MGMT 5560 TEST 2- UGA QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MGMT 5560 TEST 2- UGA QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 build-borrow-or-buy framework - Answers How firms achieve growth Build - Answers internal organic growth through development Borrow - Answers external growth through a contract/strategic alliance Buy - Answers External growth through acquiring new resources, capabilities, and competencies Resource bundle - Answers When acquiring a firm, you buy this and it forms the basis of a competitive advantage relevancy, tradability, closeness, integration - Answers Main Issues in the Build-Borrow-or-Buy Framework Relevant - Answers Internal resources are _________ -They are similar to those the firm needs to develop. -They are superior to those of competitors in the targeted area Develop internally - Answers If the firm's internal resources are highly relevant, what should the firm do? Borrowed - Answers If a resource is highly tradable, then it should be ______ Strategic alliance, through an equity alliance or joint venture - Answers If a resource is not highly tradeable, then it should be _______ Equity alliances and joint ventures - Answers Moderate closeness is achieved through ______ & ______ and enables resource borrowing Mergers and acquisitions - Answers are the most costly, complex, and difficult to reverse strategic option. This implies that only if extreme closeness to the resource partner is necessary to understand and obtain its underlying knowledge low relevancy, low tradability, and high need for closeness - Answers 3 conditions needed when integrating the target firm through Mergers and Acquisitions Strategic Alliance - Answers a voluntary arrangement between firms that involves the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services Strengthen Competitive Position - Answers Why do firms enter Strategic Alliances to *change industry structure to the firm's favor *influence industry standards real-options perspective - Answers approach to strategic decision making that breaks down a larger investment decision into a set of smaller decisions that are staged sequentially over time co-opetition strategy - Answers cooperation by competitors to achieve a strategic objective Strategic Alliances - Answers What can help influence industry standards? non-equity alliance - Answers Partnership based on contracts between firms. The most frequent forms are supply agreements, distribution agreements, and licensing agreements. equity alliance - Answers One partner takes partial ownership in the other joint venture - Answers a standalone organization created and jointly owned by two or more parent companies Non equity, joint venture - Answers The most frequent alliance type is ____ and the least frequent is _____ Post-Formation Alliance Management - Answers To create VRIO resource combinations: Build capability through repeated experiences over time repeated alliance exposure improves learning Merger - Answers the joining of two independent companies to form a combined entity acquisition - Answers the purchase of a company by another company takeover - Answers An acquisition in which the target firm did not solicit the acquiring firm's bid for outright ownership. Benefits of M&A's - Answers Reduction in competitive intensity, lower costs and increased differentation Access to new markets and distribution channels & Access to new capabilities and competencies - Answers 2 other reasons for M&A's Synergies - Answers when assets are worth more when used in conjunction with each other than when they are used separately managerial hubris - Answers a form of self-delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary Destory - Answers Deals, on average are more likely to create or destroy value? 50% - Answers How many M&As fail? % Overpayment - Answers Reason why M&As fail, Ineffective due diligence may result in paying an excessive premium for the target company. Managerial hubris exacerbates this problem The winner's curse - Answers The most optimistic bidder usually over-estimates the true value of the firm To grow firms must: - Answers -Possess VRIO resources, capabilities, and/or core competencies. -Leverage existing resources often in conjunction with partners and build new ones. Strategic alliances, M&As - Answers Are the key tools strategists use to grow and compete sustainably Globalization - Answers The process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs. Global Strategy - Answers Part of a firm's corporate strategy to: •Gain and sustain a competitive advantage. •Compete against foreign and domestic companies. Foreign Direct Investment - Answers Investments in value chain activities abroad Multinational Enterprise (MNE) - Answers Deploys resources and capabilities in the procurement, production, and distribution in at least two countries Globalization 1.0 () - Answers -Sales, operations, and some procurement -Strategy flowed from HQ to international sites Globalization 2.0 () - Answers -To reconstruct damage from the war -Focus on European countries, Japan, and Australia -Greater local-responsiveness -HQ set goals, international sites influenced tactics Globalization 3.0 (2000-present) - Answers - Business function locations are based on costs, capabilities, and PESTEL factors - Companies can operate 24/7, 365 days a year 10-25% total - Answers The world is only semi-globalized, by what %? Advantages of going global - Answers -gain access to a larger market -gain access to low-cost input factors -develop new competencies Gain access to a larger market - Answers Helps MNEs with economies of scale and scope Gain Access to Low-Cost Input Factors - Answers - helps MNEs that pursue a low-cost leadership strategy - examples of low-cost raw materials: * lumber, iron ore, oil, and coal -Was a key driver of globalizaiton 1.0 and 2. *during globalization 3.0, firms benefit from lower labor costs in manufacturing and services Develop New Competencies - Answers -helps MNEs that pursue a differentiation strategy - foreign direct investments provide access to: *communities of learning: often contained in specific geographic regions *location economies: benefits from locating value chain activities in optimal geographies Disadvantages of Going Global - Answers -liability of foreignness -loss of reputation -loss of intellectual property Liability of Foreignness - Answers -Unfamiliar cultural environment -Unfamiliar economic environment Loss of Reputation - Answers - one of the most valuable resources that firm may possess * innovation reputation - can be due to low wages, long hours, and poor working and living conditions overseas - local government may be corrupt -minimum safety standards may not be enforceable Loss of Intellectual Property - Answers It can be difficult to protect IP in foreign markets. •Particularly software, movies, and music and copyrights CAGE distance framework - Answers - Guides MNE decisions on which countries to enter Greater distance= more difficult to expand internationally