Deck 7: Global Alliances and Strategy Implementation

Question 1

Which of the following most likely caused firms to re-trench operations and cancel joint venture plans in 2009?

A) global economic downturn
B) international terrorist threats
C) fluctuation of the euro
D) U.S. political atmosphere

Answer 1

A

Question 2

Which of the following is the primary concern that American computer makers have with production in China?

A) The Chinese market is not large enough to sell computer products domestically.
B) There will be loss of intellectual property if Chinese companies co-produce computers.
C) There are not enough high skilled workers available in China for American companies.
D) The Chinese government requires American firms to pay workers specific hourly wages.

Answer 2

B

Question 3

David Lei noted that the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that ________.

A) great venture partners are hard to find
B) technologies change very rapidly
C) partners can become competitors
D) governments can be fickle

Answer 3

C

Question 4

All of the following are typical reasons for forming cross-border alliances EXCEPT ________.

A) avoiding import barriers
B) sharing R&D costs and risks
C) gaining access to specific markets
D) testing marketing campaigns overseas

Question 5

________ are working partnerships between companies across national boundaries and increasingly across industries.

A) Global strategic alliances
B) National strategic alliances
C) Domestic strategic alliances
D) Transitional strategic alliances

Question 6

Sharing the costs and risks associated with the research and development of new products and processes is the primary reason for cross-border alliances in the ________ industry.

A) semiconductor
B) beverage
C) tourism
D) publishing

Question 7

Which of the following terms refers to an overseas business owned and controlled by two or more partners?

A) multinational enterprise
B) foreign direct investment
C) global management team
D) international joint venture

Question 8

What is the most likely reason that GM and Toyota would form a cross-border alliance?

A) gain access to new markets
B) share R&D costs and risks
C) avoid import quotas
D) reduce political risk

Question 9

France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of the combined company. This is best described as a(n) ________.

A) non-equity strategic alliance
B) manufacturing joint venture
C) global licensing agreement
D) equity strategic alliance

Question 10

In a study of corporate alliances in the technology and pharmaceutical industries, researchers found that decisions regarding the form of governance primarily depended upon the desire to control ________.

A) organizational structure
B) proprietary technology
C) marketing strategies
D) distribution methods

Question 11

Which of the following is NOT one of the primary categories under which alliances typically fall?

A) joint ventures
B) equity strategic alliances
C) international management
D) non-equity strategic alliances

Question 12

Which of the following terms refers to working partnerships between MNCs across national boundaries and often across industries?

A) transnational corporations
B) strategic alliances
C) foreign subsidiaries
D) turnkey operations

Question 13

Strategic alliances are also known as ________.

A) competitive strategies
B) cooperative strategies
C) independent strategies
D) virtual strategies

Question 14

According to research, which of the following is LEAST likely to cause a global alliance to fail?

A) differences in national cultures
B) issues with power distribution
C) differences in organizational systems
D) unnecessary government intervention

Question 15

Which of the following terms refers to a new independent entity that is mutually created and owned by two or more parent companies?

A) e-business
B) subsidiary
C) franchise
D) joint venture

Question 16

Alliances that are carried out through contract rather than ownership sharing are called ________.

A) cultural strategic alliances
B) equity strategic alliances
C) non-equity strategic alliances
D) transmodal strategic alliances

Question 17

Japan's NEC and U.S. based AT&T most likely formed a strategic alliance in order to ________.

A) reduce political and cultural risks
B) avoid licensing requirements
C) access new technology and new markets
D) develop a mutually useful infrastructure

Question 18

Alliances in which two or more partners have different relative ownership shares in the new venture are called ________.

A) cultural strategic alliances
B) equity strategic alliances
C) non-equity strategic alliances
D) transmodal strategic alliances

Question 19

The Haeir Group achieved rapid global growth by doing all of the following EXCEPT ________.

A) acquiring companies with significant market potential
B) implementing a performance management system
C) entering markets through franchise agreements
D) forming strategic alliances in foreign markets

Question 20

Firms most likely form cross-border strategic alliances with European companies because ________.

A) technology within the EU changes rapidly
B) EU regulations favor domestic companies
C) franchising and licensing are illegal in the EU
D) EU consumers demand foreign-made products

Question 21

Which of the following is NOT a characteristic of strategic implementation of the McDonald's corporation?

A) minimizing autonomy
B) hiring locals whenever possible
C) forming paradigm-busting arrangements with suppliers
D) making minor changes to the standard menu based on location

Question 22

The level of uncertainty among foreign investors regarding Russia most likely stems from ________.

A) Boeing's joint venture with Russian aircraft maker Tupolev
B) McDonald's franchises located in Moscow and other Russian cities
C) General Motors' joint venture with Russian car maker OAO Avtovaz
D) Bell Labs' attempt to conduct research and development with Russian labs

Question 23

Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance?

A) policies
B) structure
C) leadership
D) performance

Question 24

Respondents to a survey of 158 investors and non-investors in Russia in 2005 indicated that doing business in Russia was ________.

A) less risky and more profitable than China, India, and South-east Asia
B) more risky and less profitable than China, India, and South-east Asia
C) as profitable as doing business in Western Europe
D) as profitable as doing business in the United States

Question 25

Research has shown that the less stable Russian institutional environment has influenced Russian managers to do all of the following EXCEPT ________.

A) focus more on short-term benefits
B) focus more on modern marketing techniques
C) select partners that have complementary capabilities
D) select partners that provide access to financial capital

Question 26

The dual role of strategic alliance refers to the ________.

A) need to find resources and markets
B) need to find people and processes
C) conflict between cooperation and competition
D) conflict between home and host governments

Question 27

Which of the following is a competitive aspect of strategic alliances?

A) sharing resources to limit investment risk
B) lowering exit barriers in mature industries
C) accelerating diffusion of industry standards
D) creating a critical mass to develop new technologies

Question 28

According to research by Dovev Lavie, which of the following is a value creation strategy?

A) setting organizational buffers between competing partners
B) allying with multiple partners in one industry to limit power
C) integrating network and internal resources to create synergies
D) aligning organizational units to create coherent interfaces

Question 29

Which of the following most likely provides a strategic advantage during the implementation of a global alliance?

A) employee performance appraisals
B) unified technology infrastructure
C) employee language training
D) coordinated sales efforts

Question 30

To minimize potential problems in alliances, companies should most likely choose partners with ________.

A) competitively sensitive technology
B) complementary products and skills
C) significant control of the target market
D) superior bargaining power in the same industry

Question 31

Barton & Green is an MNC based in the U.S. that makes a wide range of consumer cleaning products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to a firm in India, TMC Enterprises?

A) The main competitor of Barton & Green outsources all IT functions.
B) Outsourcing will enhance Barton & Green's competitiveness.
C) Barton & Green's employees frequently need IT support.
D) Barton & Green has proprietary technology and processes.

Question 32

According to research by Dovev Lavie, which of the following best describes the bilateral competition strategy?

A) Set organizational and technological buffers between competing partners
B) Avoid partners that compete in your industry if they enjoy superior bargaining power
C) Learn and assimilate network resources in order to develop new skills and capabilities
D) Align organizational units and create a coherent interface with each partner in the alliance

Question 33

According to experts, managers of foreign companies planning to set up business in Russia should ________.

A) realize that paying bribes is a necessary aspect of conducting business in Russia
B) assign funds for local promotion and advertising to establish a corporate image
C) use only home country managers to avoid problems with local corruption
D) avoid communicating with regional authorities about business activities

Question 34

The theory that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world is known as ________.

A) transformational outsourcing
B) service sector outsourcing
C) relationship building
D) global offshoring

Question 35

According to research, all of the following are MNC concerns about doing business in Russia EXCEPT ________.

A) bribery
B) corruption
C) weak legal systems
D) currency instability

Question 36

Which of the following is a strategic implementation used by McDonald's?

A) keeping prices low to build market share
B) altering menu items significantly to match cultural norms
C) using American managers to run international franchises
D) forming joint ventures with foreign restaurants to enter new markets

Question 37

According to research, SMEs should most likely partner locally with MNCs by ________.

A) using an indirect means of access
B) selling proprietary knowledge
C) using direct frontal methods
D) implementing new systems

Question 38

Strategic alliance implementation plans require setting up ________ throughout the organization.

A) overall policies
B) administrative responsibilities
C) organizational schedules
D) all of the above

Question 39

Barton & Green is an MNC based in the U.S. that makes a wide range of consumer cleaning products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to a firm in India, TMC Enterprises?

A) What type of operating system is primarily used by TMC Enterprises?
B) What is the attitude of U.S. consumers about TMC Enterprises?
C) What is the financial health of TMC Enterprises?
D) What other firms use TMC Enterprises?

Question 40

All of the following are examples of the cooperative aspect of strategic alliances EXCEPT ________.

A) creating economies of scale in tangible assets
B) forming upstream - downstream divisions of labor
C) limiting investment risks through shared resources
D) learning new intangible skills from alliance partners

Question 41

According to research, which of the following is NOT one of the national and corporate cultural differences between the management styles of U.K. and continental European firms?

A) attitudes toward risk
B) organizational formality
C) use of appraisal systems
D) attitudes toward funding

Question 42

According to Rosenzweig, which of the following American characteristics causes the most problems for Americans in their global alliances with Europeans?

A) Americans tend to have an international perspective.
B) Americans tend to accept the authority of European managers.
C) Americans tend to be too formal in their business relationships.
D) Americans tend to need autonomy and independence on the job.

Question 43

Which of the following terms refers to a bond between specially connected firms that generates preferential treatment to members of the network?

A) nationalism
B) convergence
C) guanxihu
D) guanxi

Question 44

What variable is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country?

A) political stability
B) culture
C) currency stability
D) competition

Question 45

Most problems with international joint ventures involve ________.

A) the parent corporation
B) the local partner
C) differences in accounting standards between nations
D) differences in control system information management between nations

Question 46

One of the key differences between Western expatriates and Hungarian managers is that while ________.

A) Western expatriates focus on the future, Hungarians focus on the short-term
B) Western expatriates work in large hierarchical structures, Hungarians work in small, flat structures
C) Western expatriates use opaque information systems, Hungarians use transparent information systems
D) Western expatriates have informal, administrative HR systems, Hungarians have formal, strategic HR systems

Question 47

International joint venture control is how a parent company ensures that the way a joint venture is managed conforms to ________.

A) international accounting standards
B) qualitative standards
C) its own interests
D) industry standards

Question 48

All of the following represent government influences on international joint ventures EXCEPT ________.

A) copyright protection
B) labor union rules
C) patent protection
D) negotiation practices

Question 49

Where ownership is divided among several partners, the parents are more likely to delegate the operational running of the IJV to ________.

A) local IJV management
B) parent company management
C) middle managers at the parent company level
D) management teams from the largest company in the joint venture

Question 50

All of the following are examples of international joint venture control mechanisms used by parent firms EXCEPT ________.

A) staffing policies
B) legal contracts
C) regional authorities
D) organizational design

Question 51

Which of the following is a characteristic of Hungarian managers?

A) rule driven
B) team oriented
C) future oriented
D) autocratic management style

Question 52

The most important factor that determines the success or failure of an international joint venture is the ________.

A) amount of financial investment
B) need for technology
C) type of industry
D) choice of partner

Question 53

Which of the following factors most significantly affects the performance of IJVs between U.K. firms and continental European firms?

A) organizational formality
B) decision-making systems
C) attitudes toward funding
D) attitudes toward risk

Question 54

Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees?

A) knowledge management
B) strategic management
C) strategic planning
D) labor relations

Question 55

Organizational design as a mechanism of joint venture control refers to the ________.

A) human resource plans and policies of the joint venture
B) type of functional structure suitable for the joint venture
C) geographic location of the joint venture's facilities
D) amount of decision-making power that the joint venture holds

Question 56

Which of the following primarily determines the extent of control exercised over an IJV by its parent company?

A) staffing choices for top IJV positions
B) policies of the smaller firm
C) cultural background
D) IJV industry

Question 57

The need for knowledge management in IJVs primarily stems from ________.

A) employee concerns regarding job security and benefits
B) cultural and system differences between partners
C) local government regulations and restrictions
D) proprietary information legalities

Question 58

Opening your own subsidiary in the host country may be better than contracting with an outside firm in the host country if it is crucial for you to ________.

A) produce gains in efficiency, productivity, and quality
B) keep control of proprietary technology and processes
C) minimize jobs losses in the home country
D) market your products in the host country

Question 59

How did Mercedes-Benz adapt to U.S. culture and management styles in its Alabama plant?

A) required workers to contact managers before correcting assembly line problems
B) formed workers into teams that met every day to solve problems
C) replaced casual attire with uniforms bearing the Mercedes logo
D) implemented a hierarchical system of decision-making

Question 60

Which of the following is NOT a knowledge management process?

A) transferring existing knowledge
B) transforming and creating of knowledge
C) harvesting knowledge from the IJV to the parents
D) distributing knowledge to clients and media outlets

Question 61

How did German trainers adapt to American culture in the Mercedes plant located in Alabama?

Question 62

According to surveys, how do some European managers perceive their American employees?

Question 63

What cultural tradition was violated by the merger of Mittal and Acelor?

A) Europeans view workers from developing countries as subordinates.
B) Indian culture asserts that women should not hold positions of authority.
C) The European culture requires more formality than the Marwari culture does.
D) The Marwari believe that it is critical for companies to maintain family ownership

Question 64

According to experts, what is the single most important factor that determines the success or failure of an IJV? Do you agree with the experts? Why or why not?

Question 65

What are some of the potential areas of incompatibility among partners in cross-border alliances?

Question 66

What is the "dual nature" of strategic alliances?

Question 67

What motivates a company to develop a cross-border alliance?

Question 68

Describe the criteria a firm should use to keep an alliance from becoming a new form of competition.

Question 69

What are the benefits of outsourcing abroad? What should firms do when implementing a global sourcing strategy?

Question 70

Which of the following terms refers to fulfillment specialists who provide other companies with services such as website translation?

A) e-commerce enablers
B) virtual global teams
C) e-businesses
D) born globals

Question 71

Why is an international joint venture like a marriage?

Question 72

Why is Russia considered a risky country for joint ventures? What are some of the specific risks?

Question 73

Why should a company seek a global alliance over some other form of market entry?

Question 74

What is the difference between a joint venture, equity strategic alliance, and non-equity strategic alliance?

Question 75

What is international joint venture control? Why is it important?

Question 76

What are the goals of Russian firms that seek alliances with foreign companies?

Question 77

What are some of the challenges in implementing global alliances?

Question 78

Describe the process of knowledge management in international joint ventures.

Question 79

What opportunities exist in Russia for American companies? Provide examples of U.S. firms that have established operations in Russia.

Question 80

All of the following are typical tasks performed by e-commerce enablers EXCEPT ________.

A) ensuring compliance with trade agreements
B) conducting performance appraisals
C) paying custom charges
D) screening orders