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With regard to New United Motor Manufacturing, Inc.(NUMMI) , why did General Motors (GM) enter into a strategic alliance with Toyota?


A) To transfer its knowledge of a completely new production system
B) To learn the lean manufacturing system pioneered by Toyota
C) To better understand the American work force
D) To get access to Toyota's distribution system and marketing expertise

E) None of the above
F) A) and B)

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Explain how firms use strategic alliances to change the industry structure in their favor.

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Firms can use strategic alliances to cha...

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Google, the leader in online search and advertisement, engaged in a number of smaller acquisitions of tech ventures.It did this in order to:


A) imitate the actions of its competitors like Apple and Facebook.
B) solve its principal-agent problems.
C) fill gaps in its competency lineup.
D) expand through unrelated diversification.

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

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What did Microsoft do to gain a foothold in the online search and advertising market dominated by Google?


A) It acquired Yahoo.
B) It entered into a strategic alliance with Yahoo.
C) It sold part of its equity to Yahoo.
D) It outsourced its non-core business activities to Yahoo.

E) All of the above
F) None of the above

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Explain how creating a dedicated alliance function will help a firm manage its portfolio of alliances effectively.

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A dedicated alliance function is led by ...

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When should mergers and acquisitions (M&A) be considered the "buy" option for a strategist trying to determine which corporate strategy to implement?


A) When the resource in question is highly tradable
B) Before the strategist has considered borrowing the necessary resources through integrated strategic alliances
C) After it has been established that the firm's internal resources are sufficient to build
D) When extreme closeness to the resource partner is necessary to understand and obtain its underlying knowledge

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

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How do strategic alliances help firms gain access to complementary assets?

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The successful commercialization of a ne...

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The main reason behind Google's decision to acquire the Israeli startup company Waze for $1 billion was to:


A) preempt its competitors from buying Waze.
B) share its capabilities with Waze.
C) support startup companies with venture capital.
D) gain access to technology that is alien to it.

E) A) and B)
F) None of the above

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PureSource Pharma Inc.recently acquired BioChem Pharmaceuticals Inc.It now sells its own products along with the products originally sold by BioChem Pharmaceuticals.As a result, PureSource Pharma's sales force will also be marketing the acquired company's products.How will this horizontal integration most likely affect PureSource Pharma?


A) PureSource Pharma will lower its costs through economies of scale.
B) PureSource Pharma will diminish its economic value creation.
C) PureSource Pharma will increase its cost of distribution.
D) PureSource Pharma will reduce the size of its sales force.

E) All of the above
F) C) and D)

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Which of the following best illustrates an equity alliance?


A) A contractual agreement that provides Ocia Pharma Inc. the exclusive rights to distribute the drugs of Marvel Pharma Inc. in the Asian market
B) An alliance between GoldWing Systems Inc. and GM Computers Inc. that results in GM Wing Inc., an independent third company
C) A collusion between two competitors, Torque Steels Inc. and Vizor Metals Inc., to fix prices
D) A partnership in which RedGate Insurance Inc. has a 40 percent ownership claim in TwinTrust Finance Inc.

E) A) and B)
F) All of the above

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Which of the following best illustrates a non-equity alliance?


A) A contractual agreement that provides Motor Source Inc. non-exclusive rights to supply component parts to Pristine Autos Inc.
B) An alliance between RedGate Systems Inc. and DB Computers Inc. that results in DB Gate Inc., an independent third company
C) A collusion between two competitors, RP Pharma Inc. and Vital Pharma Inc., to fix prices
D) An alliance that allows Virtue Insurance Inc. to claim 49 percent ownership in Mercury Finance Inc.

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

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Under CEO Robert Iger, Disney has followed an acquisition-led growth strategy.Which of the following was a result of this corporate strategy?


A) Disney attempted full integration with the subsidiaries it acquired after its merger with Pixar.
B) Disney's revenue streams from its various activities became less predictable.
C) Disney became a less diversified company.
D) Disney compensated more easily for losses from flops.

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

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A(n) _____ is best described as a partnership in which at least one partner takes partial ownership in the other partner.


A) acquisition
B) non-equity alliance
C) joint venture
D) equity alliance

E) None of the above
F) A) and D)

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Toyota's President, Akio Toyoda, hopes that a transfer of tacit knowledge will take place through its equity alliance with Tesla Motors.He is referring to:


A) the lean manufacturing process pioneered by tesla.
B) the entrepreneurial spirit in tesla.
C) the safety measures followed in tesla, recorded in its user manuals.
D) the product information documented in tesla's database.

E) A) and D)
F) None of the above

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Discuss the advantages and disadvantages of an equity alliance.

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Equity alliances tend to produce stronge...

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Which alliance type is the Renault-Nissan alliance, where Nissan owns 15 percent of Renault, and Renault owns 44.4 percent in Nissan?


A) Equity alliance
B) Non-equity alliance
C) Greenfield venture
D) Joint venture

E) B) and D)
F) B) and C)

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Which of the following is an advantage of equity alliances when compared to non-equity alliances?


A) They are more flexible and easy to initiate and terminate.
B) They require smaller capital investments.
C) They produce stronger ties between partners.
D) They are based on contracts rather than ownership.

E) C) and D)
F) B) and D)

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A _____ is best described as a voluntary arrangement between firms that involves the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services.


A) proprietorship
B) cooperative
C) strategic alliance
D) leveraged buyout

E) B) and D)
F) All of the above

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In the New United Motor Manufacturing, Inc.(NUMMI) joint venture, why did Toyota enter into a strategic alliance with General Motors (GM) ?


A) To access GM's completely new production system
B) To learn and implement the just-in-time inventory system pioneered by GM
C) To learn how to implement its lean manufacturing program with an American work force
D) To access GM's distribution system and marketing expertise

E) All of the above
F) C) and D)

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A drawback of joint ventures is that they are characterized by:


A) involuntary mergers.
B) double reporting lines.
C) contractual agreements rather than ownership.
D) weak ties between alliance partners.

E) C) and D)
F) B) and C)

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Showing 81 - 100 of 126

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