International Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice Questions.pdf
International Strategic
Management Test 2 – Study
Guide & Practice Questions
InternationalGuidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice Questions.pdf
,International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
How Firms Achieve Growth Build
-internal organic growth through development
Borrow
-external growth through a contract/strategic alliance
Buy
-external growth through acquiring new resources, capabilities, and
competencies
build-borrow-or-buy framework Conceptual model that aids firms in deciding whether to pursue internal
development (build), enter a contractual arrangement or strategic alliance
(borrow), or acquire new resources, capabilities, and competencies (buy).
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
,International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
Main issues in the build-borrow-or-buy framework Relevancy
*how relevant are existing internal resources to solving the resource gap?
Tradability
*how tradable are the targeted resources that may be available externally?
Closeness
*how close do you need to be to your external resource partner?
Integration
*how well can you integrate the targeted firm should you determine you need to
acquire the resource partner?
Relevance How relevant are the firm's existing internal resources to solving the resource gap
Internal resources are relevant if...
-they are similar to those a firm needs to develop
-they are superior to those of competitors in the targeted area (VRIO)
If a firm's resources are highly relevant, develop internally
(IE: traditional newspaper goes digital if existing journalism resources are
relevant)
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
, International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
Tradability How tradable are the targeted resources that may be available externally?
Tradability implies that the resource can be sourced through a contract that...
-transfers ownership
OR
-allows use of the resource
Contracts and borrowing resources
(IE: licensing and franchising)
Closeness How close do you need to be to your external resource partner?
Moderate closeness can be achieved through alliances
-equity alliances
-joint ventures
-enables resource borrowing
M&As are complex and costly
-use only when extreme closeness is necessary
-consider borrowing instead
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice Questions.pdf
International Strategic
Management Test 2 – Study
Guide & Practice Questions
InternationalGuidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice
International
Questions.pdf
Strategic Management Test 2 – Study Guide & Practice Questions.pdf
,International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
How Firms Achieve Growth Build
-internal organic growth through development
Borrow
-external growth through a contract/strategic alliance
Buy
-external growth through acquiring new resources, capabilities, and
competencies
build-borrow-or-buy framework Conceptual model that aids firms in deciding whether to pursue internal
development (build), enter a contractual arrangement or strategic alliance
(borrow), or acquire new resources, capabilities, and competencies (buy).
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
,International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
Main issues in the build-borrow-or-buy framework Relevancy
*how relevant are existing internal resources to solving the resource gap?
Tradability
*how tradable are the targeted resources that may be available externally?
Closeness
*how close do you need to be to your external resource partner?
Integration
*how well can you integrate the targeted firm should you determine you need to
acquire the resource partner?
Relevance How relevant are the firm's existing internal resources to solving the resource gap
Internal resources are relevant if...
-they are similar to those a firm needs to develop
-they are superior to those of competitors in the targeted area (VRIO)
If a firm's resources are highly relevant, develop internally
(IE: traditional newspaper goes digital if existing journalism resources are
relevant)
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
, International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
Tradability How tradable are the targeted resources that may be available externally?
Tradability implies that the resource can be sourced through a contract that...
-transfers ownership
OR
-allows use of the resource
Contracts and borrowing resources
(IE: licensing and franchising)
Closeness How close do you need to be to your external resource partner?
Moderate closeness can be achieved through alliances
-equity alliances
-joint ventures
-enables resource borrowing
M&As are complex and costly
-use only when extreme closeness is necessary
-consider borrowing instead
International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf International Strategic Management Test 2.pdf
