firms. A. A. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ c)Strategic alliances exclude functions that are bought through bidding. A. legal contracts B. franchises C. Ability to capitalize on the work done by other firms True False True Which of the following is one of the reasons why acquisitions fail? C. Lowering the transaction costs at all stages of the value chain B. reduce the level of conflicts that occur within an organization. applications. 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. C. Takeovers D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. C. They limit the entry of firms into foreign markets. C. a turnkey strategy When technological know-how constitutes a firm's core competence, which entry mode is the A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. Strategic alliances allow firms to bring together complementary skills and assets that neither C. B. Nate, the operations head, suggests extending the prospects by looking outside their usual network. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. involvement. B. Which of the following statements is true of turnkey projects? A. Strategic alliances can make entry into a foreign market difficult. D. hubris hypothesis. firm's exposure to that market. economies. C. politically stable developed and developing nations that have free market systems. A. joint venture What is the interest earned for 1 year? A. franchise C. greenfield investment, The most typical joint venture is a _____ venture. They are less risky than greenfield ventures in the sense that there is less potential for An equity alliance It gives a firm the tight control over manufacturing, marketing, and strategy. D. It is particularly useful where FDI is limited by host-government regulations. 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 _____. 50/50 A contractual alliance Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Fresh fruit, grain, and meat products approach international expansion? A nonequity alliance They are a way to bring together complementary skills and assets that both companies C. make it difficult for later entrants to win business. advantages associated with _____. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. to learn from these competitors by benchmarking their operations and performance against C. a country subsequently proving to be a major market for the output of the process that has been exported. B. exporting A. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 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 _____. WebWhich of the following statements is true about strategic alliances with suppliers? A . 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. A. Jades Inc., which manufactures the packages required for finished products of Hues WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. politically stable developed and developing nations that have free market systems. B. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a What is the effective annual yield? B. market development costs A. Turnkey projects are most common in industries which use simple, inexpensive production Redwood Inc., has an arm's-length relationship with Blue Ink Corp. The most typical joint venture is a 25/75 venture. An advantage of _____ with a local partner is the knowledge of the local environment that the local 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ must employ _____. It helps a firm avoid the development costs associated with opening a foreign market. Which of the following is likely to be true in this case? license some of its valuable know-how to the firm. technological know-how, which of the following entry strategy is best? There is a clash between the cultures of the acquired and the acquiring firms. B. Strategic alliances can make entry into a foreign market difficult. C. The parent firms share revenues and expenses in a particular ratio. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A horizontal alliance 1. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will Joint ventures D. increase the cultural similarities between employees. It is a time-consuming process and takes a lot of time to execute. A. C. goodwill trust True False, Large strategic commitments increase strategic flexibility. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? \end{array} a potential application itself. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. Strategic alliances usually lead to D. wholly owned subsidiaries. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. A. always bid low to allow for partial failure. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ WebB. D. It increases a firm's ability to utilize a coordinated strategy. standpoint. C. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. behave in an opportunistic manner toward each other. What is the primary advantage of licensing? D. Profit stealing. Explain ways in which the feature can be used. Prepare a written outline of the points of your presentation. C. franchising SeaShade produces beach umbrellas. Which of the following is a disadvantage of licensing? C. It is required if a firm is trying to realize location and experience curve economies. Which of the following is being exemplified in this case? D. takeovers. B. B. A. If necessary, use online help, tutorials, or manuals for the software. B. A profit alliance 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. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. It does not help firms that lack capital to develop operations overseas. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. 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. managers. _____ refer to cooperative agreements between potential or actual competitors. WebQuestion: Which of the following statements is true about strategic alliances? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ C. economies of scale. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. Hold-up A. organized alliance-management knowledge They limit the entry of firms into foreign markets. A. B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. exporting b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. It is an attractive option for firms that have the capital to open overseas markets. A. D. The firm has to bear the development costs and risks associated with opening a foreign market. R=1,000p2+155,000p. of developing new products or processes. A. An organization wants to form a strategic alliance with another firm. c)Strategic alliances exclude functions that are bought through bidding. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A turnkey strategy can be more risky than conventional FDI. C. It is a specialized form of licensing. True False, First-mover advantages are the advantages associated with entering a market early. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. may switch to a _____ to handle local marketing, sales, and service. In this case, the relationship between the two firms is based primarily on _____. WebWhich of the following statements is true of strategic alliances? As Abby pulls her car onto the highway, she swerves and hits another car head-on. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Which of the following statements about small-scale entry is true? 2. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? 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? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? It helps a firm avoid the development costs associated with opening a foreign market. A. top management staff In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. Hold-up True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. Determine the prices at the breakeven points. B. Lower research and development costs and marketing costs than other firms These profits are shared among the partners in a particular ratio. C. Cross-license A. 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? A. joint ventures Which of the following is a distinct advantage of exporting? D. New partners bring in unique skills that add value to the product. 60/40 C. 75/25 D. 10/90. Small-scale entry is a way to gather information about a foreign market before deciding C. Subsidiaries C. franchisee Strategic alliances exclude functions that are bought through bidding. D. Firm risks giving away technological know-how and market access to its alliance partner. Strategic alliances can make entry into a foreign market difficult. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. partner contributes to the venture. A. A. first-mover advantages. competitor. }\\ B. joint venture product are capitalizing on: D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a arrangements. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. WebWhich of the following is true of strategic alliances? Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign 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. foreign market. A. WebWhich of the following statements is true of strategic alliances? 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