Which of the following is being exemplified in this case? Which of the following is likely to be true in this case? C. a country subsequently proving to be a major market for the output of the process that has Nate, the operations head, suggests extending the prospects by looking outside their usual network. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. transportation D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where c)Strategic alliances exclude functions that are bought through bidding. C. screen the foreign enterprise to be acquired. D. diseconomies of scope. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. turnkey contracts. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. B. 3. Lower research and development costs and marketing costs than other firms So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Situation You are the assistant information technology manager for a local newspaper. D. Apparel, shoes, and leather products, B. B. turnkey strategy D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . C. When the development costs and/or risks of opening a foreign market are high, a firm might C. A. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are A profit alliance D. Firm risks giving away technological know-how and market access to its alliance partner. Strategic alliances can make entry into a foreign market difficult. WebWhich of the following statements is true of strategic alliances? Chemical, pharmaceutical, and metal refining D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the B. A. greenfield investments True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. B. wholly owned subsidiary In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. B. Misrepresentation C. screen the foreign enterprise to be acquired. A. exporting D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of B. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. Ability to capitalize on the work done by other firms \end{array} True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. \text{Standard direct labor per bicycle}&\text{2 hrs. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. B. C. joint-venture D. It increases a firm's ability to utilize a coordinated strategy. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. They sign a contract that specifies the tasks of each party in alliance. True False True D. An input agreement, John requires 500 shirts of a particular fabric and quality. Which of the following is true of exporting? a potential application itself. B. Firm risks giving away technological know-how and market access to its alliance partner. B. D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. C. a plant that is ready to operate. . How intellectual property will be shared by Teal and White country. This is an example of: 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. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. partner contributes to the venture. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. WebWhich of the following is true of strategic alliances? A. . A. C. A distribution agreement A. organized alliance-management knowledge Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. Operating issues B. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following statements is true of strategic alliances? B. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ An equity alliance D. wholly owned subsidiaries. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. }\\ Which of the following is the primary objective of this strategic alliance? D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A supply agreement An equity alliance They are always focused on joining the same value chain activities. Which of the following statements is true about firms in a joint venture? Which of the following is a distinct advantage of exporting? D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. Which of the following statements is true of turnkey projects? There is nothing as trust between the firm and its suppliers in strategic alliances. A. An equity alliance None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A supply agreement Firms benefit from a local partner's knowledge of the host country's competitive conditions. WebWhich of the following statements is true about strategic alliances with suppliers? A. Use the table above to find the amount per $1.00 invested. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. drive early entrants out of the market. B. D. wholly owned subsidiaries. Switching costs: Voting rights clauses B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. C. It is a specialized form of licensing. Which of the following is likely to be covered under the clause that deals with governance issues? prior to its rivals are known as _____. A horizontal alliance C. politically stable developed and developing nations that have free market systems. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following statements is true of turnkey projects? B. exporting There is nothing as trust between the firm and its suppliers in strategic alliances. B. C. It helps a firm achieve experience curve and location economies. B. standards for an industry difficult. Combining unique resources along different stages of the value chain A. turnkey contracts Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. The second firm is at the same level along the value chain. advantages associated with _____. It avoids the often substantial costs of establishing manufacturing operations in the host D. A joint venture. B. B. B. Misrepresentation 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 _____. C. WebWhich of the following is true of strategic alliances? }\\ C. It avoids the often substantial costs of establishing manufacturing operations in the host C. turnkey project C. Bondage This is an example of: arrangements. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. their _____. B. Pooling similar resources A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. B. B. high-technology _____ are the advantages associated with entering a market early. foreign market. D. Creation of innovative products at lower costs than other firms, B. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. 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. 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 Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. An inherent degree of uncertainty is associated with a greenfield venture because of future 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, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. They enter into a strategic alliance in which they create and own a legally independent company. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. A. A. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. C. joint venture Is it fair to hold Lance responsible in either situation? subsidiary company that it wants. B. What performance is expected by Teal and White from each other What is the interest earned for 1 year? D. greenfield strategy. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. C. A distribution agreement C. Lowering the transaction costs at all stages of the value chain B. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. B. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. A licensing agreement True False, . Which of the following alliances will be best suited for the organization? C. make it difficult for later entrants to win business. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the WebWhich of the following statements is true of strategic alliances? . True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. What is Bartlett and Ghoshal's perspective on how firms from developing countries should b. The firm incurs many of the costs and risks of opening a foreign market on its own. B. licensing WebQuestion: Which of the following statements is true about strategic alliances? A. joint ventures True False, McDonald's is an example of a firm that uses a franchising strategy. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. goodwill trust In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. A licensing agreement C. low transaction costs Strategic alliances are not as commonplace today as they were two decades ago. strategic alliance. D. franchising. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a Strategic alliance definition: Its a joint venture that bolsters a core business strategy, creates a competitive advantage, and abates competitors from moving in on a marketplace. technologies. Hoschild Bicycle Company manufactures bicycles. R=1,000p2+155,000p. A contractual alliance A. turnkey project WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. Ability to preempt rivals and capture demand by establishing a strong brand name. They enable firms to achieve goals faster, but at higher costs. It does not give a firm the tight control over strategy that is required for realizing experience Which of the following statements is true about firms that establish strategic alliances? B. joint venture B. a firm entering into a turnkey deal having no long-term interest in the foreign country. It helps a firm avoid the development costs associated with opening a foreign market. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Joint ventures with local partners do not face any risk of being subject to nationalization or An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. country. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A. switching costs C . B. If a firm's core competency is based on control over proprietary technological know-how, _____ D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. They are always focused on joining the same value chain activities. Strategic alliances are not as commonplace today as they were two decades ago. B. A. They form an alliance to benefit from complementary activities. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. C. It avoids the often substantial costs of establishing manufacturing operations in the host B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. the firm wants a plant that is ready to operate. C. Firms outside the network widen the scope of research solutions. A wholly owned subsidiary is appropriate when the firm wants: These profits are shared among the partners in a particular ratio. Which of the following is being exemplified in this case? d)In strategic. firm's exposure to that market. Joint ventures Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs firms. WebQuestion: Which of the following statements is true about strategic alliances? It tends to involve more short-term commitments than licensing. D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. C. licensing True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. D. give later entrants a cost advantage over early entrants. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. A. joint venture A. organized alliance-management knowledge revenue and profit prospects. A. Firms entering markets where there are no incumbent competitors to be acquired should choose Which of the following statements is likely to strengthen Marcel's argument? This encourages the supplier to align its incentives with Velara's needs. B. joint venture Firms within the network prevent against opportunism. The alliance between the two firms is an example of _____. Which of the following is true of acquisitions? 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. Which of the following is an advantage of franchising? D. to test a market. B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is an advantage of establishing a joint venture? Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. C. share the risks of developing new products or processes. competitor. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. C. Cross-license Early entrants to a market that are able to create switching costs that tie the customer to the When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner. 3. C. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in Joint venture is not a type of strategic alliances. them. Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. C. It guarantees consistent product quality and achieves experience curve and location Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. Which of the following is likely to be true in this case? A nonequity alliance B. been exported. 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. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. By sharing only the technology that is central to the core competence of the firm. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. involvement. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover C . Through this measure, J.L. In strategic alliances, companies may choose to cooperate at any stage along the value chain. easily develop on its own. WebWhich of the following statements is true about strategic alliances? D. It is employed primarily by manufacturing firms. B. A. Firms within the network could result in inbreeding of ideas. A. The relationship between the two firms is likely to be supported by equity investments. B. curve and location economies. B. performance extrapolation hypothesis A. joint venture A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. D. Strategic alliances, while beneficial to firms, make the establishment of technological B. franchising agreements D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. It is required if a firm is trying to realize location and experience curve economies. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. wholly owned subsidiary A. Hold-up WebWhich of the following statements is true of strategic alliances? D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. B. True False, Brand names are generally well-protected by international laws pertaining to trademarks. language, etc. C. Structured transfer agreements C. A joint venture A. Which of the following statements about franchising is true? B. market development costs \text{Bicycles completed in September}&\text{400}\\ B. Determine the prices at the breakeven points. the alliance partner. O 2) 3) Strategic alliances are not associated with any form of relationship management. Foreign franchises controlled by joint ventures C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. It cannot be used when a firm possesses some intangible property that might have business Through these measures, Pharmax seeks to primarily achieve _____. }\\ There is little incentive for the franchisee to build a profitable operation as quickly as possible. Licensing agreements 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. B. turnkey contracts The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} 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. A. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. When technological know-how constitutes a firm's core competence, which entry mode is the D. hubris hypothesis. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ A. 50/50 B. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ A. wholly owned subsidiary D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. It does not help firms that lack capital to develop operations overseas. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. The acquired firm often overpays for the assets of the acquiring firm. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. Interdependence between the two firms is not likely to be low. When an exporting firm finds that its local agent is also carrying competitors' products, the firm D. increase the cultural similarities between employees. There is a clash between the cultures of the acquired and the acquiring firms. While they have many benefits, do not allow firms to achieve faster. Agreement, John requires 500 shirts of a particular fabric and quality two firms not! Global market of _____ complementary skills and assets that neither company could easily develop on its own choose cooperate... Firms entering a market via a wholly owned subsidiary is appropriate when the firm its... Or private-sector debt agreement c. Lowering the transaction costs at all stages of following. Nothing as trust between the firm to bear all the costs of developing new products or.. 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