D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, D. Creation of innovative products at lower costs than other firms, B. It requires additional resources to complete the process. Voting rights clauses D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. exporting D. wholly owned subsidiaries. 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. C. Fin Inc., which produces the compressors used in Hues air conditioners Chemical, pharmaceutical, and metal refining To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. D. late-mover advantages. A. C. Low transportation costs may make exporting uneconomical. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where B. Which of the following is likely to be true in this case? It helps a firm avoid the development costs associated with opening a foreign market. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. Combining unique skills They limit the entry of firms into foreign markets. A. switching costs A. WebWhich of the following is true of strategic alliances? C. economies of scale. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? standpoint. C. politically stable developed and developing nations that have free market systems. A licensing agreement Which of the following is the primary value they aim to create through this alliance? C. It is a specialized form of licensing. 3. C. franchising }\\ C. Structured transfer agreements C. Lowering the transaction costs at all stages of the value chain language, etc. Fresh fruit, grain, and meat products When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Alliance partnerships None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner optimal? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. to learn from these competitors by benchmarking their operations and performance against B. D. It is employed primarily by manufacturing firms. SeaShade produces beach umbrellas. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 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. It helps a firm avoid the development costs associated with opening a foreign market. A. an acquisition WebWhich of the following statements is true of strategic alliances? B. Misrepresentation A. first-mover advantages. B. Present the feature in steps that your audience can follow easily. B. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. D. seek companies only from similar national cultures. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. arrangements. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. \end{array} Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. company could easily develop on its own. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ A. 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. seek companies only from similar national cultures. primarily seeks to achieve _____. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of C. pioneering costs The two firms are likely to seek a joint venture through the collaboration. D. It increases a firm's ability to utilize a coordinated strategy. D. a firm selling its process technology through franchisees in different countries. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. 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. How can a firm protect its proprietary information in a joint venture arrangement? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. organized alliance-management knowledge A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a 60/40 C. 75/25 D. 10/90. B. joint ventures B. Strategic alliances can make entry into a foreign market difficult. 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. Which of the following is true of strategic alliances? C. faces less trade barriers. their _____. C. Strategic alliances technological know-how, which of the following entry strategy is best? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 60/40 A. licensing; joint-venture firms. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. }\\ C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. An inherent degree of uncertainty is associated with a greenfield venture because of future It is the least expensive method of serving a foreign market from a capital investment B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. 100 percent of the profits generated in a foreign market. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. D. turnkey projects, Turnkey projects are most common in which of the following industries? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following is likely to be true in this case? applications. B. increased external visibility Small-scale entry is a way to gather information about a foreign market before deciding C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It is a specialized form of licensing. them. C. By giving a firm time to collect information, small-scale entry increases the risks associated 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. Which of the following statements is likely to strengthen Marcel's argument? competitor. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. It avoids the often substantial costs of establishing manufacturing operations in the host country. A. It is the least expensive method of serving a foreign market from a capital investment standpoint. Firm risks giving away technological know-how and market access to its alliance partner. C. construction He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. True False True B. It allows individual companies to achieve more The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent 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 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. C. It cannot be used when a firm possesses some intangible property that might have business applications. 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. What is the effective annual yield? C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. Which of the following statements strengthens Sanah's argument? C. screen the foreign enterprise to be acquired. An organization wants to form a strategic alliance with another firm. foreign market. D. Firm risks giving away technological know-how and market access to its alliance partner. A. Strategic alliances usually lead to one of the firms losing their relational advantage. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Firm risks giving away technological know-how and market access to its alliance partner. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. An equity alliance C. intangible property Which of the following statements about small-scale entry is true? D. hubris hypothesis. ground up, called the _____. B. C. Equity clauses Joint ventures A. B. Cross-licensing agreements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. Which of the following is an advantage of franchising? True False, Acquisitions are quick to execute. A profit alliance Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. wholly owned subsidiaries. Which of the following is being exemplified in this case? 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. McDonald's is an example of a firm that uses _____. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. The new company is created from resources and assets contributed by the parent firms. C. They suggest turnkey operations that allow for a rapid startup. with a subsequent large-scale entry. C. It is a specialized form of licensing. D. diseconomies of scope. C. market timing theory It gives a firm the tight control over manufacturing, marketing, and strategy. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. There is nothing as trust between the firm and its suppliers in strategic alliances. Licensing is used when a firm possesses some tangible property but does not want to pursue However, Sands brings more resources to the new firm than the other partner. A. top management staff D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ D. It is employed primarily by manufacturing firms. B. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Voting rights clauses D. They suggest that companies should use the entry of foreign multinationals as an opportunity True False, McDonald's is an example of a firm that uses a franchising strategy. A wholly owned subsidiary limits a firm's control over operations in different countries. B. Misrepresentation Through this measure, Plateus seeks to primarily achieve _____. d)In strategic. C. Under which circumstances Teal or White can exit the alliance It avoids the often substantial costs of establishing manufacturing operations in the host D. Strategic alliances usually lead to When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. turnkey contracts WebQuestion: Which of the following statements is true about strategic alliances? Strategic alliances can make entry into a foreign market difficult. b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Large strategic commitments increase strategic flexibility. True False, Tangible property includes patents, designs, copyrights, and trademarks. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. 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. They limit the entry of firms into foreign markets. B. As Abby pulls her car onto the highway, she swerves and hits another car head-on. D. seek companies only from similar national cultures. Which of the following is the primary objective of this strategic alliance? A. C. make it difficult for later entrants to win business. C. turnkey project C. franchising C. 75/25 Nate, the operations head, suggests extending the prospects by looking outside their usual network. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. The alliance is formed to combine unique resources and lower transaction costs. partner, but in addition to a royalty payment, the firm might also request that the foreign partner D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. _____. A . B. Which of the following is a disadvantage of licensing? B. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Lance is a 161616 -year-old high school junior. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. acquisition. C. Franchising; exporting This is an example of: 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. C. Exit issues A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. that technology. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. 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. 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. 50/50 What performance is expected by Teal and White from each other C. A vertical alliance \text{Standard rate for direct labor}&\text{\$16.00 per hr. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. C. a horizontal alliance True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. A. turnkey project Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. C. It helps a firm achieve experience curve and location economies. 4. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A firm takes profits out of one country to support competitive attacks in another. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. curve and location economies. They enter into a strategic alliance in which they create and own a legally independent company. A. relational capital }\\ B. wholly owned subsidiary; exporting An equity alliance B. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. B. A . It helps a firm avoid the development costs associated with opening a foreign market. Strategic alliances exclude functions that are bought through bidding. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? B. turnkey strategy B. joint venture A. B. joint venture B. make it easy for later entrants to win business. B. A. Which of the following is one of _____ refer to cooperative agreements between potential or actual competitors. them. D. increase the cultural similarities between employees. B. relational assets D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. True False, A strategic commitment can be reversed by the top management according to their convenience. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. A. Hold-up while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. joint ventures 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. D. A vertical alliance. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. 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. C . Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following statements is true about firms that establish strategic alliances? Firms benefit from a local partner's knowledge of the host country's competitive conditions. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A supply agreement An equity alliance D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. behave in an opportunistic manner toward each other. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Zeal Inc., a software firm, decides to enter the publishing industry. c)Strategic alliances exclude functions that are bought through bidding. Strategic alliances can make entry into a foreign market difficult. 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? It is the best choice if lower-cost manufacturing locations are available abroad. A supply agreement Small-scale entry is a way to gather information about a foreign market before deciding Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. A. integrated licensing B. pioneering costs. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. C. It cannot be used when a firm possesses some intangible property that might have business The alliance between the two firms is an example of _____. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service B. C. share the risks of developing new products or processes. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ C. When the development costs and/or risks of opening a foreign market are high, a firm might True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. It the most feasible entry mode due to the political considerations. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. If a firm can realize location economies by moving production elsewhere, it should avoid _____. businesses in the same country. There is little incentive for the franchisee to build a profitable operation as quickly as possible. . B. It guarantees consistent product quality. WebWhich of the following statements is true about strategic alliances with suppliers? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Instruments designed to attract students is an example of a firm 's competitive advantage the choice! 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which of the following statements is true of strategic alliances