Which of the following is one of the reasons that firms make acquisitions?
To move up a learning curve
To standardize their product and service offerings and reduce the levels of differentiation
To gain access to a new capability or competency
To shift th
To gain access to a new capability or competency
GreyWing Products Inc., a large conglomerate, took over a small startup company that had made some breakthrough innovations in the field of telecommunications. This purchase would help GreyWing Products to gain access to the startup company's superior tec
acquisition.
A strategic alliance has the potential to help a firm gain and sustain a competitive advantage when it joins together resources and knowledge that are:
inexpensive to acquire.
common in the industry.
difficult to imitate.
less differentiated.
difficult to imitate.
Which of the following is one of the primary reasons behind the merger between adidas and Reebok?
To gain the advantages of vertical integration
To reduce the levels of differentiation
To overcome a competitive disadvantage
To gain competitive advantage
To overcome a competitive disadvantage
What happens in the third phase of alliance management?
The firm initiating the alliance selects its partner
The incumbent firm designs the alliance
The alliance partners make relation-specific investments
The alliance partners choose an appropriate gover
The alliance partners make relation-specific investments
_____ is best described as the process of merging with a competitor at the same stage of the value chain.
Forward integration
Horizontal integration
Taper integration
Backward integration
Horizontal integration
To secure a strong strategic position in fast-growing emerging markets, which of the following corporate strategies did Kraft Foods primarily pursue by acquiring Cadbury?
Unrelated diversification
Focused differentiation
Horizontal integration
Strategic o
Horizontal integration
The reasons firms enter strategic alliances include all of the following EXCEPT _____.
learning new capabilities
reducing the value gap created
accessing critical complementary assets
lowering costs
reducing the value gap created
In order to address the problem of poor performance in its internal movie creation efforts, Disney:
outsourced its computer-animated movies to Marvel Entertainment.
purchased the graphic display systems developed by Pixar.
acquired Pixar, Marvel Entertain
acquired Pixar, Marvel Entertainment, and Lucasfilm.
A _____ describes the process of joining of two independent companies with their consent to form a combined entity on a permanent basis.
cartel
joint venture
merger
takeover
merger
A non-equity alliance is the most common type of strategic alliance because:
it produces the strongest ties between alliance partners.
it is least flexible.
it is easy to initiate and terminate.
it is based on partial ownership.
it is easy to initiate and terminate.
Which of the following best illustrates a strategic alliance?
Saturn Pharma Inc. teaming up with a research company to invent and market breakthrough vaccines
The electronics subsidiary unit of East Goods Inc. deploying a few of its human resources to the
Saturn Pharma Inc. teaming up with a research company to invent and market breakthrough vaccines
Which of the following is an example of explicit knowledge?
The findings of a research published in a scientific journal
The creative ability of a manager to recognize potential business opportunities
The decision-making capability that is intrinsic to an
The findings of a research published in a scientific journal
The management at Torque Autos Inc. and RedWing Automobiles Inc. realized that by combining the two entities the stakeholders of both the companies would benefit. Their core competencies would act as complementary assets to each other. Consequently, RedWi
A merger
_____ is best described as a form of self-delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary.
Managerial myopia
Self-actualization
Managerial hubris
Self-efficacy
Managerial hubris
Which of the following statements is true of the real-options perspective?
The approach allows the incumbent firm to obtain additional information at predetermined stages.
The approach fails to provide the incumbent firm a hedge against uncertainty.
The a
The approach allows the incumbent firm to obtain additional information at predetermined stages.
Which of the following best illustrates horizontal integration?
B9 Electronics Inc. acquires its competitor, Virtue Electronics Inc., to gain access to its core competencies.
Skin Love Inc. sets up its own retail stores to directly sell its products, rath
B9 Electronics Inc. acquires its competitor, Virtue Electronics Inc., to gain access to its core competencies.
The local real estate companies in a city have joined together and arranged a "Property Fair." The expenses of the event will be shared equally by the sponsors. Though many companies compete against each other, they have joined together because the medium
co-opetition.
When a target firm does not want to be acquired, the acquisition is considered a _____.
hostile takeover
cartel arrangement
strategic commitment
joint venture
hostile takeover
The starting point of the build-borrow-or-buy framework is management's:
evaluation of the firm's existing internal resources to check if they are relevant.
evaluation of the alliance partners' compatibility and commitment.
comparison of the internal tran
identification of a strategic resource gap that will impede future growth.