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Risks associated with cooperative strategies include a partner's failure to present its resources to the other,...

Risks associated with cooperative strategies include a partner's failure to present its resources to the other, as well as one firm acting opportunistically towards the other with the use of the partner's resources. How can these two risks be a result of each other?

a. If a firm acts fairly towards its partner, the partner might misrepresent its resources in order to keep the firm from gaining any more access.

b. If one firm feels that the other will act opportunistically, it might withhold its promised resources to keep the partner from gaining access to proprietary information.

c. If one firm presents its resources first, the other will not present its resources to compete against the partner.

d. When one firm doesn't present its resources, it is likely that it is going to try to act opportunistically towards its partner.

An American sandal company has completely saturated its local market. The sandals, which are made of specially molded rubber soles that minimize soreness associated with unsupportive soles, have started to build a demand in Australia, a market the company is unfamiliar operating in. Why might the sandal company enter into a cooperative strategy with an Australian firm?

a. To explore export options from the United States to Australia

b. To give responsibility of the company's expansion to the Australian firm

c. To share unique resources to design, produce, and launch the product in Australia

d. To take advantage of the Australian company in a hostile takeover

A small software firm has formed a cooperative strategic alliance with a startup company to develop the startup's product, an app for smartphones. The startup promised to connect the software firm with other startup companies looking for software services. So far, the startup has not followed through, while the software firm has neared completion of its portion of the app development. Based on this scenario, which risk has manifested in the alliance between the software firm and the startup company?

a. The software firm has misrepresented its resources to the startup.

b. The startup has failed to make its resources available to the software firm.

c. The software firm has failed to make its resources available to the startup.

d. The startup is acting opportunistically towards the software firm.

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Answer #1

1 b)If one firm feels that the other will act opportunistically, it might withhold its promised resources to keep the partner from gaining access to proprietary information.

2 c)To share unique resources to design, produce, and launch the product in Australia

3 b) The startup has failed to make its resources available to the software firm.

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