Build-Borrow-Buy Framework and Strategic Alliances Quiz

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13 Questions

Match the following alliance types with their descriptions:

Non-Equity Alliance = Partnership based on contracts between firms. Equity Alliance = Partnership where at least one partner takes partial ownership in the other. Corporate Venture Capital (CVC) = Equity investments by established firms in entrepreneurial ventures, falling under the broader rubric of equity alliances. Strategic Alliances = Voluntary arrangements between firms involving the sharing of knowledge, resources, and capabilities to develop processes, products, or services.

Match the following decision-making perspectives with their explanations:

Build-Borrow-Buy Framework = 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). Real Options Perspective = Approach that breaks down a larger investment decision into smaller decisions staged sequentially over time. Relational View of Competitive Advantage = Proposes that critical resources and capabilities are often embedded in strategic alliances that span firm boundaries. Learning Races in Strategic Alliances = Situation where both partners are motivated to form an alliance for learning, but the rate at which firms learn may vary.

Match the following concepts with their definitions:

Real Options = Choices that give managers the right, but not the obligation, to make further investments. Strategic Alliances = Voluntary arrangements between firms involving the sharing of knowledge, resources, and capabilities to develop processes, products, or services. Corporate Venture Capital (CVC) = Equity investments by established firms in entrepreneurial ventures, falling under the broader rubric of equity alliances. Relational View of Competitive Advantage = Proposes that critical resources and capabilities are often embedded in strategic alliances that span firm boundaries.

Which global business strategy emphasizes maximizing local responsiveness to be perceived as a domestic company by local consumers?

Multi-domestic strategy

What does the death-of-distance hypothesis suggest regarding geographic location and competitive advantage?

Global sourcing removes the importance of geographic location for competitive advantage.

What does national competitive advantage refer to?

Leadership in specific industries on a global scale

Which business strategy combines high local responsiveness with the lowest-cost position attainable?

Transnational strategy

According to the globalization hypothesis, what is the assumption about consumer needs worldwide?

Consumer needs are converging and becoming homogenous.

What is the key concept in globalization that refers to the benefits of locating value chain activities in optimal geographies worldwide?

Location economies

Which decision framework is based on cultural, administrative, geographic, and economic distances between home and foreign target countries?

CAGE distance framework

In global business, what does the Integration-Responsiveness Framework juxtapose to derive strategies for competitive advantage?

Cost reductions with local responsiveness

What term describes the additional costs of doing business in unfamiliar cultural and economic environments?

Liability of foreignness

Global strategy in a firm's corporate strategy aims to do what in the context of global competition?

Gain and sustain a competitive advantage globally

Test your knowledge on the Build-Borrow-Buy Framework which helps firms decide between internal development, strategic alliances, or acquisitions. Explore the concept of Strategic Alliances involving the sharing of knowledge and resources. Dive into topics like Learning Races in Strategic Alliances.

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