Question 1

Why are cooperative strategies often used when firms pursue international strategies? What are the advantages and disadvantages of international cooperative strategies?

Accepted Answer

A cross-border strategic alliance is a s

Question 2

A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies.Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered.This is an example of the advantage of __________ resulting from an alliance.

Accepted Answer

A)  explicit collusion 
B)  economies of scale 
C)  opportunistic behavior 
D)  distribution opportunities 
A)  explicit collusion 
B)  economies of scale 
C)  opportunistic behavior 
D)  distribution opportunities

Question 3

Mutual forbearance is a form of explicit collusion between firms in which competitors avoid attacking rivals they meet in multiple markets.

Accepted Answer

A) True 
 B)False

Question 4

When two or more firms form a new company in which they each own different percentages, they have entered into an equity strategic alliance.

Accepted Answer

A) True 
 B)False

Question 5

A competitive advantage developed through a cooperative strategy often is called a collaborative or __________ advantage.

Accepted Answer

A)  economic 
B)  collusive 
C)  alliance 
D)  relational 
A)  economic 
B)  collusive 
C)  alliance 
D)  relational

Question 6

FrameCo, a maker of commercial greenhouses, has just extricated itself from a failing cooperative alliance with another firm.The expected synergies never were achieved, and FrameCo lost most of its investment.The top management of FrameCo should:

Accepted Answer

A)  avoid future cooperative alliances because they lack the skills needed to manage them successfully. 
B)  enter into future cooperative alliances only if the alliance is closely monitored by a third party to prevent opportunistic behavior by the alliance partner. 
C)  realize that most cooperative alliances fail and that it should ally itself only with an experienced alliance partner in the future. 
D)  internalize the knowledge about the successes and failures of this alliance so FrameCo can learn from the experience. 
A)  avoid future cooperative alliances because they lack the skills needed to manage them successfully. 
B)  enter into future cooperative alliances only if the alliance is closely monitored by a third party to prevent opportunistic behavior by the alliance partner. 
C)  realize that most cooperative alliances fail and that it should ally itself only with an experienced alliance partner in the future. 
D)  internalize the knowledge about the successes and failures of this alliance so FrameCo can learn from the experience.

Question 7

In the franchising strategy, the most important competitive advantage for the franchisee is usually the franchisor's:

Accepted Answer

A)  brand name. 
B)  capital resources. 
C)  access to a consolidated market. 
D)  geographic locations. 
A)  brand name. 
B)  capital resources. 
C)  access to a consolidated market. 
D)  geographic locations.

Question 8

A major pharmaceutical company formed a nonequity strategic alliance with an outsourcing firm to monitor its drug safety claims.The outsourcing firm did not have the requisite knowledge to identify all possible side effects and categorize their severity.This best illustrates the risk associated with inadequate contracts.

Accepted Answer

A) True 
 B)False

Question 9

Reduction of competition can be accomplished through all of the following EXCEPT:

Accepted Answer

A)  predatory alliances. 
B)  explicit collusion. 
C)  tacit collusion. 
D)  mutual forbearance. 
A)  predatory alliances. 
B)  explicit collusion. 
C)  tacit collusion. 
D)  mutual forbearance.

Question 10

Of the various business-level strategic alliances, __________ alliances have the most probability of creating sustainable competitive advantage, and __________ have the lowest.

Accepted Answer

A)  horizontal complementary; vertical complementary 
B)  vertical complementary; competition-reducing 
C)  competition-reducing; horizontal complementary 
D)  uncertainty-reducing; competition-reducing 
A)  horizontal complementary; vertical complementary 
B)  vertical complementary; competition-reducing 
C)  competition-reducing; horizontal complementary 
D)  uncertainty-reducing; competition-reducing

Question 11

Stable alliance networks will most often:

Accepted Answer

A)  be used to enhance a firm's internal operations. 
B)  appear in mature industries where demand is relatively constant and predictable. 
C)  emerge in industries with short product life cycles. 
D)  emerge in declining industries as a way to increase process innovations. 
A)  be used to enhance a firm's internal operations. 
B)  appear in mature industries where demand is relatively constant and predictable. 
C)  emerge in industries with short product life cycles. 
D)  emerge in declining industries as a way to increase process innovations.

Question 12

Horizontal complementary strategic alliances are designed so that each partner realizes equal benefits from equal investments in the alliance.

Accepted Answer

A) True 
 B)False

Question 13

For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all of the following reasons EXCEPT:

Accepted Answer

A)  a host nation may forbid a merger or acquisition. 
B)  opportunistic behaviors are less likely. 
C)  cooperative strategies require fewer resources. 
D)  cooperative strategies allow greater flexibility to diversify. 
A)  a host nation may forbid a merger or acquisition. 
B)  opportunistic behaviors are less likely. 
C)  cooperative strategies require fewer resources. 
D)  cooperative strategies allow greater flexibility to diversify.

Question 14

In general, cross-border strategic alliances are more __________ and __________ than domestic strategic alliances, especially in emerging markets.

Accepted Answer

A)  uncertainty-reducing; diversifying 
B)  complex; risky 
C)  highly leveraged; tightly monitored 
D)  flexible; trust-based 
A)  uncertainty-reducing; diversifying 
B)  complex; risky 
C)  highly leveraged; tightly monitored 
D)  flexible; trust-based

Question 15

A stable alliance network is used in industries characterized by frequent product innovations and short product life cycles.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true?

Accepted Answer

A)  Most cooperative strategies are successful if the basic agreements are well written and include appropriate monitoring strategies. 
B)  As many as 50 percent of cooperative strategies fail. 
C)  Opportunistic behaviors are usually focused on gaining the use of the partner's manufacturing and financial resources. 
D)  Problems with international cooperative strategies usually concern financial-system differences between the partners. 
A)  Most cooperative strategies are successful if the basic agreements are well written and include appropriate monitoring strategies. 
B)  As many as 50 percent of cooperative strategies fail. 
C)  Opportunistic behaviors are usually focused on gaining the use of the partner's manufacturing and financial resources. 
D)  Problems with international cooperative strategies usually concern financial-system differences between the partners.

Question 17

A(n) __________ cooperative strategy helps firms diversify in terms of products offered, markets served, or both.

Accepted Answer

A)  corporate-level 
B)  business-level 
C)  national-level 
D)  industry-level 
A)  corporate-level 
B)  business-level 
C)  national-level 
D)  industry-level

Question 18

When using cooperative strategies, firms most frequently develop strategic alliances that:

Accepted Answer

A)  enhance the firm's reputation in the marketplace. 
B)  are long-lived. 
C)  will reduce the firm's political risk. 
D)  create a competitive advantage. 
A)  enhance the firm's reputation in the marketplace. 
B)  are long-lived. 
C)  will reduce the firm's political risk. 
D)  create a competitive advantage.

Question 19

Some cooperative strategies fail when it is discovered that a firm has misrepresented the resources it can bring to the partnership.

Accepted Answer

A) True 
 B)False

Question 20

Dynamic alliance networks work best in industries:

Accepted Answer

A)  characterized by frequent product innovations and short product life cycles. 
B)  that are mature and stable in nature. 
C)  where the coordination of product and global diversity is critical. 
D)  that are characterized by predictable market cycles and demand. 
A)  characterized by frequent product innovations and short product life cycles. 
B)  that are mature and stable in nature. 
C)  where the coordination of product and global diversity is critical. 
D)  that are characterized by predictable market cycles and demand.

Why are cooperative strategies often used when firms pursue international strategies? What are the advantages and disadvantages of international cooperative strategies?

Mutual forbearance is a form of explicit collusion between firms in which competitors avoid attacking rivals they meet in multiple markets.

When two or more firms form a new company in which they each own different percentages, they have entered into an equity strategic alliance.

A competitive advantage developed through a cooperative strategy often is called a collaborative or __________ advantage.

FrameCo, a maker of commercial greenhouses, has just extricated itself from a failing cooperative alliance with another firm.The expected synergies never were achieved, and FrameCo lost most of its investment.The top management of FrameCo should:

In the franchising strategy, the most important competitive advantage for the franchisee is usually the franchisor's:

Reduction of competition can be accomplished through all of the following EXCEPT:

Of the various business-level strategic alliances, alliances have the most probability of creating sustainable competitive advantage, and have the lowest.

Stable alliance networks will most often:

Horizontal complementary strategic alliances are designed so that each partner realizes equal benefits from equal investments in the alliance.

For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all of the following reasons EXCEPT:

In general, cross-border strategic alliances are more and than domestic strategic alliances, especially in emerging markets.

A stable alliance network is used in industries characterized by frequent product innovations and short product life cycles.

Which of the following statements is true?

A(n) __________ cooperative strategy helps firms diversify in terms of products offered, markets served, or both.

When using cooperative strategies, firms most frequently develop strategic alliances that:

Some cooperative strategies fail when it is discovered that a firm has misrepresented the resources it can bring to the partnership.

Dynamic alliance networks work best in industries:

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

Why are cooperative strategies often used when firms pursue international strategies? What are the advantages and disadvantages of international cooperative strategies?

Mutual forbearance is a form of explicit collusion between firms in which competitors avoid attacking rivals they meet in multiple markets.

When two or more firms form a new company in which they each own different percentages, they have entered into an equity strategic alliance.

A competitive advantage developed through a cooperative strategy often is called a collaborative or __________ advantage.

FrameCo, a maker of commercial greenhouses, has just extricated itself from a failing cooperative alliance with another firm.The expected synergies never were achieved, and FrameCo lost most of its investment.The top management of FrameCo should:

In the franchising strategy, the most important competitive advantage for the franchisee is usually the franchisor's:

Reduction of competition can be accomplished through all of the following EXCEPT:

Of the various business-level strategic alliances, __________ alliances have the most probability of creating sustainable competitive advantage, and __________ have the lowest.

Stable alliance networks will most often:

Horizontal complementary strategic alliances are designed so that each partner realizes equal benefits from equal investments in the alliance.

For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all of the following reasons EXCEPT:

In general, cross-border strategic alliances are more __________ and __________ than domestic strategic alliances, especially in emerging markets.

A stable alliance network is used in industries characterized by frequent product innovations and short product life cycles.

Which of the following statements is true?

A(n) __________ cooperative strategy helps firms diversify in terms of products offered, markets served, or both.

When using cooperative strategies, firms most frequently develop strategic alliances that:

Some cooperative strategies fail when it is discovered that a firm has misrepresented the resources it can bring to the partnership.

Dynamic alliance networks work best in industries:

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

Of the various business-level strategic alliances, alliances have the most probability of creating sustainable competitive advantage, and have the lowest.

In general, cross-border strategic alliances are more and than domestic strategic alliances, especially in emerging markets.