MGT 498: Strategic Management

One reason why a firm might enter into a strategic alliance is to Blank______.

hedge against uncertainty

Why does Facebook acquire startups?

Strategic preemption

Which of the following terms refers to when one firm purchases or takes over another firm?

acquisition

How do mergers and acquisitions differ?

A merger describes the joining of two independent companies, while an acquisition describes the purchase or takeover of a firm.

What is a major problem for between 30% and 70% of all strategic alliances?

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

A conceptual model that helps strategists choose between seeking internal development, entering into an alliance, or acquiring new resources, capabilities, and competencies is called the "Blank______ framework."

Build-Borrow-Buy

Select all that apply Which statements correctly describe the advantages commonly possessed by firms in licensing agreements?

Established firms typically have an innovation advantage. Startups often possess an invention advantage.

True or false: In most cases, mergers and acquisitions create competitive advantage.

False

How does Lyft benefit from its strategic alliances with GM and Waymo?

It allows Lyft to more effectively compete against Uber.

In what way does the strategic alliance between GM and Lyft allow GM to hedge against uncertainty?

It gives GM access to the market of the future, in which private car ownership model is likely to shift in favor of fleet ownership and management.

Select all that apply Which statements correctly describe licensing agreements?

Participants focus on their own comparative advantages. Licensing agreement partners frequently exchange codified information. They are contractual alliances between firms.

Select all that apply Which statements about joint ventures are true?

They are the least common of the three types of strategic alliances. They involve the sharing of both explicit and tacit knowledge.

What is a true statement about strategic alliances?

They have a high failure rate.

Which of the following statements about equity alliances is true?

They require larger investments than non-equity alliances.

What allows firms to manage both strategic alliances and mergers and acquisitions?

a relational capability

Select all that apply Which of the following are the three choices in the Build-Borrow-Buy framework?

acquisition of new resources strategic alliances internal development

Strategists can grow their firms by growing organically through internal development or externally through alliances and Blank______.

acquisitions

Select all that apply A firm with alliance management capability is able to effectively manage which of the following tasks?

alliance design and governance partner selection and alliance formation post-formation alliance management

Which term refers to a company's ability to handle the three specific tasks related to an alliance concurrently and effectively?

alliance management capability

Select all that apply What are three options used by executives to drive firm growth?

alliances acquisitions organic growth

At which level of the corporation should strategic alliances and mergers and acquisitions be managed?

at the corporate level

On average, mergers and acquisitions Blank______ shareholder value.

destroy

When two competitors merge, leading to industry consolidation, they are engaging in Blank______.

horizontal integration

A standalone organization that two or more parent companies create and own together is a Blank______.

joint venture

Select all that apply Which of the following forms of agreement do non-equity alliances typically take?

licensing supply distribution

Gaining new capabilities or competencies is one of the three main reasons companies Blank______.

make acquisitions

The most common type of alliance is a(n) Blank______.

non-equity alliance

Drag each definition to the alliance type it describes. non-equity alliance equity alliance joint venture

non-equity alliance: partnership based on contracts between firms equity alliance: partnership in which at least one partner takes partial ownership in the other joint venture: standalone organization created and owned by two or more parent companies

Select all that apply What are the three mechanisms that alliances can be governed by?

non-equity alliances joint ventures equity alliances

In order for an alliance to qualify as Blank______, it must have the potential to alter a company's competitive advantage.

strategic

A voluntary arrangement between firms to share knowledge, resources, and capabilities to develop products, processes, or services is known as a Blank______.

strategic alliance

Equity alliances allow for the sharing of Blank______, which involves information that cannot be codified for completing tasks.

tacit knowledge

Horizontal integration is a good option if Blank______.

the target firm will have more value when combined with the acquiring firm

Select all that apply Which of the following are reasons why firms enter into strategic alliances?

to learn new capabilities to enter new markets to strengthen their competitive position