SEVI 3013 Final Exam with Complete
Solutions
a conceptual model that aids strategic leaders 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-Understand
the Build-Borrow-Buy framework and be able to discuss its implications for decisions on
acquiring resources and capabilities
attempt to close the gap w/ Uber - ANSWER-Why did Lyft enter into strategic alliances
with GM and Waymo?
- competitive advantage from Uber
- looking for cash/capital to get things done - ANSWER-What were the benefits of these
strategic alliances for Lyft?
- (equity alliance) allowed the firm to tap into the 2nd largest mobile transportation
network
- allowed to enter into the mobile transportations and logistics market
- equity investment also allowed to hedge against uncertainty - ANSWER-What were
the benefits of these strategic alliances for GM?
- participate to get into a new industry
- new market of ridesharing - ANSWER-What were the benefits of these strategic
alliances for Waymo?
- flexible - ANSWER-What are the benefits of strategic alliances (Borrow)?
- controllable in business
- less expensive - ANSWER-What are the benefits of internal development (build)?
- overcoming barriers of entry
- pre-empt people from getting to business - ANSWER-What are the benefits of
mergers/acquisitions (Buy)?
long negotiations and a lack of commitment and trust - ANSWER-What are the risks of
internal strategic alliances (Borrow)?
time consuming and overconfident w/ resources - ANSWER-What are the risks of
internal development (build)?
, most costly, complex, and difficult to reverse strategic option - ANSWER-What are the
risks of mergers/acquisitions (Buy)?
voluntary arrangement between firms that involves sharing of:
- knowledge
- resources
- capabilities - ANSWER-What are strategic alliances?
- strengthen competitive position
- enter new markets
- hedge against certainty
- access critical complementary assets
- learn new capabilities - ANSWER-Why do firms enter into strategic alliances?
- partnership based on contracts
- supply agreements, distribution agreements, licensing agreements, franchise -
ANSWER-Non-equity alliance
- one partner takes partial equity stake in other (GM/Lyft) - ANSWER-Equity alliance
- standalone organization, created and jointly owned by 2 or more parent companies
(Hulu) - ANSWER-Joint venture
- Co-opetition: cooperation by competitors to achieve a strategic objective
- Learning Race: situations where both partners in a strategic alliance are motivated to
form an alliance for learning, but the rate at which the firms learn may vary.
--example) Toyota & GM - alliance w/ competitor
whoever learned what they need to learn first, Toyota, dissolved the alliance and exited
the race - ANSWER-What is meant by co-opetition and the learning race, as they relate
to strategic alliances?
1. Partner selection & alliance formation
2. Alliance design & governance
3. Post-formation alliance mgmt. - ANSWER-What three components contribute to
effective alliance management capability?
joining of 2 independent companies to form a combined entity - ANSWER-Mergers
- purchase of one company by another
- can be friendly / unfriendly (hostile) - ANSWER-Acquisitions
one company takes control over another - ANSWER-Takeovers
target company does not wish to be acquired - ANSWER-Hostile takeovers
Solutions
a conceptual model that aids strategic leaders 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-Understand
the Build-Borrow-Buy framework and be able to discuss its implications for decisions on
acquiring resources and capabilities
attempt to close the gap w/ Uber - ANSWER-Why did Lyft enter into strategic alliances
with GM and Waymo?
- competitive advantage from Uber
- looking for cash/capital to get things done - ANSWER-What were the benefits of these
strategic alliances for Lyft?
- (equity alliance) allowed the firm to tap into the 2nd largest mobile transportation
network
- allowed to enter into the mobile transportations and logistics market
- equity investment also allowed to hedge against uncertainty - ANSWER-What were
the benefits of these strategic alliances for GM?
- participate to get into a new industry
- new market of ridesharing - ANSWER-What were the benefits of these strategic
alliances for Waymo?
- flexible - ANSWER-What are the benefits of strategic alliances (Borrow)?
- controllable in business
- less expensive - ANSWER-What are the benefits of internal development (build)?
- overcoming barriers of entry
- pre-empt people from getting to business - ANSWER-What are the benefits of
mergers/acquisitions (Buy)?
long negotiations and a lack of commitment and trust - ANSWER-What are the risks of
internal strategic alliances (Borrow)?
time consuming and overconfident w/ resources - ANSWER-What are the risks of
internal development (build)?
, most costly, complex, and difficult to reverse strategic option - ANSWER-What are the
risks of mergers/acquisitions (Buy)?
voluntary arrangement between firms that involves sharing of:
- knowledge
- resources
- capabilities - ANSWER-What are strategic alliances?
- strengthen competitive position
- enter new markets
- hedge against certainty
- access critical complementary assets
- learn new capabilities - ANSWER-Why do firms enter into strategic alliances?
- partnership based on contracts
- supply agreements, distribution agreements, licensing agreements, franchise -
ANSWER-Non-equity alliance
- one partner takes partial equity stake in other (GM/Lyft) - ANSWER-Equity alliance
- standalone organization, created and jointly owned by 2 or more parent companies
(Hulu) - ANSWER-Joint venture
- Co-opetition: cooperation by competitors to achieve a strategic objective
- Learning Race: situations where both partners in a strategic alliance are motivated to
form an alliance for learning, but the rate at which the firms learn may vary.
--example) Toyota & GM - alliance w/ competitor
whoever learned what they need to learn first, Toyota, dissolved the alliance and exited
the race - ANSWER-What is meant by co-opetition and the learning race, as they relate
to strategic alliances?
1. Partner selection & alliance formation
2. Alliance design & governance
3. Post-formation alliance mgmt. - ANSWER-What three components contribute to
effective alliance management capability?
joining of 2 independent companies to form a combined entity - ANSWER-Mergers
- purchase of one company by another
- can be friendly / unfriendly (hostile) - ANSWER-Acquisitions
one company takes control over another - ANSWER-Takeovers
target company does not wish to be acquired - ANSWER-Hostile takeovers
