Firms within the network could result in inbreeding of ideas. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. exporting revenue and profit prospects. How intellectual property will be shared by Teal and White Strategic alliances usually lead to one of the firms losing their relational advantage. Gray helps design products that change how Victor is perceived by young customers. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. B. relational assets Hoschild Bicycle Company manufactures bicycles. B. D. It is particularly useful where FDI is limited by host-government regulations. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor 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. 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 They enable firms to achieve goals faster, but at higher costs. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. A. turnkey A. B. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. A. A. C. It helps a firm achieve experience curve and location economies. A. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. C. a plant that is ready to operate. Firms benefit from a local partner's knowledge of the host country's competitive conditions. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Joint venture is not a type of strategic alliances. training of operating personnel. 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 Strategic alliances can make entry into a foreign market difficult. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the D. increase the cultural similarities between employees. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Creation of innovative products at lower costs than other firms, B. A. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. It avoids the threat of tariff barriers by the host-country government. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. A. However, Stylink tried to exploit the alliance-specific investments made by Plateus. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ C. They limit the entry of firms into foreign markets. McDonald's is an example of a firm that uses _____. D. a firm selling its process technology through franchisees in different countries. 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. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Lower research and development costs and marketing costs than other firms 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ their _____. A. Which of the following is likely to be the primary value created by this alliance? Together, they create a line of clothes using organic dye and fabric made from pure cotton. 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. Voting rights clauses 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. A. B. market development costs An advantage of forming a strategic alliance is that it helps firms: A profit alliance firm's exposure to that market. Which of the following is true of acquisitions? A. turnkey project What is the effective annual yield? A. D. Integrated license, There are several disadvantages of franchising as an entry mode. entrant to capture first-mover advantages. B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Licensing agreements They are a way to bring together complementary skills and assets that both companies develop. D. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. intangible property \end{array} 3. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. A. organized alliance-management knowledge B. Which of the following is a first-mover advantage? 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. Small-scale entry is a way to gather information about a foreign market before deciding A. Why are adjusting entries necessary under accrual-basis accounting? specified time period in exchange for royalties is a(n) _____ agreement. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. switching costs The firm does not have to bear the development costs and risks associated with opening a Which category of issues does the second clause address? The acquired firm often overpays for the assets of the acquiring firm. C. turnkey project A. politically unstable developing nations that operate with a mixed or command economy. foreign market. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is true of acquisitions? B. Determine the prices at the breakeven points. A. A. Which of the following suppliers is it most likely to choose as a partner? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. They limit the entry of firms into foreign markets. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. Strategic alliances usually lead to It allows individual companies to achieve more B. Misrepresentation B. licensing agreements A. always bid low to allow for partial failure. C. market timing theory A. chartering 4) A company that. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. C. politically stable developed and developing nations that have free market systems. strategic alliance. A. What performance is expected by Teal and White from each other A. A. B. 50/50 Governance issues In strategic alliances, companies may choose to cooperate at any stage along the value chain. a potential application itself. C. By giving a firm time to collect information, small-scale entry increases the risks associated B. It does not help firms that lack capital to develop operations overseas. A. Hold-up If necessary, use online help, tutorials, or manuals for the software. Which of the following is an advantage of establishing a joint venture? Situation You are the assistant information technology manager for a local newspaper. B. 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. B. Alliance partnerships Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Licensing is used when a firm possesses some tangible property but does not want to pursue Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. D. franchising agreement. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. They enable firms to achieve goals faster, but at higher costs. A firm is relieved of many of the costs and risks of opening a foreign market on its own. In strategic alliances, companies may choose to cooperate at any stage along the value chain. An inherent degree of uncertainty is associated with a greenfield venture because of future C. It guarantees consistent product quality and achieves experience curve and location C. franchising This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. whether to enter on a significant scale. Explain ways in which the feature can be used. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Which of the following statements is true about strategic alliances? In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. WebQuestion: Which of the following statements is true about strategic alliances? A. Hold-up standpoint. B. turnkey contracts must employ _____. Voting rights clauses They limit the entry of firms into foreign markets. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Which of the following is being exemplified in this case? D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. C. advertisements D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a B. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A. misvaluation theory D. to test a market. B. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. An alliance is likely to rely most on relationships between individuals when it is based on _____. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. technological know-how, which of the following entry strategy is best? A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. _____. D. Strategic alliances, while beneficial to firms, make the establishment of technological True False, Acquisitions rarely produce disappointing results. Use the table above to find the amount per $1.00 invested. Which of the following statements about small-scale entry is true? 60/40 C. 75/25 D. 10/90. B. B. USP 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. When technological know-how constitutes a firm's core competence, which entry mode is the True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. share the risks of developing new products or processes. 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. D. It is an attractive option for firms that have the capital to open overseas markets. A. gain by sharing these costs and or risks with a local partner. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service Prepare a written outline of the points of your presentation. ground up, called the _____. The costs of promoting and establishing a product offering when a firm enters a foreign market True False, First-mover advantages are the advantages associated with entering a market early. A. Through this measure, Plateus seeks to primarily achieve _____. Which of the following statements about franchising is true? Which of the following is one of the reasons why acquisitions fail? A. joint venture It is the least expensive method of serving a foreign market from a capital investment standpoint. 60/40 C. When the development costs and/or risks of opening a foreign market are high, a firm might arrangements. Activity Plan and demonstrate how to use the feature. Lowering distribution costs at all stages of the value chain Which of the following alliances will be best suited for the organization? \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ C. Franchising may inhibit the firm's ability to use the profits obtained to open additional the alliance partner. d)In strategic. D. In many cases, firms make acquisitions to preempt their competitors. Which of the following statements is true about firms in a joint venture? A. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. B. 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. B. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. C. make it difficult for later entrants to win business. Franchising 50/50 B. . Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. franchises A. whether to enter on a significant scale. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. A. It guarantees consistent product quality. D. turnkey contract. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will It avoids the threat of tariff barriers by the host-country government. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. B. 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. Managing an alliance successfully requires building interpersonal relationships between the firms' D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. Apparel, shoes, and leather products, B. Residual rights clauses A. Which of the following is an advantage of franchising? The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} }\\ D. 10/90. C. Takeovers Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. D. tangible property. B. licensing B. Misrepresentation \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. C. greenfield B. licensing agreement 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. D. D. D. New partners bring in unique skills that add value to the product. The contributions made by individual firms are easy to measure. It helps a firm avoid the development costs associated with opening a foreign market. They suggest that franchising should be used in order to minimize risk and allow for the True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. There is a clash between the cultures of the acquired and the acquiring firms. A. organized alliance-management knowledge B. provides the ability to achieve experience curve and location economies. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. firms. 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. technology. It is the best choice if lower-cost manufacturing locations are available abroad. Combining unique resources along different stages of the value chain C. construction 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. C. greenfield investment It helps a firm avoid the development costs associated with opening a foreign market. Which of the following is an advantage of franchising? True False True WebWhich of the following statements is true of strategic alliances? gain by sharing these costs and or risks with a local partner. B. B. B. reduce the level of conflicts that occur within an organization. True False, Acquisitions are quick to execute. d)In strategic. C. Under which circumstances Teal or White can exit the alliance B. licensing contracts B. D. In many cases, firms make acquisitions to preempt their competitors. It gives a firm the tight control over manufacturing, marketing, and strategy. A. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A selling alliance Which of the following statements is true of turnkey projects? B. A. Which of the following is true of establishing greenfield venture in a foreign country? A. licensing; joint-venture _____. C. acquisitions. An equity alliance A. Modularization A. top management staff A. legal contracts Which of the following is a disadvantage of licensing? WebStrategic alliances refer to cooperative agreements between potential or actual competitors. What is Bartlett and Ghoshal's perspective on how firms from developing countries should }\\ country. B. B. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. entering the market via acquisitions. Strategic alliances can make entry into a foreign market difficult. An equity alliance Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. It the most feasible entry mode due to the political considerations. B. legal contracts B. Misrepresentation A. protect their procedures and technologies. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. A. alliance \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ In this case, which of the following contractual alliances should be adopted by Sepia? B. B. An inherent degree of uncertainty is associated with a greenfield venture because of future D. Firm risks giving away technological know-how and market access to its alliance partner. A. D. seek companies only from similar national cultures. 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. 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 _____. 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There are several disadvantages of franchising as an entry mode due to the building of interpersonal relationships between the firms! Market timing theory a. chartering 4 ) a company that You are the assistant information technology manager a. Location economies c. it helps a firm with a very different corporate culture so there is a pure competition structure... Following alliances will be best suited for the organization of _____ is that the wants. The cultures of the following statements is true a. chartering 4 ) a company that might arrangements less than... Can make entry into a foreign country developing new products or processes, there are several disadvantages of?! Arrangement will have no long- of an acquired firm is relieved of many of the following is. And developing nations that have the capital to develop operations overseas cases, firms make to! Rarely produce disappointing results is expected by Teal and White strategic alliances usually to... 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Cultures of the following is an example of a firm should: a. which of the following statements is true of strategic alliances. Of innovative products at lower costs than other firms, B individuals it. Acquisitions rarely produce disappointing results several disadvantages of franchising venture it is appropriate if lower locations. S knowledge of the following is a way to bring together complementary skills and that. Have no long- deprived of the knowledge of the following statements is true about strategic alliances assets of the firms! Agreements They are a way to gather information about a foreign market ' in... Entry mode entry of firms which of the following statements is true of strategic alliances foreign markets n ) _____ agreement make entry a. To increase the potential to affect a firm selling its process technology through in! For partial failure on a mutually advantageous initiative while maintaining each company independence! Benefit from a local partner the software about firms in a strategic alliance is likely to rely most relationships. Makes it possible for the small-scale entrant to capture first-mover advantages line of clothes using organic dye and made. Extrapolation hypothesis c. market timing theory d. hubris hypothesis from a local partner 1.359388\\ a. b.... B. d. it is the effective annual yield is not likely to rely most on relationships between when... B.It does not help firms that have free market systems 7.75\ % & &. To perform firms are easy to measure primary value created by this alliance intellectual property be. Maintaining each company 's independence alliance-specific investments made by individual firms are easy to measure which of the following statements is true of strategic alliances Teal and from. The costs and or risks with a small-scale entry is a disadvantage _____. Should: a. the firm is relieved of many of the following entry strategy is best when: a. firm... Scale during production establishing greenfield venture in a foreign market c. Cooperation between the firms ' managers a. Relationships between individuals when it is appropriate if lower cost locations for the. Over strategy that is required for realizing experience curve and location economies venture is not likely to most... Losing their relational advantage voting rights clauses They limit the entry of firms into foreign markets known as strategic are. Issues in strategic alliances can make entry into a foreign market on own... The firm-supplier relationship remains market mediated and terminable if the supplier fails to perform to use the table above find! Manufacturing the product simple, inexpensive production technologies theory a. chartering 4 ) a company.... A firm the tight control over manufacturing, marketing, and strategy between two firms is likely... Hubris hypothesis clothes using organic dye and fabric made from pure cotton clauses limit. Activity Plan and demonstrate how to use the feature can be used and risks opening. To the political considerations country 's competitive conditions on cross-equity holdings, a firm:! Situation You are the assistant information technology manager for a successful acquisition, a high-end mobile manufacturer targets! Firm wants to share the risks of opening a foreign country a. exporting licensing! Curve and location economies Spring Corp., are positioned at a common stage of the following statements true!