Question 1

The elephant-and-the-ant complex refers to

Accepted Answer

The elephant-and-the-ant complex refers to the challenges and difficulties that arise when two organizations of vastly different sizes (one large like an elephant and one small like an ant) enter into a strategic alliance. This can include issues related to decision-making processes, resource allocation, and cultural integration.

Question 2

The best level of dependency recommended for a strategic alliance is

Accepted Answer

A balanced level of dependency is recommended for a strategic alliance. This means that both companies have a roughly equal level of control and contribution to the alliance. This allows for a fair distribution of benefits and risks, as well as promoting mutual trust and commitment between the companies. If one company is too dominant, it can create tension and potentially lead to the alliance's failure. Similarly, if one company is too dependent, they may feel exploited and undervalued, which can also harm the alliance's success.

Question 3

Suggested ways to build and sustain commitment in strategic alliances include

Accepted Answer

A

Question 4

Which management structure is popular in developing countries?

Accepted Answer

Rotating management structure is popular in developing countries where authority and responsibility for decision-making is rotated among members. This enhances the participation and engagement of all members, leading to better decision-making and ensures that everyone is heard.

Question 5

When partners share strategic decision making but make decisions independently at the functional level (e.g.,marketing,production),they are using which of the following management structures?

Accepted Answer

In a split-control management structure, partners share strategic decision making but make independent decisions at the functional level. This allows for flexibility and specialization within the different functional areas, while still maintaining overall strategic alignment.

Question 6

All of the following are typically part of a negotiated joint venture agreement EXCEPT

Accepted Answer

While management loyalty may be an important aspect of a joint venture, it is not typically included as a specific provision in a negotiated joint venture agreement. The other three options (equity contributions, provisions for dissolving the IJV, and contracts for the IJV) are all commonly addressed in such agreements.

Question 7

In the independent control management structure

Accepted Answer

The answer of In the independent control management structure
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Question 8

The anchor partner in a strategic alliance refers to

Accepted Answer

The answer of The anchor partner in a strategic alliance...

Question 9

According to the text,all of the following are true about strategic alliances EXCEPT

Accepted Answer

The text states that strategic alliances are used for various purposes, including sharing technology, but it does not state that sharing technology is the primary or only purpose for forming strategic alliances. The other statements are true about strategic alliances according to the text.

Question 10

There are several issues to consider in picking a partner for a strategic alliance.One of these is

Accepted Answer

Seeking strategic complementarity is the best choice because it means finding a partner whose strengths and weaknesses complement your own, allowing for a mutually beneficial relationship. Choosing the biggest partner possible or seeking dependence could lead to an unequal partnership and potential issues in the future.

Question 11

When applied to a strategic alliance relationship,the concept of trust includes

Accepted Answer

All three options, confidence in partner's delivery, good will, and fair exchange, are important aspects of trust when it comes to a strategic alliance relationship. Having confidence that the partner will deliver on their commitments, behave in a way that aligns with the shared goals of the relationship, and engage in fair and equitable exchanges are all crucial to building and maintaining trust in the alliance.

Question 12

The most important decision in setting up a strategic alliance is usually about

Accepted Answer

Selecting the right partner is the most important decision in setting up a strategic alliance as it determines the success of the alliance. A compatible and trustworthy partner can bring in complementary skills, resources and expertise, and help in achieving shared objectives, while a wrong or weak partner can lead to conflicts, inefficiencies, and failure of the alliance. The other decisions like proportion of ownership, management structure, and contract are also important, but their effectiveness largely depends on the right selection of the partner.

Question 13

Strategic alliance partners prefer a dominant management structure

Accepted Answer

When the alliance has more strategic importance to one partner, the dominant management structure is preferred because it ensures that the partner with greater strategic interests and capabilities can effectively control and direct the alliance towards achieving its goals. In cases where partners have similar or different technologies and contribute equally or differently, a more collaborative and equal management structure may be preferred.

Question 14

Equity in a strategic alliance implies

Accepted Answer

Equity in a strategic alliance refers to ownership, meaning both parties have ownership in the venture or project. This could include shared ownership of intellectual property or other assets.

Question 15

In the split control management structure

Accepted Answer

In the split control management structure, partners divide decision making control by functional areas. This allows each partner to maintain some level of decision making control within their area of expertise while collaborating with the other partner in areas where they may not have as much expertise. This structure can help facilitate more effective decision making and allocation of resources.

Question 16

If partners have similar technologies or know-how and they contribute this knowledge equally to the alliance,they prefer

Accepted Answer

If partners have similar technologies or know-how and they contribute this knowledge equally to the alliance, a shared management structure is preferred as both partners can have an equal say in decision-making and can effectively share responsibilities. This approach fosters cooperation and collaboration, which is essential for the success of the alliance.

Question 17

As their management team gains more expertise,mature joint ventures move to what type of structure?

Accepted Answer

As joint ventures gain more expertise and mature, they tend to move towards an independent structure. This allows both partners to have more autonomy in decision-making and operations, and reduces the reliance on the local partner's dominance. An independent structure also allows the joint venture to explore new opportunities and expand their business beyond the scope of the original agreement.

Question 18

An agreement not legally binding between companies to cooperate on any value-chain activity is a (an)

Accepted Answer

An agreement not legally binding between companies to cooperate on any value-chain activity is an informal international joint venture. It is not a formal alliance because it lacks legal enforceability. It is not an international joint venture because the companies are not creating a separate legal entity to undertake joint activities. It is not an international cooperative alliance because it is not a formalized agreement with legal obligations.

Question 19

When a large number of companies form a joint venture,the international joint venture is a

Accepted Answer

A joint venture involving a large number of companies is typically referred to as a consortium.

Question 20

In operations alliances,multinational companies

Accepted Answer

The answer of In operations alliances,multinational companies
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Quiz 9: International Strategic Alliances: Management and Design