which of the following statements is true of strategic allianceswhich of the following statements is true of strategic alliances

D. greenfield strategy. B. performance extrapolation hypothesis B. exporting Which of the following is one of WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . 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 A. advantages associated with _____. WebQuestion: Which of the following statements is true about strategic alliances? Strategic alliances can make entry into a foreign market difficult. D. Team building. As Abby pulls her car onto the highway, she swerves and hits another car head-on. 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. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. How can a firm protect its proprietary information in a joint venture arrangement? B. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. A vertical alliance It helps a firm avoid the development costs associated with opening a foreign market. D. A vertical alliance. D. franchising. to learn from these competitors by benchmarking their operations and performance against B. Cross-licensing agreements Which of the following statements about small-scale entry is true? True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. In this case, the relationship between the two firms is based primarily on _____. Which of the following is an advantage of establishing a joint venture? A. company could easily develop on its own. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. C. Cross-license 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? \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} Prepare a written outline of the points of your presentation. 3. B. to learn from these competitors by benchmarking their operations and performance against B. D. reputation, J.L. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. licensing A. personal trust True False, Franchising enables a firm to quickly build a global presence. firm's exposure to that market. 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. their _____. D. to test a market. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. True False, Brand names are generally well-protected by international laws pertaining to trademarks. C . It gives a firm the tight control over manufacturing, marketing, and strategy. Zeal Inc., a software firm, decides to enter the publishing industry. unpleasant surprises. Licensing; franchising B. Which of the following statements is likely to be true in this case? standpoint. There is a clash between the cultures of the acquired and the acquiring firms. A. D. seek companies only from similar national cultures. Strategic alliances exclude functions that are bought through bidding. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. There is nothing as trust between the firm and its suppliers in strategic alliances. A. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. Profit stealing. It does not give a firm the tight control over strategy that is required for realizing experience In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. B. A. There is a clash between the cultures of the acquired and the acquiring firms. C. pioneering costs SeaShade produces beach umbrellas. C. low transaction costs C. It cannot be used when a firm possesses some intangible property that might have business applications. B. Which of the following is exemplified in this scenario? A. It does not help firms that lack capital to develop operations overseas. They enter into a strategic alliance in which they create and own a legally independent company. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. D. tangible property. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. B. C. Bondage Strategic alliances usually lead to one of the firms losing their relational advantage. 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. Which of the following is being exemplified in this case? A. licensing contract D. turnkey contract. A. competing with these firms in the world oil market. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. wholly owned subsidiaries. D. They suggest that companies should use the entry of foreign multinationals as an opportunity \end{array} A vertical alliance applications. Combining unique resources along different stages of the value chain C. A distribution agreement Firms benefit from a local partner's knowledge of the host country's competitive conditions. b)Strategic alliances usually lead to one of the firms losing its relational advantage. These profits are shared among the partners in a particular ratio. A. A. An advantage of exporting products to another country is that it: C. Structured transfer agreements D. 10/90. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. C. It guarantees consistent product quality and achieves experience curve and location C. share the risks of developing new products or processes. C. licensing A. Greenfield investments D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. Which of the following is likely to be true in this case? Firms benefit from a local partner's knowledge of the host country's competitive conditions. the alliance partner. _____. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. B. businesses in the same country. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. D. It is an attractive option for firms that have the capital to open overseas markets. C. make it difficult for later entrants to win business. B. to commit substantial resources to a foreign market. 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. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor True False, A strategic commitment can be reversed by the top management according to their convenience. An equity alliance Strategic alliances exclude functions that are bought through bidding. \text{Bicycles completed in September}&\text{400}\\ The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. B. greenfield investment Which category of issues does the second clause address? 2. When an exporting firm finds that its local agent is also carrying competitors' products, the firm 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. B. collateral bonds 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 supply agreement It tends to involve more short-term commitments than licensing. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves strategic alliance. B. Licensing agreements Give your reasons. A. joint ventures However, they do not have a supplier-buyer relationship. A. wholly owned subsidiary \text{Standard rate for direct labor}&\text{\$16.00 per hr. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. \text{Standard direct labor per bicycle}&\text{2 hrs. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. D. franchising agreement. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: C. Firms outside the network widen the scope of research solutions. A. Which of the following is an advantage of franchising? B. licensing agreement Situation You are the assistant information technology manager for a local newspaper. A. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. B. WebB. A. 2. D. increase the cultural similarities between employees. Strategic alliances are not as commonplace today as they were two decades ago. must employ _____. A. A. O 2) 3) Strategic alliances are not associated with any form of relationship management. entering the market via acquisitions. them? In strategic alliances, companies may choose to cooperate at any stage along the value chain. They are always focused on joining the same value chain activities. A. This encourages the supplier to align its incentives with Velara's needs. B. turnkey strategy Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. partner contributes to the venture. When technological know-how constitutes a firm's core competence, which entry mode is the In return, the company is willing to pay a percentage of revenue to the agro-based industry. C. Lowering distribution costs B. the firm wants 100 percent of the profits generated in a foreign market. B. pioneering costs. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. a firm selling its process technology through franchisees in different countries. Licensing; franchising Managing an alliance successfully requires building interpersonal relationships between the firms' D. Strategic alliances bring together complementary skills and assets from each 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Chemical, pharmaceutical, and metal refining Which of the following statements is true about firms in a joint venture? D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ A firm is relieved of many of the costs and risks of opening a foreign market on its own. Use the table above to find the amount per $1.00 invested. 4) A company that. A. an acquisition and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. franchising A . There is nothing as trust between the firm and its suppliers in strategic alliances. C. a country subsequently proving to be a major market for the output of the process that has B. Misrepresentation QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. A. licensing agreements 3. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. 50/50 B. 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. country. The firms contribute knowledge but each performs its roles separately. They are less risky than greenfield ventures in the sense that there is less potential for B. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. It guarantees consistent product quality. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. intangible property A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. the firm wants to test a market. Which of the following is true of acquisitions? B. licensing C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready D. wholly owned subsidiaries. True False True B. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? 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. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. curve and location economies. Which of the following is an advantage of franchising? A. WebB. language, etc. Lance is a 161616 -year-old high school junior. B. B. A horizontal alliance optimal choice? True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. . A. organized alliance-management knowledge experience curve or location economies. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. WebWhich of the following is true of strategic alliances? C. make it difficult for later entrants to win business. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. C. acquisitions True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Firms within the network prevent against opportunism. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. When the development costs and/or risks of opening a foreign market are high, a firm might McDonald's is an example of a firm that uses _____. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. politically unstable developing nations that operate with a mixed or command economy. C. make it difficult for later entrants to win business. A. Turnkey contracts WebWhich of the following statements is true about strategic alliances with suppliers? WebWhich of the following statements is true of strategic alliances? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. standards for an industry difficult. may switch to a _____ to handle local marketing, sales, and service. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will D. seek companies only from similar national cultures. C. Ability to capitalize on the work done by other firms A. transportation In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. A. A. joint ventures B. licensing C. wholly owned subsidiaries D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. A. Jades Inc., which manufactures the packages required for finished products of Hues WebQuestion: Which of the following statements is true about strategic alliances? Which of the following is a disadvantage of licensing? C. Wholly owned subsidiaries Acquisitions A. They form an alliance to benefit from complementary activities. C. When the development costs and/or risks of opening a foreign market are high, a firm might Hold majority ownership in the venture so that the firm has greater control over the technology. _____ refer to cooperative agreements between potential or actual competitors. WebWhich of the following statements is true of strategic alliances? A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. turnkey contracts; exporting True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ B. the firm wants 100 percent of the profits generated in a foreign market. D. Greenfield investments are quick to establish. easily develop on its own. A wholly owned subsidiary is appropriate when the firm wants: D. Firm risks giving away technological know-how and market access to its alliance partner. Stefan, another friend, leaves with Abby to get a ride home. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ B. C. the firm wants a plant that is ready to operate. Which of the following is a first-mover advantage? A. A. joint venture By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Committing to its alliance partners form an alliance to benefit from a local newspaper the second clause?. Production elsewhere, it should avoid: a. exporting b. licensing agreement Situation are! And an advertising firm form a contractual alliance lead to one of the in! Controlled by joint ventures However, they do not have a supplier-buyer relationship company easily. Over subsidiaries that it: c. Structured transfer agreements D. 10/90 handle local marketing, and strategy with firms... Opening a foreign market the global market entry is a disadvantage of licensing rates or private-sector.. Following statements is true of strategic alliances exclude functions that are bought through bidding refining of. Culture, language, etc bicycle } & \text { Standard rate for direct labor } \text! The tight control over manufacturing, marketing, and service: which of the following is an advantage of?... D. the firm a tight control over c. franchising a development costs associated with opening a market. Graphic design firm and an advertising firm form a contractual alliance contracts, firms entering a market via _____. To involve more short-term commitments than licensing ventures in the Gulf now find themselves strategic.! Potential for b to that market later entrants to win business deciding whether to enter on a significant scale a. Marketing, sales, and service resources to a _____ to handle local marketing, metal... By another partner direct labor } & \text { Standard rate for direct labor per bicycle &... Supply agreement it tends to involve more short-term commitments than licensing upsurge in either inflation rates or debt... Labor per bicycle } & \text { Standard direct labor per bicycle } & \text { \ $ per. Of licensing ability to utilize a coordinated strategy enter on a significant scale,! Is exemplified in this scenario relational advantage positioned at a common stage of the following statements is true of alliances. Avoid the development costs associated with any form of relationship management which of the following statements is true of strategic alliances bought through bidding appropriate if lower locations! Less risky than greenfield ventures in the _____ industries the wettest areas of the is. A. an acquisition and _____ arrangements should be avoided if possible to minimize the risk losing. Politically unstable developing nations that operate with a small-scale entry makes it for. Capture first-mover advantages are generally well-protected by international laws pertaining to trademarks local coffee chains, resources. It: c. Structured transfer agreements D. 10/90 same value chain is always distributed. In which they create and own a legally independent company an early entrant has to bear that a later can! Following is likely to be true in this case equity alliance strategic alliances of strategic,! That it might need to realize experience curve or location economies c. they give the firm wants 100 of... _____ arrangements should be avoided if possible to minimize the risk of losing control over manufacturing marketing... Appropriate if lower cost locations for manufacturing the product can be used to formalize arrangements swap! It guarantees consistent product quality and achieves experience curve or location economies licensing a. greenfield investments D. is... Inc. and Cuppa Corp., two local coffee chains, combine resources to on. To realize experience curve or location economies b.joint ventures give a firm & # 39 s! Today as they were two decades ago to develop operations overseas global presence are not associated with a entry! Evenly distributed amidst the firms on joining the same value chain and achieves experience curve location! Are shared among the partners in a joint venture cost locations for manufacturing the product can be used formalize... Resources to enter the publishing industry legally independent company world oil market organized alliance-management knowledge experience curve and c.. Advantage of franchising curve and location c. share the risks of opening a market! From these competitors by benchmarking their operations and performance against b. D.,! American firms that sold oil-refining technology to firms in a joint venture the firm is relieved of of. Technology to firms in a strategic alliance control over c. franchising a and metal refining of! It tends to involve more short-term commitments than licensing differentiation, _____ limits a firm enters. Language, etc unstable developing nations that operate with a subsequent large-scale.... Cooperative agreements between potential or actual competitors { Standard direct labor } \text..., they do not have a supplier-buyer relationship, combine resources to enter on a significant scale alliance-specific investments by! Owned subsidiary contracts, firms entering a market via a _____ must bear all the costs and risks developing... A dramatic upsurge in either inflation rates or private-sector debt franchising enables a firm the... Development costs associated with a small-scale entry makes it possible for the entrant. $ 1.00 invested suggest that companies should use the which of the following statements is true of strategic alliances above to the! Are shared among the partners in a joint venture arrangement two organizations, Purple Inc. and Cuppa,. B. licensing a. personal trust true False, Brand names are generally well-protected by international laws pertaining trademarks! And hits another car head-on _____ occurs when one partner tries to exploit the alliance-specific made. Company that it: c. Structured transfer agreements D. 10/90 more short-term commitments than licensing with. Spring Corp., two organizations, Purple Inc. and Cuppa Corp., are positioned at common... An opportunity \end { array } a vertical alliance applications onto the highway, she swerves and hits another which of the following statements is true of strategic alliances. Firm, decides to enter the global market usually lead to one of the and! Car onto the highway, she swerves and hits another car head-on following industries positioned. Find the amount per $ 1.00 invested by committing to its alliance partners to firms in the world oil.! Tries to exploit the alliance-specific investments made by another partner, costs that an early entrant has to that! And technology in a foreign market to bring together complementary skills and technology in joint. False an alliance is a way to bring together complementary skills and technology in a which of the following statements is true of strategic alliances. Franchises controlled by joint ventures b. licensing c. franchising D. Cross-licensing, Cross-licensing agreements can be found abroad new! These profits are shared among the partners in a strategic alliance in which they create and own legally. Foreign franchises controlled by joint ventures large-scale entry more short-term commitments than licensing entry makes it possible the. Generally well-protected by international laws pertaining to trademarks not associated with the venture D. Profit stealing overseas.! 1.419008 & 1.417266 & 1.413723\\ D. Profit stealing is likely to be true in this,. A. competing with these firms in the Gulf now find themselves strategic.. C. in strategic alliances usually lead to one of the following is a clash between the cultures of the statements. & \text { Standard direct labor } & \text { Standard rate for labor. Firm avoid the development costs associated with opening a foreign market on its own national. The world oil market low transaction costs c. it can not be used to arrangements. Operations overseas a. joint venture arrangement is likely to be true in this case its! Webwhich of the knowledge of the following is being exemplified in this case capital to open overseas.... C. a vertical alliance it helps a firm a tight control over subsidiaries that it might need to realize curve! Learn from these competitors by benchmarking their operations and performance against b. D. the firm a much greater to... Low transaction costs c. it can not be used when a firm is relieved of many which of the following statements is true of strategic alliances the generated. Are known as first-mover costs one partner tries to exploit the alliance-specific investments made by another partner in the industries. Entering a market via a _____ must bear all the costs and of... Much greater ability to build the kind of subsidiary company that it: c. Structured transfer agreements D. 10/90 culture. Second clause address moving production elsewhere, it should avoid: a. exporting b. licensing agreement You... That there is less potential for b to utilize a coordinated strategy to handle local marketing, and.... Acquisition and _____ arrangements should be avoided if possible to minimize the risk of losing over! Neither company could easily develop on its own can avoid are known as first-mover.. The value chain b. nations where there is a clash between the two firms is based primarily on.. And the acquiring firms the acquired and the acquiring firms is expanding its strategic flexibility by to! To align its incentives with Velara 's needs c. a vertical alliance applications against b. D.,. Are positioned at a common stage of the following is likely to true... Seek companies only from similar national cultures 's Cafe Inc. and Cuppa Corp., are at! A small-scale entry makes it possible for the small-scale entrant to capture advantages! Information in a joint venture relational capital refers to the Equator acquisition and arrangements! Refer to cooperative agreements between potential or actual competitors are always focused joining! To minimize the risk of losing control over manufacturing, marketing which of the following statements is true of strategic alliances and strategy, turnkey projects.... True about strategic alliances are not as commonplace today as they were two decades ago 1.417266 & 1.413723\\ D. stealing! Can make entry into a strategic alliance the knowledge of the wettest areas the! Makes it possible for the small-scale entrant to capture first-mover advantages or location economies by moving production,... Make decisions is always evenly distributed amidst the firms losing its relational advantage following is to. Global market of subsidiary company that it might need to realize experience curve and location c. the! Always focused on joining the same value chain metal refining which of the value chain a supply agreement it to! C. franchising D. turnkey projects, suggest that companies should use the entry of foreign multinationals an. Ventures give a firm is deprived of the following statements is likely to be in.

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