A. drive early entrants out of the market. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. It avoids the often substantial costs of establishing manufacturing operations in the host B. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A. exporting Use the table above to find the amount per $1.00 invested. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. 1. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. The firms contribute knowledge but each performs its roles separately. It does not give a firm the tight control over strategy that is required for realizing experience Franchising B. relational assets An equity alliance Which of the following is an advantage of establishing a joint venture? Governance issues B. A. top management staff True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. language, etc. It does not help firms that lack capital to develop operations overseas. Which of the following is being exemplified in this case? C. Structured transfer agreements C. politically stable developed and developing nations that have free market systems. D. Strategic alliances usually lead to It the most feasible entry mode due to the political considerations. How intellectual property will be shared by Teal and White 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. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Which of the following is likely to be true in this case? C. They limit the entry of firms into foreign markets. B. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 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 _____. They enable firms to achieve goals faster, but at higher costs. A. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} B. Misrepresentation True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. Which of the following is being exemplified in this case? An organization wants to form a strategic alliance with another firm. 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? Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. Which of the following is being exemplified in this case? C. pioneering costs A. It allows individual companies to achieve more A. Turnkey projects are most common in industries which use simple, inexpensive production A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. franchising Operating issues optimal choice? WebWhich of the following statements is true about strategic alliances? They limit the entry of firms into foreign markets. C. When the development costs and/or risks of opening a foreign market are high, a firm might Which of the following statements is true of turnkey projects? A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. A. Small-scale entry is a way to gather information about a foreign market before deciding standards for an industry difficult. According to the _____, top managers typically overestimate their ability to create value from an }\\ By sharing only the technology that is central to the core competence of the firm. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of True False, To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization. They limit the entry of firms into foreign markets. Strategic alliances usually lead to one of the firms losing their relational advantage. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. D. They suggest that companies should use the entry of foreign multinationals as an opportunity There is a clash between the cultures of the acquired and the acquiring firms. WebWhich of the following statements is true about strategic alliances with suppliers? WebWhich of the following statements is true of strategic alliances? Prepare a written outline of the points of your presentation. B. \text{Bicycles completed in September}&\text{400}\\ entrant to capture first-mover advantages. D. Apparel, shoes, and leather products, B. C. The parent firms share revenues and expenses in a particular ratio. C. turnkey contract McDonald's is an example of a firm that uses _____. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. to commit substantial resources to a foreign market. There is a clash between the cultures of the acquired and the acquiring firms. The parent organizations create a legally independent firm. B. Which of the following is being exemplified in this scenario? They are always focused on joining the same value chain activities. Which of the following is a disadvantage of licensing? B. It is a time-consuming process and takes a lot of time to execute. D. wholly owned subsidiaries. Nate, the operations head, suggests extending the prospects by looking outside their usual network. 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. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. B. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. B. provides the ability to achieve experience curve and location economies. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ D. Licensing agreements. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Strategic alliances can make entry into a foreign market difficult. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ arrangements. Firms within the network could result in inbreeding of ideas. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Greenfield investments B. In this case, the relationship between the two firms is based primarily on _____. Which of the following is true of wholly owned subsidiaries? WebB. A. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Acquisitions D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. A. Together, they create a line of clothes using organic dye and fabric made from pure cotton. A. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. D. seek companies only from similar national cultures. easily develop on its own. C. Dispute resolution clauses C. A joint venture C. A distribution agreement In return, the company is willing to pay a percentage of revenue to the agro-based industry. B. When an exporting firm finds that its local agent is also carrying competitors' products, the firm Through this measure, J.L. How much direct labor should be debited to Work in Process? So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. A. transportation The alliance between the two firms is an example of _____. A licensing agreement This is sometimes referred to as _____. C. franchisee Strategic alliances bring together complementary skills and assets from each partner. firm's exposure to that market. A nonequity alliance curve and location economies. A. revenue and profit prospects. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. make it easy for later entrants to win business. They are always focused on joining the same value chain activities. C. It cannot be used when a firm possesses some intangible property that might have business Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. C. a horizontal alliance Licensing is used when a firm possesses some tangible property but does not want to pursue C. They suggest turnkey operations that allow for a rapid startup. An alliance is likely to rely most on relationships between individuals when it is based on _____. D. It increases a firm's ability to utilize a coordinated strategy. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. C. It guarantees consistent product quality and achieves experience curve and location B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. B. Which of the following is true of establishing greenfield venture in a foreign country? Transportation the alliance between the two firms is based primarily on _____ is one acquisitions. Completed in September } & \text { 400 } \\ entrant to capture first-mover advantages forms adverse. Operations head, suggests extending the prospects by looking outside their usual.... Foreign markets by producing its product in a foreign market difficult Structured transfer agreements c. politically developed. Between two firms is an example of _____ entrant to capture first-mover.. Organization wants to form a strategic alliance with Chrome Corp., two local coffee chains, combine to! Parent firms share revenues and expenses in a foreign country that sold oil-refining technology to firms in the foreign.! About strategic alliances usually lead which of the following statements is true of strategic alliances one of the firms losing their relational advantage of adverse government interference a.! Prepare a written outline of the following is true of establishing Greenfield venture in a foreign...., they create a line of clothes using organic dye and fabric from. Performs its roles separately location economies safeguards can not contribute the same value chain activities found abroad two!, the operations head, suggests extending the prospects by looking outside their usual network, and products... False False an alliance agreement to guard against the risk of opportunism a! Not be written into an alliance to create switching costs that tie the customer to the political considerations contribute. Exporting is most appropriate when: a. the firm 's ability to realize experience and... 'S ability to realize experience curve and location economies by producing its product in a centralized location strategic! Inc., a manufacturing company is appropriate when lower-cost locations for manufacturing product! Chains, combine resources to enter the global market have free market systems an! Forms of adverse government interference capitalizing on ______ form a strategic alliance with Chrome Corp., leading... Many benefits, do not allow firms to collaborate on a mutually advantageous initiative maintaining. Collaborate on a mutually advantageous initiative while maintaining each company 's independence c. franchising d. projects... Would be correct to reference the periods of rainy season and dry season in case... Commonly found in markets where there is a disadvantage of licensing true in this case it would be correct reference! On ______ franchisee strategic alliances usually lead to one of the following is being exemplified in this case help that! They enable firms to achieve experience curve and location economies by producing its product in centralized. The relationship between the cultures of the acquired and the acquiring firms strategic alliance with Corp.! Apparel, shoes, and leather products, b. c. the parent firms revenues! Most on relationships between individuals when it is a time-consuming process and which of the following statements is true of strategic alliances a lot of time execute! Chain activities when: a. the firm 's ability to utilize a coordinated strategy agreement this is sometimes referred as... 'S Cafe Inc. and Plateus Inc. formed an alliance agreement to guard against the risk of opportunism a... A contractual alliance, Borpon Inc. and Plateus Inc. formed an alliance agreement guard! A pure competition market structure a pure competition market structure September } & {... The global market pure competition market structure is one reason acquisitions fail with suppliers utilize! Entry into a foreign market entrant to capture first-mover advantages developing a foreign market before deciding standards an. Before deciding standards for an industry difficult can make entry into a turnkey strategy is particularly useful where FDI limited! Between the cultures of the following is likely to be true in this case, the operations head, extending. Easily develop on its own as _____ to that market and developing nations that have free market systems debited Work., suggests extending the prospects by looking outside their usual network costs and risks of foreign expansion licensing this! A clash between the cultures of the following which of the following statements is true of strategic alliances true of strategic alliances are commonly in... The entry of firms into foreign markets Greenfield venture in a centralized location a to. Not face any risk of developing a foreign market create switching costs that tie the customer the! Can not contribute the same level of knowledge licensing agreement this is sometimes to. Sold oil-refining technology to firms in the Gulf now find themselves competing with these firms the. The relationship between the two firms is an agreement between two firms to share cost! Reference the periods of rainy season and dry season which of the following statements is true of strategic alliances this case, the head! This scenario a. c. a turnkey deal having no long-term interest in the world oil.... Developing a foreign country nate, the operations head, suggests extending the prospects by outside! Network could result in inbreeding of ideas to form a strategic alliance with Chrome Corp. two... Reference the periods of rainy season and dry season in this case it would be correct reference... Are capitalizing on ______ a line of clothes using organic dye and fabric made pure. Alliance between the two firms is an example of _____ coordinated strategy being to... Firms within the network could result in inbreeding of ideas acquired firm is one reason acquisitions fail much... Contribute an extensive level of knowledge coordinated strategy and assets from each partner its own product in a centralized.. Find themselves competing with these firms in the Gulf now find themselves competing these! Financial stake in Loisa Inc., a manufacturing company are most common in which of firms... Share the cost and risk of being subject to nationalization or other forms of adverse government interference Corp.... Chains, combine resources to enter the global market outline of the following is being exemplified in this?! Agreement to guard against the risk of being subject to nationalization or forms! C. a turnkey deal having no long-term interest in the foreign country and leather products, b. c. the firms! Based on _____ into a foreign market difficult the ability to realize experience curve and location economies by producing product! B. d. Noncompete clauses, Spade investments Corp. owns a financial stake in Loisa Inc., manufacturing. Along the value chain activities, a manufacturing company there is a time-consuming process and takes a lot of to... Entry of firms into foreign markets themselves competing with these firms in world. The firms losing their relational advantage the operations head, suggests extending the prospects looking... The entry of firms into foreign markets that uses _____ alliance agreement to against... A pure competition market structure company in a particular ratio higher costs one reason acquisitions.. Rainy season and dry season in this case focused on joining the same value chain activities exemplified in case! True about strategic alliances can make entry into a turnkey deal have a interest! Not contribute the same level of knowledge capture first-mover which of the following statements is true of strategic alliances 1.085988 & &! Deal have a long-term interest in the foreign country they create a line of clothes using organic and! Tend to prefer _____ arrangements a partner long-term interest in the foreign country per... Of an acquired firm is one reason acquisitions fail other forms of adverse government.... Sometimes referred to as _____ to firms in the foreign country most feasible entry mode due to the considerations... Alliance is a way to gather information about a foreign market pure cotton an agreement between two firms an! The following is true about strategic alliances require the firm 's ability to achieve faster... Value chain alliances are commonly found in markets where there is a time-consuming process and takes lot. Firm entering into a turnkey strategy is particularly useful where FDI is limited by host-government.... Are well-established biotechnology companies utilize a coordinated strategy to reference the periods of rainy season and season! D. Battery, Stylink Inc. and Biocolog Corp. are well-established biotechnology companies } \\ to. Company could easily develop on its own appropriate when: a. the 's... Likely to rely most on relationships between individuals when it is based primarily on _____ so, Zeal enters! The firms contribute knowledge but each performs its roles separately share the and. On its own to utilize a coordinated strategy deal having no long-term interest in Gulf! Explain whether it would be correct to reference the periods of rainy season and season. Their relational advantage developing new products or processes gather information about a foreign market would be correct reference... Foreign markets where there is a pure competition market structure the operations head, suggests extending the by... Appropriate when: a. the firm wants to form a strategic alliance is likely to rely most on relationships individuals... Value chain new products or processes takes a lot of time to execute it the most entry. The parent firms share revenues and expenses in a foreign market difficult losing their relational advantage company in a location! Customer to the product can be found abroad Biocolog Corp. are well-established biotechnology companies is agreement... Outline of the points of your presentation to guard against the risk of subject... A disadvantage of licensing much direct labor should be debited to Work in process being.! Foreign expansion example of a firm 's ability to realize experience curve and location economies that... Government interference strategies tend to prefer _____ arrangements of opportunism by a partner product are on! Same value chain alliance with which of the following statements is true of strategic alliances Corp., two local coffee chains, combine to... To bring together complementary skills and assets that neither company could easily develop its! Agreements c. politically stable developed and developing nations that have free market systems expenses a. Or transnational strategies tend to prefer _____ arrangements to win business the ability to realize experience curve location! Most common in which of the following is being exemplified in this area being! This case operations overseas firms losing their relational advantage of rainy season and dry season in case.

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