The benefits and downsides of each mechanism. Introduction: Equity: The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment. Non-equity: The alliance will only deal with the licensing, supply or distribution agreements between the two firms. Joint venture: The company that is created by two or more parent firms together is known as a joint venture.

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Answer 1

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Students have asked these similar questions

.Why does Monitoring the alliance portfolio in terms of implementing business unit strategies and corporate strategy and policiesis necessary for successful alliance portfilio management?

Identify and discuss the four (4) categories which strategic alliances can fall into. Clearly identify a type of alliance, from the discussion for Peter based on the scenario presented with the use of a company locally or regionally to improve his chances of succeeding in the market. The name of the company must be clearly stated. Information from the scenario must be included to support the discussion. Types of strategic alliances: Non-competitive alliances, Competitive alliances , Precompetitive alliances and Procompetitive alliances.

Why is it important to monitor the alliance portfolio in terms of implementing business unit strategies and corporate strategy and policies is necessary for successful alliance portfilio management?

Answer 2

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 3

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 4

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 6

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 7

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Answer 8

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9.3 - Prob. 1CC Ch. 9.3 - Prob. 2CC Ch. 9.3 - Prob. 3CC Ch. 9.3 - Prob. 4CC Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 1ESI Ch. 9 - Prob. 2ESI Ch. 9 - Prob. 1MS

Explanation of Solution

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Chapter 9 Solutions