Exam 13: International Strategic Alliances

PepsiCo and Thomas J. Lipton Co. established a joint venture. PepsiCo supplied an extensive distribution network, and Lipton provided manufacturing expertise and brand recognition in teas. What benefit of strategic alliances were they most likely seeking?

Toyota and GM created a joint venture called NUMMI because Toyota wanted to learn about how to deal with labor and parts suppliers in the U.S. market while GM wanted to observe Japanese management practices. What benefit of strategic alliances were Toyota and GM primarily seeking?

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

Boeing collaborated in a strategic alliance with Fuji, Mitsubishi, and Kawasaki in the development and production of the Boeing 777 to minimize Boeing's financial exposure. What benefit of strategic alliances was Boeing seeking?

Firms involved in joint ventures experience the pitfalls of ________ when they realize that their decision-making powers are limited.

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

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

Conflict over the distribution of earnings is the primary cause for failures among strategic alliances.

Which of the following is not a benefit of strategic alliances?

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?

Why does Otis Elevator always seek local partners when it expands into new markets?

Chrysler and BMW formed a joint venture to build engines in South America. Which term best describes this type of alliance?

In a brief essay, discuss the problems associated with forming a strategic alliance with a competitor.

Boeing controls the overall operation of its strategic alliance with Fuji, Mitsubishi, and Kawasaki. This is an example of a(n) ________.

How does the Star Alliance primarily benefit customers?

Micron Technology, Intel, Samsung, Hyundai, and Siemens have formed an alliance to develop the next generation of DRAM chips. 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.

What is a strategic alliance? What is the relationship between a joint venture and a strategic alliance?

How does a shared management agreement work?

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?