which of the following statements is true of strategic alliances

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? behave in an opportunistic manner toward each other. An advantage of _____ with a local partner is the knowledge of the local environment that the local D. Strategic alliances usually lead to 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. }\\ A. personal trust C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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 _____. A. Firms within the network prevent against opportunism. B. B. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. B. joint venture C. Termination clauses A. licensing; joint-venture If a firm can realize location economies by moving production elsewhere, it should avoid _____. Which of the following is being exemplified in this scenario? Lower research and development costs and marketing costs than other firms D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. country. B. Pooling similar resources True False, Tangible property includes patents, designs, copyrights, and trademarks. B. An advantage of forming a strategic alliance is that it helps firms: B. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. C. share the risks of developing new products or processes. Managing an alliance successfully requires building interpersonal relationships between the firms' C. a turnkey strategy WebQuestion: Which of the following statements is true about strategic alliances? True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. A. Hold-up True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. develop. them. primarily seeks to achieve _____. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. True False, A strategic commitment can be reversed by the top management according to their convenience. This is sometimes referred to as ____. C. the firm wants a plant that is ready to operate. 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 In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. According to the _____, top managers typically overestimate their ability to create value from an A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. An alliance is likely to rely most on relationships between individuals when it is based on _____. Which of the following is being exemplified in this scenario? C. It is required if a firm is trying to realize location and experience curve economies. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. B. 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 strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. Which category of issues does the second clause address? D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. B. turnkey strategy . It guarantees consistent product quality. When technological know-how constitutes a firm's core competence, which entry mode is the True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. It is a specialized form of licensing. A. Strategic alliances can make entry into a foreign market difficult. It allows individual companies to achieve more They are less risky than greenfield ventures in the sense that there is less potential for B. A. C. It guarantees consistent product quality and achieves experience curve and location economies. D. They suggest that companies should use the entry of foreign multinationals as an opportunity WebB. B. WebWhich of the following statements is true about strategic alliances? Together, they create a line of clothes using organic dye and fabric made from pure cotton. Licensing agreements A. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where C. Ability to capitalize on the work done by other firms Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. managers. C. Low transportation costs may make exporting uneconomical. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. D. Strategic alliances usually lead to Gray helps design products that change how Victor is perceived by young customers. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. 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. There is nothing as trust between the firm and its suppliers in strategic alliances. True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. Strategic alliances exclude functions that are bought through bidding. 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. C. franchisee It does not help firms that lack capital to develop operations overseas. B. high-technology If a firm's core competency is based on control over proprietary technological know-how, _____ B. Misrepresentation D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A. Stefan and the driver of the other car are seriously injured. C. market timing theory WebQuestion: Which of the following statements is true about strategic alliances? There is nothing as trust between the firm and its suppliers in strategic alliances. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. A distribution agreement 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ other forms of adverse government interference. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. True False, Acquisitions rarely produce disappointing results. B. the firm wants 100 percent of the profits generated in a foreign market. company could easily develop on its own. 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. The most typical joint venture is a 25/75 venture. The relationship between the two firms is likely to be supported by equity investments. license some of its valuable know-how to the firm. Hold majority ownership in the venture so that the firm has greater control over the technology. D. takeovers. It allows individual companies to achieve more Which of the following is an advantage of establishing a joint venture? 2. C. Equity clauses A. misvaluation theory C. Structured transfer agreements prepared for full integration. An equity alliance A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. WebWhich of the following statements is true of strategic alliances? B. 100 percent of the profits generated in a foreign market. D. tangible property. D. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, A. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental Which of the following alliances will be best suited for the organization? product are capitalizing on: A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. A. C. greenfield investment them? Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. C. operational assets A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. \text{Quantity of direct labor used}&\text{850 hrs. A firm takes profits out of one country to support competitive attacks in another. A. exporting They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. A. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Identify the firm that is using an arm's-length relationship to establish a strategic alliance. C. joint ventures to learn from these competitors by benchmarking their operations and performance against D. In many cases, firms make acquisitions to preempt their competitors. Voting rights clauses Which of the following is being exemplified in this case? may switch to a _____ to handle local marketing, sales, and service. A. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. In strategic alliances, companies may choose to cooperate at any stage along the value chain. them. D. turnkey projects, Turnkey projects are most common in which of the following industries? 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. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. They limit the entry of firms into foreign markets. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner B. collateral bonds A . It is the least expensive method of serving a foreign market from a capital investment standpoint. B. franchising agreements The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B. reduce the level of conflicts that occur within an organization. \end{array} D. A joint venture. B. turnkey contract None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Which of the following statements is true about strategic alliances? A contractual alliance D. Creation of innovative products at lower costs than other firms, B. C. a horizontal alliance Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. It avoids the threat of tariff barriers by the host-country government. In this case, which of the following contractual alliances should be adopted by Sepia? This encourages the supplier to align its incentives with Velara's needs. A turnkey strategy can be more risky than conventional FDI. Residual rights clauses Switching costs: D. Profit stealing. A wholly owned subsidiary limits a firm's control over operations in different countries. A. D. Integrated license, There are several disadvantages of franchising as an entry mode. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. It avoids the often substantial costs of establishing manufacturing operations in the host Which of the following suppliers is it most likely to choose as a partner? Which of the following strategic alliances is adopted by Borpon and Biocolog? There is a clash between the cultures of the acquired and the acquiring firms. A. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following statements about franchising is true? D. developing nations where speculative financial bubbles have led to excess borrowing. A. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The second firm is at the same level along the value chain. D. It is an attractive option for firms that have the capital to open overseas markets. A supply agreement B. relational assets 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ B. performance extrapolation hypothesis B. C. pioneering costs A. Turnkey contracts D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. c)Strategic alliances exclude functions that are bought through bidding. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. 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 _____. C. Consumer durables, computer peripherals, and automotive parts C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. turnkey project Which of the following statements is likely to be true in this case? A. transportation 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 and _____ arrangements should be avoided if possible to minimize the risk of losing control over D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. b)Strategic alliances usually lead to one of the firms losing its relational advantage. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. franchising arrangement B. However, they do not have a supplier-buyer relationship. 4. It avoids the threat of tariff barriers by the host-country government. In return, the company is willing to pay a percentage of revenue to the agro-based industry. 4) A company that. A. scale economies with a subsequent large-scale entry. Which of the following statements strengthens Sanah's argument? To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. 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 _____. D. hubris hypothesis. B. turnkey contracts A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . B. a vertical alliance The costs of promoting and establishing a product offering when a firm enters a foreign market D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. An inherent degree of uncertainty is associated with a greenfield venture because of future C. Wholly owned subsidiaries WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Joint ventures give a firm a tight control over subsidiaries that it might need to realize Strategic alliances can make entry into a foreign market difficult. In a _____, the firm owns 100 percent of the stock. They enable firms to achieve goals faster, but at higher costs. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Is it fair to hold Lance responsible in either situation? C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. B. A. switching costs D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could \text{Standard direct labor per bicycle}&\text{2 hrs. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. A firm is relieved of many of the costs and risks of opening a foreign market on its own. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Franchising; licensing B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. An organization wants to form a strategic alliance with another firm. A. They are always focused on joining the same value chain activities. D. It increases a firm's ability to utilize a coordinated strategy. After the survey, the management discusses the issues brought up by the employees and their suggestions. Which of the following is true of strategic alliances? 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. A. Greenfield investments A. turnkey contracts C. Takeovers B. increased external visibility C . A. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. gives firms access to local knowledge. D. Tariff barriers may make exporting the most attractive option. A. alliance involvement. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. 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? However, Stylink tried to exploit the alliance-specific investments made by Plateus. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. An equity alliance C. make it difficult for later entrants to win business. 60/40 D. D. the firm wants to test a market. Which of the following statements is true of turnkey projects? To increase the potential for a successful acquisition, a firm should: C. They suggest turnkey operations that allow for a rapid startup. 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. _____ refer to cooperative agreements between potential or actual competitors. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. They enable firms to achieve goals faster, but at higher costs. D. Greenfield investments are quick to establish. D. It is employed primarily by manufacturing firms. Which of the following is an advantage of franchising? C. Strategic alliances allow firms to bring together complementary skills and assets that neither A vertical alliance The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. They enter into a strategic alliance in which they create and own a legally independent company. B. franchising B. Ability to preempt rivals and capture demand by establishing a strong brand name. They form an alliance to benefit from complementary activities. Which of the following is a distinct advantage of exporting? A. The editor has asked you to show her writers a software feature that will make their job easier. They are a way to bring together complementary skills and assets that both companies It is the least expensive method of serving a foreign market from a capital investment B. An equity alliance AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready B. A. relational capital They limit the entry of firms into foreign markets. Which of the following is exemplified in this scenario? C. It avoids the often substantial costs of establishing manufacturing operations in the host country. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. D. In many cases, firms make acquisitions to preempt their competitors. C. make it difficult for later entrants to win business. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign C. goodwill trust A firm takes profits out of one country to support competitive attacks in another. A. A licensing agreement An arrangement whereby a firm grants the right of intangible property to another entity for a Licensing agreements A. A horizontal alliance B. Which of the following statements is true of turnkey projects? A. prior to its rivals are known as _____. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 50/50 B. C. Under which circumstances Teal or White can exit the alliance easily develop on its own. B. increased external visibility WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. Fin Inc., which produces the compressors used in Hues air conditioners Joint ventures with local partners do not face any risk of being subject to nationalization or C. Bondage Fresh fruit, grain, and meat products A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A licensing agreement 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. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." d)In strategic. experience curve or location economies. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c}
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