Strategic management: chapter 9 etext

Whats the first phrase of alliance management? a. post formation alliance management b. partner selection and alliance formation c. strategic network manipulation d. alliance design and governance

partner selection and alliance formation

A partnership is based on contracts between companies is referred to as a a. wholly owned subsidiary b. allowance alliance c. non equity alliance d. diversification

non equity alliance

Which of the following occurs when the targeted firm is unwillingly acquired? a. a merger b. joint venture c. hostile takeover d. umbrella acquisition

Hostile takeover

When two firms form a strategic alliance to learn, but the rate at which they learn may vary, it is known as a a. alliance relay b. knowledge exchange c. data competition d. learning race

Learning races

Strategists can grow their firms by growing organically through internal development externally through alliances and a. acquisitions b. divesting businesses c. PESTEL analysis d. capabilities

acquisitions

Which of the following terms refers to a companys ability to handle three tasks related to an alliance concurrently and effectively? a. alliance governance b. alliance management capability c. formulative specification d. partner alliance design

alliance management capability

A conceptual model that helps strategists choose between seeking internal development, entering into an alliance, or acquiring new resources, capabilities, and competencies is the "____ framework" a. organic growth b. build borrow or buy c. capability development d. internal vs external growth

build borrow or buy

How well the firms in an alliance fit together culturally is referred to as partner a. governance b. capability c. commitment d. compatibility

compatibility

How can horizontal integration increase product differentiation? a. filling the empty spaces in a firms offerings b. producing revenues from outsourcing c. distributing high profit margins d. using international suppliers and distributors

filling the empty spaces in a firms offerings

An adv of using a non equity alliance to govern a strategic alliance is its a. long term planning period b. flexibility and ease of initiation c. ability to distract new entrants to the industry d. use of a tacit knowledge

flexibility and ease of initiation

how do foreign govt influence why firms may use strategic alliances to enter new markets? a. govt may require fin and com .... b. govt may require that foreign firms have local joint... c. govt may require SEC.... d. govt typicall do not allowe in new foreign....

govt may require that foreign firms have local joint venture partner in order to conduct business within the countrys borders

One reason why a firm might enter into a strategic alliance is to a. exit markets b. increase the # of entrants in the market c. hedge against uncertainty d. weaken competitive position

hedge against uncertainty

Horizontal integration can a. improve cost effectiveness and efficiency through multiple distribution chains b. lower the cost of production through decreased economies of scope c. decrease the geographic scope of a firm d. help a firm improve its strategic position in an industry

help a firm improve its strategic position in an industry

Which of the following is true of tacit knowledge? a. it cannot be codified b. it is non specific knowledge c. cannot be acquired d. its exchanged only during non equity alliances

it cannot be codified

What does the incomplete nature of contracts mean for post formation alliance management? a. it means that they should have gotten better lawyers b.it means that trust is critical to success c. means that the alliance design was faulty d. means the firms lack the power to enforce the contract

it means that trust is critical to success

A country may require a company to form _____ and provide knowledge and advanced technology in exchange for access to the market a. a contractual market agreement b. a joint venture c. equity alliance d. non equity alliance

joint venture

A standalone organization that two or more parent companies create a jointly own is a a. non equity alliance b. franchise c. joint venture d. licensing agreement

joint venture

How do mergers and acquisitions differ? a. merger is two firms joining together. Acquisition is two or more join b. merger is joining of two independant. Acq. is purchase or takeover c. merger is domestic takeover. Acq is international takeover d. merger is two firms forced together. Acq is two firms join willingly

merger is joining of two independant. Acq. is purchase or takeover

Main reasons to pursue mergers include the desire to overcome comp disadv, superior acquisition and integration capability, and a. principal agent problem b. distinct market takeover in virtual markets c. planned acq materialization d. strategic alliance emergence

principal agent problem

Which approach to strategic decision making takes a larger investment decision and divides it into multiple smaller decisions that happen over time? a. real options perspective b. staged options perspective c. net present value perspective d. one to many approach

real options perspective

Which of the following is NOT a reason to pursue horizontal integration as a corporate strategy a. reduce flexibility b. provide additional benefits... c. reduce comp intensity d. lower costs and enhance economic value creation

reduce flexibility

Which of the following states that important resources and capabilities are commonly embedded in strategic alliance that cross firm boundaries? a. relational view of comp adv b. managerial hubris framework c. porters 5 forces model d. principal agent problems framework

relational view of comp adv

A firm should use an equity alliance, joint venture, or an outright acquisition in order to gain use of a resource when a. resource is not easily traded b. owner of firm does not wish to sell the resource c. company can improve upon the resource d. tradability of the resource is high

resource is not easily traded

A voluntary arrangement between firms to share knowledge, resources, and capabilities to develop products, processes, or services is known as a a. hostile takeover b. strategic alliance c. wholly owned subsidiary d. merger

strategic alliance

The ties between partners in non equity alliances can be weak, in part because these alliances are often ____ in nature , which can cause in lac of trust and commitment a. temporary b. sufficient c. permanent d. intangible

temporary

Horizontal integration can reduce a. non price competition b. industry consolidation c. bargaining power with suppliers d. threat of entry

threat of entry

What does the incomplete nature of contracts mean for post formation alliance management? a. firms lack power to enforce contract b. trust is critical to success c. alliance design was faulty d. they should have gotten better lawyers

trust is critical to success

When an established firm makes an equity investment in an entrepreneurial venture it is known as ___ investment a. einstein type b. incubent c. limited entrepreneurial d. corporate venture capital

corporate venture capital

When companies get involved in a bidding war and the winner overpays for the acquisition, the acquiring company has fallen victim to the a. losers win b. losers curse c. winners pity d. winners loss e. winners curse

winners curse

In order to build alliance management capabilities in small companies, it is recommended that firms take the ___ approach a. "necessary conglomerate" b. "comprehensive integrated" c. "tacit knowledge" d. "learning by doing"

"learning by doing"

Which f the following terms refers to when one firm purchases or takes over another firm? a. wholly owned subsidiary b. acquisition c. strategic alliance d. merger

Acquisition

A partnership in which at least one partner takes partial ownership in other is a. joint venture b. tacit cooperation c. equity alliance d. non equity alliance

Equity alliance

Knowledge that can be codified is also called ___ knowledge a. indirect b. tacit c. explicit d. perceptual

Explicit

Firms can use strategic alliances to strengthen their comp adv when competing in battles to control industry standards T/F

TRUE

How do mergers and acquisitions differ? a. a merger is when two firms are forced to join together; an acquisition is when two firms join willingly b. a merger is when two firms join together; an acquisition is when more than two firms join together c. a merger describes the joining of two independant companies; acquisition describes the purchase or takeover of the firm d. merger describes the domestic takeover of a firm; acquisition describes the international takeover of a firm

a merger describes the joining of two independant companies; acquisition describes the purchase or takeover of the firm

Whats a major problem for between 30% and 70% of all strategic alliances? a. government forces the alliance to shut down due to monopoly concerns b. one partner buys the other partner out at a major discount c. one partner effectively steals the product of a venture, cutting the other out of the profits d. at least one partner in the alliance considers the venture to be a failure

at least one partner in the alliance considers the venture to be a failure

In general, if resource is highly tradable, then it should be ____ using a license or contractual agreement a. purchased b. borrowed c. sold d. built

borrowed

A firm has a core competency in R&D but little else, so it enters into a strategic alliance...... a. increased differentiation b. potential legal repercussions c. critical complementary assets d. real options

critical complementary assets

What must strategic alliances do in order to create the foundation for a competitive advantage? a. build core competencies based on the BCG matrix b. disregard economies of scale and economies of scope c. form unique resource combinations that obey the VRIO criteria d. analyze critical complementary assets

form unique resource combinations that obey the VRIO criteria

One possible source of COSTS in a horizontal integration strategy is ____ a. increased differentiation b. reduced potential for legal repercussions c. lower costs d. integration failure

integration failure

Which of the following is a disadvantage of a joint venture? a. strong ties, trust and commitment between the partners b. the government is typically overbearing in terms of support and guidance c. knowledge shared with the new partner could be misappropriated by opportunistic behavior d. control over partner selection and alliance formation is essentially nonexistant

knowledge shared with the new partner could be misappropriated by opportunistic behavior

Gaining new capabilities or competencies is one of the three main reasons why companies a. eliminated employees b. enter new markets c. make acquisitions d. submit to hostile takeovers

make acquisitions

When managers of acquiring companies incorrectly convince themselves that they are able to manage the business of the target company more effectively than its current managers, and therefore create additional shareholder value, they are engaging in a. superhero delusion b. managerial hubris c. vain phenomenon d. integration capability problems

managerial hubris

Knowledge that involves knowing how to do a certain task and that cannot be codified is ______ knowledge a. explicit b. tacit c. hot to d. procedural

tacit

What type of knowledge cannot be codified and can only be gained through active participation in the task? a. perpetual b. explicit c. tacit d. strategic

tacit

In many fast moving markets, strategic alliances allow firms to ____ to hedge against uncertainty a. provide low cost alternatives b. take a wait and see approach c. develop complementary assets d. execute military training

take a wait and see approach

How can firms build alliance management capability? a. through repeated experiences over time b. by being perfect the first time and alliance is pursued c. teaming up with an inexperienced partner d. through regular use of established knowledge sharing routines

through repeated experiences over time