Exam 9: Cooperative Strategy

A businessperson in Atlanta who wishes to develop a luxury pet kennel approaches the owner of the highly successful Pet Resort and Day Spa in Houston to see if the owner is interesting in franchising the Pet Resort brand.The Atlanta businessperson's goal is to:

An alliance can be used as a way to determine whether the partners might benefit from a future merger.

Burgess Corp.manufactures a line of heavy construction equipment.The company has announced a contractual relationship with FS Electronics whereby FS will supply Burgess with advanced GPS navigation and guidance systems.These systems will be an option on all bulldozers, dump trucks, and road graders Burgess produces.Which of the following types of alliance is this?

Which of the following is NOT a risk for firms engaged in cooperative strategies?

If a firm pursues a strategic alliance in order to reduce industry overcapacity, that firm most likely operates in what type of market?

Only about 50 percent of cooperative strategies succeed.

Greentech, Inc., is a bioengineering firm specializing in food crops.It is considering a cooperative alliance with an Asian agribusiness firm, AsiaFoods, to jointly produce improved crops for the Asian market.The questions that Greentech should consider before entering this alliance include all of the following EXCEPT:

Identify the three types of corporate-level cooperative strategies.

The cost-minimization approach of managing alliances is more expensive to put into place and to use than is the opportunity-maximization management approach.

Because of U.S.legal restrictions concerning large foreign acquisitions, American firms can only enter into diversifying alliances with other U.S.firms.

To increase the likelihood of success between partners, assuming that trust exists, __________ approach(es) should be used to manage cooperative strategies.

Mutual forbearance is:

In a(n) __________, two or more firms create a legally independent company to share some of their resources to create a competitive advantage.

The advantages of alliances designed to respond to competition and to reduce uncertainty are more temporary than those developed through complementary alliances, such as vertical and horizontal strategic alliances.

The two dominant types of complementary strategic alliances are:

In managing cooperative strategies, research indicates that __________ can be a capability that gives a firm a competitive advantage because it increases the likelihood of success.

All of the following are business-level cooperative strategic alliances EXCEPT:

What might be a reason that the number of cross-border alliances are continuing to increase?

Identify the competitive risks associated with cooperative strategies.

Identify and define the different types of strategic alliances.