Build-borrow-buy framework - ANSWERSConceptual model that aids firms in deciding whether to pursue internal development (build), enter a contractual arrangement or strategic alliance (borrow), or acquire new resources, capabilities, and competencies (buy).
if yes, build - ANSWERSWhat should we d...
Sevi 3013 exam 3/final (ch 6-7)100%
Correct!
Build-borrow-buy framework - ANSWERSConceptual model that aids firms in deciding
whether to pursue internal development (build), enter a contractual arrangement or
strategic alliance (borrow), or acquire new resources, capabilities, and competencies
(buy).
if yes, build - ANSWERSWhat should we do if the firm's internal resources are relevant
in solving the srategic resource gap?
relevant internal resources - ANSWERSif the resources are:
-similar to those the firm needs to develop to solve the strategic resource gap
-superior to those of competitors
key test VRIN
source the resource externally through a contract - ANSWERS-transfer of ownership
-use of the resource
short-term vs long-term contracts - ANSWERS-licensing
-franchising
-strategic alliances
not close to partner - ANSWERSshort-term and/or long-term contracts with the external
resource partner
closer to the partner - ANSWERSequity alliances and/or joint ventures with the external
resource partner
very close with partner - ANSWERSmergers and/or acquisitions with the external
resource partner
integrating mergers and acquistions - ANSWERSthe most costly, complex, and difficult
to reverse
strategic alliance - ANSWERSa voluntary arrangement between firms that involves
sharing of knowlwdge, resources, and capabilities
intent of strategic alliances - ANSWERSjoint development of new processes, new
products, and new services
why firms enter strategic alliances - ANSWERS-strengthen competitive position
, -enter new markets
-hedge against uncertainty
-access critical complementary assets
-learn new capabilites
hedge against uncertainty: real options approach - ANSWERS-approach to strategic
decision making
-breaks down a larger investment decision into a set of smaller decisions
-staged sequentially over time
-allows firms to obtain information in stages
compelementary assets, complete - ANSWERSstrategic alliances can provide access
to _______ or _______ the value chain
ex: sony, samsung: S-LCD
competitors - ANSWERSfirms can learn from their alliance partners even from partners
who may be _________
non-equity alliance - ANSWERS-partnership based on contracts between firms
-supply agreements, distibrution agreements, licensing agreements, and franchises
equity alliances - ANSWERSone partner takes a partial equity stake in other
ex: GM/lyft
joint ventures - ANSWERSstandalone organization, created and jointly owned by two or
more parent companies
ex: hulu
alliance management capability - ANSWERS-partner selection and alliance formation
-alliance design and governance
-post-formation alliance management
30-70% of alliances - ANSWERShow many allainces fail to deliver expected benefit due
to lack of effective alliance management?
partner selection - ANSWERS-costs vs. benefits
-alliance goals
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 papersmaster01. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
