SEVI Exam 3 questions & correct answers rated A+

SEVI Exam 3 questions & correct
answers rated A+

Build-Borrow-Buy Framework

Framework to help a firm decide whether to develop internally, borrow through a contractual
arrangement or strategic alliance or acquire new capabilities and competencies




Build

Internal organic growth through development




Borrow

External growth though a contract/strategic alliance




Buy

External growth through acquiring new resources, capabilities, and competencies




Relevancy

Internal resources are:

- Similar to those the firm needs to develop

- Superior to those of competitors in the targeted area

- Develop internally if resource is highly relevant

, Tradability

Firm creates contract to:

- Transfer ownership

- Allow use of the resource

- Supports borrowing resources




Closeness

Can be achieved through:

- Equity alliances

- Joint ventures

- Enables resource borrowing




Integration

Conditions for integrating the target firm:

- Low relevance

- Low tradability

- High need for closeness




How ____ are the firm's existing internal resources to solving the resource gap?

Relevant