Question 1

A strategy in which firms work together to achieve a shared objective is a

Accepted Answer

A cooperative strategy is a strategy in which firms work together to achieve a shared objective. Functional-level, business-level, and corporate-level strategies refer to the level at which an organization makes strategic decisions.

Question 2

A competitive advantage that is developed through a cooperative strategy is called a collaborative or a(n)

Accepted Answer

The answer of A competitive advantage that is developed through...

Question 3

Within the Renault Nissan alliance (Chapter 9 Opening Case),both Renault and Nissan have each formed
Strategic alliances at the business-unit level with other companies.

Accepted Answer

Both Renault and Nissan have formed strategic alliances at the business-unit level with other companies that have horizontal complementary capabilities. This means that the companies they have formed alliances with have similar or compatible businesses or products, allowing for synergies and the potential for increased competitiveness in the marketplace.

Question 4

A stable alliance network is used in industries characterized by frequent product innovations and short product life cycles.

Accepted Answer

The answer of A stable alliance network is used in...

Question 5

Only about 50 percent of cooperative strategies succeed.

Accepted Answer

Studies have shown that around 50 percent of cooperative strategies ultimately result in success. Factors such as communication, trust, and alignment of goals all play a role in determining the success of cooperative efforts.

Question 6

Close monitoring,formal contracts,and constant vigilance against opportunism increase the probability of alliance success.

Accepted Answer

The answer of Close monitoring,formal contracts,and constant vigilance against opportunism...

Question 7

The use of strategic alliances

Accepted Answer

Strategic alliances are a common type of cooperative strategy used by firms to achieve their objectives. They offer firms many benefits, including risk sharing, cost reduction, access to new markets and resources, and knowledge sharing. Therefore, it is more frequent than other types of cooperative strategies. Options A, B, and C are incorrect as they do not reflect the advantages of strategic alliances.

Question 8

The alliance between BP Plc and OAO Rosneft to extract oil from Russia's Arctic Ocean was managed using contracts,i.e.,the cost minimization approach.

Accepted Answer

The statement is true, as the alliance between BP Plc and OAO Rosneft to extract oil from Russia's Arctic Ocean utilized contracts to manage the costs involved.

Question 9

A major risk of a network cooperative strategy is that firms gain access to their partner's partners thus exposing their proprietary processes to loss or theft.

Accepted Answer

The answer of A major risk of a network cooperative...

Question 10

In the cost minimization approach to managing competitive strategies,the relationship between the firms is based on trust of the other partner.

Accepted Answer

The cost minimization approach to managing competitive strategies is focused on minimizing costs while maintaining a competitive advantage, and does not necessarily rely on trust between firms. It may involve tactics such as outsourcing, offshoring, or using low-cost suppliers.

Question 11

Failure of a partner to contribute needed resources and capabilities to a cooperative venture is a particular risk in international ventures especially in emerging economies.

Accepted Answer

This statement is true. International ventures in emerging economies may face difficulties in accessing the necessary resources and capabilities due to various factors such as underdeveloped infrastructure, political instability, and limited availability of skilled labor. This can increase the likelihood of a partner failing to contribute the needed resources and capabilities, posing a significant risk to the success of the venture.

Question 12

The Renault Nissan approach to managing its collaboration involves less reliance on contracts and more reliance on trust,respect,and transparency (i.e.,the opportunity-maximization approach to managing cooperative strategies).

Accepted Answer

The statement accurately describes the approach of Renault Nissan to managing collaboration.

Question 13

High levels of trust allow less formal contracts to govern the relationship between alliance partners and increases the likelihood of alliance success.

Accepted Answer

When there is high trust between alliance partners, there is less need for detailed and formal contracts as both parties are more likely to honor their commitments. This can lead to smoother collaboration and increased likelihood of alliance success.

Question 14

Which type of strategic alliance is best at passing tacit knowledge between firms?

Accepted Answer

Joint ventures involve the creation of a new entity by two or more firms, which allows for direct collaboration and the sharing of knowledge and expertise. This type of alliance often involves a high level of interaction between the partners and can facilitate the transfer of tacit knowledge, which is difficult to articulate and document, but important for innovation and competitive advantage.

Question 15

The cost minimization approach of managing alliances is more expensive to put into place and to use than is the opportunity maximization management approach.

Accepted Answer

The answer of The cost minimization approach of managing alliances...

Question 16

When using cooperative strategies,firms most frequently develop strategic alliances that

Accepted Answer

When using cooperative strategies, firms most frequently develop strategic alliances that create a competitive advantage. This is because strategic alliances allow firms to share resources, knowledge, and capabilities that can improve their ability to compete in the marketplace. By working together, firms can develop new products or services, enter into new markets, and achieve cost savings that can give them a competitive edge. While strategic alliances can enhance a firm's reputation and reduce political risk, these factors are secondary to the primary goal of creating a competitive advantage. Strategic alliances are often long-lived, but this is not the most frequent reason why firms develop them.

Question 17

A cooperative strategy

Accepted Answer

A cooperative strategy is a strategy in which two or more firms work together to achieve a shared objective. This can include joint ventures, strategic alliances, and partnerships. It is different from a competitive strategy, which focuses on individual firms trying to gain a competitive advantage over each other.

Question 18

In a(n)
,two or more firms create a legally independent company to share some of their resources and
Capabilities to develop a competitive advantage.

Accepted Answer

Joint venture is the only option in which two or more firms create a legally independent company to share their resources and capabilities. In equity strategic alliance, firms only share ownership interests, whereas in non-equity strategic alliance, firms do not create a separate legal entity. Equality-based strategic alliance is not a commonly used term in business alliances.

Question 19

The Renault Nissan alliance (Chapter 9 Opening Case)is an example of a scope by sharing resources and capabilities.

Accepted Answer

The Renault Nissan alliance is an example of a synergistic strategic alliance where the companies share resources and capabilities to enhance their competitive advantage. The alliance is based on mutual benefits and cost savings, rather than equity-based ownership.

Question 20

Some cooperative strategies fail when it is discovered that a firm has misrepresented the competencies it can bring to the partnership.

Accepted Answer

If a firm misrepresents its competencies, it can result in a breakdown of trust and cooperation, leading to the failure of the partnership.

Quiz 9: Cooperative Strategy.