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Question 1Which of the following is NOT a strategic alliance? a) Joint marketing campaign b) Cooperative product development c) Joint venture d) Merger Question 2What is the most frequent internal motive for a strategic alliance? a) Resource need b) Risk limitation c) Cost minimization d) Current poor performance Question 3A partnership between companies in different lines of business, is called: a) Vertical integration alliance b) Diversification alliance c) Shared supply alliance d) International expansion alliance Question 4An alliance between a supplier and a buyer that agree to use and share skills and capabilities in the supply chain, is called: a) Diversification alliance b) Shared supply alliance c) Complementary alliance d) Vertical integration alliance Question 5What is the most important criterion for selecting an alliance partner? a) Alliance partner must help the company towards a competitive advantage. b) Alliance partner must be a multinational firm with a global market presence. c) Alliance partner must come from the same culture. d) Alliance partner must have similar assets. Question 6An optimal business partner in a successful international strategic alliance should have two key qualities: a) Corporate culture fit and national culture fit b) Partner-related criteria and task-related criteria c) Cultural fit and trust d) Strategic fit and cultural fit Question 7Why do alliances between a large Western multinational firm and an emerging economy firm often fail? a) The cultural gap between partners is too large. b) The partner objectives are very divergent. c) The company size of partners is very different. d) The organizational cultures of partners are different. Question 8What is "strategic control"? a) Control over the production process within an organization, in the sense of determining how the employees of an organization perform their work. b) The process by which one entity influences, to varying degrees, the behaviour and output of another entity through informal mechanisms. c) Control over the means and methods on which the whole conduct of an organization depends. d) Control over the production process within an organization, in the sense of determining how informal practices are performed. Question 9The average life span for a strategic alliance is about: a) 10 years b) 3 years c) 7 years d) 5 years Question 10What advantage comes from trust between alliance partners? a) Trust enables partners to enter into detailed formal contracts. b) Trust makes partners more willing to share information. c) Trust increases relational risks. d) Trust causes partners to cheat on each other. What are the four types of alliances?Three Different Types of Strategic Alliances. Joint Venture. A joint venture is a child company of two parent companies. ... . Equity Strategic Alliance. ... . Non – Equity Strategic Alliance.. Which of the following best describes agreements carried out through contract rather than ownership sharing?A joint venture is a situation in which two or more partners have different relative ownership shares in the new venture. Agreements are carried out through contract rather than ownership sharing in an international joint venture.
What is an equity alliance?Equity alliances, which are alliances in which some form of shareholding exists, are used with some regularity. Three forms of equity alliances exist: joint ventures; minority stakes; and cross-shareholdings. Joint ventures come into existence when two or more companies jointly set up a separate legal entity.
What is the difference between an alliance and a merger?An alliance is a relationship that is formed for some mutual benefit or to achieve a common goal. Mergers occur when two separate entities combine to form one single entity.
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Alliances that are carried out through contract rather than ownership sharing are called ________.
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