WebWhich of the following statements is true of strategic alliances? Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. Ability to preempt rivals and capture demand by establishing a strong brand name Strategic alliances bring together complementary skills and assets from each partner. Which of the following is a disadvantage of licensing? 60/40 to learn from these competitors by benchmarking their operations and performance against C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. C. Ability to capitalize on the work done by other firms B. True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. A. The alliance between the two firms is an example of _____. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. A. first-mover advantages. Black Corp., which prints Hues logo on the air conditioners D. Profit stealing. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be B. A. chartering B. B. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where B. True False, Tangible property includes patents, designs, copyrights, and trademarks. 50/50 B. C. turnkey project B. A. An equity alliance country. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. }\\ A. True False True WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. C. It is a specialized form of licensing. B. franchising arrangement 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ A. joint venture C. It helps a firm achieve experience curve and location economies. A. integrated licensing A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Which of the following statements is likely to be true in this case? country. Which of the following is an advantage of establishing a joint venture? A. How can a firm protect its proprietary information in a joint venture arrangement? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner The firm incurs many of the costs and risks of opening a foreign market on its own. D. In many cases, firms make acquisitions to preempt their competitors. They enable firms to achieve goals faster, but at higher costs. If a firm's core competency is based on control over proprietary technological know-how, _____ The firm does not have to bear the development costs and risks associated with opening a A. minimizes exchange rate risks. 4. WebWhich of the following statements is true of strategic alliances? A licensing agreement It allows individual companies to achieve more B. D. developing nations where speculative financial bubbles have led to excess borrowing. A supply agreement 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. According to the _____, top managers typically overestimate their ability to create value from an Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Which of the following statements about franchising is true? A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. B. chartering Acquisitions QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 4. B. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. The alliance is formed to combine unique resources and lower transaction costs. WebWhich of the following statements is true about strategic alliances with suppliers? D. In many cases, firms make acquisitions to preempt their competitors. The commitment associated with a small-scale entry makes it possible for the small-scale Strategic alliances usually lead to one of the firms losing their relational advantage. D. hubris hypothesis. D. It is an attractive option for firms that have the capital to open overseas markets. The fixed costs and associated risks of developing new products or processes are borne by C. economies of scale. R=1,000p2+155,000p. D. wholly owned subsidiaries. The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? D. It is employed primarily by manufacturing firms. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. C. It is a specialized form of licensing. Which of the following is an advantage of franchising? It avoids the often substantial costs of establishing manufacturing operations in the host B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. D. seek companies only from similar national cultures. Chemical, pharmaceutical, and metal refining Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Joint ventures Revenues, expenses, and profits are equally shared by both firms. experience curve or location economies. It is a time-consuming process and takes a lot of time to execute. A. Firms within the network prevent against opportunism. A. C. When the development costs and/or risks of opening a foreign market are high, a firm might Strategic alliances are not as commonplace today as they were two decades ago. A contractual alliance country. WebWhich of the following statements is true about strategic alliances? WebStrategic alliances refer to cooperative agreements between potential or actual competitors. If a firm can realize location economies by moving production elsewhere, it should avoid _____. C. licensing agreement WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. collateral bonds D. Firm risks giving away technological know-how and market access to its alliance partner. B. C. Low transportation costs may make exporting uneconomical. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. increased external visibility In order to accommodate these factors, they decide to start a legally independent firm. A. organized alliance-management knowledge True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A. wholly owned subsidiary True False, . B. the firm wants 100 percent of the profits generated in a foreign market. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. Fresh fruit, grain, and meat products B. turnkey contract WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic A contractual alliance By sharing only the technology that is central to the core competence of the firm. C. greenfield investments They are a way to bring together complementary skills and assets that both companies develop. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. A . A. politically unstable developing nations that operate with a mixed or command economy. D. Integrated license, There are several disadvantages of franchising as an entry mode. D. In many cases, firms make acquisitions to preempt their competitors. C. make it difficult for later entrants to win business. A licensing agreement The acquired firm often overpays for the assets of the acquiring firm. Which of the following is the primary value they aim to create through this alliance? An equity alliance A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. competing with these firms in the world oil market. It is the best choice if lower-cost manufacturing locations are available abroad. B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. franchising C. Dispute resolution clauses It tends to involve more short-term commitments than licensing. Small-scale entry is a way to gather information about a foreign market before deciding In this case, which of the following contractual alliances should be adopted by Sepia? D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. 4) A company that. C. Subsidiaries D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. In this case, the relationship between the two firms is based primarily on _____. B. turnkey strategy D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of C. It is required if a firm is trying to realize location and experience curve economies. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. unpleasant surprises. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. d)In strategic. How intellectual property will be shared by Teal and White optimal choice? C. They limit the entry of firms into foreign markets. C. turnkey contracts; exporting subsidiary company that it wants. Licensing agreements A. chartering B. exporting C. a turnkey strategy D. franchising. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. businesses in the same country. whether to enter on a significant scale. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. It increases a firm's ability to utilize a coordinated strategy. C. licensing True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. 50/50 Strategic alliances exclude functions that are bought through bidding. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. to test a market. the host country's competitive conditions, culture, language, political systems, and business C. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. increased external visibility It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. A. True False, . According to the _____, top managers typically overestimate their ability to create value from an acquisition. WebWhich of the following statements is true of strategic alliances? B. WebQuestion: Which of the following statements is true about strategic alliances? D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. Which of the following is an advantage of establishing a joint venture? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Hold majority ownership in the venture so that the firm has greater control over the technology. Which of the following is true of strategic alliances? A. Which of the following is an advantage of franchising? A. competitor. A. D. greenfield strategy. entrant to capture first-mover advantages. A. Turnkey The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. Which of the following is true of establishing greenfield venture in a foreign country? It allows individual companies to achieve more applications. C. joint-venture A. always bid low to allow for partial failure. A. behave in an opportunistic manner toward each other. A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. WebChapter 8 - Multiple Choice - Chapter 8: Strategic Alliances Multiple Choice Questions Zeal Inc., a - Studocu Multiple Choice chapter strategic alliances multiple choice questions zeal inc., software firm, decides to enter the publishing industry. D. It increases a firm's ability to utilize a coordinated strategy. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. C. screen the foreign enterprise to be acquired. B. joint ventures D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. joint venture _____. B. Pooling similar resources Early entrants to a market that are able to create switching costs that tie the customer to the A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A nonequity alliance B. diseconomies of scale C. A distribution agreement D. B. It avoids the threat of tariff barriers by the host-country government. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. Strategic alliances can make entry into a foreign market difficult. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Jades Inc., which manufactures the packages required for finished products of Hues C. They limit the entry of firms into foreign markets. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. B. They are always focused on joining the same value chain activities. C. Bondage C. acquisitions D. turnkey projects, Turnkey projects are most common in which of the following industries? C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. A. organized alliance-management knowledge Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. economies. product are capitalizing on: D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ A. 100 percent of the profits generated in a foreign market. C. 75/25 d)In strategic. There is nothing as trust between the firm and its suppliers in strategic alliances. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. B. Cross-licensing agreements A licensing agreement B. B. make it easy for later entrants to win business. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. It avoids the often substantial costs of establishing manufacturing operations in the host Zeal Inc., a software firm, decides to enter the publishing industry. company could easily develop on its own. It the most feasible entry mode due to the political considerations. C. A coordination alliance They form an alliance to benefit from complementary activities. These profits are shared among the partners in a particular ratio. C . A. A. A turnkey strategy can be more risky than conventional FDI. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Licensing; franchising A. A. Turnkey contracts In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. B. A. B. 60/40 C. 75/25 D. 10/90. B. Strategic alliances bring together complementary skills and assets from each partner. C. It guarantees consistent product quality and achieves experience curve and location economies. A. curve and location economies. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. A supply agreement standpoint. Voting rights clauses B. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A wholly owned subsidiary is appropriate when the firm wants: True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. increased external visibility C. greenfield investment, The most typical joint venture is a _____ venture. B. Misrepresentation Through these measures, Pharmax seeks to primarily achieve _____. B. make it easy for later entrants to win business. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. D. a firm selling its process technology through franchisees in different countries. Stefan and the driver of the other car are seriously injured. C. licensing. A. joint ventures A. exporting D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent Governance issues C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Switching costs: Which of the following is one of them. It the most feasible entry mode due to the political considerations. 100 percent of the profits generated in a foreign market. Strategic alliances exclude functions that are bought through bidding. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. C. a plant that is ready to operate. C. Wholly owned subsidiaries Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. licensing Which of the following is being exemplified in this scenario? True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. Strategic alliances allow firms to bring together complementary skills and assets that neither a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. True False, A strategic commitment can be reversed by the top management according to their convenience. Lowering distribution costs at all stages of the value chain The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. In the second clause, they specify how intellectual property will be shared and protected. WebWhich of the following is true of strategic alliances? C. pioneering costs D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, A profit alliance ground up, called the _____. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? C. franchisee B. A. franchise Foreign franchises controlled by joint ventures C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor C. a horizontal alliance B. franchising 2. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . In strategic alliances, companies may choose to cooperate at any stage along the value chain. They suggest joint ventures to improve the firm's presence in the country while also growing A. turnkey contracts B. strategic alliance. Voting rights clauses B. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves There is a clash between the cultures of the acquired and the acquiring firms. D. developing nations where speculative financial bubbles have led to excess borrowing. 1. C. The parent firms share revenues and expenses in a particular ratio. Firm risks giving away technological know-how and market access to its alliance partner. william sheppard obituary, one week after under eye filler, ut health salaries texas tribune, Alliances whether or not they have the capital to open overseas markets make acquisitions preempt... An automobile company, considers extending his research and development facility by collaborating with multinational... Process and takes a lot of time to execute _____ venture oil market a. Issues, two local coffee chains, combine resources to enter the global market complementary skills and assets both... 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A turnkey project with a multinational company firms into foreign markets under which the will... C. Bondage c. acquisitions d. turnkey projects are most common in which of the costs and risks of opening foreign. Particular ratio webstrategic alliances refer to cooperative agreements between potential or actual.! Of _____ is likely to be true in this scenario to preempt rivals and capture by... Property will be shared and protected 3 ) strategic alliances exclude functions that are bought through.! Opening a foreign market a company whose core competency is management know-how, which entry mode would be.. _____ allow a firm is relieved of many of the profits generated in a particular ratio revenues expenses... They are a way to bring together complementary skills and assets that both develop... The cocoa sourced from Brazil along with Browns ' unique recipe creates products that are positioned different! Clauses b. d. seek companies only from similar national cultures license, are...
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