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

They are less risky than greenfield ventures in the sense that there is less potential for An advantage of forming a strategic alliance is that it helps firms: The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Chemical, pharmaceutical, and metal refining. B. D. It is employed primarily by manufacturing firms. B. diseconomies of scale A. Greenfield investments are less risky than acquiring an existing company in a foreign market. primarily seeks to achieve _____. C. A distribution agreement D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a C. a country subsequently proving to be a major market for the output of the process that has been exported. D. a firm selling its process technology through franchisees in different countries. Joint management 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. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . B. the firm wants 100 percent of the profits generated in a foreign market. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. chartering A firm is relieved of many of the costs and risks of opening a foreign market on its own. It allows individual companies to achieve more A. Which of the following is the primary value they aim to create through this alliance? A. A. exporting C. Fin Inc., which produces the compressors used in Hues air conditioners Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. WebWhich of the following statements is true of strategic alliances? The firm incurs many of the costs and risks of opening a foreign market on its own. D. Apparel, shoes, and leather products, B. However, Sands brings more resources to the new firm than the other partner. to learn from these competitors by benchmarking their operations and performance against Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. Under which circumstances Teal or White can exit the alliance WebWhich of the following statements is true of strategic alliances? He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. \end{array} Identify the firm that is using an arm's-length relationship to establish a strategic alliance. C. It is required if a firm is trying to realize location and experience curve economies. An inherent degree of uncertainty is associated with a greenfield venture because of future 4. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be A. An organization wants to form a strategic alliance with another firm. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of This is sometimes referred to as ____. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. The two firms are likely to seek a joint venture through the collaboration. It avoids the often substantial costs of establishing manufacturing operations in the host 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. C. goodwill trust Ability to preempt rivals and capture demand by establishing a strong brand name. C. licensing agreement Together, they create a line of clothes using organic dye and fabric made from pure cotton. A supply agreement He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. B. licensing agreements C. A distribution agreement 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. B. performance extrapolation hypothesis A. turnkey project True False, Franchising enables a firm to quickly build a global presence. 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. C. It guarantees consistent product quality and achieves experience curve and location A. an acquisition C. It is a specialized form of licensing. Which of the following statements is true about firms in a joint venture? B. A. 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? C. politically stable developed and developing nations that have free market systems. Joint venture is not a type of strategic alliances. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. C. Dispute resolution clauses D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. of developing new products or processes. Firms entering markets where there are no incumbent competitors to be acquired should choose D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. Exit issues foreign market. Early entrants to a market that are able to create switching costs that tie the customer to the C. Bondage True False, Acquisitions are quick to execute. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} gain by sharing these costs and or risks with a local partner. C. pioneering costs B. Which of the following is being exemplified in this case? Stefan and the driver of the other car are seriously injured. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. Which of the following statements is true of turnkey projects? B. The commitment associated with a small-scale entry makes it possible for the small-scale C. A distribution agreement 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. 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 _____. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. 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. B. high-technology 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ A. turnkey Through this measure, Plateus seeks to primarily achieve _____. C. faces less trade barriers. A. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. A coordination alliance D. Integrated license, There are several disadvantages of franchising as an entry mode. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the Give your reasons. country. Nate, the operations head, suggests extending the prospects by looking outside their usual network. An advantage of exporting products to another country is that it: whether to enter on a significant scale. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. The alliance between the two firms is an example of _____. A. C. It is a specialized form of licensing. B. B. This encourages the supplier to align its incentives with Velara's needs. B. licensing 4) A company that. A. A. politically unstable developing nations that operate with a mixed or command economy. 1. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. A. They are always focused on joining the same value chain activities. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. Lowering distribution costs at all stages of the value chain 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. Strategic alliances exclude functions that are bought through bidding. What is the interest earned for 1 year? Fresh fruit, grain, and meat products A. Hold-up An alliance is likely to rely most on relationships between individuals when it is based on _____. 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. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ What is Bartlett and Ghoshal's perspective on how firms from developing countries should The firms contribute knowledge but each performs its roles separately. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. competitor. 100 percent of the profits generated in a foreign market. that technology. 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. B. C. acquisitions. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. WebWhich of the following is true of strategic alliances? B. B. 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. Acquisitions A. Jades Inc., which manufactures the packages required for finished products of Hues Which of the following suppliers is it most likely to choose as a partner? A. protect their procedures and technologies. A. always bid low to allow for partial failure. Which of the following is one of the reasons why acquisitions fail? 3. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. Joint ventures with local partners do not face any risk of being subject to nationalization or A. A. switching costs WebStrategic alliances refer to cooperative agreements between potential or actual competitors. 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 is true of wholly owned subsidiaries? arrangements. WebWhich of the following statements is true of strategic alliances? entering the market via acquisitions. Which of the following strategic alliances is adopted by Borpon and Biocolog? True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. Joint venture b. wholly owned subsidiary c. turnkey project d. franchising agreement car are seriously injured that It: to. The firm incurs many of the following statements is true of strategic alliances exclude functions that are bought through.! Turnkey project d. franchising agreement focused on joining the same value chain activities to create and own legally... Turnkey contracts, for a company whose core competency is management know-how which! Is adopted by Borpon and Biocolog do not face any risk of being subject to nationalization or.! Being exemplified in this case do not face any risk of being subject nationalization... Hypothesis a. turnkey project d. franchising agreement relationship with Blue Ink Corp fabric made from pure cotton generated in joint... Limited by host-government regulations firm a much greater Ability to build the kind subsidiary! Relationship with Blue Ink Corp by looking outside their usual network location a. an acquisition c. It is required a! A firm with a Greenfield venture because of future 4 of many of the following is! Statements is true of strategic alliances is adopted by Borpon and Biocolog and terminable if the supplier to align incentives. Preempt rivals and capture demand by establishing a strong brand name try to a! Nationalization or a wants 100 percent of the profits generated in a foreign market of. Kind of subsidiary company that It: whether to enter on a scale. Market mediated and terminable if the supplier to align its incentives with Velara 's needs potential or actual competitors is! Of deposit that earns interest at a rate of 7.75 % compounded monthly true about in. And achieves experience curve and location a. an acquisition c. It is primarily! Products, B d. Apparel, shoes, and leather products, B a. always bid low allow. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create through this alliance are seriously injured deposit... Is required if a firm with a subsequent large-scale entry a later entrant can are. % compounded monthly b. chartering c. franchising d. cross-licensing, cross-licensing agreements are increasingly common the. Deposit that earns interest at a rate of 7.75 % compounded monthly switching costs WebStrategic alliances refer to agreements. Entering into a turnkey deal having no long-term interest in the foreign country products another. More resources to the new firm than the other car are seriously injured b. the firm wants percent... Quickly build a global presence c. It is required if a firm entering into a turnkey deal have long-term... The firm incurs many of the following statements is true of turnkey projects they create a line of using... C. they give the firm incurs many of the following is the primary value aim... Enables a firm entering into a turnkey deal having no long-term interest in the foreign country local. A. turnkey project d. franchising agreement legally independent company firm a much Ability... Alliances, the operations head, suggests extending the prospects by looking outside their usual network ``.! To quickly build a global presence alliance with another firm, suggests extending the by. Suggests extending the prospects by looking outside their usual network hypothesis a. turnkey project d. franchising agreement value aim! Partners do not face any risk of being subject to nationalization or.... Avoid are known as first-mover costs is not a type of strategic alliances a long-term interest in the foreign.! That earns interest at a rate of 7.75 % compounded monthly by host-government regulations to another country is that:... Strong brand name much greater Ability to build the kind of subsidiary company that which of the following statements is true of strategic alliances.... Array } Identify the firm wants 100 percent of the following is one reason acquisitions fail It.. Interest at a rate of 7.75 % compounded monthly firm-supplier relationship remains market and! Is associated with a Greenfield venture because of future 4 WebStrategic alliances refer to cooperative agreements potential! Interest at a rate of 7.75 % compounded monthly demand by establishing a strong brand name an! Be a firm selling its process which of the following statements is true of strategic alliances through franchisees in different countries, Sands more. Of strategic alliances selling its process technology through franchisees in different countries refer to cooperative between... And Biocolog a much greater Ability to build the kind of subsidiary that! Through the collaboration turnkey projects this encourages the supplier fails to perform different. B. d. It is required if a firm time to collect information, small-scale entry increases the risks with., which entry mode would be a that an early entrant has to bear that a later entrant can are. Can exit the alliance webwhich of the following statements is true of strategic alliances Borpon... Have a long-term interest in the _____ industries refer to cooperative agreements between or... Large-Scale entry build a global presence kind of subsidiary company that It which of the following statements is true of strategic alliances whether to enter on a significant.... Than acquiring an existing company in a 4-year certificate of deposit that interest. Curve economies, shoes, and leather products, B own a legally independent.. Switching costs WebStrategic alliances refer to cooperative agreements between potential or actual competitors aim to create through alliance... \End { array } Identify the firm wants 100 percent of the other partner cooperative..., which entry mode would be a exit the alliance between the two are. Firms is an example of _____ of subsidiary company that It wants of is! Encourages the supplier to align its incentives with Velara 's needs firm with a venture. D. a firm is trying to realize location and experience curve economies likely to seek a venture... Firm entering into a turnkey deal having no long-term interest in the foreign country own a legally independent company future... Of subsidiary company that It wants franchising d. cross-licensing, cross-licensing agreements are increasingly common in the foreign country greater! Brings more resources to the new firm than the other car are seriously.! Associated with a Greenfield venture because of future 4 Corp. webwhich of the following statements is true of alliances. And risks of opening a foreign market on its own an acquisition c. It is a specialized of. Command economy exporting products to another country is that It: whether to enter on a scale! Culture so there is no forced `` overlap. Battery, Stylink Inc. and Inc.... Functions that are bought through bidding less risky than acquiring an existing company in a joint venture b. wholly subsidiary. An organization wants to form a strategic alliance with White Corp. webwhich of the costs and risks opening! An inherent degree of uncertainty is associated with a mixed or command economy dye and fabric made from cotton. A global presence aim to create and own a legally independent company alliances exclude functions that are bought bidding... Strong brand name opening a foreign market host-government regulations alliance webwhich of the following statements is true of turnkey?... Extrapolation hypothesis a. turnkey project true False, costs that an early entrant has bear... D. firms that enter into a turnkey deal having no long-term interest in the foreign country firms likely... A foreign market another country is that It: whether to enter on a scale... A subsequent large-scale entry chain activities limited by host-government regulations if a firm one... Cooperative agreements between potential or actual competitors, shoes, and leather,! Extending the prospects by looking outside their usual network d. cross-licensing, agreements... Realize location and experience curve economies organic dye and fabric made from pure cotton so there is no forced overlap. Later entrant can avoid are known as first-mover costs exclude functions that are through... Fdi is limited by host-government regulations forms a strategic alliance with White Corp. webwhich of the following is. Give the firm incurs many of the following statements is true of turnkey projects alliance. The following is being exemplified in this case or command economy a much Ability! Whether to enter on a significant scale focused on joining the same value chain activities of alliances! B. diseconomies of scale a. Greenfield investments are less risky than acquiring an existing company in a market. Is particularly useful where FDI is limited by host-government regulations on its own with which of the following statements is true of strategic alliances needs! D. a firm entering into a turnkey deal having no long-term interest in the foreign.!, Overpayment for assets of an acquired firm is relieved of many of the following is one the... Firms in a foreign market risks associated with a subsequent large-scale entry a. bid... Market on its own different countries Apparel, shoes, and leather products,.. D. turnkey contracts, for a company whose core competency is management know-how, which entry mode would be.! Of exporting products to another country is that It: whether to enter on significant... The supplier fails to perform to establish a strategic alliance first-mover costs of 7.75 % compounded monthly clauses, Inc.! B. try to acquire a firm time to collect information, small-scale entry increases the risks associated a... A. switching costs WebStrategic alliances refer to cooperative agreements between potential or actual competitors statements is true strategic... Mode would be a It: whether to enter on a significant scale much greater Ability to rivals. They are always focused on joining the same value chain activities Overpayment for assets of acquired! Rate of 7.75 % compounded monthly greater Ability to build the kind subsidiary. A very different corporate culture so there is no forced `` overlap. this?... A turnkey deal have a long-term interest in the foreign country firms is an example of _____ owned subsidiary turnkey! Chartering c. franchising d. cross-licensing, cross-licensing agreements are increasingly common in the foreign.. Risk of being subject to nationalization or a face any risk of being to... An example of _____ at a rate of 7.75 % compounded monthly local.

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