H Sevi Ch 6 HMW

3 taks of alliance capability

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

What are the components of post formation alliance management

- Relation Specific investments - knowledge sharing routines - interfirm trust

Which of the following are the three choices in the Build-Borrow-Buy framework?

- acquisition of new resources - strategic alliances - internal development

advantages commonly possessed by firms in licensing agreements

- established firms typically have an innovation advantage - startups often posses an invention advantage

What is a component of post formation alliance management

- establishing knowledge sharing routines

Which of the following are true of alliance management capability

- it involves partner selection and alliance formation - it involves alliance design and governance

Which of the following are reasons to pursue horizontal integration as a corporate strategy?

- lower costs - provide such benefits as complementary products in their offerings - to enhance their economic value creation

What are the phrases of alliance management

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

Which of the following forms of agreements do non-equity alliances typically take

- supply agreements - distribution agreements - licensing agreements

Which statements correctly describe licensing agreements?

- they are contractual alliances between firms - licensing agreement partners frequently exchange codified information - participants focus on their own comparative advantages

Which Statement is true about joint ventures

- they involve the sharing of both explicit and tacit knowledge - they are the least common of the three types of the alliances

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

Acquisition

a conceptual model that helps strategists choose between seeking internal development, entering into alliance, or acquiring new resources, capabilities and competencies is called the

Build-Borrow-Buy

A firmm has a core competency in R&D but little else, so it enters into a strategic alliance with a larger firm to gain distribution channels and marketing expertise. In this case, distribution channels and marketing expertise would be example of

Critical complementary assets

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 ex of which source of value creation for M&A

Lower costs

What are the most expensive, complicated, and difficult to undo options used to

Mergers Acquistions

Peter Pans makes cast iron cookware. It decides to acquire another similar sized xast iron cookware company in the hope its larger size will enable it to snag some market share away from iron maiden, the industry leader. What is peter pans strategy

Peter Pans is trying to overcome competitive advantage

T or F: A horizontal integration strategy leads to industry consolidation

True

T or F: Firms can use strategic alliances to strengthen their competitive advantage when competing in battles to control industry standards

True

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

aquistions

When competitors enter strategic alliances and become collaborators _____ ensues and can result in learning races

co-opetition

An unfriendly acquisition of one company of another is known as an

hostile takeover

a firm must decide whether to build, borrow, or buy answers the question of

how it will achieve growth

When managers of acquiring companies incorrectly convinve themselves that they are able to manage the business of the target company more effectively than its current managers, they are engaging in Blank______.

managerial hubris

What are the two necessary conditions for successful alliance formation

partner commitment partner compatability

Although the 3 tasks of alliance capability often occur at the same time, in general what is the first phase of alliance management

partner selection and alliance formation

Non equity alliances

partnership based on contracts between a firm

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

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

strategic alliance

Why does facebook acquire startups

strategic preemption

Horizontal Integration is a good option if

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

Why do incumbent companies enter into strategic alliances with startups

to hedge against uncertainty