Question 1

Alliances that are more complex require:
A) More management attention to succeed and tend to be more difficult to manage
B) Less management attention to succeed and tend to be less difficult to manage
C) More management attention to succeed and tend to be less difficult to manage
D) Less management attention to succeed and tend to be more difficult to manage

Accepted Answer

Complex alliances demand more management attention for success due to their intricate nature, making them harder to manage effectively.

Question 2

When the alliance's tasks are characterized by extensive functional interdependencies
A) it is preferable to have a dominant partner that can assume the functional tasks.
B) it is preferable to merge both companies.
C) the development of clear operating rules is the only way to maintain boundaries between the functions.
D) the creation of a separate entity is the most effective way to manage the linkages between the various functions.

Accepted Answer

When the alliance's tasks are characterized by extensive functional interdependencies,there is a need for a high level of integration in the decision-making process related to those shared tasks.In such circumstances,the creation of a separate entity is often the only effective way to manage such dense interlinkages.In contrast,an alliance between two companies with the objective of marketing each other's existing products may need only a few simple rules and a single joint committee to review the outcomes periodically.

Question 3

Sunny is the CEO of a large corporation that wants to enter a partnership with another organization.What should Sunny consider when choosing his partner?

Accepted Answer

The answer of Sunny is the CEO of a large...

Question 4

An effective interface manager is someone who
A) is very competent in the dominant functional area of the venture.
B) has a good understanding of the strategy of the firm and can advise the other partner of this strategy.
C) can influence the goals and objectives of the alliance for the benefit of his/her organization.
D) is the best user of the information / knowledge and can diffuse it to the right people within the organization.

Accepted Answer

Interface managers should have at least three key attributes: they must be well versed in the company's internal organizational process they must have the personal credibility and status necessary to access key managers in different parts of the organization and they must have a sufficiently broad understanding of the company's business and strategies to be able to recognize useful information and knowledge that might cross their path.

Question 5

The negotiation of an integrative equality agreement implies that each committee in the alliance is structured with clear:
A) co-shared leadership, but each company takes responsibility for different tasks.
B) single-handed leadership, but tasks are developed internally within the joint venture.
C) single-handed leadership, but each company takes responsibility for different tasks.
D) co-shared leadership, but tasks are developed internally within the joint venture.

Accepted Answer

The negotiation of an agreement based on integrative equality should lead to the creation of different committees where each committee is structured with clear,single-handed leadership,but each company takes the responsibility for different tasks.However,such deliberately balanced arrangements can work only if the partners can agree on specific individuals,and protect their ability to work in the best interests of the alliance itself rather than those of one or other of the parents.

Question 6

Parent companies assume an important role on the joint venture or alliance's board.Which of the following is not among the pivotal responsibilities of the board's members?
A) Reviewing performance.
B) Ensuring that employment practices do not impinge on cultural norms.
C) Overseeing capital allocation decisions.
D) Monitoring risk management practices and policies.

Accepted Answer

Parent companies should strive to focus their active participation on the joint venture or alliance's board to three areas that are directly related to the new entity's financial performance and the protection of shareholder interests - capital allocation,risk management and performance management.

Question 7

Robert is an operating manager for a large organization.Robert's organization will be engaging in a joint venture.He has been assigned the responsibility of overseeing his firm's participation in the joint venture.As such,Robert's supervisor has asked him to participate in the negotiation process.Even if Robert is not familiar with the negotiations,his presence at this stage is essential to
A) ensure that the definition and understanding of the alliance's goals are clear and consistent
B) give the joint venture partner an opportunity to accept or reject Robert's leadership of his firm's participation in the partnership.
C) communicate Robert's extensive familiarity with his own firm to the joint venture partner.
D) make him feel important and test his capacity to operate in a stressful situation.

Accepted Answer

Involving the interface manager in the negotiation process is important since he need to fully understand the goals of the alliance,its mechanisms and the scope of the partnership to be effective in his task.This also ensures that the definition and understanding of the alliance's goals are clear,consistent,and well understood.

Question 8

Flexibility is often the key in a strategic alliance.Please comment.

Accepted Answer

The answer of Flexibility is often the key in a...

Question 9

Managing knowledge flow is important for a firm that wants to get the most from its partnership with another company.What can a firm do to ensure it gets the most from its collaboration while preventing the outflow of information they do not wish to share with their alliance partner?

Accepted Answer

The answer of Managing knowledge flow is important for a...

Question 10

Most stable alliances often involve
A) two partners that are both motivated to acquire each other's knowledge.
B) two partners that are each satisfied with access to, rather than the acquisition of, each other's knowledge.
C) two partners providing resources that are significantly different.
D) one partner that is strong enough to dominate the other partner.

Accepted Answer

Stable alliances involve partners that are each satisfied with access to rather than acquisition of each other's knowledge.It is not a race to try and steal the other partner's knowledge.It is recognizing that each partner is bringing unique contributions to the alliance,contributions which are likely of a long term and significant nature.c.would be the second best choice.

Question 11

Alexa is the CEO of a large corporation that wants to partner with a competitor to develop a new technology.Explain the potential risks that Alexa's company may encounter by collaborating with a rival.

Accepted Answer

The answer of Alexa is the CEO of a large...

Question 12

Oil & Gas Limited and Small Tech Inc.announced an agreement to develop a new technology for the extraction of gas.Oil & Gas Limited will contribute financial resources and its expertise in gas extraction,while Small Tech will provide its expertise in R&D.To ensure the success of the collaboration,prior to the alliance,both companies should
A) approach prospective clients to get their perspective on the agreement and ensure that there is a market for the new technology they want to develop.
B) verify the prospective partner's capabilities and assess its strengths and weaknesses.
C) adopt a code of conduct that will clarify the responsibilities of each partner and the ethical behavior that will be expected of each partner.
D) agree on the expected revenues and profit sharing.

Accepted Answer

At the very early stage of an alliance,it is essential for both partners to do a pre-alliance analysis.This step includes the assessment of the partner's strengths and weaknesses,and discussions to determine if there is a fit in terms of goals and expectations.If b is successfully resolved,they could then move to d.

Question 13

A car manufacturer and a multinational computer technology corporation intend to combine their strengths to develop intelligent sound systems for cars.Assuming that both companies will have a moderate to high level of interaction,what would be the most suitable form of alliance to adopt?
A) The firms should develop an R&D consortium, combining teams from both companies.
B) The firms should create an equity joint venture, combining assets from both companies.
C) The firms should create a licensing agreement to exploit the new application.
D) The firms should develop production facilities to be shared between the partners.

Accepted Answer

An R&D consortium would combine teams from both companies to develop new technologies or applications of technologies.In this case,the objective of the collaboration is to develop a new application for a technology that could be used in a car.Because of the short product life cycle,and the limited market window for the application,an R&D partnership can help resolve the different challenges both companies would independently encounter in developing this new product and introducing it in cars.

Question 14

In an alliance,the success of an integrative equality agreement requires
A) the delegation of authority to individuals chosen by both partners.
B) the dispersal of decision-making on select issues to at least one of the partners.
C) the development of a code of conduct for conflict resolution.
D) the selection of individuals that report to both alliance partners.

Accepted Answer

Even if the responsibilities for specific aspects of an alliance managementagreement are divided between the partners,it is important for them to reach a common agreement on the important decisions of the alliance.This includes the choice of the individuals in positions of authority,since these individuals are often a key contributor to the success of the partnership.

Question 15

Too much enthusiasm by those involved in alliance planning and negotiations can sometimes cause:
A) Realistic expectations and right choices
B) Unrealistic expectations and wrong choices
C) Unrealistic expectations and right choices
D) Realistic expectations and wrong choices.

Accepted Answer

When there is too much enthusiasm and excitement involved in alliance planning and negotiations, it can lead to unrealistic expectations and result in wrong choices. It is important to maintain a balance of enthusiasm and practicality to make the right choices and have realistic expectations.

Question 16

A firm is entering a strategic alliance and the CEO is worried about managing the firm's boundaries.What would you recommend to the firm and why?

Accepted Answer

The answer of A firm is entering a strategic alliance...

Question 17

Which of the following can inhibit a firm's ability to learn from the alliance?
A) The interface manager is not the target user of the knowledge.
B) The firm does not have an information system to diffuse the knowledge acquired.
C) The firm does not share its knowledge with the other partner.
D) The alliance knowledge is not codified.

Accepted Answer

Irrespective of the specific objectives of any alliance,the very process of collaboration creates flows of information across the boundaries of the participating companies and creates the potential for learning from each other.One task related to knowledge flows in the alliance is to ensure full exploitation of the created learning potential.Relative to this task,the key problem is that the individuals managing the interface may not be the target users of such knowledge.To maximize its learning from a partnership,a company must effectively integrate its interface managers into the rest of its organization.

Quiz 6: Engaging in Cross-Border Collaboration: Managing across Corporate Boundaries

Alliances that are more complex require:

When the alliance's tasks are characterized by extensive functional interdependencies

Sunny is the CEO of a large corporation that wants to enter a partnership with another organization.What should Sunny consider when choosing his partner?

An effective interface manager is someone who

The negotiation of an integrative equality agreement implies that each committee in the alliance is structured with clear:

Parent companies assume an important role on the joint venture or alliance's board.Which of the following is not among the pivotal responsibilities of the board's members?

Flexibility is often the key in a strategic alliance.Please comment.

Managing knowledge flow is important for a firm that wants to get the most from its partnership with another company.What can a firm do to ensure it gets the most from its collaboration while preventing the outflow of information they do not wish to share with their alliance partner?

Most stable alliances often involve

Alexa is the CEO of a large corporation that wants to partner with a competitor to develop a new technology.Explain the potential risks that Alexa's company may encounter by collaborating with a rival.

A car manufacturer and a multinational computer technology corporation intend to combine their strengths to develop intelligent sound systems for cars.Assuming that both companies will have a moderate to high level of interaction,what would be the most suitable form of alliance to adopt?

In an alliance,the success of an integrative equality agreement requires

Too much enthusiasm by those involved in alliance planning and negotiations can sometimes cause:

A firm is entering a strategic alliance and the CEO is worried about managing the firm's boundaries.What would you recommend to the firm and why?

Which of the following can inhibit a firm's ability to learn from the alliance?