Business 497A - Strategic Management System » Summer 2023 » Guided Case Cooperative Strategies Ch 9
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Question #1
Of the various alliances discussed in the mini-case, which one, by pairing a U.S. firm with one based in Istanbul, is clearly a cross-border strategic alliance?
A.
DowAksa
B.
First Solar, Inc. and SunPower Corporation
C.
Cisco and IBM
D.
SkyTeam
Question #2
Why did Redbox and Verizon terminate their relationship after only two years?
A.
Verizon entered into a dispute with McDonald's Ventures, LLC., the original creator of Redbox.
B.
Redbox and Verizon did not have enough in common to achieve economies of scale.
C.
Redbox's rental business could not open kiosks in enough locations.
D.
Redbox's streaming service was not able to attract enough customers.
Question #3
Which of the following is an example of a strategic alliance partnership that uses a network cooperative strategy?
A.
MillerCoors
B.
Oneworld
C.
Redbox
D.
DowAksa
Question #4
The proposed strategic alliance between First Solar, Inc., and SunPower Corporation is described as a joint venture. Which of the following best describes their intent?
A.
The two firms would create a legally independent company that would own and operate some of their projects. Each firm would contribute equally to the new company's operations and would own an equal percentage of it.
B.
The two firms would enter into a contractual relationship to share some of their resources without establishing a separate independent company.
C.
The two firms would create a legally independent company that would own and operate some of their projects. Each firm would contribute a different amount to the new company and would own different percentages of it.
D.
The two firms would enter into a contractual relationship to share specific resources at different levels of the value chain and receive equal compensation without establishing a separate independent company.
Question #5
Based on the information provided in the mini-case, which of the following best describes Redbox?
A.
It is either a joint venture or an equity strategic alliance between Outerwall and McDonald's Ventures, LLC.
B.
It is a franchise agreement between Outerwall and McDonald's Ventures, LLC.
C.
It is either a joint venture or a franchise agreement between Outerwall and McDonald's Ventures, LLC.
D.
It is a nonequity strategic alliance between Outerwall and McDonald's Ventures, LLC.
Question #6
The alliance between Cisco and IBM highlights what type of challenge that often exists in cooperative strategies?
A.
The firms are not able to achieve economies of scale large enough to justify their investments.
B.
The firms have invested different amounts in the joint venture and have different levels of commitment.
C.
The firms cannot create unique value for customers.
D.
The firms are collaborating in some areas while competing with each other in other areas.
Question #7
In spite of a promising joint venture with First Solar, SunPower recorded a loss in the first quarter of 2015. What lesson can be learned from this experience?
A.
Nonequity alliances are preferable to joint ventures, as they limit potential loss.
B.
It is not practical for firms to collaborate with those with whom they are also competing.
C.
It is important to structure collaborations between companies in efficient and effective ways.
D.
Before entering into a collaboration, a firm must establish ways to create unique value for customers.
Question #8
What specific lesson can be learned from the situations of both Redbox and MillerCoors, regarding the ultimate success of firms that make use of a cooperative strategy?
A.
The firms need to create value in order to be successful.
B.
The collaboration must provide reductions in operating costs for all member firms.
C.
The firms need detailed contracts that are carefully monitored.
D.
The firms must each be able to identify ways to cut costs, independent of the collaboration.
Question #9
After six years of success in terms of some benchmarks, MillerCoors, the joint venture between Molson Coors and SABMiller, is having trouble. Why is it struggling after such a promising beginning?
A.
It has not increased market shares for two of its important products.
B.
It has not been able to substantially reduce costs.
C.
It has not been able to get products to market in a timely manner.
D.
It was unable to create economies of scale.
Question #10
Even though it is now showing signs of difficulties, in what way has MillerCoors already beat the odds?
A.
It has been able to substantially reduce costs.
B.
It has been successful for its first six years.
C.
It has been able to both create value for customers and reduce operating costs.
D.
It has increased market share for its main products.
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