Question 1

The success of a strategic alliance includes all of the following except
A) partner selection
B) alliance structure
C) the way the alliance is managed
D) a, b, & c above
E) none of the above

Accepted Answer

All of the options listed in the question (partner selection, alliance structure, and management) are critical factors that can contribute to the success of a strategic alliance. Therefore, none of the options can be excluded from the list of important factors. Hence, the correct answer is E - none of the above.

Question 2

Under what conditions should a firm that is facing the need to diversify consider the use of an internal new venture strategy, an acquisition strategy, or a joint venture strategy?

Accepted Answer

The answer of Under what conditions should a firm that...

Question 3

Which of the following is not a potential drawback to joint ventures?
A) Profits of the new business must be shared.
B) Partners share costs and risks of the new business.
C) Shared control results in conflicts.
D) Critical know-how may be given away
E) All of these are potential joint venture drawbacks.

Accepted Answer

Partners share costs and risks of the new business is not a potential drawback to joint ventures.

Question 4

In a strategic alliance, a good partner
A) has capabilities that the company values but that it lacks.
B) helps the company achieve its strategic goals.
C) shares the firm's vision for the purpose of the alliance.
D) is unlikely to opportunistically exploit the alliance.
E) has all of these advantages listed.

Accepted Answer

A good partner in a strategic alliance should have capabilities that the company values but lacks, help the company achieve its strategic goals, share the firm's vision for the purpose of the alliance, and be unlikely to opportunistically exploit the alliance. Therefore, all of the advantages listed in options A, B, C, and D are important for a good partner in a strategic alliance.

Question 5

Which of the following is not one of the criteria for evaluating potential acquisition candidates?
A) Age
B) Product market position
C) Financial position
D) Management capabilities
E) Competitive environment

Accepted Answer

Age is not a criterion for evaluating potential acquisition candidates. The other options - product market position, financial position, management capabilities, and competitive environment - are commonly used factors to assess whether an organization is a good fit for acquisition.

Question 6

Which of the following is not a consideration in terms of managing a strategic alliance to maximize its potential benefits?
A) Sensitivity to cultural differences
B) Learning from a partner
C) Building interpersonal relationships between the partners' managers
D) Selecting the right bidding strategy
E) All of these are considerations for managing a strategic alliance to maximize potential benefits.

Accepted Answer

Selecting the right bidding strategy is not a consideration in terms of managing a strategic alliance to maximize its potential benefits. The other options, sensitivity to cultural differences, learning from a partner, and building interpersonal relationships between the partners' managers, are all important considerations in managing a strategic alliance successfully.

Question 7

Which of the following best illustrates a credible commitment from an alliance partner?
A) CEO agreement to work together
B) Developing mutually agreeable output controls
C) Exchanging lower-level employees
D) Taking a significant equity stake in the alliance partner
E) All of these equally illustrate credible commitments.

Accepted Answer

Taking a significant equity stake in the alliance partner shows a high level of commitment as it involves a financial investment in the partnership. It also aligns the interests of both parties, making it less likely for either party to back out of the alliance. CEO agreement, mutually agreeable output controls, and exchanging lower-level employees are all forms of commitment, but they may not be as strong or binding as an equity stake.

Question 8

What are the potential benefits and risks of strategic alliances? What actions can a firm take to minimize the risks and fully exploit the benefits?

Accepted Answer

The answer of What are the potential benefits and risks...

Question 9

Give an example of a firm that has diversified with an internal new venture. Was the strategy successful? Why or why not? Now answer the above questions for a firm that has diversified through acquisitions, and through a joint venture.

Accepted Answer

The answer of Give an example of a firm that...

Question 10

Attaining a credible commitment from a potential partner
A) is a step in partner selection.
B) is a way to safeguard against the opportunism of cheating.
C) requires the ability to learn from alliance partners.
D) requires the ability to share skills with partners
E) requires the ability to share skills with and learn from alliance partners.

Accepted Answer

Attaining a credible commitment from a potential partner is a way to safeguard against the opportunism of cheating. It is about establishing trust and ensuring that both parties are committed to the partnership and will act in good faith. Therefore, option B is the best choice. While the ability to learn from and share skills with partners are important factors in alliance management, they are not specifically related to attaining a credible commitment. Option A is also relevant, but it only represents a partial aspect of the importance of credible commitment.

Question 11

The objective of bidding strategy is to
A) complete the acquisition quickly.
B) reduce the target population of potential acquisition candidates.
C) reduce the price that a company must pay for an acquisition candidate.
D) make sure that the acquired company's management does not remain after the acquisition is completed.
E) avoid companies that are undervalued by the stock market.

Accepted Answer

The objective of bidding strategy is to reduce the price that a company must pay for an acquisition candidate.

Question 12

Describe what is meant by the terms "restructuring" and "reengineering," and discuss when and why they would be used.

Accepted Answer

The answer of Describe what is meant by the terms...

Question 13

Which of the following is not a potential advantage of strategic alliances?
A) Facilitating entry into a market
B) Sharing the costs of developing new products
C) Bringing together complementary skills and assets that neither company could easily develop on its own
D) Providing access to valuable low-cost manufacturing knowledge
E) All of these are potential advantages of strategic alliances

Accepted Answer

The answer of Which of the following is not a...

Question 14

Pertinent information about potential alliance partners is available from
A) informed third parties.
B) investment bankers who have had dealings with the firm.
C) former employees.
D) face-to-face meetings with senior managers.
E) all of these

Accepted Answer

Pertinent information about potential alliance partners can come from informed third parties, investment bankers who have had dealings with the firm, former employees, and face-to-face meetings with senior managers. Therefore, all of these options are the best choice for obtaining relevant information about potential alliance partners.

Question 15

Which of the following is not a safeguard against opportunism by alliance partners?
A) Designing the alliance to "wall off" sensitive technologies
B) Realizing the goals of the alliance
C) Partners swapping important proprietary skills and technology
D) Contractual arrangements that limit partner exploitation
E) Obtaining credible commitments

Accepted Answer

Realizing the goals of the alliance can help guide behavior and foster trust, but it is not a direct safeguard against opportunism by alliance partners. The other options (A, C, D, and E) all involve specific actions or arrangements that can help protect against partner exploitation.

Question 16

A key to making a strategic alliance work is
A) having one partner handle daily operations.
B) reducing investment in the alliance to a minimum.
C) sharing all knowledge.
D) enforcing one culture for both partners.
E) selecting the right partner.

Accepted Answer

Selecting the right partner is crucial to making a strategic alliance work. The partner should have compatible goals, values, and cultures, and be willing to share resources and knowledge. Without a good partner, the alliance is unlikely to succeed, regardless of the other factors mentioned.

Quiz 8: Strategic Change: Implementing Strategies to Build and Develop a Company

The success of a strategic alliance includes all of the following except

Under what conditions should a firm that is facing the need to diversify consider the use of an internal new venture strategy, an acquisition strategy, or a joint venture strategy?

Which of the following is not a potential drawback to joint ventures?

In a strategic alliance, a good partner

Which of the following is not one of the criteria for evaluating potential acquisition candidates?

Which of the following is not a consideration in terms of managing a strategic alliance to maximize its potential benefits?

Which of the following best illustrates a credible commitment from an alliance partner?

What are the potential benefits and risks of strategic alliances? What actions can a firm take to minimize the risks and fully exploit the benefits?

Give an example of a firm that has diversified with an internal new venture. Was the strategy successful? Why or why not? Now answer the above questions for a firm that has diversified through acquisitions, and through a joint venture.

Attaining a credible commitment from a potential partner

The objective of bidding strategy is to

Describe what is meant by the terms "restructuring" and "reengineering," and discuss when and why they would be used.

Which of the following is not a potential advantage of strategic alliances?

Pertinent information about potential alliance partners is available from

Which of the following is not a safeguard against opportunism by alliance partners?

A key to making a strategic alliance work is