MGT 3659 Study Guide - Quiz Guide: Joint Venture, Takeover, Horizontal Integration
Document Summary
Reduction in competitive industry: non-equity alliance. Partnership based on contracts between firms: equity alliance. Partnership in which at least one partner takes partial ownership in the other: joint venture. To gain access to new distribution channels and markets. They involve the sharing of both explicit and tacit knowledge. They might give companies a competitive advantage. The relational view of competitive advantage: some foreign countries require companies to be structured as joint ventures in order to enter that foreign market. A window to new technology (option value) She knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. A buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through.
