there were true competition suggests that the cereal manufacturers are engaging in:

Accepted Answer

A)  excessive cooperation. 
B)  joint ventures. 
C)  tacit collusion. 
D)  horizontal strategic alliances. 
A)  excessive cooperation. 
B)  joint ventures. 
C)  tacit collusion. 
D)  horizontal strategic alliances. C

Question 4

Even though they take place in almost every industry, the number of cross-border strategic alliances has been steadily decreasing, probably because of their complexity.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following types of strategic alliance is best at passing tacit knowledge between partners?

Accepted Answer

A)  Primary cooperative strategic alliances 
B)  Joint ventures 
C)  Equity strategic alliances 
D)  Nonequity strategic alliances 
A)  Primary cooperative strategic alliances 
B)  Joint ventures 
C)  Equity strategic alliances 
D)  Nonequity strategic alliances

Question 6

A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit.This is a(n) __________ strategy.

Accepted Answer

A)  vertical complementary 
B)  horizontal complementary 
C)  uncertainty-reducing 
D)  network 
A)  vertical complementary 
B)  horizontal complementary 
C)  uncertainty-reducing 
D)  network

Question 7

High levels of trust allow less formal contracts to govern the relationship between alliance partners and increase the likelihood of alliance success.

Accepted Answer

A) True 
 B)False

Question 8

A major risk of a network cooperative strategy is that firms gain access to their partner's partners thus exposing their proprietary processes to loss or theft.

Accepted Answer

A) True 
 B)False

Question 9

Research in the airline industry suggests that tacit collusion reduces service quality and on-time performance.

Accepted Answer

A) True 
 B)False

Question 10

Acquisitions are the most common cooperative strategy used in standard-cycle markets.

Accepted Answer

A) True 
 B)False

Question 11

Strategic alliances have become the cornerstone of many firms' competitive strategy, particularly large global competitors.

Accepted Answer

A) True 
 B)False

Question 12

Franchising is most attractive in concentrated industries.

Accepted Answer

A) True 
 B)False

Question 13

Firms often pursue international mergers and acquisitions instead of forming a cross-border strategic alliance because of the increased risk associated with the alliances.

Accepted Answer

A) True 
 B)False

Question 14

The collaboration between Volvo Aero (a subsidiary of Sweden's AB Volvo) and U.S.-based Pratt & Whitney to produce a new jet engine would be characterized as a(n):

Accepted Answer

A)  collusive tactic. 
B)  merger. 
C)  cross-border strategic alliance. 
D)  international acquisition. 
A)  collusive tactic. 
B)  merger. 
C)  cross-border strategic alliance. 
D)  international acquisition.

Question 15

A cooperative agreement between a hotel chain and a casino operator would be viewed as a horizontal complementary strategic alliance because as separate entities, the two firms would compete for the same customer.

Accepted Answer

A) True 
 B)False

Question 16

Identify the two strategic management approaches to managing alliances and explain the advantages of each.

Accepted Answer

The ability to effectively manage compet

Question 17

The three main luxury hotels in a major tourist destination keep very close track of their competitors' room pricing, restaurant offerings, tour packages, and special services, such as airport transportation and spa privileges.When one hotel makes adjustments in prices or offerings, the other hotels follow suit.It is possible that these hotels are:

Accepted Answer

A)  engaging in tacit collusion. 
B)  following uncertainty-reducing strategies. 
C)  monitoring business competitors for opportunistic behaviors. 
D)  following a competitive response strategy. 
A)  engaging in tacit collusion. 
B)  following uncertainty-reducing strategies. 
C)  monitoring business competitors for opportunistic behaviors. 
D)  following a competitive response strategy.

Question 18

A strategic alliance is a cooperative strategy in which firms combine some of their resources to create a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 19

__________ strategic alliances have a stronger focus on value creation than do __________ alliances.

Accepted Answer

A)  Competition-reducing; complementary 
B)  Complementary; competition-reducing 
C)  Uncertainty-reducing; complementary 
D)  Collusive; uncertainty-reducing 
A)  Competition-reducing; complementary 
B)  Complementary; competition-reducing 
C)  Uncertainty-reducing; complementary 
D)  Collusive; uncertainty-reducing

Question 20

McDonald's, Hilton International, and Subway all license their trademarks and methods to other businesses.In doing so, they rely on the __________ strategy.

Accepted Answer

A)  transnational 
B)  network cooperative 
C)  cross-border alliances 
D)  franchising 
A)  transnational 
B)  network cooperative 
C)  cross-border alliances 
D)  franchising

Using business-level strategic alliances to hedge against risk and uncertainty is most common in the slow-cycle markets.

Identify and define the two different types of network cooperative strategies.

The fact that the prices consumers pay for branded breakfast cereals are above the prices that would exist if there were true competition suggests that the cereal manufacturers are engaging in:

Even though they take place in almost every industry, the number of cross-border strategic alliances has been steadily decreasing, probably because of their complexity.

Which of the following types of strategic alliance is best at passing tacit knowledge between partners?

A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit.This is a(n) __________ strategy.

High levels of trust allow less formal contracts to govern the relationship between alliance partners and increase the likelihood of alliance success.

A major risk of a network cooperative strategy is that firms gain access to their partner's partners thus exposing their proprietary processes to loss or theft.

Research in the airline industry suggests that tacit collusion reduces service quality and on-time performance.

Acquisitions are the most common cooperative strategy used in standard-cycle markets.

Strategic alliances have become the cornerstone of many firms' competitive strategy, particularly large global competitors.

Franchising is most attractive in concentrated industries.

Firms often pursue international mergers and acquisitions instead of forming a cross-border strategic alliance because of the increased risk associated with the alliances.

The collaboration between Volvo Aero (a subsidiary of Sweden's AB Volvo) and U.S.-based Pratt & Whitney to produce a new jet engine would be characterized as a(n):

A cooperative agreement between a hotel chain and a casino operator would be viewed as a horizontal complementary strategic alliance because as separate entities, the two firms would compete for the same customer.

Identify the two strategic management approaches to managing alliances and explain the advantages of each.

A strategic alliance is a cooperative strategy in which firms combine some of their resources to create a competitive advantage.

strategic alliances have a stronger focus on value creation than do alliances.

McDonald's, Hilton International, and Subway all license their trademarks and methods to other businesses.In doing so, they rely on the __________ strategy.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 9: Cooperative Strategy

Using business-level strategic alliances to hedge against risk and uncertainty is most common in the slow-cycle markets.

Identify and define the two different types of network cooperative strategies.

The fact that the prices consumers pay for branded breakfast cereals are above the prices that would exist if there were true competition suggests that the cereal manufacturers are engaging in:

Even though they take place in almost every industry, the number of cross-border strategic alliances has been steadily decreasing, probably because of their complexity.

Which of the following types of strategic alliance is best at passing tacit knowledge between partners?

A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit.This is a(n) __________ strategy.

High levels of trust allow less formal contracts to govern the relationship between alliance partners and increase the likelihood of alliance success.

A major risk of a network cooperative strategy is that firms gain access to their partner's partners thus exposing their proprietary processes to loss or theft.

Research in the airline industry suggests that tacit collusion reduces service quality and on-time performance.

Acquisitions are the most common cooperative strategy used in standard-cycle markets.

Strategic alliances have become the cornerstone of many firms' competitive strategy, particularly large global competitors.

Franchising is most attractive in concentrated industries.

Firms often pursue international mergers and acquisitions instead of forming a cross-border strategic alliance because of the increased risk associated with the alliances.

The collaboration between Volvo Aero (a subsidiary of Sweden's AB Volvo) and U.S.-based Pratt & Whitney to produce a new jet engine would be characterized as a(n):

A cooperative agreement between a hotel chain and a casino operator would be viewed as a horizontal complementary strategic alliance because as separate entities, the two firms would compete for the same customer.

Identify the two strategic management approaches to managing alliances and explain the advantages of each.

A strategic alliance is a cooperative strategy in which firms combine some of their resources to create a competitive advantage.

__________ strategic alliances have a stronger focus on value creation than do __________ alliances.

McDonald's, Hilton International, and Subway all license their trademarks and methods to other businesses.In doing so, they rely on the __________ strategy.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

strategic alliances have a stronger focus on value creation than do alliances.