International Management Exam 3 Chapter 9 Questions & Answers!!
0 view 0 purchase
Course
International Management
Institution
International Management
Strategic Alliance Issues - ANSWER• They may be poorly designed or managed.
• Partnering with a company from a different nation compounds management difficulties.
• Partners may disagree on how to run the business.
• Even profitable alliances can be torn by conflict.
Strategic Allianc...
International Management Exam 3
Chapter 9 Questions & Answers!!
Strategic Alliance Issues - ANSWER• They may be poorly designed or managed.
• Partnering with a company from a different nation compounds management difficulties.
• Partners may disagree on how to run the business.
• Even profitable alliances can be torn by conflict.
Strategic Alliance Benefits - ANSWER• Gain access to local partner's knowledge of market, meet
government requirements, share risks, share technology, economies of scale, access lower cost raw
materials or labor.
Alliances combining same value-chain activities gain what? - ANSWERefficiencies, merge talents, and
share risks.
What are the three main types of strategic alliances? - ANSWER• Informal international cooperative
alliances
• Formal international cooperative alliances (ICAs)
• International joint ventures (IJVs)
Both formal ICAs and IJV require a negotiated and signed contract.
• Negotiation issues include: - ANSWER• Products or services of the alliance
• Equity contributions (cash or other resources) • Management structure
• "Prenuptial" agreements regarding dissolution
Where to link in value chain depends on what? - ANSWERthe firm's strategic objective.
Criteria for Choosing a Partner - ANSWER• Seek strategic complementarity.
• Pick a partner with complementary skills.
• Seek those with compatible management styles.
• Seek a partner that will provide the "right" level of mutual dependency; partners must rely on each
other.
, • Avoid the "anchor" partner: a partner that holds back the strategic alliance because it cannot or
will not provide its share of the funding.
• Be cautious of the "elephant-and-ant" complex.
• This occurs when two companies are greatly unequal in size.
• Assess operating policy differences with potential partners.
• Assess the difficulty of cross-cultural communication with a likely partner.
Design of the organization depends on the what? - ANSWERtype of alliance chosen.
Informal ICAs often do not require what? - ANSWERformal design
Formal ICAs may require what? - ANSWERa separate organizational unit housed in one company,
with employees from both.
IJVs are separate legal entities, and require what? - ANSWERa separate organization to carry out the
alliance's objectives.
What are two major areas of decision making? - ANSWER• Operational decisions (daily running of
organization)
• Strategic decisions (strategy for long term survival)
IJVs' strategic decision-making takes place where? - ANSWERat the level of the IJV's board of
directors or top management.
In non equity ICAs, strategic decisions remain where? - ANSWERwith parent companies.
Management Structures for ICAs or IJVs - ANSWER• Dominant Parent:
• Shared Management:
• Split Control Management:
• Independent Management:
• Rotating Management:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller papersbyjol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
