C. make it difficult for later entrants to win business. True False, Educating customers is a part of pioneering costs. Chemical, pharmaceutical, and metal refining WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following statements about franchising is true? D. franchising. Strategic alliances exclude functions that are bought through bidding. A. A . A. Greenfield investments B. D. It increases a firm's ability to utilize a coordinated strategy. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . A. O 2) 3) Strategic alliances are not associated with any form of relationship management. B. C. Structured transfer agreements D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. C. screen the foreign enterprise to be acquired. B. make it easy for later entrants to win business. D. Strategic alliances usually lead to 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A horizontal alliance c)Strategic alliances exclude functions that are bought through bidding. C. Cross-license SeaShade produces beach umbrellas. Which of the following is one of They sign a contract that specifies the tasks of each party in alliance. It does not help firms that lack capital to develop operations overseas. D. Profit stealing. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. technological know-how, which of the following entry strategy is best? B. high-technology The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. 3. B. D. 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. A. An advantage of forming a strategic alliance is that it helps firms: It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. A. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. maximum expansion in the quickest amount of time. In the second clause, they specify how intellectual property will be shared and protected. 3. A. transportation WebWhich of the following statements is true of strategic alliances? d)In strategic. Managing an alliance successfully requires building interpersonal relationships between the firms' C. A distribution agreement D. Creation of innovative products at lower costs than other firms, B. WebWhich of the following statements is true about strategic alliances with suppliers? 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. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? Which of the following statements is likely to strengthen Marcel's argument? A. C . Which of the following is the primary objective of this strategic alliance? Which of the following is one of the reasons why acquisitions fail? other forms of adverse government interference. D. A vertical alliance. D. tangible property. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves Ability to preempt rivals and capture demand by establishing a strong brand name. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. B. joint venture C. It is required if a firm is trying to realize location and experience curve economies. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover B. joint ventures Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. c)Strategic alliances exclude functions that are bought through bidding. 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 _____. Joint management C. Firms outside the network widen the scope of research solutions. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. WebWhich of the following statements is true about strategic alliances? A. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. Determine the prices at the breakeven points. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. d)In strategic. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. the firm wants to test a market. 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. Firm risks giving away technological know-how and market access to its alliance partner. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. It tends to involve more short-term commitments than licensing. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is being exemplified in this case? B. Stefan and the driver of the other car are seriously injured. True False, First-mover advantages are the advantages associated with entering a market early. A. A. an acquisition C. ground up, called the _____. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a The most typical joint venture is a 25/75 venture. According to the _____, top managers typically overestimate their ability to create value from an acquisition. It allows individual companies to achieve more C. It cannot be used when a firm possesses some intangible property that might have business applications. A. A. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. D. 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. An inherent degree of uncertainty is associated with a greenfield venture because of future The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. Zeal Inc., a software firm, decides to enter the publishing industry. C. make it difficult for later entrants to win business. A. Turnkey C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. However, Stylink tried to exploit the alliance-specific investments made by Plateus. B. strategic alliances According to the _____, top managers typically overestimate their ability to create value from an Strategic alliances bring together complementary skills and assets from each partner. B. reduce the level of conflicts that occur within an organization. It avoids the often substantial costs of establishing manufacturing operations in the host 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. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent Fresh fruit, grain, and meat products B. In this case, the relationship between the two firms is based primarily on _____. B. chartering They enable firms to achieve goals faster, but at higher costs. A. The editor has asked you to show her writers a software feature that will make their job easier. 2. D. wholly owned subsidiaries. Which of the following statements is true of turnkey projects? A. relational capital B. relational assets C. operational assets D. venture capital. True False, Brand names are generally well-protected by international laws pertaining to trademarks. language, etc. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. C. Bondage D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the Strategic alliances bring together complementary skills and assets from each partner. them. Nate, the operations head, suggests extending the prospects by looking outside their usual network. C. Exit issues The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. D. seek companies only from similar national cultures. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. entering the market via acquisitions. C. Low transportation costs may make exporting uneconomical. 2. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. C. Wholly owned subsidiaries Voting rights clauses country. Which of the following statements is true about firms that establish strategic alliances? . managers. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. Licensing; franchising them? A. They limit the entry of firms into foreign markets. A profit alliance C. A coordination alliance They limit the entry of firms into foreign markets. A turnkey strategy can be more risky than conventional FDI. It guarantees consistent product quality. The acquired firm often overpays for the assets of the acquiring firm. An advantage of _____ with a local partner is the knowledge of the local environment that the local 3. B. B. performance extrapolation hypothesis D. An input agreement, John requires 500 shirts of a particular fabric and quality. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. In order to accommodate these factors, they decide to start a legally independent firm. There is nothing as trust between the firm and its suppliers in strategic alliances. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A. True False, Acquisitions are quick to execute. D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. businesses in the same country. B. 2. A. A vertical alliance The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. 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. After the survey, the management discusses the issues brought up by the employees and their suggestions. WebWhich of the following statements is true of strategic alliances? B. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. C. joint venture D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. B. firm's exposure to that market. country. easily develop on its own. When technological know-how constitutes a firm's core competence, which entry mode is the 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. A turnkey strategy can be more risky than conventional FDI. A. D. turnkey contract. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. C. franchising D. give later entrants a cost advantage over early entrants. C. It is a specialized form of licensing. Strategic alliances usually lead to one of the firms losing their relational advantage. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ B. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. They enable firms to achieve goals faster, but at higher costs. D. a firm selling its process technology through franchisees in different countries. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following strategic alliances is adopted by Borpon and Biocolog? C. Termination clauses B. collateral bonds Firms entering markets where there are no incumbent competitors to be acquired should choose curve and location economies. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. optimal choice? D. The firm has to bear the development costs and risks associated with opening a foreign market. C. licensing agreements Strategic alliances can make entry into a foreign market difficult. WebWhich of the following statements is true of strategic alliances? C. Dispute resolution clauses B. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. C. acquisitions C. Relational capital that technology. Ability to preempt rivals and capture demand by establishing a strong brand name D. seek companies only from similar national cultures. B. joint venture Which of the following suppliers is it most likely to choose as a partner? B. standpoint. A. Revenues, expenses, and profits are equally shared by both firms. D. In many cases, firms make acquisitions to preempt their competitors. C. Takeovers True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. B. increased external visibility D. Strategic alliances, while beneficial to firms, make the establishment of technological B. the firm wants 100 percent of the profits generated in a foreign market. A. chartering B. exporting C. a turnkey strategy D. franchising. Joint ventures with local partners do not face any risk of being subject to nationalization or B. increased external visibility What is the effective annual yield? C. Fin Inc., which produces the compressors used in Hues air conditioners Licensing is used when a firm possesses some tangible property but does not want to pursue experience curve or location economies. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, B. They suggest that franchising should be used in order to minimize risk and allow for the C. 75/25 WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. \end{array} foreign market. A wholly owned subsidiary is appropriate when the firm wants: b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. turnkey project Which of the following statements about franchising is true? In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. What is the primary advantage of licensing? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Activity Plan and demonstrate how to use the feature. A. The relationship between the two firms is likely to be supported by equity investments. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} Hoschild Bicycle Company manufactures bicycles. The firm does not have to bear the development costs and risks associated with opening a A. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. It increases a firm's ability to utilize a coordinated strategy. WebWhich of the following statements is true of strategic alliances? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. B. Strategic alliances bring together complementary skills and assets from each partner. It allows individual companies to achieve more D. reputation, J.L. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. They enter into a strategic alliance in which they create and own a legally independent company. C. turnkey contract Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. _____. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. protect their procedures and technologies. C. Bondage Which of the following is true of establishing greenfield venture in a foreign country? 1. 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. Which of the following statements is true about firms in a joint venture? C. make it difficult for later entrants to win business. A . C. shared equity It gives a firm the tight control over manufacturing, marketing, and strategy. 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. C. low transaction costs Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. standards for an industry difficult. A. D. In many cases, firms make acquisitions to preempt their competitors. An alliance is likely to rely most on relationships between individuals when it is based on _____. C. A distribution agreement In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. C. joint ventures It helps a firm avoid the development costs associated with opening a foreign market. must employ _____. C. When the development costs and/or risks of opening a foreign market are high, a firm might B. B. _____ refer to cooperative agreements between potential or actual competitors. There is little incentive for the franchisee to build a profitable operation as quickly as possible. Residual rights clauses C. greenfield investments It is a time-consuming process and takes a lot of time to execute. Alliance partnerships and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. franchisee D. wholly owned subsidiaries. C. politically stable developed and developing nations that have free market systems. company could easily develop on its own. True False, McDonald's is an example of a firm that uses a franchising strategy. A. 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. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. Which of the following is the primary value they aim to create through this alliance? D. greenfield strategy. B. Which of the following is a distinct advantage of exporting? B. Misrepresentation Foreign franchises controlled by joint ventures They are always focused on joining the same value chain activities. Firms benefit from a local partner's knowledge of the host country's competitive conditions. An inherent degree of uncertainty is associated with a greenfield venture because of future C. goodwill trust D. New partners bring in unique skills that add value to the product. D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. 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 strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. global competitors are also interested in establishing a presence, the firm should choose a(n) A firm is relieved of many of the costs and risks of opening a foreign market on its own. entrant to capture first-mover advantages. D. It is employed primarily by manufacturing firms. A. alliance AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. 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