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Exam 9: Cooperative Strategy

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Question 31

Multiple Choice

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Fiat and Chrysler cooperated to produce a Fiat-designed car in Chrysler's Illinois factory.This is a(n) __________ alliance because it allows the firms to share resources and capabilities across multiple functions.

A) synergistic
B) opportunistic
C) horizontal
D) diversifying

E) B) and C)
F) A) and B)

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Question 32

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Of the four business-level cooperative strategies, the competition-reducing strategy has the lowest probability of creating a sustainable advantage.

A) True
B) False

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Question 33

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EllEx Enterprises is entering into a cooperative strategy with YRPA.In order to have the best chance of success, the managers of this strategy should concentrate equally on both tangible and intangible assets.

Firms in slow-cycle markets often use strategic alliances to enter restricted markets or to establish a franchise in a new market.

Explain which type of cooperative strategy a firm might want to use based upon the type of basic market situations (i.e., slow, standard, and fast cycles) in which it operates.

For which of the following reasons are alliances in the airline industry unstable?

A nonequity strategic alliance exists when:

In practice, the cost-minimization strategy can be more expensive than the opportunity-maximization strategy.Which of the following is a way in which the cost-minimization strategy is LESS expensive than the opportunity-maximization strategy?

DDD Partners, a U.S.business consulting firm is considering a cooperative alliance with an Indian business consulting firm that has a wide practice in the Middle East and Asia.DDD has some European clients, but it sees the Middle East and Asia as growth opportunities.It hopes to learn how to navigate the different cultures and business practices in this part of the world from its alliance with the Indian firm.DDD's greatest risk here is that the Indian firm will:

In a cross-border alliance, the local partner is often a useful source of information about:

One disadvantage of developing effective monitoring systems to manage a strategic alliance is that:

In free-market economies, __________ must decide how rivals can collaborate with their competitors without violating established regulations.

Tacit collusion tends to be least used as a business-level, competition-reducing strategy in highly concentrated industries such as airlines and breakfast cereals because it results in higher prices for consumers.

Legitimately, a firm may pursue an international strategic alliance for all of the following reasons EXCEPT to:

Firms develop a competitive advantage when they are able to develop corporate-level cooperative strategies and manage them in ways that are valuable, rare, imperfectly imitable, and nonsubstitutable.

In some countries, the only legal way for foreign firms to invest in the country is through:

Tacit collusion is not necessarily illegal in the United States even though it results in higher prices for consumers.

Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent.This collaboration is an example of a(n) __________, which is effective at transferring __________.

The Renault Nissan alliance is an example of a __________ in that the firms seek to create economies of scope by sharing their resources and capabilities to develop manufacturing platforms that can be used to produce cars that will be either a Renault or a Nissan.

A relatively young firm has developed a method of transferring photographic images of surface textures onto any type of hard surface.This potentially has a huge market in the home-decorating field as well as any market containing products with a hard surface that is typically painted, such as car bodies.The type of alliance partner this firm would be searching for would be one with: