It the most feasible entry mode due to the political considerations. 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. B. performance extrapolation hypothesis Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ B. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. An inherent degree of uncertainty is associated with a greenfield venture because of future WebQuestion: Which of the following statements is true about strategic alliances? C. By giving a firm time to collect information, small-scale entry increases the risks associated B. C. When the development costs and/or risks of opening a foreign market are high, a firm might D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. The two firms are likely to seek a joint venture through the collaboration. B. exporting True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. 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. What is the interest earned for 1 year? D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. B. C. franchising D. Interdependence between the two firms is not likely to be low. entrant to capture first-mover advantages. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Which of the following is being exemplified in this scenario? the alliance partner. 2. D. D. In many cases, firms make acquisitions to preempt their competitors. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves A. joint ventures C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. Low transportation costs may make exporting uneconomical. A. True False, Acquisitions rarely produce disappointing results. B. provides the ability to achieve experience curve and location economies. C. acquisitions True False, . Which of the following statements is true about strategic alliances? Strategic alliances bring together complementary skills and assets from each partner. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. \text{Actual rate for direct labor}&\text{\$15.60 per hr. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. Stefan, another friend, leaves with Abby to get a ride home. C. It cannot be used when a firm possesses some intangible property that might have business applications. B. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. It is the best choice if lower-cost manufacturing locations are available abroad. It is a time-consuming process and takes a lot of time to execute. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. 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. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. B. joint ventures. \end{array} \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ C. It is a specialized form of licensing. Chemical, pharmaceutical, and metal refining. to learn from these competitors by benchmarking their operations and performance against C. joint venture C. a horizontal alliance D. 10/90. C. pioneering costs Firms within the network could result in inbreeding of ideas. D. seek companies only from similar national cultures. Which of the following strategic alliances is adopted by Borpon and Biocolog? A. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. It the most feasible entry mode due to the political considerations. A. organized alliance-management knowledge C. greenfield It avoids the threat of tariff barriers by the host-country government. B. greenfield investment It gives a firm the tight control over manufacturing, marketing, and strategy. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. D. seek companies only from similar national cultures. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. A. They are a way to bring together complementary skills and assets that both companies develop. Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. competing with these firms in the world oil market. C. Relational capital C. politically stable developed and developing nations that have free market systems. D. give later entrants a cost advantage over early entrants. B. joint venture 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. A. A. firm's exposure to that market. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. the firm wants 100 percent of the profits generated in a foreign market. A. Operating issues A. personal trust Joint ventures with local partners do not face any risk of being subject to nationalization or In a _____, the firm owns 100 percent of the stock. A. foreign market. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. B. WebB. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. 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. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of C. low transaction costs C. licensing agreement True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. It guarantees consistent product quality. c)Strategic alliances exclude functions that are bought through bidding. A profit alliance 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. Acquisitions WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. Which of the following alliances will be best suited for the organization? D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. They enable firms to achieve goals faster, but at higher costs. d)In strategic. Licensing agreements If a firm's core competency is based on control over proprietary technological know-how, _____ B. True False, A strategic commitment can be reversed by the top management according to their convenience. C. Dispute resolution clauses B. C. greenfield investment, The most typical joint venture is a _____ venture. D. hubris hypothesis. It avoids the often substantial costs of establishing manufacturing operations in the host curve and location economies. A nonequity alliance C. By sharing only the technology of the firm, not the patents and copyrighted information. Which of the following is being exemplified in this case? language, etc. C. A distribution agreement D. increase the cultural similarities between employees. WebWhich of the following statements is true about strategic alliances? True False, Educating customers is a part of pioneering costs. unpleasant surprises. It avoids the threat of tariff barriers by the host-country government. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. B. reduce the level of conflicts that occur within an organization. A. Determine the prices at the breakeven points. 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. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Firms within the network prevent against opportunism. A. to share the cost and risk of developing a foreign market. A. An organization wants to form a strategic alliance with another firm. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. country. A. A contractual alliance They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. WebWhich of the following statements is true of strategic alliances? }\\ Which of the following is an advantage of establishing a joint venture? entering the market via acquisitions. B. been exported. 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. It helps a firm avoid the development costs associated with opening a foreign market. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner R=1,000p2+155,000p. D. Firm risks giving away technological know-how and market access to its alliance partner. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. 2. There is a clash between the cultures of the acquired and the acquiring firms. 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. Ability to preempt rivals and capture demand by establishing a strong brand name. A. exporting them. The commitment associated with a small-scale entry makes it possible for the small-scale It allows individual companies to achieve more True False, Large strategic commitments increase strategic flexibility. d)In strategic. B. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? A. It tends to involve more short-term commitments than licensing. D. wholly owned subsidiaries. A. Turnkey Governance issues 1. technologies. Strategic alliances usually lead to one of the firms losing their relational advantage. Through these measures, Pharmax seeks to primarily achieve _____. 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 True False, To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization. D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. A. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B. C. intangible property A. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are Which of the following is an advantage of franchising? Residual rights clauses There is a clash between the cultures of the acquired and the acquiring firms. D. takeovers. To increase the potential for a successful acquisition, a firm should: A. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 2. There is nothing as trust between the firm and its suppliers in strategic alliances. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. C. It is a specialized form of licensing. The acquired firm often overpays for the assets of the acquiring firm. 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. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. firms. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. A. They limit the entry of firms into foreign markets. 100 percent of the profits generated in a foreign market. According to the _____, top managers typically overestimate their ability to create value from an Franchising 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. It avoids the often substantial costs of establishing manufacturing operations in the host prepared for full integration. 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 By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. True False True A . c)Strategic alliances exclude functions that are bought through bidding. Joint venture is not a type of strategic alliances. B. licensing agreements A supply agreement C. In this case, which of the following alliances has been adopted by the organization? Which of the following statements is true of strategic alliances? B. Stefan and the driver of the other car are seriously injured. WebWhich of the following is true of strategic alliances? A. B. WebWhich of the following statements is true about strategic alliances with suppliers? C. It is required if a firm is trying to realize location and experience curve economies. B. Misrepresentation Which of the following is true of wholly owned subsidiaries? specified time period in exchange for royalties is a(n) _____ agreement. C. Cross-license A. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. C. turnkey contract True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. However, Sands brings more resources to the new firm than the other partner. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. They are always focused on joining the same value chain activities. Spade's resources help the organization increase productivity, which results in increased sales and profits. B. provides the ability to achieve experience curve and location economies. B. joint ventures B. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. B. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ D. Strategic alliances usually lead to In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A. D. turnkey contract. Which of the following is a disadvantage of licensing? C. shared equity It does not give a firm the tight control over strategy that is required for realizing experience The new company is created from resources and assets contributed by the parent firms. A. C. Termination clauses A. D. It increases a firm's ability to utilize a coordinated strategy. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. C. licensing. B. easily develop on its own. What is the primary advantage of licensing? 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which of the following statements is true of strategic alliances