Exam 9: Cooperative Strategy

One area in which joint ventures are effective is the transfer of tacit knowledge as illustrated in the Chevron/China National Petroleum joint venture.

Offshore Oil Exploration Partners (OOEP) has entered into a cooperative strategy with Malay Petroleum. The resulting documents are long, formal, and detailed. They specify detailed responsibilities of each partner and include methods of monitoring accounting and technical procedures. OOEP and Malay Petroleum are using the ____ management approach.

Which of the following statements is TRUE?

A network strategy involves a series of horizontal acquisitions by firms that are committed to dominating a particular industry.

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:

When a firm is in the early stages of geographic diversification, cross-border alliances may be a good learning step before other forms of international expansion.

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

The primary responsibility of the franchiser is to transfer capital to the franchisee.

Firms participate in strategic alliances for all the following reasons EXCEPT to:

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

The opportunity maximization approach is more difficult to establish in international relationships than in domestic relationships because of differences in all EXCEPT:

Which type of strategic alliance is best at passing tacit knowledge between firms?

A firm creates a competitive advantage when it develops and manages corporate-level cooperative strategies in a way that is valuable, rare, imperfectly imitable, and nonsubstitutable.

Why are alliances in the airline industry unstable?

Identify the three types of corporate-level cooperative strategies.

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.

Describe the two strategic management approaches to managing alliances.

Identify the competitive risks associated with cooperative strategies.

Identify the four types of business-level cooperative strategies and the advantages and disadvantages of each.

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