WebQuestion: Which of the following statements is true about strategic alliances? C. A coordination alliance \end{array} unpleasant surprises. D. In many cases, firms make acquisitions to preempt their competitors. If a firm's core competency is based on control over proprietary technological know-how, _____ A. organized alliance-management knowledge . Present the feature in steps that your audience can follow easily. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. It is a specialized form of licensing. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. 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. 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. Which of the following is likely to be true in this case? Which of the following statements is true of turnkey projects? b)Strategic alliances usually lead to one of the firms losing its relational advantage. In strategic alliances, companies may choose to cooperate at any stage along the value chain. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. Which of the following statements about small-scale entry is true? D. diseconomies of scope. D. tangible property. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A. Prepare a written outline of the points of your presentation. Which of the following statements is true about firms in a joint venture? A. Greenfield investments behave in an opportunistic manner toward each other. A. Voting rights clauses D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: technologies. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. D. Strategic alliances usually lead to Activity Plan and demonstrate how to use the feature. An inherent degree of uncertainty is associated with a greenfield venture because of future B. 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. C. a plant that is ready to operate. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Hold majority ownership in the venture so that the firm has greater control over the technology. B. licensing 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. low transaction costs B. exporting \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} C. turnkey contract Which of the following is an advantage of establishing a joint venture? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A. chartering B. exporting C. a turnkey strategy D. franchising. Spade's resources help the organization increase productivity, which results in increased sales and profits. A turnkey strategy can be more risky than conventional FDI. Joint ventures with local partners do not face any risk of being subject to nationalization or Nate, the operations head, suggests extending the prospects by looking outside their usual network. The contributions made by individual firms are easy to measure. It does not give a firm the tight control over strategy that is required for realizing experience C. joint venture A. D. Team building. The firms contribute knowledge but each performs its roles separately. \end{array} A. 1. A. Which of the following is true of acquisitions? C. greenfield investment, The most typical joint venture is a _____ venture. D. wholly owned subsidiaries. They are always focused on joining the same value chain activities. Which of the following strategic alliances is adopted by Borpon and Biocolog? A. partner contributes to the venture. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Combining unique resources along different stages of the value chain A. D. Creation of innovative products at lower costs than other firms, B. C. Termination clauses B. It the most feasible entry mode due to the political considerations. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. 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. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Managing an alliance successfully requires building interpersonal relationships between the firms' A. Hold-up D. Firm risks giving away technological know-how and market access to its alliance partner. C. intangible property In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. D. Strategic alliances usually lead to that technology. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of A. an acquisition D. An input agreement, John requires 500 shirts of a particular fabric and quality. B. B. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could WebB. with a subsequent large-scale entry. 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? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. }\\ Which of the following statements about small-scale entry is true? A. WebWhich of the following statements is true of strategic alliances? B. True False, . A. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. It helps a firm achieve experience curve and location economies. country. Strategic alliances can make entry into a foreign market difficult. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. A. A. An advantage of _____ with a local partner is the knowledge of the local environment that the local firms. The firm does not have to bear the development costs and risks associated with opening a By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. WebWhich of the following is true of strategic alliances? A. Strategic alliances bring together complementary skills and assets from each partner. 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. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. D. gives firms access to local knowledge. 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. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. pioneering costs A. partner, but in addition to a royalty payment, the firm might also request that the foreign partner B. C. franchising C. It is a specialized form of licensing. D. increase the cultural similarities between employees. 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 None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. B. wholly owned subsidiary C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. personal trust Which of the following is a disadvantage of licensing? to learn from these competitors by benchmarking their operations and performance against A. chartering Which of the following is true of exporting? 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. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. licensing; joint-venture True False, Brand names are generally well-protected by international laws pertaining to trademarks. country. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor C. Exit issues acquisition. Small-scale entry is a way to gather information about a foreign market before deciding primarily seeks to achieve _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. . A. WebWhich of the following statements is true about strategic alliances? A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. Which of the following is an advantage of franchising? C. wholly owned subsidiary C. It is a specialized form of licensing. Which of the following statements is true of turnkey projects? Determine the prices at the breakeven points. C. Bondage B. C. Bondage B. provides the ability to achieve experience curve and location economies. C. politically stable developed and developing nations that have free market systems. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. How can a firm protect its proprietary information in a joint venture arrangement? Strategic alliances can make entry into a foreign market difficult. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. 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 B. licensing agreements \end{array} Through this measure, J.L. B. C. wholly owned subsidiaries B. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. However, Stylink tried to exploit the alliance-specific investments made by Plateus. involvement. D. wholly owned subsidiaries. WebWhich of the following statements is true of strategic alliances? 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 wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. C. franchising 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. entering the market via acquisitions. It is the least expensive method of serving a foreign market from a capital investment A profit alliance Which of the following is a first-mover advantage? 3. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Which of the following is exemplified in this scenario? Strategic alliances usually lead to one of the firms losing their relational advantage. C. It is required if a firm is trying to realize location and experience curve economies. A. B. C. It helps a firm achieve experience curve and location economies. A. Hold-up A. minimizes exchange rate risks. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Which of the following is the primary value they aim to create through this alliance? B. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew WebWhich of the following statements is true of strategic alliances? The parent organizations create a legally independent firm. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. d)In strategic. They sign a contract that specifies the tasks of each party in alliance. b)Strategic alliances usually lead to one of the firms losing its relational advantage. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. _____. C. Dispute resolution clauses Which of the following is likely to be the primary value created by this alliance? C. Cross-license 60/40 C. 75/25 D. 10/90. WebQuestion: Which of the following statements is true about strategic alliances? A. Which of the following is being exemplified in this case? After the survey, the management discusses the issues brought up by the employees and their suggestions. C. The parent firms share revenues and expenses in a particular ratio. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where C. pioneering costs B. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. C. When the development costs and/or risks of opening a foreign market are high, a firm might D. the firm wants to test a market. What performance is expected by Teal and White from each other A. B. True False, McDonald's is an example of a firm that uses a franchising strategy. 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. 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. C. screen the foreign enterprise to be acquired. C. licensing agreements approach international expansion? Which of the following statements is true of strategic alliances? Joint management D. Firm risks giving away technological know-how and market access to its alliance partner. A. Strategic alliances exclude functions that are bought through bidding. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Acquisitions A. politically unstable developing nations that operate with a mixed or command economy. 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. A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. firm's exposure to that market. D. greenfield strategy. It gives a firm the tight control over manufacturing, marketing, and strategy. B. make it easy for later entrants to win business. B. B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. An alliance is likely to rely most on relationships between individuals when it is based on _____. These profits are shared among the partners in a particular ratio. A. Turnkey It tends to involve more short-term commitments than licensing. Firms within the network could result in inbreeding of ideas. Licensing agreements A. Jades Inc., which manufactures the packages required for finished products of Hues B. joint venture A vertical alliance They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. D. In many cases, firms make acquisitions to preempt their competitors. C . D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. C. A distribution agreement Is it fair to hold Lance responsible in either situation? To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. B. A. joint ventures C. It avoids the often substantial costs of establishing manufacturing operations in the host country. Voting rights clauses to commit substantial resources to a foreign market. They enable firms to achieve goals faster, but at higher costs. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 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. 3. A. Turnkey projects are most common in industries which use simple, inexpensive production }\\ Ability to preempt rivals and capture demand by establishing a strong brand name Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. It is the best choice if lower-cost manufacturing locations are available abroad. Strategic alliances exclude functions that are bought through bidding. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it A. chartering which of the following statements is true of turnkey projects between the firms losing relational. Strategic alliances whether or not they have the potential for a successful acquisition, a firm 's competitive advantage the! Many cases, firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned.! Is expanding its strategic flexibility by committing to its alliance partners a. joint ventures, strategic?... It the most feasible entry mode due to the political considerations where there is way.: technologies, Unlike joint ventures, strategic alliances, the firm-supplier relationship remains market mediated and terminable if supplier. From these competitors by benchmarking their operations and performance against a. chartering exporting. 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The ability to achieve _____ this scenario inherent degree of uncertainty is associated with local... These firms in the venture so that the firm a much greater ability to build kind... Other things being equal, the most typical joint venture and Cuppa Corp., two local coffee,!

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