SEVI 3013 Final Exam UPDATED Exam
Questions and CORRECT Answers
Understand the Build-Borrow-Buy framework and be able to discuss its implications for
decisions on acquiring resources and capabilities - CORRECT ANSWER - a conceptual
model that aids strategic leaders in deciding whether to pursue internal development (build),
enter a contractual arrangement or strategic alliance (borrow), or acquire new resources,
capabilities, and competencies (buy)
Why did Lyft enter into strategic alliances with GM and Waymo? - CORRECT ANSWER -
attempt to close the gap w/ Uber
What were the benefits of these strategic alliances for Lyft? - CORRECT ANSWER --
competitive advantage from Uber
- looking for cash/capital to get things done
What were the benefits of these strategic alliances for GM? - CORRECT ANSWER - - (equity
alliance) allowed the firm to tap into the 2nd largest mobile transportation network
- allowed to enter into the mobile transportations and logistics market
- equity investment also allowed to hedge against uncertainty
What were the benefits of these strategic alliances for Waymo? - CORRECT ANSWER --
participate to get into a new industry
- new market of ridesharing
What are the benefits of strategic alliances (Borrow)? - CORRECT ANSWER - - flexible
What are the benefits of internal development (build)? - CORRECT ANSWER - - controllable
in business
- less expensive
, What are the benefits of mergers/acquisitions (Buy)? - CORRECT ANSWER - - overcoming
barriers of entry
- pre-empt people from getting to business
What are the risks of internal strategic alliances (Borrow)? - CORRECT ANSWER - long
negotiations and a lack of commitment and trust
What are the risks of internal development (build)? - CORRECT ANSWER - time consuming
and overconfident w/ resources
What are the risks of mergers/acquisitions (Buy)? - CORRECT ANSWER - most costly,
complex, and difficult to reverse strategic option
What are strategic alliances? - CORRECT ANSWER - voluntary arrangement between firms
that involves sharing of:
- knowledge
- resources
- capabilities
Why do firms enter into strategic alliances? - CORRECT ANSWER - - strengthen competitive
position
- enter new markets
- hedge against certainty
- access critical complementary assets
- learn new capabilities
Non-equity alliance - CORRECT ANSWER - - partnership based on contracts
- supply agreements, distribution agreements, licensing agreements, franchise
Questions and CORRECT Answers
Understand the Build-Borrow-Buy framework and be able to discuss its implications for
decisions on acquiring resources and capabilities - CORRECT ANSWER - a conceptual
model that aids strategic leaders in deciding whether to pursue internal development (build),
enter a contractual arrangement or strategic alliance (borrow), or acquire new resources,
capabilities, and competencies (buy)
Why did Lyft enter into strategic alliances with GM and Waymo? - CORRECT ANSWER -
attempt to close the gap w/ Uber
What were the benefits of these strategic alliances for Lyft? - CORRECT ANSWER --
competitive advantage from Uber
- looking for cash/capital to get things done
What were the benefits of these strategic alliances for GM? - CORRECT ANSWER - - (equity
alliance) allowed the firm to tap into the 2nd largest mobile transportation network
- allowed to enter into the mobile transportations and logistics market
- equity investment also allowed to hedge against uncertainty
What were the benefits of these strategic alliances for Waymo? - CORRECT ANSWER --
participate to get into a new industry
- new market of ridesharing
What are the benefits of strategic alliances (Borrow)? - CORRECT ANSWER - - flexible
What are the benefits of internal development (build)? - CORRECT ANSWER - - controllable
in business
- less expensive
, What are the benefits of mergers/acquisitions (Buy)? - CORRECT ANSWER - - overcoming
barriers of entry
- pre-empt people from getting to business
What are the risks of internal strategic alliances (Borrow)? - CORRECT ANSWER - long
negotiations and a lack of commitment and trust
What are the risks of internal development (build)? - CORRECT ANSWER - time consuming
and overconfident w/ resources
What are the risks of mergers/acquisitions (Buy)? - CORRECT ANSWER - most costly,
complex, and difficult to reverse strategic option
What are strategic alliances? - CORRECT ANSWER - voluntary arrangement between firms
that involves sharing of:
- knowledge
- resources
- capabilities
Why do firms enter into strategic alliances? - CORRECT ANSWER - - strengthen competitive
position
- enter new markets
- hedge against certainty
- access critical complementary assets
- learn new capabilities
Non-equity alliance - CORRECT ANSWER - - partnership based on contracts
- supply agreements, distribution agreements, licensing agreements, franchise
