Question 1

The vertical alliance is an alternative for vertical integration.

Accepted Answer

A) True 
 B)False

Question 2

Equity alliances involve equal partners.

Accepted Answer

A) True 
 B)False

Question 3

The four key elements in establishing and maintaining interorganizational trust are ________.

Accepted Answer

A)   initial conditions, negotiation process, reciprocal experiences, and outside behavior
B)   beginning processes, negotiation process, contract development, and joint experiences
C)   initial conditions, contract development, negotiation process and outside behavior
D)   contract development, negotiation process, reciprocal experience, and outside behavior

Question 4

Explain the risk associated with the misappropriation of resources and capabilities.

Accepted Answer

Misappropriation occurs when one partner...

Question 5

Discuss the questions firms may use to determine the issue of alliance fit.

Accepted Answer

The issue of fit isn't easy to resolve, ...

Question 6

Industry incumbents can ally with ________ to diversify and co-opt a future potential rival.

Accepted Answer

A)   rivals
B)   new entrants
C)   suppliers
D)   substitutes

Question 7

What are the phases of the lifecycle of strategic alliances?

Accepted Answer

The lifecycle of strategic all...

Question 8

Vertical alliances enable potential competitors to gain a presence in multiple segments of an industry.

Accepted Answer

A) True 
 B)False

Question 9

It is not necessary for an alliance to create a separate legal entity or share equal ownership.

Accepted Answer

A) True 
 B)False

Question 10

An alliance in which two firms make equity investments in a third legal entity is referred to as a(n)  ________.

Accepted Answer

A)   equity alliance
B)   joint venture
C)   strategic alliance
D)   consortium

Question 11

What are the possible ways in which alliances can help firms achieve a competitive advantage? Explain.

Accepted Answer

Alliances achieve these potential buildi...

Question 12

Partners foster interorganizational trust by using unpredictable processes.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not one of the ways alliances can help firms achieve their objectives?

Accepted Answer

A)   Alliances spread the risk of business ventures.
B)   Alliances allow companies to stabilize their environments.
C)   Alliances give firms access to resources and capabilities that they might lack.
D)   Alliances give firms access to shared knowledge.

Question 14

Corporate strategy is largely concerned with determining the right mix of businesses in the corporate portfolio and ________.

Accepted Answer

A)   analyzing the industry conditions
B)   developing business-specific competitive plans
C)   determining the right mix of products and/or services
D)   ensuring that the corporate portfolio creates shareholder value

Question 15

Sometimes an alliance may fail simply because one partner benefits and the other does not.

Accepted Answer

A) True 
 B)False

Question 16

A lack of effective monitoring may result in one or more partners exiting the alliance.

Accepted Answer

A) True 
 B)False

Question 17

Define nonequity alliance. Give an example.

Accepted Answer

Nonequity alliance is an alliance that i...

Question 18

Who are possible alliance partners? Explain.

Accepted Answer

Rivals. Although there are certainly leg...

Question 19

The coevolution approach suggests that in making alliances, firms choose to develop all of the following except ________.

Accepted Answer

A)   vertical linkages
B)   horizontal alliances
C)   wholly owned enterprises
D)   complementary associations

Question 20

Learning requires partners to cooperate in transferring knowledge.

Accepted Answer

A) True 
 B)False

Exam 9: Understanding Alliances and Cooperative Strategies

Corporate strategy is largely concerned with determining the right mix of businesses in the corporate portfolio and ________.

Correct AnswerverifiedShow Answer

Vertical alliances enable potential competitors to gain a presence in multiple segments of an industry.

Correct AnswerverifiedShow Answer

What are the possible ways in which alliances can help firms achieve a competitive advantage? Explain.

Correct AnswerverifiedAlliances achieve these potential buildi...View AnswerShow Answer

Sometimes an alliance may fail simply because one partner benefits and the other does not.

Correct AnswerverifiedShow Answer

Industry incumbents can ally with ________ to diversify and co-opt a future potential rival.

Correct AnswerverifiedShow Answer

A lack of effective monitoring may result in one or more partners exiting the alliance.

Correct AnswerverifiedShow Answer

Discuss the questions firms may use to determine the issue of alliance fit.

Correct AnswerverifiedThe issue of fit isn't easy to resolve, ...View AnswerShow Answer

The vertical alliance is an alternative for vertical integration.

Correct AnswerverifiedShow Answer

Learning requires partners to cooperate in transferring knowledge.

Correct AnswerverifiedShow Answer

Define nonequity alliance. Give an example.

Correct AnswerverifiedNonequity alliance is an alliance that i...View AnswerShow Answer

Equity alliances involve equal partners.

Correct AnswerverifiedShow Answer

Which of the following is not one of the ways alliances can help firms achieve their objectives?

Correct AnswerverifiedShow Answer

The coevolution approach suggests that in making alliances, firms choose to develop all of the following except ________.

Correct AnswerverifiedShow Answer

Partners foster interorganizational trust by using unpredictable processes.

Correct AnswerverifiedShow Answer

Explain the risk associated with the misappropriation of resources and capabilities.

Correct AnswerverifiedMisappropriation occurs when one partner...View AnswerShow Answer

The four key elements in establishing and maintaining interorganizational trust are ________.

Correct AnswerverifiedShow Answer

It is not necessary for an alliance to create a separate legal entity or share equal ownership.

Correct AnswerverifiedShow Answer

An alliance in which two firms make equity investments in a third legal entity is referred to as a(n) ________.

Correct AnswerverifiedShow Answer

Who are possible alliance partners? Explain.

Correct AnswerverifiedRivals. Although there are certainly leg...View AnswerShow Answer

What are the phases of the lifecycle of strategic alliances?

Correct AnswerverifiedThe lifecycle of strategic all...View AnswerShow Answer

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Alliances achieve these potential buildi...
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Correct Answer
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The issue of fit isn't easy to resolve, ...
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Correct Answer
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Correct Answer
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Nonequity alliance is an alliance that i...
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Correct Answer
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Correct Answer
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Misappropriation occurs when one partner...
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Correct Answer
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Correct Answer
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Rivals. Although there are certainly leg...
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Correct Answer
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The lifecycle of strategic all...
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