GBA 490 CHAPTER 6 EXAM QUESTIONS
AND ANSWERS RATED A.
1. (p. 161) Once a company has decided to employ a particular generic
competitive strategy, then it must make such additional strategic choices as
A. Whether to enter into strategic alliances or collaborative partnerships
B. Whether and when to employ offensive and defensive moves
C. What type of Web site strategy to employ
D. Whether to integrate forward or backward into more stages of the industry
value chain
E. All of the above
A. Whether to enter into strategic alliances or collaborative partnerships
2. (p. 161) Which one of the following is not a strategic choice that a company
must make to complement and supplement its choice of one of the five generic
competitive strategies?
A. Whether to enter into strategic alliances or collaborative partnerships
B. Whether and when to employ offensive and defensive moves
C. Whether to employ a market share leadership strategy
D. Whether to integrate forward or backward into more stages of the industry
value chain
E. Whether to bolster the company's market position and competitiveness via
acquisition or merger
C. Whether to employ a market share leadership strategy
3. (p. 163) Strategic alliances
A. Are the cheapest means of developing new technologies and getting new
products to market quickly
B. Are collaborative arrangements where two or more companies join forces to
achieve mutually beneficial strategic outcomes
C. Are a proven means of reducing the costs of performing value chain activities
D. Are best used to insulate a company from the impact of the five competitive
forces
E. Help insulate a firm from the adverse impacts of industry driving forces
,B. Are collaborative arrangements where two or more companies join forces to
achieve mutually beneficial strategic outcomes
4. (p. 163) 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
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
5. (p. 163) 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
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
6. (p. 165) 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 technology on its own
E. Aim at raising an industry's barriers to entry
A. Are highly selective, focusing on particular value chain activities and on obtaining
a particular competitive benefit
7. (p. 165) Companies racing against rivals for global market leadership need
strategic alliances and collaborative partnerships with companies in foreign
countries in order to
A. Combat the bargaining power of foreign suppliers and help defend against
the competitive threat of substitute products produced by foreign rivals
B. Help raise needed financial capital from foreign banks and use the brand
names of their partners to make sales to foreign buyers
C. Get into critical country markets quickly and accelerate the process of
building a potent global presence, gain inside knowledge about unfamiliar
markets and cultures and access valuable skills and competencies that are
concentrated in particular geographic locations
D. Help wage price wars against foreign competitors
E. Exercise better control over efforts to revamp the global industry value chain
C. Get into critical country markets quickly and accelerate the process of building a
potent global presence, gain inside knowledge about unfamiliar markets and
cultures and access valuable skills and competencies that are concentrated in
particular geographic locations
8. (p. 165) A company racing to seize opportunities on the frontiers of
advancing technology often utilizes strategic alliances and collaborative
partnerships in order to
A. Discourage rival companies from merging with or acquiring the very
companies that it is partnering with
B. Reduce overall business risk and raise entry barriers into the newly emerging
industry
C. Help master new technologies and build new expertise and competencies
faster than would be possible through internal efforts, establish a stronger
AND ANSWERS RATED A.
1. (p. 161) Once a company has decided to employ a particular generic
competitive strategy, then it must make such additional strategic choices as
A. Whether to enter into strategic alliances or collaborative partnerships
B. Whether and when to employ offensive and defensive moves
C. What type of Web site strategy to employ
D. Whether to integrate forward or backward into more stages of the industry
value chain
E. All of the above
A. Whether to enter into strategic alliances or collaborative partnerships
2. (p. 161) Which one of the following is not a strategic choice that a company
must make to complement and supplement its choice of one of the five generic
competitive strategies?
A. Whether to enter into strategic alliances or collaborative partnerships
B. Whether and when to employ offensive and defensive moves
C. Whether to employ a market share leadership strategy
D. Whether to integrate forward or backward into more stages of the industry
value chain
E. Whether to bolster the company's market position and competitiveness via
acquisition or merger
C. Whether to employ a market share leadership strategy
3. (p. 163) Strategic alliances
A. Are the cheapest means of developing new technologies and getting new
products to market quickly
B. Are collaborative arrangements where two or more companies join forces to
achieve mutually beneficial strategic outcomes
C. Are a proven means of reducing the costs of performing value chain activities
D. Are best used to insulate a company from the impact of the five competitive
forces
E. Help insulate a firm from the adverse impacts of industry driving forces
,B. Are collaborative arrangements where two or more companies join forces to
achieve mutually beneficial strategic outcomes
4. (p. 163) 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
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
5. (p. 163) 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
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
6. (p. 165) 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 technology on its own
E. Aim at raising an industry's barriers to entry
A. Are highly selective, focusing on particular value chain activities and on obtaining
a particular competitive benefit
7. (p. 165) Companies racing against rivals for global market leadership need
strategic alliances and collaborative partnerships with companies in foreign
countries in order to
A. Combat the bargaining power of foreign suppliers and help defend against
the competitive threat of substitute products produced by foreign rivals
B. Help raise needed financial capital from foreign banks and use the brand
names of their partners to make sales to foreign buyers
C. Get into critical country markets quickly and accelerate the process of
building a potent global presence, gain inside knowledge about unfamiliar
markets and cultures and access valuable skills and competencies that are
concentrated in particular geographic locations
D. Help wage price wars against foreign competitors
E. Exercise better control over efforts to revamp the global industry value chain
C. Get into critical country markets quickly and accelerate the process of building a
potent global presence, gain inside knowledge about unfamiliar markets and
cultures and access valuable skills and competencies that are concentrated in
particular geographic locations
8. (p. 165) A company racing to seize opportunities on the frontiers of
advancing technology often utilizes strategic alliances and collaborative
partnerships in order to
A. Discourage rival companies from merging with or acquiring the very
companies that it is partnering with
B. Reduce overall business risk and raise entry barriers into the newly emerging
industry
C. Help master new technologies and build new expertise and competencies
faster than would be possible through internal efforts, establish a stronger
