Q&A Hero

Q: The marker of a true transnational strategy is A) a big majority of the company's rivals are pursuing localized multidomestic strategies. B) striking the right balance between thinking globally and acting locally, even though it is more costly and complex to implement. C) host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards. D) plants need to be scattered across many countries to avoid high shipping costs. E) market growth rates vary considerably from country to country.

Q: In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by A) building a state-of-the-art facility to fully capture scale economies via an export strategy. B) using export, licensing, or franchising strategies so as to minimize risk and capital investment. C) locating buyer-related activities in all countries where it sells its product. D) dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets. E) avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets it enters.

Q: When comparing and contrasting the differences between a localized multidomestic strategy and a global strategy you would not say that A) a global strategy entails extensive strategy coordination across countries and a multidomestic strategy entails little or no strategy coordination across countries. B) a global strategy often entails use of the best suppliers from anywhere in the world, whereas a multidomestic strategy may entail fairly extensive use of local suppliers (especially where use of local sources is required by host governments). C) a global strategy tends to involve use of similar distribution and marketing approaches worldwide, whereas a multidomestic strategy often entails adapting distribution and marketing to local customs and the culture of each country. D) a global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly standardized product worldwide, whereas a multidomestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries. E) a global strategy relies upon the same technologies, competencies, and capabilities worldwide, whereas a multidomestic strategy often entails the use of somewhat different technologies, competencies, and capabilities as may be needed to accommodate local buyer tastes, cultural traditions, and market conditions.

Q: Four Seasons Hotels uses which strategy to compete globally? A) A "think-local, act-local approach." B) A "think-global, act-local approach." C) A "think-global, act-global approach." D) A "think-local, act-global approach." E) An "emerging market, profit sanctuary approach."

Q: What is the best way to achieve the efficiency potential of a global strategy? A) Managerial attention should be focused on objective-setting, specifically oriented toward production practices. B) Resources and best practices should be shared, value chain activities should be integrated, and capabilities should be transferred from one location to another as they are developed. C) The best identified resources and capabilities should be centralized at headquarters. D) Value chain activities must be dispersed across many countries to elevate cost control management as a primary focus in all countries. E) Local managers should be given considerable latitude for executing strategies for the country markets they are responsible for.

Q: A think-global, act-global strategic theme puts emphasis on A) executing a global domination strategy that focuses the company's resource strengths on entry strategies across all country boundaries. B) ensuring that value chain activities are defined by country-specific attributes to capitalize on economies of scale. C) building a global brand name and aggressively pursuing opportunities to transfer ideas, products, and capabilities from one country to another. D) elevating resources and capabilities developed on a country-by-country basis so as to capitalize on a country's uniqueness. E) implementing mass-customization techniques that can address local preferences efficiently.

Q: The most unlikely element of a localized multidomestic strategy is A) granting country managers fairly wide strategy-making latitude B) scattering plants across many host countries, each producing product versions for local area markets C) adapting marketing and distribution to the buying habits, customs, and culture of each host country D) considering the preference for local suppliers (use of some local suppliers may be mandated by host governments) E) selling directly to buyers (perhaps via the company's website) to avoid having to establish networks of wholesale/retail dealers in each country market

Q: A global strategy is one in which a company performs all of the following tasks, except it A) employs the same basic competitive approach in all countries where it operates. B) sells much of the same products everywhere. C) strives to build global brands. D) coordinates its actions worldwide with strong headquarters control that represents a think-global, act-global approach. E) uses local brand names to cater to a country's specific needs.

Q: Despite their obvious benefits, think-local, act-local strategies have all of the following drawbacks except A) in global competition, rivals vie for worldwide market leadership and the leading competitors compete head-to-head in the markets of many different countries. B) in globally competitive industries, a company's competitive position in one country both affects and is affected by its position in other countries. C) in multidomestic competition, there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets. D) with multidomestic competition, the competitive contest is localized, with rivals battling for national market leadership; moreover, winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries. E) in global competition, the size of a firm's worldwide competitive advantage (or disadvantage) equals the sum of the competitive advantages (or disadvantages) it has in each country market where it competes.

Q: A global strategy allows for A) the leading companies to compete for the biggest share of the world market, but only occasionally compete head-to-head in different countries. B) the markets in various countries to be part of the world market and competitive conditions across country markets to be strongly linked. C) a company's overall market strength to be the sum of its market shares in each country market where it has a presence. D) the industry leaders to be foreign companies, while domestic companies are relegated to runner-up status. E) a firm's overall competitive advantage to be determined by the size of the competitive advantage it has in each of its profit sanctuaries.

Q: Choose the statement that is not a reason a global strategy contrasts sharply with a multidomestic strategy. A) In global competition, rivals vie for worldwide market leadership. B) In globally competitive industries, the power and strength of a company's strategy and resource capabilities in one country significantly enhance its competitiveness in other country markets. C) In global competition, a firm's overall competitive advantage (or disadvantage) grows out of its entire worldwide operations. D) In global competition, there's more cross-country variation in industry conditions and competitive forces than there is in industries where multidomestic competition prevails. E) In global competition, many of the same rival companies compete against each other in many different countries, but especially so in countries where sales volumes are large and where having a competitive presence is strategically important to building a strong global position in the industry.

Q: What is a primary drawback of a localized multidomestic strategy? A) It hinders the use of cross-border coordination of a company's activities and increases a company's vulnerability to adverse shifts in currency exchange rates. B) It makes it very difficult to take into account significant country-to-country differences in distribution channels and marketing methods. C) It makes it difficult and costly to be responsive to country-to-country differences in customer needs, buying habits, cultural traditions, and market conditions. D) It hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single, uniform competitive advantage in all country markets where a company operates. E) It is unsuitable for competing in the markets of emerging countries and posing added difficulty in modifying a company's business model to compete on the basis of low price.

Q: Employing a "think-local, act-local" multidomestic strategy is highly questionable when A) a company desires to transfer competencies and resources across country boundaries and is striving to build a single, uniform competitive advantage worldwide. B) there are significant country-to-country differences in customer preferences and buying habits and the industry is characterized by big economies of scale and strong experience curve effects. C) the trade restrictions of host governments are diverse and complicated. D) there are significant country-to-country differences in distribution channels and marketing methods. E) host governments enact regulations requiring that products sold locally meet strictly defined manufacturing specifications or performance standards.

Q: When is it appropriate to use a think-local, act-local approach strategy? A) when the need for local responsiveness is minimal and when potential efficiency gains from standardization is unrestricted by cross-country opportunities B) when the local manager is intellectually savvy C) when the local market provides strong opportunity for growth and profitability D) when the need for local responsiveness is high due to significant cross-country differences in demographic, cultural, and market conditions and where benefits from standardization is limited E) when the need for centralized decision making is relevant due to various macroeconomic and market conditions

Q: A "think-local, act-local" multidomestic strategy entails A) offering a narrow product line aimed at serving buyers in the same segments of country markets worldwide. B) giving local managers considerable strategy-making latitude and often producing different product versions for different countries. C) adopting aggressive efforts to locate facilities in those country markets that have superior resources. D) pursuing strong product differentiation and competing in many buyer segments. E) extensive efforts to transfer a company's competencies and resource strengths from one country to another so as to keep entry costs into new country markets low.

Q: Vronique is the CEO of a wind power energy company. Identify which company model she would emulate to craft a multidomestic strategy. A) Intel strongly encourages its trading partners to use the UN/EDIFACT ISO standard ISO 9735 for syntax and data exchange. B) Castrol produces over 3,000 different formulas of oil lubricants to meet the requirements of different climates, vehicle types and uses, and equipment applications that characterize different country markets. C) Tiffany & Co., an American luxury jewelry and specialty retailer, controls its general market approach from its headquarters in New York. D) Ford Motors establishes its own ride-sharing business in Mumbai, India. E) Vueling, a low-cost carrier based in Spain, adapts its price to competitive pressures from Norwegian Air, RyanAir, and EasyJet.

Q: A "think-local, act-local" multidomestic strategy works particularly well in all of the following situations, except when there are A) regulations enacted by the host governments requiring that products sold locally meet strictly defined manufacturing specifications or performance standards. B) significant country-to-country differences in customer preferences and buying habits. C) diverse and complicated trade restrictions of host governments preclude the use of a uniform strategy from country-to-country. D) significant country-to-country differences in distribution channels and marketing methods. E) large demands to pursue conflicting objectives simultaneously.

Q: Which statement is not a reason BP implemented a multidomestic competitive strategy to market its Castrol oil lubricants around the world? A) Buyers in different countries are attracted to different product attributes. B) The benefits from global integration and standardization are high. C) Industry conditions and competitive forces in each national market differ in important respects. D) The mix of competitors in each country market varies from country to country. E) Winning in one country market does not necessarily signal the ability to fare well in other countries.

Q: The strength of a "think-local, act-local" multidomestic strategy is that it A) matches a company's competitive approach to prevailing market and competitive conditions in each country market, country by country. B) employs strategies that are almost totally different from and also unrelated to its strategies in other countries. C) operates independent plants, located in different countries, thus promoting greater achievement of scale economies. D) avoids host country ownership requirements and import quotas. E) eliminates the costs and burdens of trying to coordinate the strategic moves undertaken in one country with the moves undertaken in the other countries.

Q: A localized or multidomestic strategy A) is generally inferior to a global strategy when it comes to pursuing product differentiation. B) has two big drawbacks: (1) it hinders transfer of a company's competencies and resources across country boundaries because the strategies in different host countries can be grounded in varying competencies and capabilities; and (2) it does not promote building a single, unified competitive advantage, especially one based on low cost. C) is generally preferable to a global strategy in situations where buyers are price sensitive because a "think-local, act-local" type of multidomestic strategy is better suited to achieving low unit costs than a global strategy. D) is generally best suited for globally standardized industries, in which small country-by-country differences can be accommodated. E) involves much less adherence to using the same basic competitive strategy theme (low-cost, differentiation, best-cost, or focused) in all country markets.

Q: When a company operates in the markets of two or more different countries, its foremost strategic decision is A) whether to test the waters with an export strategy before committing to some other competitive approach. B) whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries. C) whether to maintain a national (one-country) manufacturing base and export goods to the other countries. D) which foreign companies to team up with via strategic alliances or joint ventures. E) whether to use strategic alliances to help defeat its rivals.

Q: A "think-local, act-local" multidomestic type of strategy A) is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods. B) is usually defeated by a "think-global, act-global" type of strategy. C) is more appealing when the country-to-country differences in buyer tastes, cultural traditions, and market conditions are diverse. D) is generally an inferior strategy when one or more foreign competitors are pursuing a global low-cost strategy. E) can defeat a global strategy if the "think-local, act-local" multicountry strategist concentrates its efforts exclusively in those foreign markets which have superior resources.

Q: One of the strategy options for competing in the markets of foreign countries is a ________ strategy. A) profit sanctuary B) country development C) mapping D) multidomestic E) domestic

Q: What is the foremost strategic issue that must be addressed by firms when operating in two or more foreign markets? A) deciding on the degree to vary its competitive approach to fit the specific market conditions and buyer preferences in each host country B) deciding on the appropriate level of sustainable profitability C) deciding on the relative cost competitiveness of the home country D) deciding on the degree of globalization to maintain expansion capabilities E) deciding on the resources and capabilities of allies

Q: The risks of strategic alliances often include all of the following except A) conflicting objectives and strategies. B) deep differences of opinion about how to proceed operationally and strategically. C) important differences in corporate values. D) misunderstandings about appropriate ethical standards. E) potential for royalty from trustworthy firms.

Q: An UNLIKELY risk of cross-border alliances between domestic and foreign firms is A) overcoming language and cultural barriers. B) launching new initiatives to stay abreast of shifting market conditions. C) developing mutually agreeable ways of dealing with key issues or differences. D) disengaging from the alliance once its purpose has been served. E) becoming overly dependent on foreign partners for essential expertise.

Q: A cross-border alliance was not created when A) Deutsch, a New York-based wine importer, and Casella, an Australian wine producer, created and marketed the Yellowtail wine brand. B) Pharmaceutical giants Eli Lilly and Kyowa Hakko Kogyo developed and performed clinical tests of a new cancer treatment called therapyyo. C) The British insurance company Geico became a wholly owned subsidiary of Berkshire Hathaway. D) Yum! Brands offered KFC franchises in China. E) Lidl, a German deep-discount supermarket chain, established a new wholly owned venture with a supermarket chain in Poland.

Q: A cross-border alliance was not created when A) Walgreens merged with Alliance Boots in 2014. B) Hyundai Motor Company planned to open a new manufacturing plant in the Czech Republic. C) The insurance company Geico became a wholly owned subsidiary of Berkshire Hathaway. D) Renault-Nissan disclosed that it had sold more than one in ten cars worldwide. E) Carrefour, a French grocery chain, established a new wholly owned venture in Poland.

Q: The advantages of using an acquisition strategy to pursue opportunities in foreign markets include A) having a high level of control and speed as an entry strategy to overcome trade barriers. B) allowing a company to achieve scalable economies. C) eliminating the costs and risks associated with establishing a foreign business location. D) achieving variable product quality and competitive product performance. E) exporting goods at higher costs than rivals in those locations.

Q: A major DISADVANTAGE of strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms is A) to compete on a more global scale while still preserving their independence. B) to gain better access to scale economies in production and/or marketing. C) to fill competitively important gaps in their technical expertise and/or knowledge of local markets. D) to share distribution facilities and dealer networks, thus mutually strengthening their access to buyers. E) to create permanent arrangements between the domestic and foreign firms.

Q: The big problem a franchisor faces is A) allowing franchisees to achieve scale economies. B) maintaining quality control due to a lack of commitment to consistency and standardization. C) eliminating the costs and risks associated with establishing a foreign business location. D) sharing foreign facilities and marketing strategies with local businesses. E) achieving higher product quality and better product performance than with an export strategy.

Q: Sandi is considering conditions that make an internal startup strategy appealing over an acquisition, and has determined that she would ONLY choose an internal startup strategy when an internal startup A) is more costly. B) affects the supply-demand balance by increasing production capacity. C) is unable to gain distribution access advantages. D) has the necessary scale and resource strengths to compete with rivals. E) lacks the experience in establishing new subsidiaries.

Q: The advantages of using a franchising strategy to pursue opportunities in foreign markets include A) having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support and monitor franchisees. B) being particularly well-suited to the global expansion efforts of companies with multidomestic strategies. C) allowing a company to achieve scale economies. D) being well suited to companies who employ cross-border transfer strategies. E) being well suited to the global expansion efforts of manufacturers.

Q: Greenfield ventures, like all market entry strategies, can pose serious problems to achieving foreign market entry success. What is not deemed a barrier to success? A) Such ventures can require costly capital investments. B) Such ventures can have a tendency to divert valuable resources from current business. C) Such ventures really need well-functioning strong markets. D) Such ventures are the fastest entry route to achieve a sizeable market share. E) Such ventures require legal protections of foreign investors.

Q: The advantages of using a licensing strategy to participate in foreign markets include A) being especially well-suited to achieve scale economies. B) being able to charge lower prices than rivals. C) being able to achieve first-mover advantages quickly and easily. D) being able to leverage the company's technical know-how, appealing brand, or patents without committing their resources or capabilities to foreign markets. E) being able to achieve higher product quality and better product performance than with an export strategy.

Q: When justifying her considerations for her China-based wine importation company's foreign market entry, Ming-Chi probably would not choose A) entering a new foreign country via internal development and building a foreign subsidiary from scratch when having scale economies to compete against local rivals. B) entering a new foreign country via internal development and building a foreign subsidiary from scratch by having the ability to gain increased access to distribution channels and networks. C) entering a new foreign country via internal development and building a foreign subsidiary from scratch adding new production capacity, because it will adversely impact the supply-demand balance in the local market. D) entering a new foreign country via internal development and building a foreign subsidiary from scratch, because it is cheaper than making an acquisition. E) entering a new foreign country via internal development and building a foreign subsidiary from scratch, because it is cheaper than entering into strategic alliances and cooperative agreements.

Q: Maya has chosen to research the export strategies of several global products. She would consider a good example of a DOMINANT export strategy to be A) the popular Harry Potter character Voldemort, which can only be leased or rented for use by amusement park operators. B) ZipCar, which allows taxi fleet operators to use its trademarks, services, and products for a fee. C) the United States, which is home to the world's three largest producers and suppliers of artificial heart valves. D) American Airlines' common stock, which is owned by AMR Corp., but is not available for public purchase. E) Facebook, which generates 51 percent of its advertising revenue outside the United States.

Q: Acquisition of an existing firm rather than via internal development may be the least risky and cost-efficient means of overcoming entry barriers such as A) putting its own strategy into place. B) accelerating efforts to build a strong market presence. C) moving directly to the task of transferring resources and personnel, integrating and redirecting activities into its own operation. D) fast-tracking exports into a foreign market by marketing indirectly through local rivals. E) gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.

Q: Using domestic plants as a production base for exporting goods to selected foreign country markets can be a(n) A) excellent initial strategy to test the international waters and learn if attractive market positions can be established in foreign markets. B) competitively successful strategy when a company is focusing on vacant market niches in each foreign country and does not have to compete head-to-head against strong host country competitors. C) powerful strategy since a company can maintain a one-country production base allowing it to capitalize on company competencies and capabilities. D) weak strategy when competitors are pursuing multicountry strategies. E) powerful strategy because a company is not vulnerable to fluctuating exchange rates.

Q: A greenfield venture in a foreign market is one A) where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up. B) where foreign facilities and marketing strategies are shared with local businesses. C) where the company learns through training by the foreign entity on how to compete. D) that supports exports into a foreign market by marketing indirectly through local rivals. E) that offers lower risk and a faster path to financial returns.

Q: Among the factors that do not determine whether to employ entry strategy options are A) cross-border transfer activities and home country advantages. B) the nature of the firm's objectives and trade barriers. C) whether the firm has a full range of resources and capabilities needed to operate abroad along with trade barriers. D) country-specific factors such as trade barriers and transaction costs, such as the cost of contracting with a partner and monitoring compliance with the terms of the contract. E) transaction costs, such as the cost of contracting with a partner and monitoring compliance with the terms of the contract.

Q: Strategic options for expansion into foreign markets do not consist of A) employing a franchising strategy using local ownership. B) relying on strategy alliances, joint ventures, or other cooperative agreements with foreign companies. C) pursuing a profit sanctuary strategy. D) establishing a subsidiary via acquisition or greenfield development. E) maintaining a national (one-country) production base and exporting goods to foreign markets.

Q: The big issue an acquisition-minded firm must consider is whether A) to acquire the firm at a price that cannot recapture the investment. B) to require the acquired firm's resources and management capability to sustain the ongoing struggling operation. C) to pay a premium price for a successful local company or to buy a struggling firm at a discount price. D) to pay a price that builds in all the synergistic advantages to the acquired firm. E) to pay a very high premium price that sends a signal to the market that the new firm has arrived.

Q: The strategic options for expansion into foreign markets do not include A) relying on home country governments to restrict imports via raising tariffs and local content requirements. B) establishing a subsidiary in a foreign market. C) maintaining a national (one-country) production base and exporting goods to foreign markets. D) licensing foreign firms to produce and distribute one's products. E) employing a franchising strategy using local ownership.

Q: Companies operating in an international marketplace have to respond to all of the following, except A) whether to customize their offerings in each different country market to match the tastes and preferences of local buyers. B) whether to pursue a strategy of offering a mostly standardized product worldwide. C) how much to customize their offerings in each different country market to match the tastes and preferences of local buyers. D) the tensions between market pressures to localize a company's product offerings country by country and the competitive pressures to lower costs through greater product customization. E) whether to buy a struggling competitor at a bargain price or pay a premium to gain entry to the local market.

Q: Your best friend is considering opening Emerald City, a canine day- and long-term care business that also performs grooming and minor veterinary services. She wants to know what is meant by hit-and-run (or guerrilla warfare) and preemptive strike offensive strategies. Explain to your friend what hit-and-run and preemptive strike offensive strategies are and then give her the circumstances in which either of these strategies will likely be most effective.

Q: Identify and briefly explain what is meant by each of the following terms: a. outsourcing strategy b. vertical integration strategy c. first-mover advantage d. first-mover disadvantage e. horizontal and vertical scope

Q: Identify and briefly discuss three factors a company must consider in order to capture the benefits of engaging in strategic alliances.

Q: What are the merits of strategic alliances and collaborative partnerships for companies racing to seize opportunities in an industry of the future? Under what circumstances do they make sense? How do they contribute to competitive advantage?

Q: When is a strategic alliance most likely to be unsuccessful?

Q: You are the owner of a French-Japanese fusion food truck and mobile catering company. Instead of entering into an alliance or partnership with a local restaurateur to establish a bricks-and-mortar location downtown, you decide to merge with C'est La Sushi, a regional chain of French-Japanese fusion restaurants. What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.

Q: What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?

Q: What are the advantages of strategic alliances and collaborative partnerships with key suppliers?

Q: What are the strategic disadvantages of a forward vertical integration strategy?

Q: Identify and briefly discuss four disadvantages of a vertical integration system.

Q: What are the strategic advantages of a forward vertical integration strategy?

Q: Identify at least three factors that can aid companies in forming a successful strategic alliance.

Q: What are the strategic disadvantages of a backward vertical integration strategy?

Q: Why does a company racing to stake out a strong position in an industry of the future need strategic alliances?

Q: What are the strategic advantages of a backward vertical integration strategy?

Q: Why does a company racing for global market leadership need strategic alliances?

Q: What are the general strategic objectives of merger and acquisition strategies?

Q: Why do strategic alliances often fail to measure up to expectations?

Q: What are mergers and/or acquisitions? How do they contribute to enhancing a company's position?

Q: Under what circumstances are mergers with or acquisitions of other companies a better solution than entering into partnerships or alliances with these companies? How do mergers and/or acquisitions contribute to enhancing a company's position?

Q: Imagine that you are the manager of a housekeeping service. Specifically describe how you would use the concepts of (1) scope of the firm, (2) horizontal integration, and (3) vertical integration to build and achieve a competitive advantage over rival housekeeping services.

Q: Discuss why timing of strategic moves is important.

Q: Identify and briefly discuss two "best targets" for offensive attacks by companies.

Q: What are the strategic advantages of being a first-mover? Are there any strategic advantages of being a follower or late-mover?

Q: The principal advantages of strategic alliances over vertical integration or horizontal mergers/acquisitions are A) resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment. B) potential profitability of the alliance and related experience-curve economics. C) the facilitation of best practices, more production capacity, and relevant synergistic savings. D) the transactional and relational concept of operating practices and competencies. E) material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability.

Q: What are the purposes of defensive strategies? Give at least two examples of defensive moves.

Q: The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is A) that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how. B) becoming dependent on other companies for essential expertise and capabilities. C) the added time and extra expenses associated with engaging in collaborative efforts. D) having to compromise the company's own priorities and strategies in reaching agreements with partners. E) the collaborative arrangements will not live up to expectations.

Q: What is a blue-ocean strategy, what is its appeal, and what is its drawback?

Q: Experience indicates that strategic alliances A) are generally successful. B) work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency. C) work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies. D) can suffer culture clash and integration problems due to different management styles and business practices. E) are rarely useful in helping a company win the race for global industry leadership.

Q: There are a number of offensive strategy options for improving market positions using cost-based and blue-ocean type strategies. Define the terms and suggest ways in which the strategies could be operationalized.

Q: If you were advising Hoffmann-LaRoche, which set up Roche Partnering to manage more than 190 alliances in the healthcare industry, what might not be a reason why some of those alliances could prove to be unstable or break apart? A) Anticipated gains may fail to materialize for Roche Partnering due to an overly optimistic view of the synergies. B) Anticipated gains for Roche Partnering may fail to materialize due to a poor fit in terms of the combination of resources and capabilities. C) One or more of the 190 partners in Roche Partnering could gain access to another company's proprietary knowledge base, technologies, or trade secrets. D) The partners may disagree among themselves over how to divide the profits gained from joint collaboration. E) There is a risk for any or all of the 190 partners in Roche Partnering to become overly dependent on other companies within the partnership.

Q: Strategic offensives should, as a general rule, be grounded in a company's strategic assets and employ a company's strengths to attack rivals. Define and discuss the term strategic assets and its significance in gaining a competitive advantage.

Q: Strategic alliances are more likely to be long lasting when they involve A) partners that respectively have considerable resource weaknesses in the marketplace. B) partners that are not only experienced with strategic alliances, but who also routinely enter into collaborative agreements with firms in peripheral industries. C) partners based in countries with distinctly different cultures and consumer buying habits and preferences. D) joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own. E) collaboration with suppliers or distribution allies, or when both parties conclude that continued collaboration is in their mutual interests.

Q: Identify and briefly explain five types of offensive strategies.

Q: Carlos, the CEO of a local HR recruiting and staffing company, is considering a strategic alliance with a local payroll company. What would not likely be a consideration for Carlos with respect to whether the proposed alliance could become successful and realize its intended benefits? A) picking a good partner B) recognizing that the alliance must benefit both sides C) minimizing the amount of resources that the partners commit to the alliance D) ensuring that both parties live up to their commitments E) structuring the decision-making process so actions can be taken swiftly when needed