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Describe alliance management in the pharmaceutical company Eli Lilly.

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Pharmaceutical company Eli Lilly is an a...

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How does horizontal integration within an industry affect the surviving firms?


A) By increasing the threat the surviving firms will face from new entrants
B) By strengthening the rivalry among existing firms
C) By requiring the surviving firms to shift their focus from non-price to price competition
D) By strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers

E) B) and D)
F) A) and C)

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How did Apple's e-book business model affect Amazon?


A) Amazon had to further reduce the prices of its e-books.
B) The bargaining power of suppliers, the content providers, increased from Amazon's perspective.
C) The industry structure changed from oligopoly to monopoly.
D) Amazon acquired the power to set the sales prices of e-books directly for the end consumers.

E) B) and C)
F) A) and D)

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What are the advantages and disadvantages of a joint venture?

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The advantages of joint ventures are the...

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Elaborate on the real-options perspective.

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A real-options perspective to strategic ...

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Aro Shoes Inc.and Mova Shoes Inc., two competing shoe brands, entered into a strategic alliance to study and acquire each other competencies.Aro Shoes entered the strategic alliance to acquire the production system pioneered by Mova Shoes.Similarly, Mova Shoes agreed to the strategic alliance to study the designing process of Aro Shoes.However, Aro Shoes was more successful and faster than Mova Shoes in accomplishing its alliance goal.What does this scenario best illustrate?


A) Network effects
B) Economies of scope
C) Learning races
D) Time compression diseconomies

E) B) and C)
F) A) and D)

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Which of the following is a drawback of joint ventures?


A) They produce weak ties, trust, and commitment between the partners.
B) They are based on contractual agreements rather than partial ownership.
C) They do not enable the transfer and sharing of tacit knowledge.
D) They necessitate the sharing of rewards between the partners.

E) B) and C)
F) None of the above

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The downside of equity alliances is:


A) the weaker ties and reduced trust between partners.
B) the amount of investment that can be involved.
C) that the alliances cannot be abandoned if not promising.
D) that they are not useful stepping stones toward full integration of the partner firms.

E) C) and D)
F) A) and B)

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How does taking a real-options perspective by entering strategic alliances help incumbent firms?


A) It helps the incumbent firms gain the confidence of the partnering company by making credible commitments.
B) It helps the incumbent firms reduce the value gap they create through their product and service offerings.
C) It allows the incumbent firms to buy time and wait for the uncertainty surrounding the market and technology to fade.
D) It reduces the incumbent firms' cost of acquisition by enabling them to make the entire investment decision in the beginning itself.

E) A) and B)
F) A) and C)

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Which of the following is an advantage of non-equity alliances?


A) They produce strong ties between alliance partners as they are permanent in nature.
B) They are flexible and easy to initiate and terminate.
C) They facilitate the sharing of tacit knowledge between the alliance partners.
D) They are based on ownership rather than contracts.

E) B) and D)
F) None of the above

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When North Autos Inc.wanted to sell its cars in the country of Balvia, it lacked access to distribution channels and marketing expertise in the country.Thus, North Autos had to enter into a strategic alliance with a local automobile company to get access to the foreign partner's well-established distribution channels.Which of the following reasons for entering into a strategic alliance is best illustrated in this scenario?


A) Increasing competitive intensity
B) Accessing critical complementary assets
C) Procuring additional capital investments
D) Reducing differentiation of product and service offerings

E) A) and B)
F) A) and D)

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How did the strategic alliance between HP and DreamWorks Animation SKG affect HP?


A) It helped HP pursue a taper integration strategy.
B) It enabled HP to compete head on with Cisco's videoconferencing solution.
C) It resulted in depreciation of HP's shareholder value.
D) It failed because HP lacked the expertise in selecting and integrating technology acquisitions.

E) All of the above
F) A) and B)

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In Eli Lilly's Office of Alliance Management, who is responsible for providing alliance training and development?


A) The alliance champion
B) The alliance leader
C) The alliance manager
D) The alliance boss

E) A) and C)
F) All of the above

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To position itself more strongly after the 2001 bursting of the Internet and tech stock bubble, Cisco Systems embarked on a(n) _____.


A) harvest strategy
B) acquisitions-led growth strategy
C) unrelated diversification strategy
D) exit strategy

E) B) and D)
F) A) and C)

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In Eli Lilly's Office of Alliance Management, the alliance champion is primarily responsible for:


A) making sure that an alliance fits within the firm's existing alliance portfolio and corporate-level strategy.
B) providing technical expertise and knowledge needed for the specific technical area in an alliance.
C) providing alliance training and development, as well as diagnostic tools.
D) serving as an alliance process resource and business integrator between the two alliance partners.

E) A) and B)
F) A) and C)

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The process of alliance management begins with _____.


A) selecting the best possible partner
B) choosing an appropriate governance mechanism
C) designing the alliance
D) creating resource combinations that obey the VRIO criteria

E) A) and D)
F) B) and D)

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How does co-opetition lead to learning races in strategic alliances? What are its consequences?

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Co-opetition can lead to learning races ...

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Trust is a critical aspect of any strategic alliance.Elaborate on this statement.

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Trust is a critical aspect of any allian...

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Which of the following statements is NOT true of tacit knowledge?


A) It is concerned with knowing how to do a certain task.
B) It is knowledge that cannot be easily codified.
C) It is regularly shared between partners in a non-equity alliance.
D) It is acquired only through actively participating in the process.

E) None of the above
F) A) and B)

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Which of the following types of strategic alliances is the least common in terms of frequency?


A) Mergers
B) Acquisitions
C) Equity alliances
D) Joint ventures

E) C) and D)
F) A) and B)

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