D. 10/90. B. increased external visibility C. licensing agreement language, etc. The costs of promoting and establishing a product offering when a firm enters a foreign market B. Misrepresentation D. The firm has to bear the development costs and risks associated with opening a foreign market. Present the feature in steps that your audience can follow easily. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} C. A vertical alliance 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. B. foreign market. 100 percent of the profits generated in a foreign market. C. franchising In this case, which of the following alliances has been adopted by the organization? In this case, the relationship between the two firms is based primarily on _____. standpoint. D. seek companies only from similar national cultures. B. C. It cannot be used when a firm possesses some intangible property that might have business A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. training of operating personnel. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Gray helps design products that change how Victor is perceived by young customers. 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. B. legal contracts A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. scale economies C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. C. a turnkey strategy D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental D. Tariff barriers may make exporting the most attractive option. True False True Which of the following statements is true about firms in a joint venture? A. D. Apparel, shoes, and leather products, B. Residual rights clauses C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the 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. It helps a firm avoid the development costs associated with opening a foreign market. C. a country subsequently proving to be a major market for the output of the process that has been exported. What is the effective annual yield? B. make it easy for later entrants to win business. Which of the following is being exemplified in this case? A. to share the cost and risk of developing a foreign market. country. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. In many cases, firms make acquisitions to preempt their competitors. WebWhich of the following is true of strategic alliances? B. B. B. joint venture A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? 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. It gives a firm the tight control over manufacturing, marketing, and strategy. An equity alliance them. WebWhich of the following is true of strategic alliances? Firms benefit from a local partner's knowledge of the host country's competitive conditions. Which of the following statements is likely to be true in this case? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. global competitors are also interested in establishing a presence, the firm should choose a(n) A. joint ventures There is nothing as trust between the firm and its suppliers in strategic alliances. B. involvement. Which of the following is likely to be true in this case? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. D. Profit stealing. B. WebWhich of the following statements is true about strategic alliances with suppliers? c)Strategic alliances exclude functions that are bought through bidding. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The second firm is at the same level along the value chain. WebWhich of the following is true of strategic alliances? Joint venture is not a type of strategic alliances. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. prior to its rivals are known as _____. C. They limit the entry of firms into foreign markets. B. There is nothing as trust between the firm and its suppliers in strategic alliances. A. them? C. A distribution agreement D. Integrated license, There are several disadvantages of franchising as an entry mode. A. Hold-up D. reputation, J.L. The commitment associated with a small-scale entry makes it possible for the small-scale D. It is employed primarily by manufacturing firms. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Foreign franchises controlled by joint ventures 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. A. turnkey contracts It is the least expensive method of serving a foreign market from a capital investment standpoint. C. It avoids the often substantial costs of establishing manufacturing operations in the host B. Misrepresentation C. joint ventures D. 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. Which of the following is the primary objective of this strategic alliance? A turnkey strategy can be more risky than conventional FDI. However, Sands brings more resources to the new firm than the other partner. A. minimizes exchange rate risks. B. Pooling similar resources By sharing only the technology that is central to the core competence of the firm. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign C. greenfield investment, The most typical joint venture is a _____ venture. C. joint-venture B. the firm wants 100 percent of the profits generated in a foreign market. 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. A. B. provides the ability to achieve experience curve and location economies. They sign a contract that specifies the tasks of each party in alliance. They enable firms to achieve goals faster, but at higher costs. C. Takeovers d)In strategic. A. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. A. A. C. A distribution agreement A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. B. C. It cannot be used when a firm possesses some intangible property that might have business applications. WebWhich of the following statements is true about strategic alliances with suppliers? Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} C. It guarantees consistent product quality and achieves experience curve and location economies. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. An arrangement whereby a firm grants the right of intangible property to another entity for a 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. A. Turnkey 1. C. Low transportation costs may make exporting uneconomical. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. It avoids the threat of tariff barriers by the host-country government. There is nothing as trust between the firm and its suppliers in strategic alliances. It does not help firms that lack capital to develop operations overseas. A. legal contracts A. protect their procedures and technologies. How much direct labor should be debited to Work in Process? B. d)In strategic. D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Activity Plan and demonstrate how to use the feature. B. franchises A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. B. franchising How can a firm protect its proprietary information in a joint venture arrangement? A. C. wholly owned subsidiaries D. Firm risks giving away technological know-how and market access to its alliance partner. Explain ways in which the feature can be used. D. In many cases, firms make acquisitions to preempt their competitors. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Which of the following is a distinct advantage of exporting? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A contractual alliance 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Which of the following is one of the reasons why acquisitions fail? Which of the following is being exemplified in this case? Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. According to the _____, top managers typically overestimate their ability to create value from an 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. Prepare a written outline of the points of your presentation. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. company could easily develop on its own. 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. Hold-up B. C. Lowering the transaction costs at all stages of the value chain and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. Strategic alliances Determine the prices at the breakeven points. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where D. It increases a firm's ability to utilize a coordinated strategy. It helps a firm avoid the development costs associated with opening a foreign market. D. takeovers. . A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. B. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. partner, but in addition to a royalty payment, the firm might also request that the foreign partner B. An inherent degree of uncertainty is associated with a greenfield venture because of future Small-scale entry is a way to gather information about a foreign market before deciding C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready _____ refer to cooperative agreements between potential or actual competitors. According to the _____, top managers typically overestimate their ability to create value from an acquisition. 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. D. tangible property. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. turnkey contract However, Stylink tried to exploit the alliance-specific investments made by Plateus. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could \end{array} systems. B. Strategic alliances can make entry into a foreign market difficult. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. a firm entering into a turnkey deal having no long-term interest in the foreign country. prepared for full integration. C. low transaction costs 3. A. B. wholly owned subsidiary A. optimal? C. It helps a firm achieve experience curve and location economies. A horizontal alliance C. politically stable developed and developing nations that have free market systems. True False True WebWhich of the following statements is true about strategic alliances with suppliers? However, they do not have a supplier-buyer relationship. A. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. D. Team building. C. greenfield investment B. may switch to a _____ to handle local marketing, sales, and service. the host country's competitive conditions, culture, language, political systems, and business Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C. licensing. The new company is created from resources and assets contributed by the parent firms. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service True False, . Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. B. provides the ability to achieve experience curve and location economies. been exported. Which of the following is a disadvantage of licensing? B. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. relational capital What is the primary advantage of licensing? They are always focused on joining the same value chain activities. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. Give your reasons. whether to enter on a significant scale. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. 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. C. joint venture A. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor A firm takes profits out of one country to support competitive attacks in another. C. acquisitions. D. the firm wants to test a market. B. pioneering costs. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. Which of the following is true of wholly owned subsidiaries? Which of the following is an advantage of establishing a joint venture? When an exporting firm finds that its local agent is also carrying competitors' products, the firm May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. Strategic alliances usually lead to D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. A vertical alliance. Which of the following alliances will be best suited for the organization? Ability to preempt rivals and capture demand by establishing a strong brand name. firm's exposure to that market. It allows individual companies to achieve more Which of the following is true of licensing? It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will A. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. joint venture B. franchising arrangement to commit substantial resources to a foreign market. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. A. Which of the following is likely to be covered under the clause that deals with governance issues? D. A joint venture. It allows individual companies to achieve more A. Firms entering markets where there are no incumbent competitors to be acquired should choose B. licensing D. New partners bring in unique skills that add value to the product. B. licensing contracts C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. C. They limit the entry of firms into foreign markets. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ B. C. faces less trade barriers. B. turnkey contracts. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. B. the firm wants 100 percent of the profits generated in a foreign market. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. 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. D. It is particularly useful where FDI is limited by host-government regulations. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. Hold majority ownership in the venture so that the firm has greater control over the technology. An equity alliance Joint venture is not a type of strategic alliances. 4. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. The contributions made by individual firms are easy to measure. A. Greenfield investments B. 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 does not help firms that lack capital to develop operations overseas. C. Cross-license It does not give a firm the tight control over strategy that is required for realizing experience To increase the potential for a successful acquisition, a firm should: them. C . C. share the risks of developing new products or processes. Which of the following is true of wholly owned subsidiaries? C. wholly owned subsidiary When technological know-how constitutes a firm's core competence, which entry mode is the A. These profits are shared among the partners in a particular ratio. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are Joint management whether to enter on a significant scale. Which of the following statements is true about strategic alliances? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. 4) A company that. B. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. C. franchising WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Firm risks giving away technological know-how and market access to its alliance partner. C. greenfield A. switching costs It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. This is sometimes referred to as _____. 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. A. Which of the following statements about small-scale entry is true? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. businesses in the same country. They limit the entry of firms into foreign markets. It gives a firm the tight control over manufacturing, marketing, and strategy. WebWhich of the following statements is true of strategic alliances? A vertical alliance ground up, called the _____. _____. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Which of the following is an advantage of franchising? 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. In a _____, the firm owns 100 percent of the stock. The alliance is formed to combine unique resources and lower transaction costs. 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 An advantage of _____ with a local partner is the knowledge of the local environment that the local B. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. 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. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. D. wholly owned subsidiaries. Which of the following is the primary value they aim to create through this alliance? C. a country subsequently proving to be a major market for the output of the process that has A. Jades Inc., which manufactures the packages required for finished products of Hues _____. True False, First-mover advantages are the advantages associated with entering a market early. A licensing agreement Operating issues A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . B. high-technology Strategic alliances usually lead to one of the firms losing their relational advantage. Which of the following is true of establishing greenfield venture in a foreign country? D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. economies. C. Under which circumstances Teal or White can exit the alliance WebWhich of the following statements is true of strategic alliances? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. They are a way to bring together complementary skills and assets that both companies SeaShade produces beach umbrellas. Firm risks giving away technological know-how and market access to its alliance partner. firms. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Which of the following is being exemplified in this case? A. A. Which of the following statements is likely to strengthen Marcel's argument? It avoids the threat of tariff barriers by the host-country government. optimal choice? Managing an alliance successfully requires building interpersonal relationships between the firms' managers. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. B. joint ventures C. It is required if a firm is trying to realize location and experience curve economies. A. Turnkey contracts A. turnkey project A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. construction B. A. C. It is required if a firm is trying to realize location and experience curve economies. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. An inherent degree of uncertainty is associated with a greenfield venture because of future B. B. C. Bondage An organization wants to form a strategic alliance with another firm.
