Business School 101: Strategic Alliances Quiz

What is a strategic alliance?

• A government-imposed partnership

• A mandatory agreement between firms

• A merger between two companies

• A voluntary arrangement between firms to share resources

Which of the following is NOT a reason for firms to enter strategic alliances?

• Entering new markets

• Avoiding all forms of competition

• Strengthening competitive position

• Learning new capabilities

What is a characteristic of non-equity alliances?

• Based on contractual agreements

• Requires a merger

• Involves partial ownership

• Always involves a joint venture

Which type of strategic alliance involves partial ownership?

• Equity alliances

• None of the above

• Non-equity alliances

• Joint ventures

What is a common feature of joint ventures?

• They are the most common type of alliance

• They involve no exchange of knowledge

• They are standalone organizations jointly owned by parent companies

• They require no long-term commitment

What is a potential risk of joint ventures?

• They have no regulatory complexities

• Knowledge shared could be misappropriated

• They require no investment

• They are easy to dissolve

What is a key principle in alliance management?

• Avoiding communication

• Establishing a clear foundation

• Ignoring partner capabilities

• Focusing solely on financial gains

Why is nurturing the relationship important in alliance management?

• To focus only on financial metrics

• To prevent erosion due to biases and communication issues

• To avoid any form of collaboration

• To ensure complete independence

Which brands partnered to create a collection of custom bags for a sports car?

• Red Bull and GoPro

• BMW and Louis Vuitton

• Starbucks and Target

• Apple and IBM

What was the purpose of the Red Bull and GoPro partnership?

• To launch a new camera model

• To support a record-breaking skydive

• To create a new energy drink

• To open a new retail store