SEVI 3013 Chapter 6 UPDATED ACTUAL
Exam Questions and CORRECT Answers
In what way does the strategic alliance between GM and Lyft allow GM to hedge against
uncertainty? - CORRECT ANSWER - It gives GM access to the market of the future, in
which private car ownership model is likely to shift in favor of fleet ownership and management.
A firm must decide whether to build, borrow, or buy to answer the question of - CORRECT
ANSWER - how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework? - CORRECT
ANSWER - strategic alliances
internal development
acquisition of new resources
Which framework can companies use to assess whether their internal resources are superior to
those of competitors in the targeted area? - CORRECT ANSWER - VRIO framework
In general, if a resource is highly tradable, then it should be ______ using a license or contractual
agreement - CORRECT ANSWER - borrowed
How does Lyft benefit from its strategic alliances with GM and Waymo? - CORRECT
ANSWER - It allows Lyft to more effectively compete against Uber
What are three options used by executives to drive firm growth? - CORRECT ANSWER -
acquisitions
alliances
organic growth
, A conceptual model that helps strategists choose between seeking internal development, entering
into an alliance, or acquiring new resources, capabilities, and competencies is called the "______
framework." - CORRECT ANSWER - Build-Borrow-Buy
Internal development should occur when the firm's resources are ______ to those of competitors
in the targeted area - CORRECT ANSWER - both similar and superior
A firm should use an equity alliance, a joint venture, or an outright acquisition in order to gain
use of a resource when - CORRECT ANSWER - the resource is not easily traded
What are the most expensive, complicated, and difficult to undo options used to grow a firm? -
CORRECT ANSWER - mergers
acquisitions
Strategists can grow their firms by growing organically through internal development or
externally through alliances and - CORRECT ANSWER - acquisitions
A voluntary arrangement between firms to share knowledge, resources, and capabilities to
develop products, processes, or services is known as a - CORRECT ANSWER - strategic
alliance
Which of the following best exemplifies the relational view of competitive advantage? -
CORRECT ANSWER - The strategic alliance between company A and company B creates
more value than either company individually.
Which of the following are reasons why firms enter into strategic alliances? - CORRECT
ANSWER - to enter new markets
to learn new capabilities
to strengthen their competitive position
Exam Questions and CORRECT Answers
In what way does the strategic alliance between GM and Lyft allow GM to hedge against
uncertainty? - CORRECT ANSWER - It gives GM access to the market of the future, in
which private car ownership model is likely to shift in favor of fleet ownership and management.
A firm must decide whether to build, borrow, or buy to answer the question of - CORRECT
ANSWER - how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework? - CORRECT
ANSWER - strategic alliances
internal development
acquisition of new resources
Which framework can companies use to assess whether their internal resources are superior to
those of competitors in the targeted area? - CORRECT ANSWER - VRIO framework
In general, if a resource is highly tradable, then it should be ______ using a license or contractual
agreement - CORRECT ANSWER - borrowed
How does Lyft benefit from its strategic alliances with GM and Waymo? - CORRECT
ANSWER - It allows Lyft to more effectively compete against Uber
What are three options used by executives to drive firm growth? - CORRECT ANSWER -
acquisitions
alliances
organic growth
, A conceptual model that helps strategists choose between seeking internal development, entering
into an alliance, or acquiring new resources, capabilities, and competencies is called the "______
framework." - CORRECT ANSWER - Build-Borrow-Buy
Internal development should occur when the firm's resources are ______ to those of competitors
in the targeted area - CORRECT ANSWER - both similar and superior
A firm should use an equity alliance, a joint venture, or an outright acquisition in order to gain
use of a resource when - CORRECT ANSWER - the resource is not easily traded
What are the most expensive, complicated, and difficult to undo options used to grow a firm? -
CORRECT ANSWER - mergers
acquisitions
Strategists can grow their firms by growing organically through internal development or
externally through alliances and - CORRECT ANSWER - acquisitions
A voluntary arrangement between firms to share knowledge, resources, and capabilities to
develop products, processes, or services is known as a - CORRECT ANSWER - strategic
alliance
Which of the following best exemplifies the relational view of competitive advantage? -
CORRECT ANSWER - The strategic alliance between company A and company B creates
more value than either company individually.
Which of the following are reasons why firms enter into strategic alliances? - CORRECT
ANSWER - to enter new markets
to learn new capabilities
to strengthen their competitive position
