Question

Which of the following would most likely make use of an uncertainty-reducing business-level cooperative strategy?

a.A company in a slow-cycle market that is looking to maintain market stability
b.A company in a standard-cycle market that wants to gain market power
c.A company in a fast-cycle market facing high R&D expenses
d.A company in a standard-cycle market that needs access to complementary resources

Answer 1

A company in a fast-cycle market facing high R&D costs would make use of an uncertainty-reducing business-level cooperative strategy to share the risk and costs, gain access to resources, and enhance competitiveness in a rapidly changing environment.

Step-by-step explanation:

The question asks which company would most likely make use of an uncertainty-reducing business-level cooperative strategy. A company in a fast-cycle market facing high R&D expenses (option c) would most likely engage in this kind of strategy. Cooperative strategies allow firms to share the risks and costs associated with research and development, thus reducing the uncertainty that comes with innovation in markets where product life cycles are short and costs are high. Additionally, collaborations can help companies gain access to complementary resources, which is particularly beneficial in technology-driven, fast-paced environments.