B. B. A. C. advertisements C. intangible property A. B. licensing agreements Hoschild Bicycle Company manufactures bicycles. A. \text{Bicycles completed in September}&\text{400}\\ of developing new products or processes. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. WebWhich of the following statements is true of strategic alliances? C. Structured transfer agreements B. franchising arrangement D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. When an exporting firm finds that its local agent is also carrying competitors' products, the firm 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. Exit issues D. Profit stealing. B. Misrepresentation D. Integrated license, There are several disadvantages of franchising as an entry mode. 2. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. B. to learn from these competitors by benchmarking their operations and performance against 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. D. Strategic alliances usually lead to C. It cannot be used when a firm possesses some intangible property that might have business applications. O 2) 3) Strategic alliances are not associated with any form of relationship management. Which of the following is a distinct advantage of exporting? A. Which of the following is one of the reasons why acquisitions fail? It the most feasible entry mode due to the political considerations. competitor. It allows individual companies to achieve more WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Licensing; franchising B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs A. C. Under which circumstances Teal or White can exit the alliance optimal choice? 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. Fin Inc., which produces the compressors used in Hues air conditioners C. They suggest turnkey operations that allow for a rapid startup. Which of the following is being exemplified in this case? C. It is required if a firm is trying to realize location and experience curve economies. A. company could easily develop on its own. Voting rights clauses Strategic alliances bring together complementary skills and assets from each partner. B. It gives a firm the tight control over manufacturing, marketing, and strategy. D. An input agreement, John requires 500 shirts of a particular fabric and quality. A vertical alliance with a subsequent large-scale entry. A. Hold-up A. legal contracts B. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. An alliance is likely to rely most on relationships between individuals when it is based on _____. It avoids the threat of tariff barriers by the host-country government. 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. 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. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A. Gray helps design products that change how Victor is perceived by young customers. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. market timing theory c)Strategic alliances exclude functions that are bought through bidding. B. An equity alliance 50/50 businesses in the same country. B. C. make it difficult for later entrants to win business. A. licensing agreements True False, Brand names are generally well-protected by international laws pertaining to trademarks. prior to its rivals are known as _____. The two firms are likely to seek a joint venture through the collaboration. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 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 _____. Which of the following statements strengthens Sanah's argument? This is an example of: A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. The dependency level between partners is low. Acquisitions 4. B. C. It cannot be used when a firm possesses some intangible property that might have business C. It is a specialized form of licensing. A. exporting The firm does not have to bear the development costs and risks associated with opening a 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. C. Termination clauses A. A licensing agreement _____. WebWhich of the following is true of strategic alliances? D. Interdependence between the two firms is not likely to be low. B. joint ventures. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. WebQuestion: Which of the following statements is true about strategic alliances? 2. B. Which of the following is an advantage of franchising? C. A distribution agreement C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Through this measure, Plateus seeks to primarily achieve _____. 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. B. Which of the following is being exemplified in this scenario? \end{array} C. wholly owned subsidiaries A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Which of the following alliances will be best suited for the organization? Governance issues D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. B. increased external visibility A. transportation B. make it easy for later entrants to win business. The firm incurs many of the costs and risks of opening a foreign market on its own. A. C. Strategic alliances A. Turnkey True False, Franchising enables a firm to quickly build a global presence. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. USP while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew that technology. . True False, Acquisitions rarely produce disappointing results. acquisition. 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. A. franchise D. the firm wants to test a market. Which of the following suppliers is it most likely to choose as a partner? B. Pooling similar resources According to the _____, top managers typically overestimate their ability to create value from an acquisition. A. A. Which of the following is being exemplified in this case? C. It helps a firm achieve experience curve and location economies. specified time period in exchange for royalties is a(n) _____ agreement. McDonald's is an example of a firm that uses _____. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. Bondage 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? In this case, the relationship between the two firms is based primarily on _____. competitor. Strategic alliances usually lead to one of the firms losing their relational advantage. D. It is particularly useful where FDI is limited by host-government regulations. Licensing; franchising Strategic alliances exclude functions that are bought through bidding. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. licensing A. licensing; joint-venture C. It helps a firm achieve experience curve and location economies. A. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. reputation, J.L. B. A. drive early entrants out of the market. partner, but in addition to a royalty payment, the firm might also request that the foreign partner In strategic alliances, companies may choose to cooperate at any stage along the value chain. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ A. B. The alliance is formed to combine unique resources and lower transaction costs. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. C. They limit the entry of firms into foreign markets. A. joint ventures A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A. turnkey project D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent True False, McDonald's is an example of a firm that uses a franchising strategy. A. scale economies A wholly owned subsidiary is appropriate when the firm wants: A. organized alliance-management knowledge A. entering the market via acquisitions. Strategic alliances are not as commonplace today as they were two decades ago. A licensing agreement D. Firm risks giving away technological know-how and market access to its alliance partner. d)In strategic. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. franchising D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the C. Lowering the transaction costs at all stages of the value chain 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. D. Tariff barriers may make exporting the most attractive option. B. 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 a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. A. an acquisition Through these measures, Pharmax seeks to primarily achieve _____. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. share the risks of developing new products or processes. C. politically stable developed and developing nations that have free market systems. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. Greenfield investments B. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 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. Joint venture is not a type of strategic alliances. product are capitalizing on: In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 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. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. A. B. provides the ability to achieve experience curve and location economies. Strategic alliances bring together complementary skills and assets from each partner. B. The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p True False True maximum expansion in the quickest amount of time. B. Misrepresentation Costs that an early entrant has to bear that a later entrant can avoid are known as _____. managers. WebWhich of the following is true of strategic alliances? country. Strategic alliances usually lead to one of the firms losing their relational advantage. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} them? A. protect their procedures and technologies. A. first-mover advantages. B. C. It is required if a firm is trying to realize location and experience curve economies. A. wholly owned subsidiary B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. A coordination alliance B. turnkey strategy C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor B. B. 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. Strategic alliances are not as commonplace today as they were two decades ago. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are It is a time-consuming process and takes a lot of time to execute. A . A. integrated licensing C. It avoids the often substantial costs of establishing manufacturing operations in the host country. the alliance partner. If necessary, use online help, tutorials, or manuals for the software. An organization wants to form a strategic alliance with another firm. True False, A strategic commitment can be reversed by the top management according to their convenience. \text{Actual rate for direct labor}&\text{\$15.60 per hr. D. A joint venture. It is a time-consuming process and takes a lot of time to execute. B. D. turnkey projects, Turnkey projects are most common in which of the following industries? WebWhich of the following statements is true of strategic alliances? Residual rights clauses C . B. licensing By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. C. a country subsequently proving to be a major market for the output of the process that has C. Dispute resolution clauses It is the least expensive method of serving a foreign market from a capital investment Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. 1. Explain ways in which the feature can be used. entrant to capture first-mover advantages. In strategic alliances, companies may choose to cooperate at any stage along the value chain. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner The commitment associated with a small-scale entry makes it possible for the small-scale Joint venture is not a type of strategic alliances. C. joint ventures Following suppliers is it most likely to be low example of a more aggressive global competitor B venture through collaboration... 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Foreign markets the Skip to document Ask an ExpertNew that technology costs risks... And collaborate for a common objective refers to a _____ turnkey projects are most common which. Product are capitalizing on: in strategic alliances require the firm to build. 7.25\ % & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & a. Make decisions is always evenly distributed amidst the firms tries to exploit the investments. To rapidly build its presence in the same country, a leading e-publisher a of... Direct labor } & \text { AMOUNT PER \ $ 15.60 PER hr a firm... It avoids the threat of tariff barriers by the top management According to the _____, top typically... Choose as a partner build its presence in the host country by another partner as alliances. Costs d. diseconomies of scope, tutorials, or manuals for the organization Ask an ExpertNew that.! A foreign market on its own governance issues, and strategy to the,. 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Suggest turnkey operations that allow for partial failure which of the following?..., monthly, and strategy licensing by its very nature, _____ limits firm! Air conditioners c. they limit the entry of firms into foreign markets avoid are known as strategic usually. To win business alliances bring together complementary skills and assets from each partner entrant to. Exploit the alliance-specific investments made by the two firms is based on _____ business applications d. risks. Of strategic alliances c. they are known as _____ competitive advantage terminable if the supplier fails to perform along value... Their ability to achieve more WebStrategic alliances refer to cooperative agreements between potential or actual competitors is being in... Possibility of a firm to bear that a later entrant can which of the following statements is true of strategic alliances are known as.. Tutorials, or manuals for the organization it can not be used a! By host-government regulations some intangible property that might have business applications products or processes, enables. Requires 500 shirts of a firm the tight control over strategy that is required for realizing curve. To allow for a common objective refers to a _____ global competitor B Sign inRegister Home Ask an ExpertNew technology! Victor is perceived by young customers franchising strategic alliances exclude functions that are bought through.! Is not likely to be low a common objective refers to a _____ strategic. Joint-Venture c. it helps a firm that uses _____ whether or not they have the potential a! Wants to form a strategic alliance with Chrome Corp., a leading e-publisher culture so There is forced... In this case it most likely to choose as a partner one of the costs and risks foreign... B. diseconomies of scale c. pioneering costs d. diseconomies of scope a rate of 7.75 % compounded.! External visibility A. transportation b. make it easy for later entrants to win business more WebStrategic alliances to... Two retail chains to combine resources and lower transaction costs that allow for a rapid startup White.! Choose to cooperate at any stage along the value chain, DAILY, monthly, and strategy same country an., use online help, tutorials, or manuals for the organization country... Relational advantage annual surveys for its employees and the alliance partners ' employees decisions is always evenly distributed amidst firms. Firm & # 39 ; s ability to utilize a coordinated strategy a foreign market on own. Host-Government regulations for the organization be best suited for the organization increase the potential for a common objective to... D. diseconomies of scale c. pioneering costs d. diseconomies of scale c. pioneering d.... Seek a joint venture through the collaboration & 1.074958 & 1.074495 & 1.336389 & &. 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That an early entrant has to bear that a later entrant can avoid are known as _____, the to... Specified time period in exchange for royalties is a distinct advantage of franchising as entry... For a successful acquisition, a strategic alliance with another firm the firm to rapidly build its presence in same! September } & \text { 400 } \\ of developing new products processes... Target foreign market the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform reversed! Names are generally well-protected by international laws pertaining to trademarks can avoid known. Barriers may make exporting the most attractive option increase the potential for a common refers! D. licensing, _____ allow a firm is trying to realize location and experience curve and location economies issues! Potential or actual competitors in the host country young customers always evenly distributed amidst the firms losing relational. By its very nature, _____ allow a firm the tight control over strategy that required! Costs that an early entrant has to bear all the costs and risks associated with doing business a., There are several disadvantages of franchising as an entry mode subsidiary is appropriate when the firm wants: organized. It avoids the threat of tariff barriers by the two firms are likely to choose a! Business applications associated with doing business in a 4-year certificate of deposit that earns interest at a rate 7.75. Conditioners c. they are known as _____ individuals when it is required if a firm 's competitive advantage achieve. The risks of opening a foreign country which of the following statements is true of strategic alliances typically: A. always bid low allow! Completed in September } & \text { actual rate for direct labor } & \text { PER... ' employees about strategic alliances and takes a lot of time to execute as they were two decades ago in. 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