Human Resource Management
15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine
249 solutions
Information Technology Project Management: Providing Measurable Organizational Value
5th EditionJack T. Marchewka
346 solutions
Service Management: Operations, Strategy, and Information Technology
7th EditionJames Fitzsimmons, Mona Fitzsimmons
103 solutions
Operations Management: Sustainability and Supply Chain Management
12th EditionBarry Render, Chuck Munson, Jay Heizer
1,698 solutions
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Terms in this set (52)
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 traditional private car ownership no longer exists.
horizontal integration can
help a firm improve its strategic position in an industry
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
When companies get involved in a bidding war and the winner overpays for the acquisition, the acquiring company has fallen victim to the
winners curse
What are common reasons a firm might pursue a merger?
To gain superior acquisition and integration capability
To overcome competitive disadvantage
To address principal-agent
problems
Internal development should occur when the firm's resources are _____ to those of competitors in the targeted area.
similar and superior
A firm should use an equity alliance, a joint venture, or an outright acquisition in order to gain use of a resource when
resource not easily traded
A voluntary arrangement between firms to share knowledge, resources, and capabilities to develop products, processes, or services is known as a
strategic alliance
How does Lyft benefit from its strategic alliances with GM and Waymo?
It allows Lyft to more effectively compete against Uber.
Which of the following are reasons why firms enter into strategic alliances
to learn new capabilities
to strengthen their competitive position
to enter new markets
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 "______ framework."
build buy or borrow
Which framework can companies use to assess whether their internal resources are superior to those of competitors in the targeted area?
vrio framework
In general, if a resource is highly tradable, then it should be ______ using a license or contractual agreement.
borrowed
How do foreign governments typically influence a firm's use of strategic alliances 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.
In order for an alliance to qualify as ______, it must have the potential to alter a company's competitive advantage.
strategic
A real option gives a firm the right to continue making investments
but does not obligate the firm to do so
Which approach to strategic decision making takes a larger investment decision and divides it into multiple smaller decisions that happen over time?
real options perspective
A firm might want to use a strategic alliance to ______.
change the industry structure
Marketing, manufacturing, and after-sale service are examples of
critical complementary assets
Why might a firm create a joint venture when entering a new geographic market?
to adhere to local law
to access local expertise
to
access local contacts
Why do incumbent companies enter into strategic alliances with startups?
hedge against uncertainty
When a company makes incremental investments as part of a larger investment and takes the time to analyze the information gained following each incremental investment, the company is taking a
real-options perspective
What are the three mechanisms that alliances can be governed by?
non-equity alliances
joint ventures
equity alliances
The most common type of alliance is a(n)
non equity alliance
A firm 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 examples o
critical complementary assets
Non-equity alliances tend to share ______, which allows the firms to understand a certain process or product.
explicit knowledge
The partners in non-equity alliances can have weak ties because such alliances are often ______ in nature, which can cause lack of trust and commitment.
temporary
Which of the following forms of agreement do non-equity alliances typically take
supply
distribution
licensing
Knowledge that can be codified is also called ______ knowledge.
explicit
Which of the following is true of tacit knowledge?
It can only be acquired through actively participating in the process
An advantage of using a non-equity alliance to govern a strategic alliance is its
flexibility and ease of initiation
What are downsides of equity alliances
The time and effort for assembling the partnership
The amount of investment involved
Which of the following is a disadvantage of a joint venture?
Knowledge shared with the new partner could be misappropriated by opportunistic behavior.
Which term refers to a company's ability to handle the three specific tasks related to an alliance concurrently and effectively?
alliance management capability
What are three advantages of equity alliances
possible emergence of trust and commitment
a window into new technology (option value)
stronger ties
How well the firms in an alliance fit together culturally is referred to as partner
compatibility
How can firms build alliance management capability?
through repeated experiences over time
Which of the following are true of alliance management capability
It involves partner selection and alliance formation.
A firm may need to employ it
with several different alliances.
Which of the following terms refers to when one firm purchases or takes over another firm
acquisition
Horizontal integration is a good option if
the target firm will have more value when combined with the acquiring firm
How willing the firms in an alliance are to share necessary resources and make sacrifices in the name of long-term rewards is referred to as partner
commitment
Horizontal integration through mergers and acquisitions can create costs. Which of the following are sources of such costs
reduced flexibility
increased potential for legal repercussions
integration failure
In order to build alliance management capabilities in small companies, it is recommended that firms take the ______ approach
learning by doing
How can horizontal integration increase product differentiation
by filling the empty spaces in a firm's offerings
A(n) ______ is when two firms agree to join and create a combined entity, and a(n) ______ is when one firm buys or takes over another firm.
merger; acquisition
On average, mergers and acquisitions ______ shareholder value
destroy
The starting point of the build-borrow-or-buy framework is management's
identification of a strategic resource gap that will impede future growth.
What happens in the third phase of alliance management?
the alliance partners make relation-specific investments
Which of the following is one of the reasons that firms make acquisitions
to gain access to a new capability or competency
When a firm wishes to consolidate the industry in which they compete by merging with their competitors, they are engaging in
horizontal integration
There are several benefits of horizontal integration. Which of the following below is not a benefit?
access to new marketing and sales divisions
Which of the following are the three choices in the build-borrow-or-buy framework?
acquisition of new resources
strategic alliances
internal development
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