International Management Chapter 9 Questions & Answers(RATED A+)
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Module
International Management Chapter 9
Institution
International Management Chapter 9
International Strategic Alliances - ANSWERCooperative agreements between two or more organizations from different countries to create new value in specific ways
What Determines where Multinational Companies Link in the Value Chain? - ANSWERThe objectives a firm hopes to achieve - their strategic...
International Management Chapter 9
Questions & Answers(RATED A+)
International Strategic Alliances - ANSWERCooperative agreements between two or more
organizations from different countries to create new value in specific ways
What Determines where Multinational Companies Link in the Value Chain? - ANSWERThe objectives
a firm hopes to achieve - their strategic objectives
What are the Benefits of Strategic Alliances? - ANSWERGaining access to a local partner's knowledge
of the market
Meeting government requirements
Sharing risks
Sharing technology
Gaining economies of scale
Accessing lower-cost raw materials or labor
Alliances that Combine the Same Value Chain Activities Often do so to Gain What? - ANSWEREfficient
scales of operations, to merge compatible talents, or to share risks
Examples of Linking Value Chains in Strategic Alliances - ANSWERR&D, high-tech multinational
companies often use joint research and development to merge different technical skills or to share
the risks of developing new or costly technologies
In operations, multinational companies often combine manufacturing or assembly activities to
achieve a profitable volume of activity
Marketing and sales alliances allow multinational companies to increase the scope and number of
products sold and to share distribution systems
Sometimes partners even share logos
Examples of Linking Value Chains in Strategic Alliances Cont. - ANSWERAlliances linking upstream and
downstream components of the value chain can serve the objectives of low-cost supply or
manufacturing
, In some supply/operations alliances, one partner provides low-cost sources of supply or
components, and the other partner does the manufacturing
Operations/marketing, one company trades a source of low-cost manufacturing for another
company's eventual sales
For U.S. Companies, the Majority of International Strategic Alliances Occur Where? - ANSWERIn
operations
What Attributes to the Success or Failure of Strategic Alliances? - ANSWERHow well the partners get
along
Especially early in the relationship, each party must believe that it has a good partner who can
deliver on promises and be trusted
Key Criteria for Picking an Appropriate Alliance Partner - ANSWERSeek strategic complementarity
Pick a partner with complementary skills
Seek out companies with compatible management styles
Seek a partner that will provide the right level of mutual dependency
Avoid the so-called anchor partner
Be cautious of the elephant-and-ant complex
Assess operating policy differences with potential partners
Assess the difficulty of cross-cultural communication with a likely partner
Before forming the strategic alliance, prospective partners must have a good understanding of each
other's strategic objectives for the venture
Each should know what the other hopes to achieve, both in the short term and in the long term
It is not necessary, however, that partners have the same objectives
Strategic Complementarity - ANSWERIs the alliance partners' strategies are complementary
Pick a Partner with Complementary Skills - ANSWERComplementary skills
Partners must contribute more than money to the venture
Each partner must contribute some skills or resources that complement those of the other partner
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