week 9 Flashcards

(11 cards)

1
Q

What are the four types of networks described by Cravens & Piercy (1994)?

A
  1. Virtual Network – Low volatility, collaborative (e.g., Star Alliance)
2.    Flexible Network – High volatility, collaborative (e.g., AWS + startups) 

3.    Value-Added Network – Low volatility, transactional (e.g., Toyota suppliers) 

4.    Hollow Network – High volatility, transactional (e.g., Nike outsourcing)
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2
Q

What are Achrol’s four types of networks?

A
  1. Internal Market – Within one organisation (e.g., P&G departments)
2.    Vertical Market – Across the supply chain (e.g., Apple + Foxconn) 

3.    Inter-Market (Concentric) – Across related industries (e.g., Google + Samsung) 

4.    Opportunity Networks – Temporary, goal-specific (e.g., SpaceX + NASA)
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3
Q

What is the difference between a merger and an acquisition?

A
  • Merger: Mutual agreement to combine ownership
*    Acquisition: One firm takes control of another
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4
Q

What are six motives for mergers and acquisitions?

A
  1. Speed of market entry
2.    Response to competition 

3.    Market consolidation 

4.    Financial strategy 

5.    Gaining capabilities 

6.    Meeting stakeholder expectations
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5
Q

What are the challenges in making acquisitions work?

A
  • Cultural integration issues
*    Failure to realise synergies 

*    Lack of middle management buy-in 

*    Poor strategic fit
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6
Q

What is a strategic alliance?

A

A partnership where firms share resources and activities to pursue strategic goals without full ownership.

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7
Q

What are key motives for forming strategic alliances?

A
  • Gaining critical mass
*    Achieving co-specialisation 

*    Promoting organisational learning
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8
Q

What are six types of strategic alliances and examples of each?

A
  1. Joint Venture – Sony Ericsson
2.    Consortium – Airbus 

3.    Network – Starbucks supply chain 

4.    Franchising – McDonald’s 

5.    Licensing – Disney merchandise 

6.    Sub-contracting – Apple + Foxconn
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9
Q

Why do strategic alliances often fail?

A
  • Misaligned goals
*    Cultural mismatches 

*    Poor communication 

*    Ineffective governance 

*    A study found less than 50% of MNCs were satisfied with their alliances
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10
Q

What are three ingredients of successful alliances?

A
  1. Clear strategic purpose
2.    Defined expectations and benefits 

3.    Strong relationship management
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11
Q

How can firms measure strategic alliance performance?

A
  • Using the Balanced Scorecard (Kaplan & Norton, 1992)
*    Includes financial and non-financial metrics 

*    Helps align performance with strategic objectives
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