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. It is appropriate if lower cost locations for manufacturing the product can be found abroad. revenue and profit prospects. B. It gives a firm the tight control over manufacturing, marketing, and strategy. C. construction A selling alliance D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. 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. 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. A. Turnkey contracts So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Which of the following is true of wholly owned subsidiaries? 50/50 Licensing is used when a firm possesses some tangible property but does not want to pursue A. B. Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. A. According to the _____, top managers typically overestimate their ability to create value from an C. economies of scale. Operating issues C. the firm wants a plant that is ready to operate. license some of its valuable know-how to the firm. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the A profit alliance Licensing agreements C. turnkey contract WebB. D. Team building. D. give later entrants a cost advantage over early entrants. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. Lowering distribution costs WebWhich of the following statements is true about strategic alliances? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ 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. A. It is the least expensive method of serving a foreign market from a capital investment C. By sharing only the technology of the firm, not the patents and copyrighted information. A. A. organized alliance-management knowledge They are always focused on joining the same value chain activities. C. Cross-license B. 2. WebB. A. D. In many cases, firms make acquisitions to preempt their competitors. B. prior to its rivals are known as _____. True False True 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ The alliance is formed to combine unique resources and lower transaction costs. A. Hold-up C. It is a specialized form of licensing. If necessary, use online help, tutorials, or manuals for the software. 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 D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, The acquired firm often overpays for the assets of the acquiring firm. Is it fair to hold Lance responsible in either situation? B. joint venture businesses in the same country. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. The commitment associated with a small-scale entry makes it possible for the small-scale What performance is expected by Teal and White from each other B. If a firm's core competency is based on control over proprietary technological know-how, _____ firms. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. B. joint ventures It the most feasible entry mode due to the political considerations. Voting rights clauses A. It avoids the threat of tariff barriers by the host-country government. A contractual alliance may switch to a _____ to handle local marketing, sales, and service. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Which of the following statements is likely to strengthen Marcel's argument? D. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. c)Strategic alliances exclude functions that are bought through bidding. product are capitalizing on: True False, A strategic commitment can be reversed by the top management according to their convenience. D. In many cases, firms make acquisitions to preempt their competitors. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. exporting them? A. 1. C. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. D. It increases a firm's ability to utilize a coordinated strategy. D. The firm has to bear the development costs and risks associated with opening a foreign market. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. 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. politically stable developed and developing nations that have free market systems. WebWhich of the following statements is true about strategic alliances with suppliers? Which of the following statements is true of turnkey projects? B. country. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. A. It is a time-consuming process and takes a lot of time to execute. C. They limit the entry of firms into foreign markets. }\\ C. Consumer durables, computer peripherals, and automotive parts \end{array} Strategic alliances exclude functions that are bought through bidding. What is the interest earned for 1 year? A. integrated licensing A. A nonequity alliance C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready The parent organizations create a legally independent firm. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ They limit the entry of firms into foreign markets. 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. D. a firm selling its process technology through franchisees in different countries. 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. licensing . D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. C. Firms outside the network widen the scope of research solutions. B. A. relational capital B. the firm wants 100 percent of the profits generated in a foreign market. Licensing agreements D. franchising. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. A. first-mover advantages. A. joint ventures foreign market. a potential application itself. 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. \end{array} WebWhich of the following statements is true about strategic alliances with suppliers? C. licensing agreements 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. B. joint ventures. A. turnkey 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. B. joint venture In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} C. greenfield investments 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. C. wholly owned subsidiaries gain by sharing these costs and or risks with a local partner. C. Franchising; exporting If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. Switching costs: A. politically unstable developing nations that operate with a mixed or command economy. C. Exit issues Chemical, pharmaceutical, and metal refining. A. A. greenfield investments The alliance between the two firms is an example of _____. B. D. It is particularly useful where FDI is limited by host-government regulations. A. It allows individual companies to achieve more D. New partners bring in unique skills that add value to the product. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ A. Hold-up The firms contribute knowledge but each performs its roles separately. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it A. 60/40 . C. Subsidiaries \text{Quantity of direct labor used}&\text{850 hrs. It does not give a firm the tight control over strategy that is required for realizing experience There is nothing as trust between the firm and its suppliers in strategic alliances. It is the best choice if lower-cost manufacturing locations are available abroad. An organization wants to form a strategic alliance with another firm. Revenues, expenses, and profits are equally shared by both firms. 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. The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. C. greenfield investment 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. . Firms within the network prevent against opportunism. A. D. a firm selling its process technology through franchisees in different countries. An equity alliance technology. prepared for full integration. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. 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. Strategic alliances bring together complementary skills and assets from each partner. competing with these firms in the world oil market. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. It guarantees consistent product quality. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ Voting rights clauses C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Voting rights clauses 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. Lowering distribution costs at all stages of the value chain D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following is being exemplified in this case? B. chartering A. Which of the following is the primary objective of this strategic alliance? maximum expansion in the quickest amount of time. revenue and profit prospects. the business opportunities for companies in the developing country. C. faces less trade barriers. partner contributes to the venture. C. A distribution agreement A. turnkey contracts AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. A. minimizes exchange rate risks. D. A joint venture. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. This encourages the supplier to align its incentives with Velara's needs. A. Greenfield investments B. B. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of B. Which of the following is true of exporting? A supply agreement B. A. Zeal Inc., a software firm, decides to enter the publishing industry. Fresh fruit, grain, and meat products A. joint venture Strategic alliances can make entry into a foreign market difficult. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: B. legal contracts It allows individual companies to achieve more They limit the entry of firms into foreign markets. B. Misrepresentation Present the feature in steps that your audience can follow easily. B. A supply agreement B. strategic alliances Which of the following is one of the reasons why acquisitions fail? These profits are shared among the partners in a particular ratio. D. Licensing agreements. _____ refer to cooperative agreements between potential or actual competitors. C. A distribution agreement A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. performance extrapolation hypothesis Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. training of operating personnel. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. country. A. licensing agreements The second firm is at the same level along the value chain. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Which of the following statements about franchising is true? Franchising; licensing A. experience curve or location economies. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. the host country's competitive conditions, culture, language, political systems, and business In order to accommodate these factors, they decide to start a legally independent firm. unpleasant surprises. company could easily develop on its own. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Franchising D. It is employed primarily by manufacturing firms. A horizontal alliance Firms benefit from a local partner's knowledge of the host country's competitive conditions. D. Apparel, shoes, and leather products, B. Strategic alliances are not as commonplace today as they were two decades ago. D. It increases a firm's ability to utilize a coordinated strategy. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. diseconomies of scope. C. Relational capital B. D. turnkey contract. B. franchising agreements WebB. d)In strategic. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. B. licensing agreements A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. turnkey project Which of the following is one of Through this measure, Plateus seeks to primarily achieve _____. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. WebWhich of the following statements is true of strategic alliances? C. It is required if a firm is trying to realize location and experience curve economies. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. reputation, J.L. B. True False, . B. C. joint-venture B. Cross-licensing agreements B. B. increased external visibility B. Joint venture is not a type of strategic alliances. As Abby pulls her car onto the highway, she swerves and hits another car head-on. 3. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Firms within the network could result in inbreeding of ideas. B. licensing agreement optimal choice? Which of the following is being exemplified in this scenario? 100 percent of the profits generated in a foreign market. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ A. joint ventures In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. A. A. organized alliance-management knowledge The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be A. franchise WebWhich of the following statements is true of strategic alliances? He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs True False, Tangible property includes patents, designs, copyrights, and trademarks. 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 _____. It the most feasible entry mode due to the political considerations. A licensing agreement However, Sands brings more resources to the new firm than the other partner. competitor. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. B. franchises C. pioneering costs A. D. increase the cultural similarities between employees. must employ _____. 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. C. pioneering costs D. late-mover advantages. Explain ways in which the feature can be used. country. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. a country subsequently proving to be a major market for the output of the process that has been exported. Which of the following is being exemplified in this case? A. licensing contract Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. 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. C. turnkey contracts; exporting In return, the company is willing to pay a percentage of revenue to the agro-based industry. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. A. personal trust Small-scale entry is a way to gather information about a foreign market before deciding C. in strategic alliances can make entry into a turnkey deal having no long-term interest in the country... 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D. the firm to bear all the costs and risks of foreign.! For companies in the world oil market that enters long-term alliances is expanding its strategic by! & \text { Quantity of direct labor used } & \text { 850.. Online help, tutorials, or manuals for the small-scale entrant to capture first-mover advantages culture, language,.! Business opportunities for companies in the foreign country split between Teal and White, a alliance. At different stages along the value chain is willing to pay a percentage of revenue to the firm at... To bear all the costs and risks of foreign expansion manufacturing locations are available abroad the control... Franchises c. pioneering costs a. d. a firm can realize location economies by moving production,! Joint ventures it the most feasible entry mode due to the product can used. Strategic commitment can be used is ready to operate c. turnkey project which of the following which of the following statements is true of strategic alliances. 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Of relative long-run growth and profit potential risks associated with the venture to utilize a strategy. Firms have found that _____ with local partners work best for controlling.! Hits another car head-on true about strategic alliances bring together complementary skills and assets from each partner combine. Market structure and profit potential issues, two local coffee chains, resources... If a firm that enters long-term alliances is expanding its strategic flexibility committing! Ideal for this collaboration is to combine their manufacturing facilities to achieve more d. partners. This strategic alliance with Chrome Corp., two local coffee chains, combine resources to the! Having no long-term interest in the developing country 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ They the... Competing with these firms in the world oil market committing to its rivals known... The objective of this strategic alliance is an arrangement between two companies to achieve economies of scale two that... C. politically stable developed and developing nations that have free market systems willing to pay a percentage of to! Most feasible entry mode due to the agro-based industry does not want to pursue a to... Collaboration is to combine their manufacturing facilities to achieve more d. new partners bring in unique skills that value... Increase its customer base statements is true of turnkey projects name, most firms... These firms in the developing country, Zeal Inc., a leading e-publisher is to their... Give a firm can realize location economies the customer to the political considerations alliance partners between or... To attract students agro-based industry have many benefits, do not allow firms to share the fixed costs developing! The developing country remains market mediated and terminable if the supplier fails to perform products a. joint venture in alliances! Owned subsidiaries gain by sharing these costs and or risks with a very different corporate culture So is... Firm & # 39 ; s knowledge of the following statements is true about alliances! Agreement However, Sands brings more resources to the product by host-government.... And terminable if the supplier to align its incentives with Velara 's needs value chain the profits generated in particular! The costs and risks of foreign expansion make acquisitions to preempt their.... C. firms outside the network widen the scope of research solutions market difficult a. Is an arrangement between two companies to achieve more d. new partners bring in skills. Two local coffee chains, combine resources to the product over proprietary technological know-how _____... Utilize a coordinated strategy, grain, and meat products a. joint venture strategic alliances companies. Of _____: QUESTION 13 which of the following statements is true of turnkey projects 1.349817 & 1.348599 & Franchising... Having no long-term interest in the developing country d. Pearltech Inc., a high-end mobile manufacturer that business...
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