Strategic Management ch. 9 Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

What are some managerial advantages of building a firm into a large organization?

- greater prestige - more job security - increased power

A firm with alliance management capability is able to effectively manage which tasks?

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

What are sources of value creation in a horizontal integration strategy?

- reduction in competitive intensity - lower costs - increased differentiation

What are the reasons for which firms enter into strategic alliances?

- strengthen competitive position - enter new markets - hedge against uncertainty - access critical complementary assets - learn new capabilities

How does horizontal integration affect Porter's Five Forces for the surviving firms?

- strengthens bargaining powers vis-a-vis suppliers - reduces the threat of entry - reduces rivalry among existing firms

Why do firms make acquisitions?

- to gain access to new markets and distribution channels - to gain access to new capability or competency - to preempt rivals

How do foreign governments typically influence a firm's use of strategic alliance to enter new markets?

Governments may require that foreign firms have a local joint venture partner in order to conduct business within the country's borders

What is true regarding the government and horizontal integration?

Large horizontal integration activity typically needs to be approved by government authorities

Peter's Pans makes cast-iron cookware. It decides to acquire another similar-sized cast-iron cookware company in the hope that its larger size will enable it to snag some market share away from Iron Maiden, the industry leader. Which of the following reasons best describes Peter's Pans strategy?

Peter's Pans is trying to overcome competitive disadvantage

Firms can use strategic alliances to strengthen their competitive advantage when competing in battles to control industry standards.

True

How can horizontal integration increase product differentiation?

by filling the empty spaces in a firm's offerings

How well the firms in an alliance fit together culturally is referred to as partner ____________.

compatibility

Knowledge that can be codified is also called ___________ knowledge

explicit

In most cases, mergers and acquisitions create competitive advantage.

false

In 2010 Kraft Foods bought UK-based Cadbury PLC in a hostile takeover. Kraft felt that a __________ with Cadbury would help Kraft break into emerging countries because of the strong position Cadbury had in India, Egypt, Thailand and other countries.

horizontal integration

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

joint venture

When Pfizer and Wyeth merged, they reduced the size of their combined sales force while also increasing the number of drugs they could promote. This is an example of which source of value creation for M&As?

lower costs

Zoe is a manager at a large company engaged in the acquisition of a smaller company. The smaller company has operated at a loss for the last three years under three different managers, but Zoe is convinced that she can turn the company around despite the evidence to the contrary. Zoe is engaging in ____________.

managerial hubris

A partnership that is based on contracts between companies is referred to as a(n) _____________.

non-equity alliance

Tacit knowledge can _______________

only be acquired through actively participating in the process

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 ventures

standalone organization created and owned by two or more parent companies

What is the main goal of corporate venture capital investments

to create real options in terms of gaining access to new technologies

Equity alliances require larger investments than non-equity alliances

true


Set pelajaran terkait

Chapter 03: Developmental and Genetic Influences on Child Health Promotion Hockenberry: Wong's Essentials of Pediatric Nursing, 10th Edition

View Set

Chapter 60 - Spinal Cord and Peripheral Nerve Problems

View Set

Bahasa Indonesia level 3 bagian 1

View Set

T4. Chemical Bonding and Structure

View Set

U.S History Chapter 15 The New Deal

View Set