MGT 4990 Chapter 9 (Test 2)

____ strategic alliances have stronger focus on value creation than do ____ alliances.

complementary; competition reducing

A ____ cooperative strategy helps the firm diversify in terms of products offered, markets served, or both.

corporate-level

The Microsoft/Nokia alliance that had hundreds of pages to specify each partner's responsibilities would be closest to the _______ approach to managing cooperative ventures. In contrast, the Renault/Nissan alliance (Chapter 9 Opening Case) was based on trust, respect, and transparency and is an example of the ________ approach to managing cooperative ventures.

cost minimization; opportunity maximization

A strategic alliance in which the partners own different percentages of the new company they have formed is called a(n)

equity strategic alliance.

A cooperative strategy

is a strategy in which firms work together to achieve a shared objective

Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration is an example of a ________, which is effective at transferring

joint venture; tacit knowledge.

Which type of strategic alliance is best at passing tacit knowledge between firms?

joint ventures

In the United States, cooperative strategies to reduce competition may result in ____ if they are explicit.

litigation

The risks of being accused of collusion are MOST likely under what type of alliance?

nonequity-based horizontal complementary alliance

U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been forming alliances as a means to enter markets in Europe and Asia. The steel industry is an example of a ________ market in which firms typically use alliances to gain market access.

slow-cycle

One disadvantage of developing effective monitoring systems to manage a strategic alliance is that

spontaneous opportunities are minimized.

Firms in ____ markets cooperate to pool resources and gain market power.

standard-cycle

The cooperation between Fiat and Chrysler to produce a Fiat-designed car in Chrysler's Illinois factory is a(n) _________ alliance because it allows the firms to share resources and capabilities across multiple functions.

synergistic

In free-market economies, ____ must decide how rivals can collaborate with their competitors without violating established regulations.

the government

BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The company has announced plans to enter into a joint venture with J3 Composites, a producer of advanced composite materials. The announced venture will produce a new, combined product consisting of the radar unit and protective composite cover. Which of the following ownership arrangements would be most typical for a joint venture?

BPM and J3 will both own 50 percent of the venture and a new company will be formed

Meredith Inc. is a manufacturer of art supplies. The company has announced plans to enter into an equity strategic alliance with JaZz Paper to develop a line of specialty papers for use with a line of specialty paints Meredith manufactures. Which of the following would be the accurate interpretation of this announcement?

Either Meredith or JaZz will own a majority equity stake, but we do not know which one based on the announcement.