Question 1

The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.

Accepted Answer

A)   real-options perspective
B)   stakeholder strategy
C)   relational view of competitive advantage
D)   non-differentiation strategyE) None of the above
F) All of the above

Question 2

_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning, but the rate at which the firms learn may vary.

Accepted Answer

A)   Learning races
B)   Learning networks
C)   Learning effects
D)   Learning matricesE) C) and D)
F) B) and C)

Question 3

A(n) _____ occurs when firms enter into a partnership based on contractual agreements, which results in vertical strategic alliances, that connect different parts of the industry value chain.

Accepted Answer

A)   equity alliance
B)   joint venture
C)   non-equity alliance
D)   greenfield ventureE) None of the above
F) A) and C)

Question 4

Disney became the world's leading media company to a large extent by pursuing a corporate strategy of _____.

Accepted Answer

A)   related-linked diversification
B)   cost-leadership
C)   unrelated diversification
D)   hostile takeoversE) A) and D)
F) A) and C)

Question 5

What is a non-equity alliance? List the most frequent forms of non-equity alliances.

Accepted Answer

A non-equity alliance is a partnership b...

Question 6

Which of the following is a disadvantage of equity alliances?

Accepted Answer

A)   They are reflective of weaker ties between firms.
B)   They do not permit the exchange of explicit knowledge.
C)   They can bring about a lack of commitment.
D)   They can entail significant investments.E) A) and C)
F) B) and D)

Question 7

In a strategic alliance, the firm that learns faster:

Accepted Answer

A)   has the tendency to lose its competitive advantage.
B)   has the incentive to reduce its knowledge sharing.
C)   has the tendency to move up a learning curve.
D)   has the incentive to invest further in the alliance.E) A) and B)
F) All of the above

Question 8

What is meant by alliance management capability?

Accepted Answer

Alliance management capability is a firm...

Question 9

What is the build-borrow-or-buy framework?

Accepted Answer

The build-borrow-or-buy framework provid...

Question 10

Which of the following is true of acquisitions?

Accepted Answer

A)   Acquisitions can be friendly or hostile.
B)   Acquisitions can occur only when the involved entities are of comparable size.
C)   In acquisitions, two independent companies join to form a separate third entity.
D)   Acquisitions increase the competitive intensity in an industry.E) A) and B)
F) All of the above

Question 11

Which of the following is a result of horizontal integration in terms of Porter's five forces model?

Accepted Answer

A)   The industry structure becomes less consolidated.
B)   There is a reduction of excess capacity in the market.
C)   The industry structure becomes potentially less profitable.
D)   There is an increase in rivalry among existing firms.E) A) and D)
F) B) and C)

Question 12

When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n) _____.

Accepted Answer

A)   non-equity alliance
B)   equity alliance
C)   proprietorship
D)   joint ventureE) A) and D)
F) B) and D)

Question 13

Discuss how firms use strategic alliances to enter new markets.

Accepted Answer

Firms may use strategic alliances to ent...

Question 14

Describe the two dimensions that help explain the distinction between mergers and acquisitions.

Accepted Answer

A merger describes the joining of two in...

Question 15

How did the recent horizontal integration in the U.S.airline industry provide benefits to the surviving carriers?

Accepted Answer

A)   By facilitating excess capacity in the industry
B)   By preventing mergers from taking place
C)   By lowering competitive intensity in the industry overall
D)   By increasing the threat of entry in the industryE) B) and C)
F) A) and C)

Question 16

Which of the following is an ineffective practice in alliance management?

Accepted Answer

A)   Coordinating a firm's portfolio of alliances
B)   Establishing knowledge-sharing routines between alliance partners
C)   Developing relational capabilities to manage mergers and acquisitions
D)   Focusing on developing an alliance-management capability in isolationE) A) and B)
F) B) and D)

Question 17

Define horizontal integration.

Accepted Answer

Horizontal integration is the process of...

Question 18

When does a merger between companies typically occur?

Accepted Answer

A)   When two firms of comparable size join to form a combined entity
B)   When large, incumbent firms buy startup companies
C)   When a target firm does not want to be acquired
D)   When two or more firms enter a temporary vertical strategic allianceE) A) and D)
F) A) and C)

Question 19

Equity alliances are less common than non-equity alliances because they:

Accepted Answer

A)   depend on contractual agreements.
B)   produce weaker ties between partners.
C)   fail to facilitate the transfer of tacit knowledge.
D)   often require larger investments.E) A) and B)
F) A) and C)

Question 20

Why did Yahoo enter into a strategic alliance with Microsoft?

Accepted Answer

A)   To pursue an unrelated diversification strategy
B)   To overcome its competitive disadvantage in comparison to Google
C)   To invest its excess cash flow in Microsoft's superior technology
D)   To share its continuously updated search technology with MicrosoftE) All of the above
F) B) and D)

Exam 9: Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Why did Yahoo enter into a strategic alliance with Microsoft?

Correct AnswerverifiedShow Answer

When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n) _____.

Correct AnswerverifiedShow Answer

In a strategic alliance, the firm that learns faster:

Correct AnswerverifiedShow Answer

How did the recent horizontal integration in the U.S.airline industry provide benefits to the surviving carriers?

Correct AnswerverifiedShow Answer

Which of the following is true of acquisitions?

Correct AnswerverifiedShow Answer

Disney became the world's leading media company to a large extent by pursuing a corporate strategy of _____.

Correct AnswerverifiedShow Answer

What is a non-equity alliance? List the most frequent forms of non-equity alliances.

Correct AnswerverifiedA non-equity alliance is a partnership b...View AnswerShow Answer

Describe the two dimensions that help explain the distinction between mergers and acquisitions.

Correct AnswerverifiedA merger describes the joining of two in...View AnswerShow Answer

When does a merger between companies typically occur?

Correct AnswerverifiedShow Answer

Which of the following is an ineffective practice in alliance management?

Correct AnswerverifiedShow Answer

Discuss how firms use strategic alliances to enter new markets.

Correct AnswerverifiedFirms may use strategic alliances to ent...View AnswerShow Answer

Define horizontal integration.

Correct AnswerverifiedHorizontal integration is the process of...View AnswerShow Answer

Which of the following is a result of horizontal integration in terms of Porter's five forces model?

Correct AnswerverifiedShow Answer

The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of equity alliances?

Correct AnswerverifiedShow Answer

What is the build-borrow-or-buy framework?

Correct AnswerverifiedThe build-borrow-or-buy framework provid...View AnswerShow Answer

A(n) _____ occurs when firms enter into a partnership based on contractual agreements, which results in vertical strategic alliances, that connect different parts of the industry value chain.

Correct AnswerverifiedShow Answer

Equity alliances are less common than non-equity alliances because they:

Correct AnswerverifiedShow Answer

What is meant by alliance management capability?

Correct AnswerverifiedAlliance management capability is a firm...View AnswerShow Answer

_____ are best described as situations in which both partners in a strategic alliance are motivated to form an alliance for learning, but the rate at which the firms learn may vary.

Correct AnswerverifiedShow Answer

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A non-equity alliance is a partnership b...
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A merger describes the joining of two in...
View Answer

Correct Answer
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Correct Answer
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Firms may use strategic alliances to ent...
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Correct Answer
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Horizontal integration is the process of...
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Correct Answer
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Correct Answer
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Correct Answer
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The build-borrow-or-buy framework provid...
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Alliance management capability is a firm...
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Correct Answer
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