Quiz Ch 9

A  Both firms can achieve competitive advantage over one another, even if they are operating in the same product market, by using each other’s most valuable resources.

B  Both firms can behave opportunistically towards one another to keep the other from gaining competitive advantage.

C  One firm can gain competitive advantage by taking advantage of its partner’s resources and giving its partner less valuable resources

D  Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage.

A  one-time royalty fee.

B  initial franchise fee and ongoing royalty rate.

C  ongoing franchise royalty rate.

D  initial franchise fee.

A  Business

B  Synergistic

C  Diversifying

D  Franchising

A  To take advantage of the Australian company in a hostile takeover

B  To give responsibility of the company’s expansion to the Australian firm

C  To explore export options from the United States to Australia

D  To share unique resources to design, produce, and launch the product in Australia

A  The alliance keeps U.S. Elite from sharing resources with Chinese manufacturers to help them with manufacturing.

B  The alliance gives U.S. Elite minimal responsibility for its foreign operations in China.

C  The alliance gives the Chinese manufacturer sole control of U.S. Elite operations.

D  The alliance enables U.S. Elite to share resources for manufacturing and knowledge about the Chinese market.

A  Complementary strategic alliance

B  Network cooperative strategy

C  Cross-border strategic alliance

D  Uncertainty reducing strategy

A  cost minimization and opportunity maximization.

B  cost maximization and opportunity minimization.

C  cost maximization and opportunity maximization.

D  cost minimization and opportunity minimization.

A  Opportunity minimization

B  Cost maximization

C  Opportunity maximization

D  Cost minimization

A  help from domestic partners from an operational perspective.

B  limited domestic growth opportunities and foreign government economic policies.

C  abundance of domestic growth opportunities and foreign government economic policies.

D  complete control over their foreign operations.

A  To speed up new market entry

B  To overcome trade barriers

C  To share risky R&D expenses

D  To gain access to a restricted market

A  To minimize their rivals’ returns

B  To outperform rivals with a similar idea

C  To gain a higher a price point than their rivals

D  To neutralize competition with rivals

A  Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success.

B  Opportunity maximization enables firms to decrease their cost structure, which leads to an increased likelihood of success.

C  Opportunity maximization allows firms to take advantage of each other’s resources without limitations imposed by one another.

D  Opportunity maximization leads to more definite contractual obligations for each partner, which leads to an increased likelihood of success.

A  Network cooperative strategy

B  Strategic alliance

C  Corporate-level cooperative strategy

D  Business-level cooperative strategy

A  decrease the other’s competitive advantage.

B  increase competitive advantage.

C  decrease both partners’ competitive advantage.

D  neutralize each other’s competitive advantage.

A  Firms can partner to share resources for separate parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain.

B  Firms can prevent their partners from having access to their most valuable resources, which helps the firms prevent opportunistic behavior by their partners.

C  Firms can partner to share resources for the same parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain.

D  A firm can give its partner access to its most valuable resources, which enables both partners to maximize its success.

A  equity strategic alliance.

B  joint venture.

C  cooperative strategy.

D  nonequity strategic alliance.

A  Uncertainty-reducing strategy

B  Vertical complementary strategic alliance

C  Competition-reducing strategy

D  Competition response strategy

A  failure.

B  extensions.

C  success.

D  partnerships.

A  The software firm has failed to make its resources available to the startup.

B  The software firm has misrepresented its resources to the startup.

C  The startup is acting opportunistically towards the software firm.

D  The startup has failed to make its resources available to the software firm.

A  Firms would struggle to implement international strategies without the ability to use the resources and expertise of local firms in the foreign markets they were trying to enter.

B  Firms would be more successful in entering foreign markets because they would be minimally influenced by other firms.

C  There would be no measurable impact if firms did not implement cross-border strategic alliances.

D  Firms would be more successful in their domestic markets because they would not be as concerned with establishing themselves in a foreign market.

A  Cross-border

B  Equity

C  Nonequity

D  Joint venture

A  Exploit economies of scale and/or scope that exist between the partners.

B  Enable partners to gain entry into new markets

C  Explore new ideas that may lead to product innovation

D  Allow partners to develop new markets

A  a strategic alliance.

B  cooperative strategy.

C  international strategy.

D  corporate strategy.

A  When one firm doesn’t present its resources, it is likely that it is going to try to act opportunistically towards its partner.

B  If a firm acts fairly towards its partner, the partner might misrepresent its resources in order to keep the firm from gaining any more access.

C  If one firm presents its resources first, the other will not present its resources to compete against the partner.

D  If one firm feels that the other will act opportunistically, it might withhold its promised resources to keep the partner from gaining access to proprietary information.

A  To expand operations

B  To launch competitive responses to their competitor’s actions

C  To focus on long-term product development and distribution opportunities

D  To reduce competition

A  Opportunistic minimization

B  Cost minimization

C  Cost maximization

D  Opportunity maximization

A  a strategy through which firms combine some of their resources to create a competitive advantage by competing in one or more product markets.

B  a strategy in which firms with headquarters in different countries decide to combine some of their resources to create a competitive advantage.

C  an alliance in which firms share some of their resources from the same stage of the value chain.

D  a strategy in which firms share some of their resources to create economies of scope.

A  cross-border strategic alliance.

B  corporate-level cooperative strategy.

C  synergistic strategic alliance.

D  diversifying strategic alliance.

A  A form of competition-reducing strategy in which two or more firms negotiate directly to determine the amount to produce and the prices for the product

B  A form of competition-reducing strategy in which firms do not take competitive actions against rivals

C  A form of competition-reducing strategy in which several firms indirectly coordinate their production and pricing decisions by observing each other’s actions and responses

D  A form of competition-reducing strategy in which firms share some of their resources from different stages of the value chain to create competitive advantage

A  A dynamic alliance network

B  A nonequity alliance network

C  A stable alliance network

D  A joint venture alliance network