MGT499 Quiz 9

What happens in the third phase of alliance management?

Alliance partners make relation-specific investments.

Which of the following best illustrates horizontal integration?

Denali Electronics Inc. acquires its competitor, Mariana Electronics Inc., to gain access to its core competencies.

Which of the following statements is true of the real-options perspective?

The approach allows the incumbent firm to obtain additional information at predetermined stages.

Which of the following best illustrates a strategic alliance?

Velociraptor Pharma Inc. teaming up with a research company to invent and market breakthrough vaccines

The management at Just Right Autos Inc. and Blue Skies Automobiles Inc. realized that by combining the two entities, the stakeholders of both the companies would benefit. Their core competencies would act as complementary assets to each other. Consequently, Blue Skies Automobiles joined with Just Right Autos to form a combined entity called Just Blue Autos Inc. Which of the following does this scenario best illustrate?

a merger

In order to rejuvenate its floundering product lineup, Disney

acquired Pixar.

Anderson Products Inc., a large conglomerate, took over a small startup company that had made some breakthrough innovations in the field of telecommunications. This purchase would help Anderson Products to gain access to the startup company's superior technology and human capital. This transaction is an example of a(n)

acquisition.

The purchase or takeover of one company by another is a(n)

acquisition.

The local real estate companies in a city have joined together and arranged a "Property Fair." The sponsors will equally share the expenses of the event. Though many companies compete against each other, they have joined together because the medium will help the companies market themselves through a dedicated forum at an extremely low cost. This arrangement is best referred to as

co-opetition.

A strategic alliance has the potential to help a firm gain and sustain a competitive advantage when it joins resources and knowledge that are

difficult to imitate.

Firms enter strategic alliances to

have a positive effect on economic value creation.

To secure a strong strategic position in fast-growing emerging markets, which of the following corporate strategies did Kraft Foods primarily pursue by acquiring Cadbury?

horizontal integration

The process of merging with a competitor at the same stage of the value chain is best described as

horizontal integration.

The starting point of the build-borrow-or-buy framework is management's

identification of a strategic resource gap that will impede future growth.

A non-equity alliance is the most common type of strategic alliance because

it is easy to initiate and terminate.

"A form of self-delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary" is the definition of

managerial hubris.

"The process of joining two independent companies with their consent to form a combined entity on a permanent basis" is the definition of a

merger.

Which of the following is an example of explicit knowledge?

the findings of a research published in a scientific journal

Which of the following is one of the reasons that firms make acquisitions?

to gain access to a new capability or competency

Which of the following was one of the primary reasons why Adidas acquired Reebok?

to overcome a competitive disadvantage