Chapter6ReviewA - MGMT 425 Chapters 6 Review Questions 1. A...

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MGMT 425 Chapters 6 Review Questions 1. A strategic alliance A. is a collaborative arrangement where companies join forces to defeat mutual competitive rivals. B. involves two or more companies joining forces to pursue vertical integration. C. is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence. D. is a partnership between two companies that is typically intended to eliminate the need to engage in outsourcing. E. is usually a cheaper and more effective way for companies to join forces than is merger. 2. Entering into strategic alliances and collaborative partnerships can be competitively valuable because A. working closely with outsiders is essential in developing new technologies and new products in virtually every industry. B. cooperative arrangements with other companies are very helpful in racing against rivals to build a strong global presence and/or racing to seize opportunities on the frontiers of advancing technology. C. they represent highly effective ways to achieve low-cost leadership and capture first-mover advantages. D. they are a powerful way for companies to build loyalty and goodwill among customers with diverse needs and expectations. E. they are quite effective in helping a company transfer the risks of threatening external developments to other companies. 3. The best strategic alliances A. are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit. B. are those whose purpose is to create an industry key success factor. C. are those which help a company move quickly from one strategic group to another. D. involve joining forces in R&D to develop new technologies cheaper than a company could develop the
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This note was uploaded on 07/03/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

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Chapter6ReviewA - MGMT 425 Chapters 6 Review Questions 1. A...

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