SEVI 3013 EXAM 3/FINAL (CH 6-7)
QUESTIONS AND ANSWERS
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). - ANSWER-Build-borrow-buy
framework
What should we do if the firm's internal resources are relevant in solving the srategic
resource gap? - ANSWER-if yes, build
if the resources are:
-similar to those the firm needs to develop to solve the strategic resource gap
-superior to those of competitors
key test VRIN - ANSWER-relevant internal resources
-transfer of ownership
-use of the resource - ANSWER-source the resource externally through a contract
-licensing
-franchising
-strategic alliances - ANSWER-short-term vs long-term contracts
short-term and/or long-term contracts with the external resource partner - ANSWER-not
close to partner
equity alliances and/or joint ventures with the external resource partner - ANSWER-
closer to the partner
mergers and/or acquisitions with the external resource partner - ANSWER-very close
with partner
the most costly, complex, and difficult to reverse - ANSWER-integrating mergers and
acquistions
a voluntary arrangement between firms that involves sharing of knowlwdge, resources,
and capabilities - ANSWER-strategic alliance
joint development of new processes, new products, and new services - ANSWER-intent
of strategic alliances
, -strengthen competitive position
-enter new markets
-hedge against uncertainty
-access critical complementary assets
-learn new capabilites - ANSWER-why firms enter strategic alliances
-approach to strategic decision making
-breaks down a larger investment decision into a set of smaller decisions
-staged sequentially over time
-allows firms to obtain information in stages - ANSWER-hedge against uncertainty: real
options approach
strategic alliances can provide access to _______ or _______ the value chain
ex: sony, samsung: S-LCD - ANSWER-compelementary assets, complete
firms can learn from their alliance partners even from partners who may be _________
ex: General motors, toyota: NUMMI - ANSWER-competitors
-non-equity alliances
-equity alliances
-joint ventures - ANSWER-governing strategic alliances
-partnership based on contracts between firms
-supply agreements, distibrution agreements, licensing agreements, and franchises -
ANSWER-non-equity alliance
one partner takes a partial equity stake in other
ex: GM/lyft - ANSWER-equity alliances
standalone organization, created and jointly owned by two or more parent companies
ex: hulu - ANSWER-joint ventures
-partner selection and alliance formation
-alliance design and governance
-post-formation alliance management - ANSWER-alliance management capability
how many allainces fail to deliver expected benefit due to lack of effective alliance
management? - ANSWER-30-70% of alliances
-costs vs. benefits
-alliance goals
QUESTIONS AND ANSWERS
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). - ANSWER-Build-borrow-buy
framework
What should we do if the firm's internal resources are relevant in solving the srategic
resource gap? - ANSWER-if yes, build
if the resources are:
-similar to those the firm needs to develop to solve the strategic resource gap
-superior to those of competitors
key test VRIN - ANSWER-relevant internal resources
-transfer of ownership
-use of the resource - ANSWER-source the resource externally through a contract
-licensing
-franchising
-strategic alliances - ANSWER-short-term vs long-term contracts
short-term and/or long-term contracts with the external resource partner - ANSWER-not
close to partner
equity alliances and/or joint ventures with the external resource partner - ANSWER-
closer to the partner
mergers and/or acquisitions with the external resource partner - ANSWER-very close
with partner
the most costly, complex, and difficult to reverse - ANSWER-integrating mergers and
acquistions
a voluntary arrangement between firms that involves sharing of knowlwdge, resources,
and capabilities - ANSWER-strategic alliance
joint development of new processes, new products, and new services - ANSWER-intent
of strategic alliances
, -strengthen competitive position
-enter new markets
-hedge against uncertainty
-access critical complementary assets
-learn new capabilites - ANSWER-why firms enter strategic alliances
-approach to strategic decision making
-breaks down a larger investment decision into a set of smaller decisions
-staged sequentially over time
-allows firms to obtain information in stages - ANSWER-hedge against uncertainty: real
options approach
strategic alliances can provide access to _______ or _______ the value chain
ex: sony, samsung: S-LCD - ANSWER-compelementary assets, complete
firms can learn from their alliance partners even from partners who may be _________
ex: General motors, toyota: NUMMI - ANSWER-competitors
-non-equity alliances
-equity alliances
-joint ventures - ANSWER-governing strategic alliances
-partnership based on contracts between firms
-supply agreements, distibrution agreements, licensing agreements, and franchises -
ANSWER-non-equity alliance
one partner takes a partial equity stake in other
ex: GM/lyft - ANSWER-equity alliances
standalone organization, created and jointly owned by two or more parent companies
ex: hulu - ANSWER-joint ventures
-partner selection and alliance formation
-alliance design and governance
-post-formation alliance management - ANSWER-alliance management capability
how many allainces fail to deliver expected benefit due to lack of effective alliance
management? - ANSWER-30-70% of alliances
-costs vs. benefits
-alliance goals
