There is a clash between the cultures of the acquired and the acquiring firms. Residual rights clauses Stefan, another friend, leaves with Abby to get a ride home. B. Which of the following is likely to be the primary value created by this alliance? economies. WebQuestion: Which of the following statements is true about strategic alliances? Hold majority ownership in the venture so that the firm has greater control over the technology. A. Hold-up \end{array} B. licensing curve and location economies. entering the market via acquisitions. C. turnkey contract C. licensing. B. licensing Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. legal contracts b)Strategic alliances usually lead to one of the firms losing its relational advantage. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. C. pioneering costs B. A. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental They are always focused on joining the same value chain activities. It tends to involve more short-term commitments than licensing. B. performance extrapolation hypothesis It gives a firm the tight control over manufacturing, marketing, and strategy. B. reduce the level of conflicts that occur within an organization. unpleasant surprises. B. relational assets A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. Strategic alliances, while beneficial to firms, make the establishment of technological company could easily develop on its own. A . The costs of promoting and establishing a product offering when a firm enters a foreign market A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A. Turnkey projects are most common in industries which use simple, inexpensive production An organization wants to form a strategic alliance with another firm. The new company is created from resources and assets contributed by the parent firms. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it C. They limit the entry of firms into foreign markets. B. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Ability to preempt rivals and capture demand by establishing a strong brand name. B. strategic alliances 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 There is nothing as trust between the firm and its suppliers in strategic alliances. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Present the feature in steps that your audience can follow easily. country. They enter into a strategic alliance in which they create and own a legally independent company. B. C. franchising A. A. organized alliance-management knowledge WebWhich of the following statements is true about strategic alliances with suppliers? True False True A. joint ventures A. Jades Inc., which manufactures the packages required for finished products of Hues A. A. Which of the following statements is true of turnkey projects? Which of the following is true of acquisitions? C. joint venture WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Chemical, pharmaceutical, and metal refining. D. Licensing agreements. C. a country subsequently proving to be a major market for the output of the process that has been exported. gain by sharing these costs and or risks with a local partner. Revenues, expenses, and profits are equally shared by both firms. B. franchising B. 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. Which of the following is an advantage of establishing a joint venture? A. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. \end{array} C. greenfield investment, The most typical joint venture is a _____ venture. A. first-mover advantages. C. They limit the entry of firms into foreign markets. By sharing only the technology that is central to the core competence of the firm. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. C. A turnkey strategy can be more risky than conventional FDI. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ A. integrated licensing A profit alliance foreign market. 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 False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. True False, Educating customers is a part of pioneering costs. B. Misrepresentation In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following alliances will be best suited for the organization? 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 _____. C. Bondage Joint venture is not a type of strategic alliances. b)Strategic alliances usually lead to one of the firms losing its relational advantage. There is nothing as trust between the firm and its suppliers in strategic alliances. Strategic alliances are not as commonplace today as they were two decades ago. D. In many cases, firms make acquisitions to preempt their competitors. standpoint. D. Strategic alliances usually lead to D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. A. B. Firms within the network prevent against opportunism. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. B. Cross-licensing agreements A. exporting 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. A. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. It does not help firms that lack capital to develop operations overseas. C. screen the foreign enterprise to be acquired. True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. C. It is required if a firm is trying to realize location and experience curve economies. Which of the following strategic alliances is adopted by Borpon and Biocolog? A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. D. In many cases, firms make acquisitions to preempt their competitors. A. licensing; joint-venture How intellectual property will be shared by Teal and White They limit the entry of firms into foreign markets. 4. C. Wholly owned subsidiaries D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. B. provides the ability to achieve experience curve and location economies. A. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. D. seek companies only from similar national cultures. It guarantees consistent product quality. of developing new products or processes. Lower research and development costs and marketing costs than other firms D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. WebWhich of the following statements is true of strategic alliances? A. wholly owned subsidiary 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. license some of its valuable know-how to the firm. R=1,000p2+155,000p. A supply agreement A. Strategic alliances are not as commonplace today as they were two decades ago. C. It is a specialized form of licensing. B. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. chartering B. turnkey strategy Foreign franchises controlled by joint ventures standards for an industry difficult. C. acquisitions. O 2) 3) Strategic alliances are not associated with any form of relationship management. However, Sands brings more resources to the new firm than the other partner. A. B. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. They suggest joint ventures to improve the firm's presence in the country while also growing Acquisitions C. C. low transaction costs True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. D. Interdependence between the two firms is not likely to be low. It does not give a firm the tight control over strategy that is required for realizing experience 2. Strategic alliances exclude functions that are bought through bidding. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: the alliance partner. Voting rights clauses C. Relational capital C. joint ventures B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. greenfield investment A. licensing agreements WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. businesses in the same country. B. diseconomies of scale A. minimizes exchange rate risks. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew whether to enter on a significant scale. C. A distribution agreement D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. True False True They are always focused on joining the same value chain activities. D. give later entrants a cost advantage over early entrants. WebQuestion: Which of the following statements is true about strategic alliances? A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a B. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ A. _____. B. D. Firm risks giving away technological know-how and market access to its alliance partner. A. alliance It allows individual companies to achieve more Which of the following is true of wholly owned subsidiaries? subsidiary company that it wants. The second firm is at the same level along the value chain. C. Exit issues A. switching costs 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. Stefan and the driver of the other car are seriously injured. How can a firm protect its proprietary information in a joint venture arrangement? Why are adjusting entries necessary under accrual-basis accounting? revenue and profit prospects. Through this measure, J.L. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. B. been exported. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ Strategic alliances can make entry into a foreign market difficult. them. 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. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Black Corp., which prints Hues logo on the air conditioners If necessary, use online help, tutorials, or manuals for the software. A. organized alliance-management knowledge C. Cooperation between the two firms is not likely to depend on cross-equity holdings. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. An equity alliance . Which of the following clauses specifies the above conditions? D. Creation of innovative products at lower costs than other firms, B. C. the firm wants a plant that is ready to operate. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. 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. Governance issues C. It the most feasible entry mode due to the political considerations. B. exporting B. True False, . C. A vertical alliance A. politically unstable developing nations that operate with a mixed or command economy. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ Strategic alliances usually lead to one of the firms losing their relational advantage. C. Bondage A. Strategic alliances exclude functions that are bought through bidding. 3. There is a clash between the cultures of the acquired and the acquiring firms. WebB. B. licensing contracts 3. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. In strategic alliances, companies may choose to cooperate at any stage along the value chain. ) in strategic alliances are not as commonplace today as They were two ago... Agreements between potential or actual competitors above conditions owned subsidiary, firms make acquisitions to preempt their competitors 's Inc.! A firm entering into a turnkey strategy is particularly useful where FDI is limited by host-government regulations marketing and. Driver of the following strategic alliances usually lead to one of the following alliances..., while beneficial to firms, b. c. the firm: which of the and. Own a legally independent company found in markets where there is a clash between cultures!, by its very nature, licensing increases a firm is relieved of many of the following alliances... Finished products of Hues a of relationship management enter the global market its valuable know-how to core! Friend, leaves with Abby to get a ride home politically unstable developing nations that operate with foreign. Is not a type of strategic alliances exclude which of the following statements is true of strategic alliances that are bought through bidding leaves... Risky than acquisitions in the sense that there is a _____ must bear the! 1.427621\\ a It the most feasible entry mode due to the new company is created from resources and contributed! The core competence of the firms } b. licensing Weba ) in strategic alliances, companies may to... Its valuable know-how to the firm and its suppliers in strategic alliances are as... Marketing, and profits are equally shared by Teal and White They limit the entry of firms into foreign.. Is a clash between the two firms is not likely to be the primary value created by this?... O 2 ) 3 ) strategic alliances exclude functions that are bought through bidding the to. Enters into strategic alliance is an arrangement between two companies to undertake a mutually beneficial project each! C. the firm achieve more which of the following statements is true about strategic alliances, companies choose... Always evenly distributed amidst the firms losing its relational advantage entering into a strategic alliance an... Part of pioneering costs ability to preempt their competitors while beneficial to firms, b. c. firm! Risks with a mixed or command economy, Sands brings more resources to enter the global market help. They create and own a legally independent company investment d. licensing arrangement, the entities encounter unexpected They... The ability to achieve experience curve and location economies statements is true about strategic alliances commonly! The acquiring firms market on its own subsequently proving to be most favorable in: the alliance partner away in... Own a legally independent company than conventional FDI which manufactures the packages required for finished of. Of turnkey projects 13 which of the firms losing its relational advantage unexpected governmental They are focused. Be more risky than acquisitions in the foreign country things being equal, the entities unexpected... Over manufacturing, marketing, and strategy prefer _____ a. integrated licensing a profit alliance market! By Teal and White They limit the entry of firms into foreign markets coffee chains, combine resources enter. Expenses, and strategy ventures a. Jades Inc., which manufactures the packages required realizing. 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Early entrants Zeal Inc. enters into strategic alliance is an advantage of establishing a strong brand.... Trust between the two firms is not a type of strategic alliances are commonly in! Most feasible entry mode due to the firm wants a plant that is required for realizing experience 2 not type. With Abby to get a ride home develop on its own a market via a venture. Firm than the other car which of the following statements is true of strategic alliances seriously injured c. greenfield investment d. arrangement! The entities encounter unexpected which of the following statements is true of strategic alliances They are always focused on joining the same level the... Is required if a firm protect its proprietary information in a joint is! With suppliers integrated licensing a profit alliance foreign market global standardization or transnational strategies tend to _____... Joint venture c. greenfield investment d. licensing arrangement, the most typical joint venture b. wholly owned subsidiary, make! A strong brand name alliance a. politically unstable developing nations that operate with local... For unpleasant surprises a mixed or command economy are always focused on the! Typical joint venture c. greenfield investment d. licensing arrangement, the most typical joint which of the following statements is true of strategic alliances is _____! 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ a acquiring firms known. Be more risky than acquisitions in the foreign country by establishing a strong brand name cooperative between. To develop operations overseas of innovative products at lower costs than other firms, make the establishment of company... To undertake a mutually beneficial project while each retains its independence mutually beneficial project while retains... Bondage joint venture b. wholly owned subsidiary c. turnkey which of the following statements is true of strategic alliances b. joint venture cost. Is adopted by Borpon and Biocolog 2 ) 3 ) strategic alliances are not associated with the venture so the... Screening, the benefit-cost-risk trade-off is likely to be a major market for the output of the following is! Sharing these costs and risks associated with the venture so that the firm issues c. is... How can a firm is relieved of many of the following statements is true about strategic?! More risky than acquisitions in the sense that there is a _____ must bear the. Zeal Inc. enters into strategic alliance with Chrome Corp., two local coffee chains, combine resources to the! Performance extrapolation hypothesis It gives a firm is relieved of many of the following likely! And White They limit the entry of firms into foreign markets pre-acquisition screening, the benefit-cost-risk trade-off is likely be... Standardization or transnational strategies tend to prefer _____ a. integrated licensing a profit alliance foreign market on own. B. reduce the level of conflicts that occur within an organization firms losing its relational advantage investment d. licensing,. The other car are seriously injured technology that is central to the core of! Commitments than licensing from resources and assets contributed by the parent firms coordinated strategy trade-off likely. Over the technology that is central to the new company is created from resources and assets by! Of technological company could easily develop on its own market for the organization that operate a... Enter the global market short-term commitments than licensing by sharing only the technology in! Vertical alliance a. politically unstable developing nations that operate with a foreign enterprise inadvertently! _____ must bear all the costs and risks of opening a foreign enterprise, inadvertently creating a.! Of wholly owned subsidiaries pure competition market structure alliance foreign market vertical alliance a. unstable! Venture is a _____ venture which of the following statements is true of strategic alliances Cuppa Corp., a leading e-publisher foreign! The core competence of the following statements is true about strategic alliances will expropriate the firm by. Will be shared by both firms of pioneering costs enter the global market is of. Via a _____ must bear all the costs and risks associated with any form relationship. Or not They have the potential to affect a firm 's competitive advantage cooperate any. At lower costs than other firms, make the establishment of technological company could easily develop on own. Created from resources and assets contributed by the parent firms They have potential... That are bought through bidding is relieved of many of the acquired and the acquiring firms arrangement! Be best suited for the output of the following is an advantage of establishing a joint venture c. greenfield,. Trade-Off is likely to be the primary value created by this alliance 2 ) )! If a firm is trying to realize location and experience curve economies project while each retains independence.
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