Deck 7: Strategic Relationships

Question 1

_____ reduces the capacity of an organization to respond quickly to customer needs and new product development.

A) Market-sensing
B) Organizational learning
C) Environmental diversity
D) Vertical integration

Answer 1

Environmental diversity

Question 2

Competence in specialized technology can give smaller firms extensive bargaining power with larger firms.

Answer 2

True

Question 3

An organization that primarily competes through its relationships with other organizations to deliver value to end-users is referred to as a _____.

A) memory organization
B) knowledge organization
C) horizontal organization
D) hollow organization

Answer 3

hollow organization

Question 4

Environmental diversity increases the capacity of an organization to respond quickly to customer needs and new product development.

Question 5

 Moving products through various stages in the value-added process often involves linking suppliers,manufacturers,distributors,and consumer and business end-users of goods and services into _____ channels. 

A) lateral
B) vertical
C) horizontal
D) parallel

Question 6

Which of the following is an example of lateral relationships?

A) Relationship with suppliers
B) Relationship with customers
C) Relationship with competitors
D) Relationship with functional departments

Question 7

 Environmental diversity makes it difficult to link buyers and the goods and services that meet buyers' needs and wants in the marketplace.

Question 8

Which of the following relationships is an example of an intermediate customer relationship of a firm?

A) Relationship to the distributors of the firm's products
B) Relationship to the consumers of the firm's products
C) Relationship to the suppliers of the firm
D) Relationship to the employees of the firm

Question 9

Alliances are agreements between two or more firms to establish a separate entity.

Question 10

Value chain relationships provide access to consumer and organizational end-users.

Question 11

Which of the following is true of strategic alliances?

A) It is a type of acquisition by one firm of another.
B) It does not involve joint purchasing of stocks of another company.
C) It is not a merger between two independent firms.
D) It does not involve the sharing of existing distribution channels between the firms.

Question 12

Marketing intermediaries such as wholesalers and retailers are horizontal channels of distribution.

Question 13

Horizontal relationships have often been established between competing firms to access global markets not served by the cooperating firms.

Question 14

Supplier relationships are similar to customer relationships in that they are both considered as _____ to the firm.

A) horizontal relationships
B) vertical relationships
C) internal relationships
D) lateral relationships

Question 15

A disengagement plan should consider detailed description of the rights of each partner to alliance assets and products on disengagement.

Question 16

_____ consists of "building a complex product or process from smaller subsystems that can be designed independently yet function together as a whole."

A) Sifting
B) Modularity
C) Scaffolding
D) Encoding

Question 17

A _____ between two organizations is an agreement to cooperate to achieve one or more common important objectives without forming a separate entity.

A) joint venture
B) merger
C) divestiture
D) strategic alliance

Question 18

Opportunity costs should be considered when assessing and comparing costs in an alliance.

Question 19

Strategic account management primarily deals with customers who do not directly invest time or resources in their relationship with the firm.

Question 20

Which of the following is considered as an end-use customer of a firm?

A) Competitor
B) Supplier
C) Distributor
D) Consumer

Question 21

What are the advantages and disadvantages of outsourcing firm activities?

Question 22

 Mention the factors that create a need to establish cooperative strategic relationships between organizations.

Question 23

Which of the following should be considered for a successful alliance disengagement plan?

A) Identifying and agreeing on the events that will trigger exit from the alliance
B) Design of the engagement process
C) Restructuring and cost-reduction
D) Developing new markets and building market position

Question 24

 Alliances can seek official _____ from bodies like the US Justice Department stating the authority does not intent to challenge the activities of the alliance. 

A) patents
B) copyrights
C) laurels
D) comfort letters

Question 25

 What is the rationale for Strategic Account Management (SAM) and what are the risks of SAM? 

Question 26

 Industry alliances for any purpose must avoid _____,treat codes of conduct as voluntary while issues of breach of the code by suppliers must be addressed by individual companies. 

A) market manipulation
B) benefits
C) boycotts
D) comfort letters

Question 27

 Strategic leadership of a partnership can be achieved by:

A) developing an interdependent leadership structure.
B) assigning the responsibility to one of the partners.
C) efficient outsourcing.
D) initiating independent value chain functions.

Question 28

Companies may miss opportunities to reduce costs and generate additional income by:

A) assessing the venture's strategic fit for continuing the alliance.
B) generating extensive restructuring options.
C) assigning accountability for making changes.
D) failing to launch a process.

Question 29

 Collaborative relationships between companies that are competitors or in related industries are referred to as _____. 

A) outsources
B) alliances
C) joint ventures
D) internal partnerships

Question 30

_____ are agreements between two or more firms to establish a separate entity.

A) Franchises
B) Consortiums
C) Strategic alliances
D) Joint ventures

Question 31

Which of the following relationships would be considered an internal partnership?

A) Relationships between functional units and employees of a firm
B) Relationships between a firm and a competitor
C) Relationships between a firm and its supplier
D) Relationships between a firm and its customers

Question 32

An alliance should demonstrate the low risk of anticompetitive harm and pro-competitive _____ and efficiencies to be gained. 

A) market manipulation
B) boycotts
C) benefits
D) comfort letters

Question 33

What features should a successful disengagement plan for a strategic alliance contain?

Question 34

Corporate alliances must demonstrate that their joint activities do not lead to price fixing or other forms of _____. 

A) boycotts
B) market limitation
C) benefits
D) comfort letters

Question 35

Describe the different forms of organizational relationships.