Build-Borrow-Buy Framework and Strategic Alliances
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Questions and Answers

What does the Build-Borrow-Buy Framework help firms in deciding?

  • Whether to liquidate the company, file for bankruptcy, or expand internationally
  • Whether to pursue internal development, enter a contractual arrangement, or acquire new resources (correct)
  • Whether to invest in stocks, bonds, or real estate
  • Whether to outsource all operations, conduct in-house research, or merge with competitors
  • What is the main characteristic of a Real Option?

  • It provides the right, but not the obligation, to make further investments (correct)
  • It involves immediate decision-making
  • It obligates managers to make further investments
  • It guarantees a fixed return on investment
  • In a Non-Equity Alliance, what is the basis of partnership between firms?

  • Full acquisition of one firm by the other
  • Contractual agreements (correct)
  • Sharing ownership stakes
  • Forming a joint venture
  • What characterizes a Corporate Venture Capital (CVC) relationship?

    <p>Established firms invest in entrepreneurial ventures</p> Signup and view all the answers

    What defines a Relational View of Competitive Advantage?

    <p>Resources and capabilities are embedded in strategic alliances</p> Signup and view all the answers

    In Learning Races within Strategic Alliances, what situation may occur?

    <p>One partner learns significantly faster than the other</p> Signup and view all the answers

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