Question 1

Which of the following is NOT a typical reason that many outsourcing alliances prove unstable or break apart?

Accepted Answer

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

Question 2

The best strategic alliances:

Accepted Answer

Selective strategic alliances allow companies to focus on specific value chain activities where they can obtain a competitive advantage. This saves time and resources that would be spent on developing those activities in-house. It also allows for a more targeted approach that can lead to a greater benefit for both parties involved.

Question 3

The principal advantages of strategic alliances over vertical integration or horizontal mergers/acquisitions are:

Accepted Answer

Strategic alliances offer resource pooling and risk sharing, which can lead to more adaptive response capabilities and greater speed of deployment. This can be particularly advantageous in dynamic and rapidly changing industries where companies may not have the resources or expertise to go it alone through vertical integration or horizontal mergers/acquisitions. Additionally, strategic alliances can provide access to new markets, technologies, and skill sets, increasing competitiveness and profitability.

Question 4

Identify and briefly discuss two "best targets" for offensive attacks by companies.

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Question 5

Entering into strategic alliances and collaborative partnerships can be competitively valuable because:

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The answer of Entering into strategic alliances and collaborative partnerships...

Question 6

The formation of a new corporation,jointly owned by two or more companies agreeing to share in the revenues,expenses,and control,is known as:

Accepted Answer

A joint venture is a business agreement between two or more companies to combine resources and share in the risks and rewards of a new business venture. The joint venture is a separate legal entity, and the participating companies share in the revenues, expenses, and control of the venture. This arrangement allows companies to enter into new markets or projects without having to commit significant resources or assume all of the risk on their own. Therefore, the best choice for the formation of a new corporation jointly owned by two or more companies is a joint venture.

Question 7

A company racing to seize opportunities on the frontiers of advancing technology often utilizes strategic alliances and collaborative partnerships to:

Accepted Answer

Strategic alliances and collaborative partnerships can help a company master new technologies and build new expertise and competencies, establish a stronger beachhead for participating in the target industry, and open up broader opportunities in the target industry. These partnerships enable companies to work together and leverage each other's strengths to achieve mutual goals, which ultimately reduces overall business risk and raises entry barriers into the newly emerging industry. While these partnerships may discourage rival companies from merging with or acquiring the very companies that it is partnering with, it is not the primary reason for utilizing such alliances.

Question 8

Which of the following is NOT one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?

Accepted Answer

Minimizing the amount of resources that the partners commit to the alliance is not a factor that affects the success of a strategic alliance. The other factors mentioned such as choosing a good partner, ensuring commitment, mutual benefit, and efficient decision-making processes are crucial in ensuring success.

Question 9

Alliance management is considered an organizational capability and:

Accepted Answer

Alliance management is not a one-time event but rather a capability that is developed through ongoing effort and learning. It takes time to build relationships, establish communication channels, and understand the partner's culture and goals. As such, it develops over time as a capability that enables organizations to establish successful strategic alliances.

Question 10

Capturing the benefits of strategic alliances is not easy,but success generally is a function of all of the following factors,EXCEPT:

Accepted Answer

Ensuring the division of work is directly apportioned to appropriate skill sets is not typically listed as a critical factor for the success of strategic alliances, unlike the other options which focus on partnership dynamics and mutual benefits.

Question 11

An alliance becomes "strategic" as opposed to just a convenient business arrangement when it serves all of the following strategic purposes EXCEPT:

Accepted Answer

The option that does not serve a strategic purpose is contracting out certain value chain activities that are normally performed in-house to outside vendors. While this may be a useful tactic for cost reduction, it does not necessarily enhance core competencies or competitive advantage, block competitive threats, increase bargaining power, or open up new market opportunities.

Question 12

There are a number of offensive strategy options for improving market positions using cost-based and blue-ocean type strategies.Define the terms and suggest ways in which the strategies could be operationalized.

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The answer of There are a number of offensive strategy...

Question 13

A company that has greater success in managing its strategic alliance can credit all of the following,EXCEPT:

Accepted Answer

Creating organizational learning barriers across boundaries undermines the effectiveness of managing strategic alliances by preventing knowledge sharing and collaboration. The other options all contribute positively to the successful management of strategic alliances.

Question 14

What is a blue-ocean strategy and what is its appeal?

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Question 15

Companies racing against rivals for global market leadership need strategic alliances and collaborative partnerships with companies in foreign countries to:

Accepted Answer

Strategic alliances and collaborative partnerships with foreign companies can provide quick access to critical country markets, as well as valuable knowledge and skills about unfamiliar markets and cultures. This can help companies gain a competitive advantage over rivals and expand globally. Combatting the bargaining power of foreign suppliers and defending against the competitive threat of substitute products are important factors, but they are only part of the overall picture of why companies pursue strategic alliances and partnerships with foreign firms.

Question 16

Which of the following is NOT a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers,distributors,or makers of complementary products?

Accepted Answer

Enabling greater opportunities for employee advancement is not typically a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products. The other options listed – improving access to new markets, expediting the development of promising new technologies or products, improving supply chain efficiency, and overcoming disadvantages of small production volumes that limit scale economies and low production costs – are all commonly cited reasons why companies pursue such partnerships or arrangements.

Question 17

A company that fails to manage its strategic alliance probably has:

Accepted Answer

A company that fails in managing its strategic alliances likely has not established strong commitments or trust with its partners, as indicated by refraining from making commitments and ensuring partners do the same. This lack of commitment can lead to a failure in managing alliances effectively.

Question 18

Strategic offensives should,as a general rule,be grounded in a company's strategic assets and employ a company's strengths to attack rivals.Define and discuss the term strategic assets and its significance in gaining a competitive advantage.

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Question 19

Experience indicates that strategic alliances:

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...

Question 20

The Achilles heel (or biggest disadvantage/pitfall)of relying heavily on alliances and cooperative strategies is:

Accepted Answer

Relying heavily on alliances and cooperative strategies may lead to a company becoming too dependent on its partners for essential expertise and capabilities. This can be a major disadvantage and risk for the company, as they may become vulnerable if their partners decide to end the collaboration or if the alliance experiences difficulties.

Quiz 6: Strengthening a Companys Competitive Position