IPA IP 2022 Question 26

A question IPA Japan published in 令和4年度 ITパスポート試験 公開問題 問26, translated into English. ITPEC is based on the same exams.

Same question on ITPEC: Oct 2025 Q84

Which of the following is the appropriate means of complementing the technologies and know-how of one’s company with those of other companies in a short period of time?

Explanation

Alliance — tying up with another company brings in its technology and know-how at once, without building them or buying the company.

In a business alliance (joint development, technology licensing, a joint venture, a minority capital stake) each company keeps its independence while sharing what the other lacks. Developing the same capability in-house takes years, and an acquisition takes a large investment and integration work; an alliance can start as soon as the contract is signed, which is why it is the quick way to complement one's own strengths.

Answer (b)

Why not others:

  • •(a) BPR — business process reengineering radically redesigns the company's own business processes; it brings in nothing from another company
  • •(c) Incubation — supporting start-ups or new businesses with offices, funds and advice until they can stand on their own; it nurtures a venture over time rather than supplying existing know-how
  • •(d) Benchmarking — comparing one's own practices with the best in the industry to find what to improve; the company learns from others but still has to build the capability itself

Key rule: To gain another company's resources quickly, ally with it (cheap, flexible, limited control) or acquire it (full control, high cost); benchmarking only shows what to aim for.

Business Strategy Management · AI-written, may contain errors

This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.