Question 1

A nonequity strategic alliance exists when:

Accepted Answer

A)  two firms join together to create a new company. 
B)  two or more firms have a contractual relationship to share resources and capabilities. 
C)  two partners in an alliance own unequal shares in the combined entity. 
D)  the partners agree to sell bonds instead of stock in order to finance a new venture. 
A)  two firms join together to create a new company. 
B)  two or more firms have a contractual relationship to share resources and capabilities. 
C)  two partners in an alliance own unequal shares in the combined entity. 
D)  the partners agree to sell bonds instead of stock in order to finance a new venture.

Question 2

____ strategic alliances have 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 3

Only about 50 percent of cooperative strategies succeed.

Accepted Answer

A) True 
 B)False

Question 4

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 an

Question 5

Collusion is a form of cooperative strategy.

Accepted Answer

A) True 
 B)False

Question 6

Tacit collusion tends to be least used as a business-level, competition-reducing strategy in highly concentrated industries such as airlines and breakfast cereals even though it results in higher prices for consumers.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Although growing in popularity with small and medium-sized firms because they can gain economies of scale, large companies tend to avoid strategic alliances.

Accepted Answer

A) True 
 B)False

Question 9

Franchising is most attractive in concentrated industries.

Accepted Answer

A) True 
 B)False

Question 10

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:

Accepted Answer

A)  get venture capital from Pet Resort. 
B)  gain access to Pet Resort's tacit knowledge. 
C)  collude with Pet Resort to diminish competition in the kennel industry in Atlanta. 
D)  join in a vertical complementary alliance with Pet Resort. 
A)  get venture capital from Pet Resort. 
B)  gain access to Pet Resort's tacit knowledge. 
C)  collude with Pet Resort to diminish competition in the kennel industry in Atlanta. 
D)  join in a vertical complementary alliance with Pet Resort.

Question 11

The probability of alliance success is increased when partnering firms internalize successful alliance experiences.

Accepted Answer

A) True 
 B)False

Question 12

A strategy in which firms work together to achieve a shared objective is a:

Accepted Answer

A)  functional-level strategy. 
B)  business-level strategy. 
C)  corporate-level strategy. 
D)  cooperative strategy. 
A)  functional-level strategy. 
B)  business-level strategy. 
C)  corporate-level strategy. 
D)  cooperative strategy.

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

The Microsoft/Nokia alliance that had hundreds of pages to specify each partner's responsibilities would be closest to the _______ approach to managing cooperative ventures. In contrast, the Renault/Nissan alliance (Chapter 9 Mini Case) was based on trust, respect, and transparency and is an example of the ________ approach to managing cooperative ventures.

Accepted Answer

A)  cost minimization; opportunity maximization 
B)  opportunity maximization; cost minimization 
C)  cost maximization; opportunity minimization 
D)  bureaucratic; organic 
A)  cost minimization; opportunity maximization 
B)  opportunity maximization; cost minimization 
C)  cost maximization; opportunity minimization 
D)  bureaucratic; organic

Question 16

Which of the following statements is FALSE?

Accepted Answer

A)  Franchising is most appropriate in fragmented industries. 
B)  Franchising provides corporate growth with less risk than do mergers and acquisitions. 
C)  Successful franchising allows transfer of knowledge and skills from the franchisor to the franchisee. 
D)  Franchising agreements require more trust between firms than do other cooperative strategies. 
A)  Franchising is most appropriate in fragmented industries. 
B)  Franchising provides corporate growth with less risk than do mergers and acquisitions. 
C)  Successful franchising allows transfer of knowledge and skills from the franchisor to the franchisee. 
D)  Franchising agreements require more trust between firms than do other cooperative strategies.

Question 17

A cooperative strategy:

Accepted Answer

A)  is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. 
B)  is a strategy in which firms work together to achieve a shared objective. 
C)  is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. 
D)  specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. 
A)  is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. 
B)  is a strategy in which firms work together to achieve a shared objective. 
C)  is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. 
D)  specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets.

Question 18

According to the Chapter 9 Mini Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.

Accepted Answer

A) True 
 B)False

Question 19

In general, cross-border alliances are more ____ and ____ than domestic 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 20

Of the four business-level cooperative strategies, the competition-reducing strategy has the lowest probability of creating a sustainable advantage.

Accepted Answer

A) True 
 B)False

A nonequity strategic alliance exists when:

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

Only about 50 percent of cooperative strategies succeed.

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

Collusion is a form of cooperative strategy.

Tacit collusion tends to be least used as a business-level, competition-reducing strategy in highly concentrated industries such as airlines and breakfast cereals even though it results in higher prices for consumers.

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

Although growing in popularity with small and medium-sized firms because they can gain economies of scale, large companies tend to avoid strategic alliances.

Franchising is most attractive in concentrated industries.

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:

The probability of alliance success is increased when partnering firms internalize successful alliance experiences.

A strategy in which firms work together to achieve a shared objective is a:

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.

Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage.

Which of the following statements is FALSE?

A cooperative strategy:

According to the Chapter 9 Mini Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.

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

Of the four business-level cooperative strategies, the competition-reducing strategy has the lowest probability of creating a sustainable advantage.

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

A nonequity strategic alliance exists when:

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

Only about 50 percent of cooperative strategies succeed.

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

Collusion is a form of cooperative strategy.

Tacit collusion tends to be least used as a business-level, competition-reducing strategy in highly concentrated industries such as airlines and breakfast cereals even though it results in higher prices for consumers.

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

Although growing in popularity with small and medium-sized firms because they can gain economies of scale, large companies tend to avoid strategic alliances.

Franchising is most attractive in concentrated industries.

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:

The probability of alliance success is increased when partnering firms internalize successful alliance experiences.

A strategy in which firms work together to achieve a shared objective is a:

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.

Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage.

Which of the following statements is FALSE?

A cooperative strategy:

According to the Chapter 9 Mini Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.

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

Of the four business-level cooperative strategies, the competition-reducing strategy has the lowest probability of creating a sustainable advantage.

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 stronger focus on value creation than do alliances.

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