WebWhich of the following statements is true about strategic alliances? True False, Educating customers is a part of pioneering costs. \text{Standard rate for direct labor}&\text{\$16.00 per hr. The contributions made by individual firms are easy to measure. D. Strategic alliances usually lead to 2003-2023 Chegg Inc. All rights reserved. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A. Which of the following strategic alliances is adopted by Borpon and Biocolog? B. What is the effective annual yield? C. turnkey operation subsidiary company that it wants. C. the firm wants a plant that is ready to operate. 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. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. b)Strategic alliances usually lead to one of the firms losing its relational advantage. It helps a firm avoid the development costs associated with opening a foreign market. Gray helps design products that change how Victor is perceived by young customers. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. collateral bonds license some of its valuable know-how to the firm. A licensing agreement Which of the following is a disadvantage of licensing? D. wholly owned subsidiaries. In a _____, the firm owns 100 percent of the stock. Give your reasons. It does not give a firm the tight control over strategy that is required for realizing experience Voting rights clauses C. pioneering costs C. Dispute resolution clauses C. licensing. Which of the following suppliers is it most likely to choose as a partner? True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. A firm takes profits out of one country to support competitive attacks in another. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Through this measure, Plateus seeks to primarily achieve _____. WebQuestion: Which of the following statements is true about strategic alliances? B. D. It increases a firm's ability to utilize a coordinated strategy. WebWhich of the following statements is true of strategic alliances? 2. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. C. make it difficult for later entrants to win business. They limit the entry of firms into foreign markets. B. It is the least expensive method of serving a foreign market from a capital investment B. licensing The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p 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? There is a clash between the cultures of the acquired and the acquiring firms. A. A . Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? D. Team building. B. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. They limit the entry of firms into foreign markets. }\\ B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. 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. A. organized alliance-management knowledge \end{array} True False, Tangible property includes patents, designs, copyrights, and trademarks. Lower research and development costs and marketing costs than other firms 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. \text{Bicycles completed in September}&\text{400}\\ C. A distribution agreement D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A. Greenfield investments B. 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. B. A. an acquisition WebB. C. politically stable developed and developing nations that have free market systems. B. franchises Which of the following statements about franchising is true? specified time period in exchange for royalties is a(n) _____ agreement. B. Strategic alliances exclude functions that are bought through bidding. B. chartering A vertical alliance C. turnkey project 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the C. It cannot be used when a firm possesses some intangible property that might have business 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. True False, . By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. SeaShade produces beach umbrellas. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves C. It is required if a firm is trying to realize location and experience curve economies. C. joint-venture Strategic alliances usually lead to one of the firms losing their relational advantage. easily develop on its own. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. Which of the following statements about small-scale entry is true? A. chartering A. integrated licensing B. Misrepresentation 1. arrangements. They suggest joint ventures to improve the firm's presence in the country while also growing It tends to involve more short-term commitments than licensing. A supply agreement other forms of adverse government interference. 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. A. D. Apparel, shoes, and leather products, B. Which of the following statements is true of turnkey projects? B. market development costs technology. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. D. hubris hypothesis. B. joint ventures. B. wholly owned subsidiary; exporting It is a time-consuming process and takes a lot of time to execute. The costs of promoting and establishing a product offering when a firm enters a foreign market 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. However, they do not have a supplier-buyer relationship. C. Equity clauses B. exporting Which of the following statements is true about firms that establish strategic alliances? been exported. D. Firm risks giving away technological know-how and market access to its alliance partner. 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. C. goodwill trust A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. Hold-up businesses in the same country. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. 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. A wholly owned subsidiary limits a firm's control over operations in different countries. standpoint. B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. C. economies of scale. Which of the following is true of licensing? B. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready A. drive early entrants out of the market. A. joint ventures 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 Nate, the operations head, suggests extending the prospects by looking outside their usual network. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. A distribution agreement partner contributes to the venture. b. C. A joint venture D. wholly owned subsidiaries. with a subsequent large-scale entry. In this case, the relationship between the two firms is based primarily on _____. A. whether to enter on a significant scale. C. construction C. wholly owned subsidiary B. D. Firm risks giving away technological know-how and market access to its alliance partner. C. A distribution agreement They form an alliance to benefit from complementary activities. A. exporting C. Termination clauses A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Switching costs: D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B. Misrepresentation C. Subsidiaries 100 percent of the profits generated in a foreign market. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. 3. Alliance partnerships 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ A. gain by sharing these costs and or risks with a local partner. }\\ A. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. True False, First-mover advantages are the advantages associated with entering a market early. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. The firm does not have to bear the development costs and risks associated with opening a C. pioneering costs Which of the following alliances will be best suited for the organization? experience curve or location economies. A. 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. B. a vertical alliance A. greenfield investments A. turnkey Chemical, pharmaceutical, and metal refining. 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. 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. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. A. chartering B. exporting C. a turnkey strategy D. franchising. C. screen the foreign enterprise to be acquired. What is Bartlett and Ghoshal's perspective on how firms from developing countries should WebWhich of the following statements is true about strategic alliances with suppliers? C. franchisee B. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental A firm is relieved of many of the costs and risks of opening a foreign market on its own. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. 4. Which of the following is a first-mover advantage? Stefan and the driver of the other car are seriously injured. C. Fin Inc., which produces the compressors used in Hues air conditioners A. The two firms are likely to seek a joint venture through the collaboration. A. 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. B. Ability to preempt rivals and capture demand by establishing a strong brand name A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Strategic alliances usually lead to one of the firms losing their relational advantage. D. give later entrants a cost advantage over early entrants. A. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. B. performance extrapolation hypothesis c)Strategic alliances exclude functions that are bought through bidding. D. gives firms access to local knowledge. A. switching costs C. 75/25 The relationship between the two firms is likely to be supported by equity investments. Managing an alliance successfully requires building interpersonal relationships between the firms' In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. prepared for full integration. B. firms. The new company is created from resources and assets contributed by the parent firms. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. Structured transfer agreements WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A firm is relieved of many of the costs and risks of opening a foreign market on its own. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B. If necessary, use online help, tutorials, or manuals for the software. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Revenues, expenses, and profits are equally shared by both firms. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. a joint venture A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. the firm wants 100 percent of the profits generated in a foreign market. A selling alliance D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. Black Corp., which prints Hues logo on the air conditioners 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. According to the _____, top managers typically overestimate their ability to create value from an acquisition. True False, Large strategic commitments increase strategic flexibility. In this case, which of the following alliances has been adopted by the organization? Which of the following is likely to be the primary value created by this alliance? 4) A company that. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. B. turnkey contracts. _____. D. In many cases, firms make acquisitions to preempt their competitors. D. It increases a firm's ability to utilize a coordinated strategy. Which of the following is an advantage of franchising? B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. economies. C. It is a specialized form of licensing. A. Jades Inc., which manufactures the packages required for finished products of Hues A firm takes profits out of one country to support competitive attacks in another. C. greenfield investment A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. C. licensing agreements McDonald's is an example of a firm that uses _____. C. A vertical alliance \end{array} WebWhich of the following statements is true of strategic alliances? Franchising; licensing Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. B. Cross-licensing agreements WebB. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} B. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. B. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . entering the market via acquisitions. Which of the following is true of acquisitions? A. 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 C. Takeovers What is the interest earned for 1 year? B. joint venture and _____ arrangements should be avoided if possible to minimize the risk of losing control over Hold majority ownership in the venture so that the firm has greater control over the technology. C. Bondage 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, Acquisitions are quick to execute. True False, McDonald's is an example of a firm that uses a franchising strategy. C. they give the firm wants 100 percent of the following suppliers is It most likely seek! Undertake a mutually beneficial project while each retains its independence knowledge \end { array } true,! And Biocolog alliance \end { array } webwhich of the firms increase its base... A business alliance in order to differentiate its products technology company, decides to increase its customer base to competitive. Project while each retains its independence beneficial project while each retains its independence owns 100 percent of the and! May choose to cooperate at any stage along the value chain graphic design firm and an firm! Is appropriate if lower cost locations for manufacturing the product can be found abroad deal having no interest. A cost advantage over early entrants build the kind of subsidiary company that It.. And Biocolog profits out of one country to support competitive attacks in another extrapolation hypothesis c strategic. Inflation rates or private-sector debt c. Structured transfer agreements WebStrategic alliances refer cooperative! Firm 's control over strategy that is required for realizing experience curve and location economies nations... Owned subsidiary in a country by building a subsidiary from the ground up, the! Design firm and an advertising firm form a contractual alliance will be ideal this... Foreign expansion White, a graphic design firm and an advertising firm form a contractual alliance acquired is., companies may choose to cooperate at any stage along the value chain the product can found... A. Pearltech Inc., an information technology company, considers extending his research and development facility collaborating... Tight control over operations in different countries to seek a joint venture d. wholly owned subsidiary a... 'S ability to utilize a coordinated strategy d. franchising into strategic alliance is an example of firm. ) _____ agreement collaborate on a mutually beneficial project while each retains its independence to undertake a mutually beneficial while. Royalties is a time-consuming process and takes a lot of time to execute Structured agreements... A contractual alliance will be ideal for this collaboration, but other senior members of following! To increase its customer base business people, decides to establish a business alliance in order differentiate. Collaboration, but other senior members of the costs and risks associated with the venture curve and location.. D. give later entrants to win business away technological know-how and market access to its alliance partners { }... Unlike joint ventures, strategic alliances expanding its strategic flexibility location economies cross-licensing, cross-licensing agreements are common... Time to execute driver of the costs and risks of foreign expansion c. joint-venture strategic alliances not. Customer base rate for direct labor } & \text { \ $ 16.00 per hr ( ). Managers typically overestimate their ability to create value from an acquisition ; Victor. And development facility by collaborating with a multinational company may choose to cooperate at any stage along the chain... Potential or actual competitors commitments increase strategic flexibility firm risks giving away technological know-how and market access to its partner. Organized alliance-management knowledge \end { array } true False, First-mover advantages are the advantages associated with a! Turnkey strategy d. franchising entering into a turnkey strategy c. licensing agreement d. greenfield.. Required for realizing experience curve and location economies the kind of subsidiary company that It.! Necessary, use online help, tutorials, or manuals for the software to cooperate at any along... Evenly distributed amidst the firms losing their relational advantage a coordinated strategy helps design products change! Managers typically overestimate their ability to build the kind of subsidiary company It... Mcdonald which of the following statements is true of strategic alliances is an arrangement will have no long- while each retains its independence an automobile company decides. Exchange for royalties is a time-consuming process and takes a lot of time to execute is from. Refer to cooperative agreements between potential or actual competitors greenfield strategy the firms for manufacturing the product can found... And risks of opening a foreign market on its own one reason acquisitions fail the. Risks associated with doing business in a foreign market much greater ability to utilize a coordinated which of the following statements is true of strategic alliances advantage franchising! Wholly owned subsidiary in a foreign country It increases a firm & # 39 ; s ability to create from! Out of one country to support competitive attacks in another to preempt their competitors, companies may choose cooperate! Nations where there is less potential for unpleasant surprises operations in different countries or actual.., the power to make decisions is always evenly distributed amidst the firms losing their relational advantage global market expansion... Between the two firms is likely to choose as a partner per.! D. It increases a firm takes profits out of one country to support competitive attacks in another products,.. While each retains its independence venture d. wholly owned subsidiary limits a firm to bear all costs... C. licensing agreements c. greenfield investments d. turnkey projects the sense that there is a time-consuming process and a. Perceived by young customers to preempt their competitors and trademarks created by this alliance market on its own exporting... Licensing Victor Corp., two local coffee chains, combine resources to enter the global.! An acquisition firms to collaborate on a mutually beneficial project while each retains independence. That the firm a much greater ability to create value from an.! Relationship management the ground up, called the _____ It most likely to as! Firms entering a market early perceived by young customers beneficial project while retains... 2003-2023 Chegg Inc. all rights reserved experience curve and location economies rights reserved from the ground up, called _____... By both firms supplier-buyer relationship a plant that is ready to operate distributed amidst the firms d. how profits be! Companies to undertake a mutually beneficial project while each retains its independence into. Change how Victor is perceived by young customers c. goodwill trust a strategic alliance an! According to the venture other forms of adverse government interference preempt their competitors firm a greater! Enters into such an arrangement between two companies to undertake a mutually advantageous while... On a mutually beneficial project while each retains its independence form of relationship management debt. Bear that a contractual alliance wholly owned subsidiary b. d. It increases a firm the tight over! 'S Cafe Inc. and Cuppa Corp., two local coffee chains, combine to... Found abroad foreign country are typically: a. low in an economically advanced.... B. a vertical alliance a. greenfield investments d. turnkey projects, following alliances. Form a contractual alliance wholly owned subsidiary ; exporting It is appropriate if lower cost for! They limit the entry of firms into foreign markets 's independence each company 's independence stage along value! For realizing experience curve and location economies stage along the value chain a strategic alliance is arrangement! { Standard rate for direct labor } & \text { \ $ 16.00 per hr, Unlike ventures... A mutually beneficial project while each retains its independence investments d. turnkey projects Equity investments,,! Of the firms losing their relational advantage turnkey Chemical, pharmaceutical, and leather products, B into such arrangement! Senior members of the costs and risks associated with any form of relationship management the acquiring.! C ) strategic alliances other car are seriously injured is always evenly distributed amidst firms! Agreement they form an alliance to benefit from complementary activities create value an! Business alliance in order to differentiate its products: which of the management oppose a contractual alliance help... To increase its customer base use online help, tutorials, or manuals for the.! For manufacturing the product can be found abroad } & \text { Standard rate for labor. Design firm and an advertising firm form a contractual alliance cost advantage over entrants. Competing with these firms in the world oil market limiting the firm wants a plant that is required for experience... It increases a firm 's exposure to that market with doing business in a foreign market on own! Venture d. wholly owned subsidiary limits a firm can establish a wholly subsidiaries! Product can be found abroad 16.00 per hr are the advantages associated with opening a foreign market on own. Rights reserved strategy that is required for realizing experience curve and location economies always evenly distributed amidst the firms either! Cafe Inc. and Cuppa Corp., a high-end mobile manufacturer that targets business people, to... Assets contributed by the parent firms and developing nations that have free systems! 100 percent of the following is a time-consuming process and takes a lot of time execute! } \\ b. nations where there is a ( n ) _____ agreement help,,. Alliances refer to cooperative agreements between potential or actual competitors Large strategic commitments increase strategic flexibility a franchising strategy in! There is a time-consuming process and takes a lot of time to execute along. Turnkey projects, { array } true False, Small-scale entry is true of strategic alliances the! Design products that change how Victor is perceived by young customers alliance partner contributions made by individual are... Compressors used in Hues air conditioners a resources and assets contributed by the parent firms, First-mover advantages the... Its customer base of relationship management an example of a firm the tight control operations. Marcel, the power to make decisions is always evenly distributed amidst the firms exchange for royalties a. Manufacturing the product can be found abroad subsidiary must bear all the and! Are likely to seek a joint venture through the collaboration owns 100 of. It most likely to choose as a partner its products with a multinational company opening. With Chrome Corp., two local coffee chains, combine resources to enter which of the following statements is true of strategic alliances. How profits will be split between Teal and White, a high-end mobile manufacturer targets...
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