E2, Quizzes 9 and 10 Flashcards
Why did incumbent pharmaceutical firms enter into hundreds of strategic alliances with biotech startups?
to make small-scale investments in ventures poised to disrupt existing market economics
Dev is a strategist for Stark Industries, which produces high-quality HD movie cameras. They need a specific material for a new camera, which is manufactured in large quantities by LENS Inc.
However, this material is difficult to trade. What is the best strategy for Dev to suggest?
Stark Industries should acquire LENS.
A microchip company wants a computer produce more powerful tablets, therefore using more chips. The same computer company wants the microchip maker to create chips with faster processing power. What approach could these companies take?
The companies should enter a strategic alliance to bring about a win-win situation for them to limit rivals’ power.
Tom is the CEO of Endless Possibilities Inc. and proudly boasts his firms slogan, “We Guarantee Success.”
However, Tom’s constituents presented him with data suggesting their latest project should not move forward. Tom is undeterred and decides to move forward, a classic example of:
managerial hubris
Tom is the CEO of Buildit.com and wants a physical retail presence. So, he formed a joint venture with a major real estate tycoon who has significant foothold in the commercial property sector. This venture will require exchanging more than just codified information; as such, Tom should expect to share..
both tacit and explicit knowledge
Grace wants to form a voluntary arrangement with another firm in order to gain more flexibility in her supply chain, complementary to other support activities, and strengthen her firm’s overall competitive position. Grace is looking for a simple and (most) common type of alliance:
nonequity alliance (contractual, voluntary)
Several notable firms like Eli Lilly, HP, Proctor and Gamble, etc. each wish to become the alliance “Partner of Choice” for small tech. ventures, colleges, etc.
They each know that ________________ is a necessary, critical element for a successful alliance.
building inter-organizational trust
Bill’s Hockey Pucks Inc. wishes to pursue international markets. In order to do this, they may wish to consider a possible…
strategic alliance with another firm already est. in those markets
American Snacks Inc., a conglomerate, has a strategic alliance with French snack-makers Tres Bien. The french managers are concerned that the different BUs of American Snacks will set up partnerships with competitors in France. What can owners/mgmt do to respond to this concern?
arrange for the alliance to be managed at the corporate level
Firms that consider international expansion will often examine absolute metrics on which countries to pursue investments in but also consider relative distance. To help firms decide where to compete the ________ was developed to help make this decision.
CAGE distance framework
How will an increase in coordinated economic and political integration between countries affect the world economy?
there will be gains in social welfare and living standards
What is a feature of the Globalization 2.0 stage?
multinational enterprises, MNEs, began to create smaller, self-contained replicas of themselves in a few key countries
When Susan, CEO of Simulation Systems, expanded her operations to a different international market, she was surprised to see how little competition she faced. In her home country, the competition for these systems is incredibly fierce. Which of the four categories of Porter’s Diamond Framework best explains this advantage?
competitive intensity in the focal industry
Thomas believes natural resources are the one and only mechanism that can help him achieve an international competitive advantage. Which statement best represents an appropriate response to that theory?
Natural resources are often not needed to generate world-leading companies because competitive advantage is often based on other factor endowments such as human capital and know-how
Vinny is looking to employ a ______ ________ strategy, where he would take advantage of economies of scale and location economies. He wishes to pursue and est. a global division of labor based on wherever best-of-class capabilities reside at the lowest possible cost.
global standardization
Duke & Duke Autos has shifted R&D from its home country to Germany, allowing the company to better understand the latest developments in the automotive industry. In this scenario, the firm is reaping the benefits of…
location economies
Lucy wishes to have more control with her international strategy and is willing to increase her firms’ investments in foreign markets. She considers creating a subsidiary but also wishes to build a manufacturing plant from the ground up. Lucy is most interested in…
greenfield operations strategy
Raul is the COO of Black Mesa Inc and believes his domestic market is saturated and wishes to go global. What would serve as an advantage for Raul if he pursues international markets?
Raul could gain access to cheaper raw materials in a foreign country, thus lowering his input costs
