Chapter 9—Cooperative Strategy
TRUE/FALSE
1. A cooperative strategy is a means by which firms work together to achieve a shared objective.
ANS: T PTS: 1 DIF: Easy REF: 254
OBJ: 09-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
2. According to the chapter Opening Case, IBM has specific performance-related objectives (such as
developing leading-edge chip technology) that it wants to accomplish as it engages in an array of
cooperative arrangements.
ANS: T PTS: 1 DIF: Easy REF: 253
OBJ: 09-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
3. According to the chapter Opening Case, IBM used internal means to facilitate its change from solely
producing hardware to adding services and software.
ANS: F PTS: 1 DIF: Medium REF: 254
OBJ: 09-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
4. Although growing in popularity with small and medium-sized firms because they can gain economies
of scale, large companies tend to avoid strategic alliances.
ANS: F PTS: 1 DIF: Medium REF: 255
OBJ: 09-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
5. If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large American chemical
company to form a new company focused on creating advanced skin care products, this would be
considered a joint venture.
ANS: T PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
6. Strategic alliances are cooperative strategies between firms that combine their resources and
capabilities to create a competitive advantage.
ANS: T PTS: 1 DIF: Medium REF: 255
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff
& Rubin: Strategic & systems skills
, 7. Nonequity strategic alliances exist when two or more firms join together to create an independent firm.
ANS: F PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
8. Nonequity strategic alliances are formed when one partner owns a much larger (or inequitable) share
of the joint venture than do the remaining partner(s).
ANS: F PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
9. Cooperation in slow-cycle markets is extremely rare because these industries are declining.
ANS: F PTS: 1 DIF: Medium REF: 258 (Table 9.1)
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
10. Firms in slow-cycle markets can use alliances to enter restricted markets or to establish franchises in
new markets.
ANS: T PTS: 1 DIF: Medium REF: 258
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
11. Acquisitions are the most common cooperative strategy used in standard-cycle markets.
ANS: F PTS: 1 DIF: Medium REF: 259-260
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
12. Firms in standard-cycle markets seek to gain economies of scale through cooperative alliances.
ANS: T PTS: 1 DIF: Easy REF: 258 (Table 9.1)
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
13. In a vertical complementary alliance, firms share some of their resources and capabilities from the
same stage of the value chain to create a competitive advantage.
ANS: F PTS: 1 DIF: Medium REF: 260 | 263
OBJ: 09-03 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
TRUE/FALSE
1. A cooperative strategy is a means by which firms work together to achieve a shared objective.
ANS: T PTS: 1 DIF: Easy REF: 254
OBJ: 09-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
2. According to the chapter Opening Case, IBM has specific performance-related objectives (such as
developing leading-edge chip technology) that it wants to accomplish as it engages in an array of
cooperative arrangements.
ANS: T PTS: 1 DIF: Easy REF: 253
OBJ: 09-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
3. According to the chapter Opening Case, IBM used internal means to facilitate its change from solely
producing hardware to adding services and software.
ANS: F PTS: 1 DIF: Medium REF: 254
OBJ: 09-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
4. Although growing in popularity with small and medium-sized firms because they can gain economies
of scale, large companies tend to avoid strategic alliances.
ANS: F PTS: 1 DIF: Medium REF: 255
OBJ: 09-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
5. If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large American chemical
company to form a new company focused on creating advanced skin care products, this would be
considered a joint venture.
ANS: T PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
6. Strategic alliances are cooperative strategies between firms that combine their resources and
capabilities to create a competitive advantage.
ANS: T PTS: 1 DIF: Medium REF: 255
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff
& Rubin: Strategic & systems skills
, 7. Nonequity strategic alliances exist when two or more firms join together to create an independent firm.
ANS: F PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
8. Nonequity strategic alliances are formed when one partner owns a much larger (or inequitable) share
of the joint venture than do the remaining partner(s).
ANS: F PTS: 1 DIF: Medium REF: 256
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills
9. Cooperation in slow-cycle markets is extremely rare because these industries are declining.
ANS: F PTS: 1 DIF: Medium REF: 258 (Table 9.1)
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
10. Firms in slow-cycle markets can use alliances to enter restricted markets or to establish franchises in
new markets.
ANS: T PTS: 1 DIF: Medium REF: 258
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
11. Acquisitions are the most common cooperative strategy used in standard-cycle markets.
ANS: F PTS: 1 DIF: Medium REF: 259-260
OBJ: 09-02 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
12. Firms in standard-cycle markets seek to gain economies of scale through cooperative alliances.
ANS: T PTS: 1 DIF: Easy REF: 258 (Table 9.1)
OBJ: 09-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence |
Dierdorff & Rubin: Strategic & systems skills
13. In a vertical complementary alliance, firms share some of their resources and capabilities from the
same stage of the value chain to create a competitive advantage.
ANS: F PTS: 1 DIF: Medium REF: 260 | 263
OBJ: 09-03 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
