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Corporate Stratagy

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ASSY 4311: ASSESSMENT III - Business Policy and Strategy FALL - 2013 Section Instructor(s): Dr. Blaine T. Garfolo

Final Exam Review

1. What are cooperative strategies? Cooperative strategies are used to gain competitive advantage by joining with one or two competitors against other competitors of the industry. The two general types of cooperative strategies are collusion and strategic alliance business. They include: Collusion- the active cooperation of firms within an industry to reduce output and raise prices to avoid economic law of supply and demand Strategic Alliances- a long-term cooperative arrangement between two or more independent firms or business units that engage in business activities for mutual economic gain Used to: - Obtain or learn new capabilities - Obtain access to specific markets - Reduce financial risk - Reduce political risk 2. What are the types of alliances that business can engage in? * Joint Venture Strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage.

* Mutual Service Consortia A type of strategic alliance in which two similar companies from the same or similar industries pool their resources to receive a benefit that would be too difficult or expensive for either to obtain alone. * Licensing Arrangements It is an agreement in which the licensing

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