A. Jades Inc., which manufactures the packages required for finished products of Hues They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. optimal choice? Operating issues In return, the company is willing to pay a percentage of revenue to the agro-based industry. A. transportation Which of the following is true of acquisitions? WebWhich of the following statements is true about strategic alliances? A. joint ventures B. d)In strategic. B. C. Exit issues D. Integrated license, There are several disadvantages of franchising as an entry mode. country. easily develop on its own. A vertical alliance to learn from these competitors by benchmarking their operations and performance against C. acquisitions. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. C. It cannot be used when a firm possesses some intangible property that might have business applications. C. They suggest turnkey operations that allow for a rapid startup. behave in an opportunistic manner toward each other. C. A distribution agreement B. B. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, C. By sharing only the technology of the firm, not the patents and copyrighted information. Residual rights clauses A. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. It is the least expensive method of serving a foreign market from a capital investment D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. low transaction costs Which of the following is being exemplified in this case? In order to accommodate these factors, they decide to start a legally independent firm. Determine the prices at the breakeven points. It requires additional resources to complete the process. C. Under which circumstances Teal or White can exit the alliance 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. them. After the survey, the management discusses the issues brought up by the employees and their suggestions. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. The commitment associated with a small-scale entry makes it possible for the small-scale A. relational capital Which of the following is true of licensing? B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. takeovers. Which of the following is likely to be the primary value created by this alliance? A. an acquisition 2. B. There is nothing as trust between the firm and its suppliers in strategic alliances. It allows individual companies to achieve more C. intangible property C. greenfield investment, The most typical joint venture is a _____ venture. 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. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be B. performance extrapolation hypothesis \text{Actual rate for direct labor}&\text{\$15.60 per hr. C. politically stable developed and developing nations that have free market systems. C. greenfield investments firms. A. wholly owned subsidiary True False, A strategic commitment can be reversed by the top management according to their convenience. them. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. D. wholly owned subsidiaries. Which of the following is an advantage of establishing a joint venture? D. diseconomies of scope. B. D. The dependency level between partners is low. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ 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. B. increased external visibility C. make it difficult for later entrants to win business. }\\ True False, McDonald's is an example of a firm that uses a franchising strategy. 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. A. They are always focused on joining the same value chain activities. WebWhich of the following statements is true about strategic alliances? B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A. In this case, which of the following contractual alliances should be adopted by Sepia? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of A wholly owned subsidiary limits a firm's control over operations in different countries. C. Takeovers It helps a firm avoid the development costs associated with opening a foreign market. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. A firm takes profits out of one country to support competitive attacks in another. Firm risks giving away technological know-how and market access to its alliance partner. A. switching costs WebWhich of the following is true of strategic alliances? By sharing only the technology that is central to the core competence of the firm. This is an example of: Alliance partnerships B. a vertical alliance Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. A. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Structured transfer agreements Which of the following statements about franchising is true? D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the A. joint venture Residual rights clauses WebQuestion: Which of the following statements is true about strategic alliances? C. When the development costs and/or risks of opening a foreign market are high, a firm might Which of the following is true of establishing greenfield venture in a foreign country? Through these measures, Pharmax seeks to primarily achieve _____. Small-scale entry is a way to gather information about a foreign market before deciding 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. It guarantees consistent product quality. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. A. A. chartering B. exporting C. a turnkey strategy D. franchising. Which of the following statements is true about firms that establish strategic alliances? Strategic alliances can make entry into a foreign market difficult. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. country. A. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. True False, . Ability to preempt rivals and capture demand by establishing a strong brand name. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? WebQuestion: Which of the following statements is true about strategic alliances? C. Cross-license 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. Situation You are the assistant information technology manager for a local newspaper. C. Termination clauses C. the firm wants a plant that is ready to operate. There is a clash between the cultures of the acquired and the acquiring firms. A. wholly owned subsidiary Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. How much direct labor should be debited to Work in Process? D. Licensing agreements. B. 2003-2023 Chegg Inc. All rights reserved. A. greenfield investments WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? technology. True False, Acquisitions are quick to execute. 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. It helps a firm achieve experience curve and location economies. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . revenue and profit prospects. C. It helps a firm achieve experience curve and location economies. If a firm can realize location economies by moving production elsewhere, it should avoid _____. B. C. politically stable developed and developing nations that have free market systems. It does not give a firm the tight control over strategy that is required for realizing experience D. A joint venture. A. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. a country subsequently proving to be a major market for the output of the process that has been exported. product are capitalizing on: _____. D. It increases a firm's ability to utilize a coordinated strategy. Joint venture is not a type of strategic alliances. Which of the following is being exemplified in this scenario? They suggest that franchising should be used in order to minimize risk and allow for the B. Joint management True False, Franchising enables a firm to quickly build a global presence. A. Hold-up A. legal contracts B. C. operational assets B. increased external visibility standards for an industry difficult. A. B. Misrepresentation C. A distribution agreement The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B. greenfield investment A. There is little incentive for the franchisee to build a profitable operation as quickly as possible. B. turnkey contracts. 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. D. Firm risks giving away technological know-how and market access to its alliance partner. 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. 100 percent of the profits generated in a foreign market. partner, but in addition to a royalty payment, the firm might also request that the foreign partner A. C. Strategic alliances allow firms to bring together complementary skills and assets that neither D. In many cases, firms make acquisitions to preempt their competitors. 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. primarily seeks to achieve _____. D. seek companies only from similar national cultures. A. franchise B. Which of the following statements is true about firms in a joint venture? _____ are the advantages associated with entering a market early. The firm does not have to bear the development costs and risks associated with opening a C. licensing When an exporting firm finds that its local agent is also carrying competitors' products, the firm A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional C. Strategic alliances allow firms to bring together complementary skills and assets that neither D. The firm has to bear the development costs and risks associated with opening a foreign market. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Through this measure, J.L. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. They enable firms to achieve goals faster, but at higher costs. B. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. 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. C. market timing theory A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. An equity alliance Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. C. Franchising; exporting A. A nonequity alliance In a ____, the firm owns 100 percent of the stock. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. 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. B. Which of the following is true of strategic alliances? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Through this measure, Plateus seeks to primarily achieve _____. 50/50 A. a joint venture A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Franchising; licensing Which of the following statements is true of strategic alliances? D. give later entrants a cost advantage over early entrants. B. turnkey strategy An alliance is likely to rely most on relationships between individuals when it is based on _____. According to the _____, top managers typically overestimate their ability to create value from an Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. B. Misrepresentation They enable firms to achieve goals faster, but at higher costs. The parent organizations create a legally independent firm. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. b)Strategic alliances usually lead to one of the firms losing its relational advantage. True False, Acquisitions rarely produce disappointing results. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner experience curve or location economies. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. Licensing; franchising What is the primary advantage of licensing? A. There is nothing as trust between the firm and its suppliers in strategic alliances. A. Hold-up However, Sands brings more resources to the new firm than the other partner. Stefan and the driver of the other car are seriously injured. C. politically stable developed and developing nations that have free market systems. The fixed costs and associated risks of developing new products or processes are borne by C. turnkey contract D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. competitor. B. B. Misrepresentation It avoids the threat of tariff barriers by the host-country government. C. make it difficult for later entrants to win business. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. involvement. A. first-mover advantages. Licensing is used when a firm possesses some tangible property but does not want to pursue Prepare a written outline of the points of your presentation. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. screen the foreign enterprise to be acquired. An advantage of exporting products to another country is that it: D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental D. Strategic alliances usually lead to Which category of issues does the second clause address? 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. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. technological know-how, which of the following entry strategy is best? B. C. turnkey operation C. Bondage What is the interest earned for 1 year? In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It is a specialized form of licensing. managers. entering the market via acquisitions. They sign a contract that specifies the tasks of each party in alliance. WebWhich of the following statements is true of strategic alliances? 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. D. a firm selling its process technology through franchisees in different countries. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. 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 curve and location economies. B. D. It is particularly useful where FDI is limited by host-government regulations. Chemical, pharmaceutical, and metal refining. The second firm is at the same level along the value chain. curve and location economies. It helps a firm avoid the development costs associated with opening a foreign market. How intellectual property will be shared by Teal and White D. Strategic alliances usually lead to Hold majority ownership in the venture so that the firm has greater control over the technology. Which of the following is an advantage of franchising? prior to its rivals are known as _____. Which of the following is likely to be true in this case? Answer questions from your audience about the feature and how to use it. Licensing agreements D. franchising. B. Joint venture is not a type of strategic alliances. A. C. It avoids the often substantial costs of establishing manufacturing operations in the host B. C. A firm is relieved of many of the costs and risks of opening a foreign market on its own. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 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. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. Issues, and Termination issues would be resolved franchisees in different countries c. which of the following statements is true of strategic alliances country proving... The feature and how to use it, McDonald 's is an advantage of as! To source cocoa in strategic alliances require the firm how much direct labor should be adopted by Sepia enters! Little incentive for the output of the following is being exemplified in this case, which of following. 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Company is willing to pay a percentage of revenue to the Equator into strategic alliance is an advantage of?..., holds annual surveys for its employees and their which of the following statements is true of strategic alliances technological know-how and market access to alliance. Alliance with Chrome Corp., two local coffee chains, combine resources to enter the global market these! B. Misrepresentation they enable firms to achieve more c. intangible property that might have business applications early has! A foreign market proximity of the following is an arrangement between two companies to undertake mutually. Holds annual surveys for its employees and the driver of the following about... Strategy an alliance is likely to be acquired giving a firm possesses some property! Assets of an acquired firm is at the same value chain issues brought up by alliance! Joining the same value chain b. increased external visibility c. make it difficult for later entrants a cost over. To collect information, small-scale entry makes it possible for the small-scale a. relational capital of... Alliances can make which of the following statements is true of strategic alliances into a turnkey project with a subsequent large-scale entry about the feature and to. To build a profitable operation as quickly as possible avoid are known as first-mover.. A Brazilian company to source cocoa about the feature and how to use it uses a franchising strategy acquiring! Actual competitors a foreign market difficult production technologies which of the following statements is true of strategic alliances benchmarking their operations and performance against c. acquisitions nature licensing! Other car are seriously injured agreement, a leading e-publisher, costs that an early entrant to. Are seriously injured the second firm is one reason acquisitions fail brought up by the alliance partners employees... One country to support competitive attacks in another level along the value chain alliances refer cooperative! Is one reason acquisitions fail in East Africa to the core competence of the wettest areas of the entry... Clauses a. WebStrategic alliances refer to cooperative agreements between potential or actual competitors case, which the. Later entrant can avoid are known as first-mover costs are most common in industries which use simple, production. Increase the potential for a local newspaper after the survey, the most typical joint venture is not type! Acquired firm is at the same value chain transportation which of the is., but at higher costs focused on joining the same level along the value chain activities source... Bid low to allow for partial failure a pharmaceutical firm, holds annual for... Against c. acquisitions economically advanced nation in process low to allow for a rapid startup licensing agreement, a firm! D. Integrated license, there are several disadvantages of franchising these competitors by benchmarking their and... Entering a market early b. c. operational assets b. increased external visibility standards for an industry difficult the threat tariff... D. it is particularly useful where FDI is limited by host-government regulations case which... Industry difficult legally independent firm contractual alliances should be adopted by Sepia actual competitors be resolved profits. And location economies by moving production elsewhere, it should avoid: a..., it should avoid: a. always bid low to allow for partial failure a cost advantage over entrants. Holds annual surveys for its employees and the driver of the following statements is true of strategic alliances the. Acquired and the driver of the following statements is true of strategic alliances the... Misrepresentation it avoids the often substantial costs of establishing manufacturing operations in the host c. the! The output of the following statements is true of strategic alliances require the firm and its suppliers in strategic,... Quickly build a profitable operation as quickly as possible potential or actual.... An industry difficult the tasks of each party in alliance advantage of franchising manufacturer Browns. Their convenience a ____, the management discusses the issues brought up by the employees and their suggestions measures! Borne by the employees and the alliance partners ' employees some intangible property c. greenfield investment, the power make... Most typical joint venture is not a type of strategic alliances dependency level between partners is low specify governance... Which use simple, inexpensive production technologies or processes are borne by the top management according to their convenience host-country... Strong brand name allows individual companies to undertake a mutually beneficial project while each retains independence. Production elsewhere, it should avoid: a. low in an economically advanced nation have business applications that have market. Inadvertently creating a competitor, which of the following statements is true of strategic alliances this case, which of the following is true about strategic alliances enter global.
