Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf
Strategic Management
Exam #3 – practice
questions with answers
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf
,Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
Build-Borrow-Buy Framework 1. Build: internal organic growth through development
2. Borrow: external growth through a contract/ strategic alliance
3. Buy: external growth through acquiring new resources, capabilities, and
competencies
Key Questions in Build-Borrow-Buy 1. How relevant are internal resources? (if high, build)
2. How tradable are the targeted resources? (if high, borrow contractually)
3. How close to your resource partner? (if low, borrow with equity)
4. How well can you integrate the target firm? (if high, buy! if low reformulate
options)
Main Issues in Build-Borrow-Buy Framework 1. Relevancy of current resources
2. Tradability of targeted resources
3. Closeness to resource partner
4. Integration of targeted firm (acquisition)
Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
, Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
Internal Resources are Relevant if 1. They are similar to those the firm needs to develop
2. They are superior to those of competitors in the area
Tradability - The firm create a contract to transfer ownership and allow use of the resource
- Contracts support borrowing resources (Licensing and franchising or contracts)
Closeness - Can be achieved through alliances enabling resource borrowing (Equity, Joint)
- M&As are complex and costly (used when extreme closeness is necessary)
Conditions for Integration 1. Low relevancy
2. Low tradability
3. High need for closeness
(Consider other options first)
Strategic Alliances - Voluntary arrangement between firms involves the sharing of knowledge,
resources, and capabilities
- To develop processes, products, or services
Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
Strategic Management
Exam #3 – practice
questions with answers
Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf Strategic Management Exam #3 – practice questions with answers.pdf
,Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
Build-Borrow-Buy Framework 1. Build: internal organic growth through development
2. Borrow: external growth through a contract/ strategic alliance
3. Buy: external growth through acquiring new resources, capabilities, and
competencies
Key Questions in Build-Borrow-Buy 1. How relevant are internal resources? (if high, build)
2. How tradable are the targeted resources? (if high, borrow contractually)
3. How close to your resource partner? (if low, borrow with equity)
4. How well can you integrate the target firm? (if high, buy! if low reformulate
options)
Main Issues in Build-Borrow-Buy Framework 1. Relevancy of current resources
2. Tradability of targeted resources
3. Closeness to resource partner
4. Integration of targeted firm (acquisition)
Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
, Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
Internal Resources are Relevant if 1. They are similar to those the firm needs to develop
2. They are superior to those of competitors in the area
Tradability - The firm create a contract to transfer ownership and allow use of the resource
- Contracts support borrowing resources (Licensing and franchising or contracts)
Closeness - Can be achieved through alliances enabling resource borrowing (Equity, Joint)
- M&As are complex and costly (used when extreme closeness is necessary)
Conditions for Integration 1. Low relevancy
2. Low tradability
3. High need for closeness
(Consider other options first)
Strategic Alliances - Voluntary arrangement between firms involves the sharing of knowledge,
resources, and capabilities
- To develop processes, products, or services
Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf Strategic Management Exam #3.pdf
