Quiz 1

Questions:

1.    What are the basic differences between joint ventures and other types of strategic alliances?

2.      Why have strategic alliances grown in popularity in recent years?

3.    What are the basic benefits partners are likely to gain from their strategic alliance?  Briefly explain each.

4.    What are the basic characteristics of a comprehensive alliance?  What form is it likely to take?

5.    What are the four common types of functional alliances?  Briefly explain each.

6.    What is an R&D consortium?

7.    What factors should be considered in selecting a strategic alliance partner?

8.    What are the three basic ways of managing a strategic alliance?

9.    Under what circumstances might a strategic alliance be undertaken by public and private partners?

10.  What are the potential pitfalls of strategic alliances?

11.  What are the relative advantages and disadvantages of joint ventures compared to other types of strategic alliances?

12.  Assume you are a manager for a large international firm, which has decided to enlist a foreign partner in a strategic alliance and has asked you to be involved in the collaboration.  What effects, if any, might the decision to structure the collaboration as a joint venture have on you personally and on your career?

13.  What factors could conceivably cause a sharp decline in the number of new strategic alliances formed?

14.  Could a firm conceivably undertake too many strategic alliances at one time?  Why or why not?

15.  Can you think of any foreign products you use that may have been marketed in this country as a result of a strategic alliance?  What are they?

16.  What are some of the issues involved in a firm’s trying to learn from a strategic alliance partner without giving out too much valuable information of its own?

17.  Why would a firm decide to enter a new market on its own rather than using a strategic alliance?

18.  What are some of the similarities and differences between forming a strategic alliance with a firm from the same country and forming one with a firm from a foreign country?

19.  The joint venture between General Mills and Nestlé was worked out in only 23 days.  Most experts, however, argue that a firm should spend a long time getting to know a prospective partner before proceeding with an alliance.  What factors might account for CPW being an exception to this general rule?

20.  Otis Elevator has sought to obtain first-mover advantages by quickly entering emerging markets with the help of local partners.  This strategy has proved very successful for Otis.  Should all firms adopt this strategy?  Under what conditions is this strategy likely to be successful?

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