When two or more firms join together to create an independent firm they enter a nonequity strategic alliance
Nonequity strategic alliances are formed when one partner owns a significantly larger (or inequitable) share of the joint venture than do the other partner(s) and occur when two or more firms collaborate to form an independent firm.
In what type of strategy do several firms form multiple partnerships in order to reach their shared objectives
A network cooperative strategy is one in which a number of businesses concur to establish numerous partnerships in order to accomplish common goals.
Which of the following is a theory that studies the interactions between two parties that compete and or cooperate with each other
|Term Competitive dynamics||Definition actions and responses undertaken by competing firms|
|Term game theory||Definition a theory that studies the interactions between two parties that compete and/or cooperate with each other|
Is a strategy in which firms work together to achieve a shared objective
A firm uses a corporate-level cooperative strategy to help it diversify in terms of the products offered, the markets served, or both. A cooperative strategy is a strategy in which firms work together to achieve a shared objective.
Is a type of strategic alliance where a company partners with another company in a foreign location to form a separate independent company
In a joint venture, two or more businesses form a legally separate company to pool some of their resources in an effort to gain a competitive edge.
Why would firms choose to use complementary strategic alliances
By forming a strategic alliance with another company and exchanging valuable resources, both businesses can advance the development of their products or markets and gain a competitive edge.
At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach
The choice between contract and equity is crucial and is influenced by the following four driving forces. Graders Information: In stage two of the alliance formation, a firm must choose whether to take a contract or an equity approach.
Which is defined as the degree of overlap between two rivals
Market overlap between two competitors is referred to as market commonality.
Which of the following industry characteristics contributes to collusion
Tacit collusions typically result in a cartel or trust, which is prohibited by antitrust laws as an output- and price-fixing entity involving multiple competitors. Which of the following industry characteristics contributes to collusion?
For which of the following reasons are alliances in the airline industry unstable
The alliances require cooperation among businesses that must also compete with one another, so why are they unstable in the airline industry?
Which of the following is a disadvantage of alliances
Strategic Alliance Vocabulary, Advantages & Disadvantages
|Political: cooperation with foreign companies to gain local favor||Uneven alliances: one company may have more power than the other|
|Major losses: foreign takeover of a company, confiscation of assets|
Which of the following conforms to the notion put forward by the school of thought
Which of the following is true regarding the idea advanced by the school of thought associated with stage models? Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries. Firms enter culturally distant countries later, when they may gain more confidence.
What are the advantages of choosing a vertical complementary
The benefits of a vertical complementary strategic alliance over a horizontal complementary strategic alliance include: a. A company can grant its partner access to its most valuable resources, enabling both partners to maximize their success.
Which of the following types of diversification is most likely to create value through financial economies quizlet
Which type of diversification is most likely to produce wealth through financial economies? more tradable and less likely to produce wealth over the long run.
When a firm initially becomes internationally diversified its returns
A companys returns decrease when it first begins to diversify internationally. An international diversification strategy is one in which a company: expands into a potentially large number of geographic locations and markets.
Which of the following would not be included in a measure of GDP *
The production of non-market goods, the shadow economy, the effects of production on the environment, or the value placed on leisure time are not included in GDP data.
What is strategic alliance example
The strategic alliance between Spotify and Uber, which enables Uber users to connect to Spotify and stream their favorite music while on a ride, is a well-known example of a strategic alliance.
Which of the following is true about strategic alliances
Which of the following statements regarding strategic alliances is TRUE? Strategic alliances enable businesses to pool complementary skills and resources that neither business could easily develop on its own.