SEVI 3013 Chapter 6 Exam with
Complete Solutions
In what way does the strategic alliance between GM and Lyft allow GM to hedge
against uncertainty? - ANSWER-It gives GM access to the market of the future, in which
private car ownership model is likely to shift in favor of fleet ownership and
management.
A firm must decide whether to build, borrow, or buy to answer the question of -
ANSWER-how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework? -
ANSWER-strategic alliances
internal development
acquisition of new resources
Which framework can companies use to assess whether their internal resources are
superior to those of competitors in the targeted area? - ANSWER-VRIO framework
What are three advantages of equity alliances? - ANSWER-possible emergence of trust
and commitment
a window into new technology (option value)
stronger ties
Which of the following are advantages of joint ventures? - ANSWER-trust
strong ties
commitment
What is a major problem for between 30% and 70% of all strategic alliances? -
ANSWER-At least one partner in the alliance considers the venture to be a failure.
Which term refers to a company's ability to handle the three specific tasks related to an
alliance concurrently and effectively? - ANSWER-alliance management capability
A standalone organization that two or more parent companies create and own together
is a - ANSWER-joint venture
What are the phases of alliance management? - ANSWER-partner selection and
alliance formation
alliance design and governance
, post-formation alliance management
Which of the following is a disadvantage of a joint venture? - ANSWER-Knowledge
shared with the new partner could be misappropriated by opportunistic behavior.
What are the two necessary conditions for successful alliance formation? - ANSWER-
partner compatibility
partner commitment
If an alliance between two firms succeeds, it is likely that the firms in the alliance -
ANSWER-trust each other
What is a true statement about strategic alliances? - ANSWER-They have a high failure
rate.
A firm with alliance management capability is able to effectively manage which of the
following tasks? - ANSWER-alliance design and governance
partner selection and alliance formation
post-formation alliance management
Although the three tasks of alliance management capability often occur at the same
time, in general what is the first phase of alliance management? - ANSWER-partner
selection and alliance formation
What are the components of post-formation alliance management? - ANSWER-Make
relation-specific investments.
Establish knowledge-sharing routines.
Build inter-firm trust.
How willing the firms in an alliance are to share necessary resources and make
sacrifices in the name of long-term rewards is referred to as partner - ANSWER-
commitment
What is an important aspect of alliance success? - ANSWER-inter-organizational trust
In order to build alliance management capabilities in small companies, it is
recommended that firms take the ______ approach. - ANSWER-"learning-by-doing"
What is a component of post-formation alliance management? - ANSWER-establishing
knowledge-sharing routines
Strategy scholars believe that firms should create a dedicated alliance function with
which of the following features? - ANSWER-It should be led by a vice president or
director of alliance management.
It should have its own resources and support staff.
Complete Solutions
In what way does the strategic alliance between GM and Lyft allow GM to hedge
against uncertainty? - ANSWER-It gives GM access to the market of the future, in which
private car ownership model is likely to shift in favor of fleet ownership and
management.
A firm must decide whether to build, borrow, or buy to answer the question of -
ANSWER-how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework? -
ANSWER-strategic alliances
internal development
acquisition of new resources
Which framework can companies use to assess whether their internal resources are
superior to those of competitors in the targeted area? - ANSWER-VRIO framework
What are three advantages of equity alliances? - ANSWER-possible emergence of trust
and commitment
a window into new technology (option value)
stronger ties
Which of the following are advantages of joint ventures? - ANSWER-trust
strong ties
commitment
What is a major problem for between 30% and 70% of all strategic alliances? -
ANSWER-At least one partner in the alliance considers the venture to be a failure.
Which term refers to a company's ability to handle the three specific tasks related to an
alliance concurrently and effectively? - ANSWER-alliance management capability
A standalone organization that two or more parent companies create and own together
is a - ANSWER-joint venture
What are the phases of alliance management? - ANSWER-partner selection and
alliance formation
alliance design and governance
, post-formation alliance management
Which of the following is a disadvantage of a joint venture? - ANSWER-Knowledge
shared with the new partner could be misappropriated by opportunistic behavior.
What are the two necessary conditions for successful alliance formation? - ANSWER-
partner compatibility
partner commitment
If an alliance between two firms succeeds, it is likely that the firms in the alliance -
ANSWER-trust each other
What is a true statement about strategic alliances? - ANSWER-They have a high failure
rate.
A firm with alliance management capability is able to effectively manage which of the
following tasks? - ANSWER-alliance design and governance
partner selection and alliance formation
post-formation alliance management
Although the three tasks of alliance management capability often occur at the same
time, in general what is the first phase of alliance management? - ANSWER-partner
selection and alliance formation
What are the components of post-formation alliance management? - ANSWER-Make
relation-specific investments.
Establish knowledge-sharing routines.
Build inter-firm trust.
How willing the firms in an alliance are to share necessary resources and make
sacrifices in the name of long-term rewards is referred to as partner - ANSWER-
commitment
What is an important aspect of alliance success? - ANSWER-inter-organizational trust
In order to build alliance management capabilities in small companies, it is
recommended that firms take the ______ approach. - ANSWER-"learning-by-doing"
What is a component of post-formation alliance management? - ANSWER-establishing
knowledge-sharing routines
Strategy scholars believe that firms should create a dedicated alliance function with
which of the following features? - ANSWER-It should be led by a vice president or
director of alliance management.
It should have its own resources and support staff.
