Sevi 3013 exam 3/final (ch 6-7) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
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 srategic 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
compelementary assets, complete - CORRECT ANSWER - strategic alliances can provide
access to _______ or _______ the value chain
ACTUAL Exam Questions and CORRECT
Answers
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 srategic 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
compelementary assets, complete - CORRECT ANSWER - strategic alliances can provide
access to _______ or _______ the value chain
