course hero how is an equity alliance different from a joint venture

An Equity Alliance Involves Ownership That Facilitates Transaction-Specific Ventures; A Joint Venture Involves Taking Ownership By Buying Stock. C An Equity Alliance Involves Taking Ownership In A Partner; A Joint Venture Involves Two Or More People Owning A Firm. An Equity Alliance

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Which quadrant of the core competence-market matrix combines new core competencies with new market opportunities?

What are the two choices managers have when determining the boundaries of a firm?

What is an unrelated diversification strategy?

How much of a conglomerate's revenue is from a single business?

What are the advantages and disadvantages of firms?

Who is responsible for corporate strategy?

How do firms reduce risk?

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How is an equity alliance different from a joint venture?

An equity alliance involves taking ownership in a partner; a joint venture involves taking ownership by buying stock.

Which of the following is an advantage of equity alliances when compared to non equity alliances quizlet?

B) In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible. Which of the following is an advantage of equity alliances when compared to non-equity alliances? C) They produce stronger ties between partners.

Which of the following is an advantage of joint ventures?

​Which of the following is an advantage of joint ventures? They help companies avoid tariff and non-tariff barriers to entry.

What are the downsides of equity alliances?

o CONS- The downside of equity alliances is the amount of investment that can be involved, as well as a possible lack of flexibility and speed in putting together and reaping benefits from the partnership.

What is an equity alliance quizlet?

an alliance with cooperative contracts that are supplemented by equity investments by one partner in the other partner.

What are some advantages of strategic alliances?

Strategic alliances allow partners to scale quickly, build innovative solutions for their customers, enter new markets, and pool valuable expertise and resources. And, in a business environment that values speed and innovation, this is a game-changer.

Which of the following is an advantage of partnering and strategic alliance quizlet?

Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage.

Which of the following is an example of a non-equity strategic alliance?

#3 – Non-Equity A non-equity strategic alliance is when two companies agree to share resources to result in synergy. Example: Partnership between Starbucks and Kroger, Maruti-Suzuki alliance in India.

Chapter 8: Questions Flashcards | Quizlet

10. Silver Weave Inc., an apparel company, operates through a business model in which individuals can buy the rights to set up Silver Weave stores and sell the company's merchandise in return for a lump sum fee at the beginning of the contract and a percentage of revenues every month.

MGT 301 CH. 8 Flashcards | Quizlet

Start studying MGT 301 CH. 8. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

Which quadrant of the core competence-market matrix combines new core competencies with new market opportunities?

Explanation: The upper-right quadrant of the core competence-market matrix combines new core competencies with new market opportunities. Hamel and Prahalad call this combination "mega-opportunities"—those that hold significant future-growth opportunities. At the same time, it is likely the most challenging diversification strategy because it requires building new core competencies to create and compete in future markets.

What are the two choices managers have when determining the boundaries of a firm?

Managers have exactly two choices when determining the boundaries of the firm: produce goods and services in-house ("make") or purchase them externally ("buy").

What is an unrelated diversification strategy?

Explanation: A firm follows an unrelated diversification strategy when less than 70 percent of its revenues comes from a single business and there are few, if any , linkages among its businesses . A company that combines two or more strategic business units under one overarching corporation and follows an unrelated diversification strategy is called a conglomerate.

How much of a conglomerate's revenue is from a single business?

A conglomerate receives less than 70 percent of its revenues from any single business and features a number of strategic business units that have little to no relationship with each other.

What are the advantages and disadvantages of firms?

The advantages of a firm include the ability to make command-and-control decisions and coordinate highly complex tasks, while the advantages of the market include high-powered incentives and increased flexibility.

Who is responsible for corporate strategy?

Explanation: Although many managers have input to this important decision-making process, the responsibility for corporate strategy ultimately rests with the CEO.

How do firms reduce risk?

Explanation: Firms often attempt to reduce risk by diversifying their product and service portfolio through competing in a number of different industries. The rationale behind these diversification moves is that falling sales and lower performance in one sector might be compensated by higher performance in another.

Why do companies go for joint ventures?

For accomplishing a common goal of a company or business one can go for strategic allegiance as per the need. So both joint venture vs strategic alliance has their own importance as per the business need. If a company working on infrastructure then they may go for a joint venture.

What is joint venture agreement?

A joint venture is an agreement between two or more parties who agree to pool their resources for the accomplishment of certain activity or task. A joint venture is an agreement between two parties for certain types of work and for a certain period of time. A strategic alliance where two different parties come together and share their resources to undertake a specific, mutually desirable project. In a strategic alliance, both parties come with resources and from a new company. In strategic business both the company maintains its autonomy while gaining a new opportunity.

What is the risk of a joint venture?

Risk. In a joint venture, there is and limited risk to parties involved in the agreement. In a strategic alliance, there are chances for higher risk due to the trust relationship between two parties, because there is may or may not contract.

Is a joint venture a strategic alliance?

In a joint venture, there is a need for a contract so a contract exists in a joint venture. In a strategic alliance, there may or may not be a contract. In a joint venture is a risk is limited. In a strategic alliance, the reward is maximized. In joint venture management is bilateral.

Is a strategic alliance formal or informal?

The agreement in a strategic alliance can be formal or informal but each party’s responsibilities must be clear. So both joint venture vs strategic alliance term has its own importance in the field of business and big corporations.

Is a joint venture a trust relationship?

There is a risk of a trust relationship. Although they are having a partnership agreement which can be the colloquial sense of the word, the joint venture can take any legal structure. Corporation, partnership, limited liability is some of the function of a joint venture.

Is a strategic alliance less involved than a joint venture?

A strategic alliance is less involved and less binding than a joint venture . A joint venture needs a contract agreement between two or more parties with all the descriptions about a share of profit and loss etc. On the other hand, there is May or may not be needed for a contract agreement between two or more parties.

What are the different types of equity alliances?

Three forms of equity alliances exist: joint ventures; minority stakes; and cross-shareholdings. Joint ventures come into existence when two or more companies jointly set up a separate legal entity. This new organization may be one in which they both participate as shareholders, but not all joint ventures are equity based. One of the most logical reasons for why companies enter into equity alliance is the financing needs of one of the companies involved. Joint ventures can be used for any conceivable goal. However, in practice, they are used more frequently to reap economies of scale, to share the risks associated with big projects, and to gain access to foreign markets than for R&D and innovation.

How do joint ventures come into existence?

Joint ventures come into existence when two or more companies jointly set up a separate legal entity. This new organization may be one in which they both participate as shareholders, but not all joint ventures are equity based.

Why are joint ventures used?

Joint ventures can be used for any conceivable goal. However, in practice, they are used more frequently to reap economies of scale, to share the risks associated with big projects, and to gain access to foreign markets than for R&D and innovation.

Course Description

The course focuses on the nature, structure and objectives of joint ventures and strategic alliances and highlights the requirements for effective corporate partnership.

Pricing options

Explain how different pricing options might be valuable to different segments of your audience.

Which quadrant of the core competence-market matrix combines new core competencies with new market opportunities?

Explanation: The upper-right quadrant of the core competence-market matrix combines new core competencies with new market opportunities. Hamel and Prahalad call this combination "mega-opportunities"—those that hold significant future-growth opportunities. At the same time, it is likely the most challenging diversification strategy because it requires building new core competencies to create and compete in future markets.

What are the two choices managers have when determining the boundaries of a firm?

Managers have exactly two choices when determining the boundaries of the firm: produce goods and services in-house ("make") or purchase them externally ("buy").

What is an unrelated diversification strategy?

Explanation: A firm follows an unrelated diversification strategy when less than 70 percent of its revenues comes from a single business and there are few, if any , linkages among its businesses . A company that combines two or more strategic business units under one overarching corporation and follows an unrelated diversification strategy is called a conglomerate.

How much of a conglomerate's revenue is from a single business?

A conglomerate receives less than 70 percent of its revenues from any single business and features a number of strategic business units that have little to no relationship with each other.

What are the advantages and disadvantages of firms?

The advantages of a firm include the ability to make command-and-control decisions and coordinate highly complex tasks, while the advantages of the market include high-powered incentives and increased flexibility.

Who is responsible for corporate strategy?

Explanation: Although many managers have input to this important decision-making process, the responsibility for corporate strategy ultimately rests with the CEO.

How do firms reduce risk?

Explanation: Firms often attempt to reduce risk by diversifying their product and service portfolio through competing in a number of different industries. The rationale behind these diversification moves is that falling sales and lower performance in one sector might be compensated by higher performance in another.