Strategic MGMT Exam 3 Questions With Complete
Solutions
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Terms in this set (89)
cooperative strategy in which firms combine
Strategic Alliance resources and capabilities to create a competitive
advantage
three major types of Joint Venture, Equity Strategic Alliance, Non-Equity
strategic alliances firms Strategic Alliance
two or more firms create a legally independent
Joint Venture company to share resources and capabilities to
develop a competitive advantage
an alliance in which two or more firms own different
percentages of the company they have formed by
Equity Strategic Alliance
combining some of their resources and capabilities to
create a competitive advantage
two or more firms develop a contractual relationship
Non-Equity Strategic
to share some of their unique resources and
Alliance
capabilities to create a competitive advantage
1999 - Germany's Siemens AG and Japan's Fujitsu Ltd.
each owned 50 percent of the joint venture Fujitsu
Joint Venture example Siemens Computers B.V., later to become Fujitsu
Technology Solutions when Fujitsu bought Siemens'
share of the joint venture
, Japanese telecom operator NTT DOCOMO Inc. and
Equity Strategic Alliance Chinese Internet search operator Baidu Inc.
example established an equity strategic alliance in China to
distribute games and other mobile-phone content
Licensing agreements, distribution agreements, and
Non-Equity Strategic supply contracts. Hewlett-Packard (HP) actively uses
Alliance example this type of cooperative strategy to license some of
its intellectual property
1) Complimentary Strategic Alliance, 2) Competition
the four business-level
Response Strategy, 3) Uncertainty Reducing Strategy,
cooperative strategies?
4) Competition Reducing Strategy (see notes)
three corporate-level 1) Diversifying Strategic Alliance, 2) Synergistic
cooperative strategies? Strategic Alliance, 3) Franchising
• Partners may choose to act opportunistically.
• Partner competencies may be misrepresented.
What risks are firms likely • Partner may fail to make available the
to experience as they use complementary resources and capabilities that were
cooperative strategies? committed.
• One partner may make investments specific to the
alliance while the other partner may not.
●Decrease in foreign firms listing on U.S. stock
exchanges at the same time as listing on foreign
exchanges increased
● Internal auditing scrutiny has improved and there is
All of the following are
greater trust in financial reporting
consequences of the
● Section 404 creates excessive costs for firms
Sarbanes-Oxley Act
(Determining governance practices that strike a
balance between protecting stakeholders' interests
and allowing firms to implement strategies with some
degree of risk is difficult)
, a set of mechanisms used to manage the relationships
(and conflicting interests) among stakeholders, and to
What is corporate
determine and control the strategic direction and
governance?
performance of organizations (aligning strategic
decisions with company values)
What factors account for When CEOs are motivated to act in the best interests
the considerable amount of the firm—particularly, the shareholders—the
of attention corporate company's value should increase.
governance receives from
several parties, including
shareholder activists,
business press writers, and
academic scholars?
Why is governance Successfully dealing with this challenge is important,
necessary to control as evidence suggests that corporate governance is
managers' decisions? critical to firms' success.
●Apparent failure of corporate governance
mechanisms to adequately monitor and control top-
The 2 reasons for
level managers' decisions during recent times
Corporate Governance
●Evidence that a well-functioning corporate
Emphasis
governance and control system can create a
competitive advantage for an individual firm
Risk Bearing specialist (principal) paying
What is an agency
compensation to a managerial decision making
relationship?
specialist (agent).
What is managerial seeking self-interest with guile (i.e., cunning or deceit)
opportunism?
Solutions
Save
Terms in this set (89)
cooperative strategy in which firms combine
Strategic Alliance resources and capabilities to create a competitive
advantage
three major types of Joint Venture, Equity Strategic Alliance, Non-Equity
strategic alliances firms Strategic Alliance
two or more firms create a legally independent
Joint Venture company to share resources and capabilities to
develop a competitive advantage
an alliance in which two or more firms own different
percentages of the company they have formed by
Equity Strategic Alliance
combining some of their resources and capabilities to
create a competitive advantage
two or more firms develop a contractual relationship
Non-Equity Strategic
to share some of their unique resources and
Alliance
capabilities to create a competitive advantage
1999 - Germany's Siemens AG and Japan's Fujitsu Ltd.
each owned 50 percent of the joint venture Fujitsu
Joint Venture example Siemens Computers B.V., later to become Fujitsu
Technology Solutions when Fujitsu bought Siemens'
share of the joint venture
, Japanese telecom operator NTT DOCOMO Inc. and
Equity Strategic Alliance Chinese Internet search operator Baidu Inc.
example established an equity strategic alliance in China to
distribute games and other mobile-phone content
Licensing agreements, distribution agreements, and
Non-Equity Strategic supply contracts. Hewlett-Packard (HP) actively uses
Alliance example this type of cooperative strategy to license some of
its intellectual property
1) Complimentary Strategic Alliance, 2) Competition
the four business-level
Response Strategy, 3) Uncertainty Reducing Strategy,
cooperative strategies?
4) Competition Reducing Strategy (see notes)
three corporate-level 1) Diversifying Strategic Alliance, 2) Synergistic
cooperative strategies? Strategic Alliance, 3) Franchising
• Partners may choose to act opportunistically.
• Partner competencies may be misrepresented.
What risks are firms likely • Partner may fail to make available the
to experience as they use complementary resources and capabilities that were
cooperative strategies? committed.
• One partner may make investments specific to the
alliance while the other partner may not.
●Decrease in foreign firms listing on U.S. stock
exchanges at the same time as listing on foreign
exchanges increased
● Internal auditing scrutiny has improved and there is
All of the following are
greater trust in financial reporting
consequences of the
● Section 404 creates excessive costs for firms
Sarbanes-Oxley Act
(Determining governance practices that strike a
balance between protecting stakeholders' interests
and allowing firms to implement strategies with some
degree of risk is difficult)
, a set of mechanisms used to manage the relationships
(and conflicting interests) among stakeholders, and to
What is corporate
determine and control the strategic direction and
governance?
performance of organizations (aligning strategic
decisions with company values)
What factors account for When CEOs are motivated to act in the best interests
the considerable amount of the firm—particularly, the shareholders—the
of attention corporate company's value should increase.
governance receives from
several parties, including
shareholder activists,
business press writers, and
academic scholars?
Why is governance Successfully dealing with this challenge is important,
necessary to control as evidence suggests that corporate governance is
managers' decisions? critical to firms' success.
●Apparent failure of corporate governance
mechanisms to adequately monitor and control top-
The 2 reasons for
level managers' decisions during recent times
Corporate Governance
●Evidence that a well-functioning corporate
Emphasis
governance and control system can create a
competitive advantage for an individual firm
Risk Bearing specialist (principal) paying
What is an agency
compensation to a managerial decision making
relationship?
specialist (agent).
What is managerial seeking self-interest with guile (i.e., cunning or deceit)
opportunism?
