COB 487 Test 3 (100% Errorless Answers) 2024.

Strategic Alliance correct answers Any cooperative efforts between two or more independent organizations to develop, manufacture, or sell products or services Motivation for Alliances correct answers 1) Create economic value 2) An alliance is an organizational form of exchange 3) Implication 4) Suppliers 5) Open up new markets 6) Training: Access to valuable training and tools Create economic value correct answers - Accessing complementary resources and capabilities - Leveraging existing resources and capabilities An alliance is an organizational form of exchange correct answers - Should produce a gain from trade due to some comparative or absolute advantage Implication correct answers - Choose partners that are better at something than you are (*complementary resources*) Suppliers correct answers - Gain access to new suppliers 6) Training: Access to valuable training and tools correct answers - Expertise: strategically ad specialty expertise - Regulatory: meet gov't and contracting requirements Three Types of Alliances correct answers 1) Nonequity Alliance 2) Equity Alliance 3) Joint Venture Nonequity correct answers Contracts *Beginning - not best* - Licensing - Supply & distribution agreements Equity Alliance correct answers Cross Equity Holdings - Partners own stakes in each other Joint Venture correct answers Joint Equity Holdings *Best* - Independent firm is created How alliances create value correct answers 1) Improve current operations 2) Shaping the competitive environment 3) Facilitating entry and exit Improving Current Operations correct answers *1) Exploiting economies of scale*