Mindtap Quiz (Chapter 9) Proctored Exam Questions And Complete Answers.

Vertical complementary strategic alliance - correct answer A tech startup is exploring ways to develop an app that allows patients to visit their doctors virtually. The startup is partnering with a local practice to compile data, including symptoms, common ailments, and clinical expertise, to be accessible through the interface of the app. The company anticipates the project will take two to three years. What type of business-level strategy best fits this partnership? a. Competition-reducing strategy Vertical complementary strategic alliance c. Uncertainty-reducing strategy d. Competition response strategy Firms can partner to share resources for separate parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain. - correct answer What are the advantages of choosing a vertical complementary strategic alliance versus a horizontal complementary strategic alliance? Firms can partner to share resources for separate parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain. b. Firms can partner to share resources for the same parts of the value chain, which helps them if they are pursuing projects in which they do not have previous experience in specific stages of the value chain. c. Firms can prevent their partners from having access to their most valuable resources, which helps the firms prevent opportunistic behavior by their partners. d. A firm can give its partner access to its most valuable resources, which enables both partners to maximize its success. Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success. - correct answer How is an opportunity maximization approach a more effective alternative to the cost minimization approach of managing cooperative strategy? Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success. b. Opportunity maximization enables firms to decrease their cost structure, which leads to an increased likelihood of success. c. Opportunity maximization leads to more definite contractual obligations for each partner, which leads to an increased likelihood of success. d. Opportunity maximization allows firms to take advantage of each other's resources without limitations imposed by one another. Network cooperative strategy - correct answer In what type of strategy do several firms form multiple partnerships in order to reach their shared objectives? a. Complementary strategic alliance b. Cross-border strategic alliance Network cooperative strategy d. Uncertainty reducing strategy Equity - correct answer Because the resources and relationships among partners is complex, most R&D strategic alliances are what type? Equity b. Nonequity c. Cross-border d. Joint venture equity strategic alliance. - correct answer An automotive company has entered into a strategic alliance with a motor manufacturer. The automotive company is depending on the motor manufacturer's expertise and experience in developing high horsepower motors for small sports cars. The automotive company holds a 60 percent stake in the partnership, and the motor manufacturer holds 40 percent. The strategic alliance between the two firms is best described as a(n): a. cooperative strategy. b. joint venture. equity strategic alliance. d. nonequity strategic alliance. increase competitive advantage. - correct answer The main objective of the collaborating firms in a cooperative strategy is to: increase competitive advantage. b. neutralize each other's competitive advantage. c. decrease the other's competitive advantage. d. decrease both partners' competitive advantage. cooperative strategy. - correct answer A strategy in which firms collaborate to achieve a shared objective is known as: a. corporate strategy. b. a strategic alliance. cooperative strategy. d. international strategy. Exploit economies of scale and/or scope that exist between the partners. - correct answer A stable alliance network is formed primarily to do what? a. Explore new ideas that may lead to product innovation b. Allow partners to develop new markets Exploit economies of scale and/or scope that exist between the partners. d. Enable partners to gain entry into new markets