Sevi 3013 exam 3/final (ch 6-7)
questions and answers already
passed
Build-borrow-buy framework - correct answer ✔✔Conceptual model that aids firms in deciding
whether to pursue internal development (build), enter a contractual arrangement or strategic
alliance (borrow), or acquire new resources, capabilities, and competencies (buy).
if yes, build - correct answer ✔✔What should we do if the firm's internal resources are relevant
in solving the strategic resource gap?
relevant internal resources - correct answer ✔✔if the resources are:
-similar to those the firm needs to develop to solve the strategic resource gap
-superior to those of competitors
key test VRIN
source the resource externally through a contract - correct answer ✔✔-transfer of ownership
-use of the resource
short-term vs long-term contracts - correct answer ✔✔-licensing
-franchising
-strategic alliances
not close to partner - correct answer ✔✔short-term and/or long-term contracts with the
external resource partner
, closer to the partner - correct answer ✔✔equity alliances and/or joint ventures with the
external resource partner
very close with partner - correct answer ✔✔mergers and/or acquisitions with the external
resource partner
integrating mergers and acquistions - correct answer ✔✔the most costly, complex, and difficult
to reverse
strategic alliance - correct answer ✔✔a voluntary arrangement between firms that involves
sharing of knowlwdge, resources, and capabilities
intent of strategic alliances - correct answer ✔✔joint development of new processes, new
products, and new services
why firms enter strategic alliances - correct answer ✔✔-strengthen competitive position
-enter new markets
-hedge against uncertainty
-access critical complementary assets
-learn new capabilites
hedge against uncertainty: real options approach - correct answer ✔✔-approach to strategic
decision making
-breaks down a larger investment decision into a set of smaller decisions
-staged sequentially over time
-allows firms to obtain information in stages
questions and answers already
passed
Build-borrow-buy framework - correct answer ✔✔Conceptual model that aids firms in deciding
whether to pursue internal development (build), enter a contractual arrangement or strategic
alliance (borrow), or acquire new resources, capabilities, and competencies (buy).
if yes, build - correct answer ✔✔What should we do if the firm's internal resources are relevant
in solving the strategic resource gap?
relevant internal resources - correct answer ✔✔if the resources are:
-similar to those the firm needs to develop to solve the strategic resource gap
-superior to those of competitors
key test VRIN
source the resource externally through a contract - correct answer ✔✔-transfer of ownership
-use of the resource
short-term vs long-term contracts - correct answer ✔✔-licensing
-franchising
-strategic alliances
not close to partner - correct answer ✔✔short-term and/or long-term contracts with the
external resource partner
, closer to the partner - correct answer ✔✔equity alliances and/or joint ventures with the
external resource partner
very close with partner - correct answer ✔✔mergers and/or acquisitions with the external
resource partner
integrating mergers and acquistions - correct answer ✔✔the most costly, complex, and difficult
to reverse
strategic alliance - correct answer ✔✔a voluntary arrangement between firms that involves
sharing of knowlwdge, resources, and capabilities
intent of strategic alliances - correct answer ✔✔joint development of new processes, new
products, and new services
why firms enter strategic alliances - correct answer ✔✔-strengthen competitive position
-enter new markets
-hedge against uncertainty
-access critical complementary assets
-learn new capabilites
hedge against uncertainty: real options approach - correct answer ✔✔-approach to strategic
decision making
-breaks down a larger investment decision into a set of smaller decisions
-staged sequentially over time
-allows firms to obtain information in stages
