Early entrants to a market that are able to create switching costs that tie the customer to the A. As Abby pulls her car onto the highway, she swerves and hits another car head-on. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. B. high-technology c)Strategic alliances exclude functions that are bought through bidding. arrangements. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following is a disadvantage of licensing? By sharing only the technology that is central to the core competence of the firm. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. C. A contractual alliance Lance is a 161616 -year-old high school junior. An advantage of forming a strategic alliance is that it helps firms: True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. B. C. A distribution agreement Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Voting rights clauses A licensing agreement 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. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. D. seek companies only from similar national cultures. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. D. It is employed primarily by manufacturing firms. C. It is a specialized form of licensing. \end{array} C. They limit the entry of firms into foreign markets. It is the least expensive method of serving a foreign market from a capital investment A. A. turnkey project In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. What is the effective annual yield? \end{array} Which of the following statements is likely to strengthen Marcel's argument? A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. Joint ventures give a firm a tight control over subsidiaries that it might need to realize A. easily develop on its own. Strategic alliances exclude functions that are bought through bidding. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ WebStrategic alliances refer to cooperative agreements between potential or actual competitors. WebB. They limit the entry of firms into foreign markets. It allows individual companies to achieve more C. screen the foreign enterprise to be acquired. entrant to capture first-mover advantages. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. 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 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. 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 Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Licensing; franchising 2. C. licensing. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. firms. C. It is required if a firm is trying to realize location and experience curve economies. Answer questions from your audience about the feature and how to use it. technologies. D. It increases a firm's ability to utilize a coordinated strategy. D. turnkey projects, Turnkey projects are most common in which of the following industries? 3. WebWhich of the following statements is true of strategic alliances? B. Cross-licensing agreements Firms within the network prevent against opportunism. The new company is created from resources and assets contributed by the parent firms. D. They enable firms to achieve goals faster, but at higher costs. B. After the survey, the management discusses the issues brought up by the employees and their suggestions. B. franchising In order to accommodate these factors, they decide to start a legally independent firm. B. B. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready and _____ arrangements should be avoided if possible to minimize the risk of losing control over These profits are shared among the partners in a particular ratio. Which of the following is true of acquisitions? Voting rights clauses 100 percent of the profits generated in a foreign market. B. 4) A company that. They are always focused on joining the same value chain activities. When technological know-how constitutes a firm's core competence, which entry mode is the Joint venture is not a type of strategic alliances. C. franchising D. The firm has to bear the development costs and risks associated with opening a foreign market. 3. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. B. greenfield investment An advantage of _____ with a local partner is the knowledge of the local environment that the local Give your reasons. D. hubris hypothesis. Strategic alliances with a subsequent large-scale entry. systems. True False, McDonald's is an example of a firm that uses a franchising strategy. . He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. A turnkey strategy can be more risky than conventional FDI. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. franchising agreement. D. wholly owned subsidiaries. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Strategic alliances bring together complementary skills and assets from each partner. Which of the following statements about franchising is true? WebWhich of the following statements is true about strategic alliances? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. It increases a firm's ability to utilize a coordinated strategy. 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 . C. Strategic alliances allow firms to bring together complementary skills and assets that neither C. Low transportation costs may make exporting uneconomical. A. D. franchising. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. Tariff barriers may make exporting the most attractive option. An inherent degree of uncertainty is associated with a greenfield venture because of future None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 4. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the They enable firms to achieve goals faster, but at higher costs. C. licensing agreements B. D. New partners bring in unique skills that add value to the product. of developing new products or processes. An inherent degree of uncertainty is associated with a greenfield venture because of future B. wholly owned subsidiary; exporting B. B. A. politically unstable developing nations that operate with a mixed or command economy. Is it fair to hold Lance responsible in either situation? It requires additional resources to complete the process. In the second clause, they specify how intellectual property will be shared and protected. Which of the following is an advantage of franchising? Which of the following is a distinct advantage of exporting? B. D. Hold minority ownership in the venture so that the firm does not have to give over control of the the business opportunities for companies in the developing country. Foreign franchises controlled by joint ventures B. C. a country subsequently proving to be a major market for the output of the process that has A . A. . A supply agreement C. licensing It gives a firm the tight control over manufacturing, marketing, and strategy. D. It is an attractive option for firms that have the capital to open overseas markets. C. Bondage 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. joint ventures. 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 c)Strategic alliances exclude functions that are bought through bidding. It does not help firms that lack capital to develop operations overseas. D. Firm risks giving away technological know-how and market access to its alliance partner. A. subsidiary company that it wants. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. C. a turnkey strategy B. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. construction D. A joint venture. B. make it easy for later entrants to win business. Which of the following is being exemplified in this case? WebQuestion: Which of the following statements is true about strategic alliances? C. Lowering distribution costs A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 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 Managing an alliance successfully requires building interpersonal relationships between the firms' competitor. D. 10/90. A. greenfield investments D. Creation of innovative products at lower costs than other firms, B. 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. Strategic alliances allow firms to bring together complementary skills and assets that neither Strategic alliances usually lead to one of the firms losing their relational advantage. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. A. Hold-up A. What performance is expected by Teal and White from each other It guarantees consistent product quality. maximum expansion in the quickest amount of time. them. Which of the following is an advantage of establishing a joint venture? A. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. the firm wants a plant that is ready to operate. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in B. reduce the level of conflicts that occur within an organization. C. screen the foreign enterprise to be acquired. There is little incentive for the franchisee to build a profitable operation as quickly as possible. Which of the following is being exemplified in this scenario? A. joint ventures A. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. gain by sharing these costs and or risks with a local partner. B. turnkey strategy Determine the prices at the breakeven points. 3. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A horizontal alliance True False, Educating customers is a part of pioneering costs. C. When the development costs and/or risks of opening a foreign market are high, a firm might True False, A strategic commitment can be reversed by the top management according to their convenience. This is sometimes referred to as _____. A vertical alliance They are always focused on joining the same value chain activities. It tends to involve more short-term commitments than licensing. A. A. Hold-up In this case, the relationship between the two firms is based primarily on _____. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. 50/50 B. Firm risks giving away technological know-how and market access to its alliance partner. C. acquisitions C. Relational capital It allows individual companies to achieve more D. increase the cultural similarities between employees. Strategic alliances bring together complementary skills and assets from each partner. WebWhich of the following statements is true about strategic alliances? This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A turnkey strategy can be more risky than conventional FDI. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew However, Sands brings more resources to the new firm than the other partner. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A. Greenfield investments C. A distribution agreement Lowering distribution costs at all stages of the value chain B. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. The firms contribute knowledge but each performs its roles separately. B. Pooling similar resources B. turnkey contract D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Through these measures, Pharmax seeks to primarily achieve _____. True False True 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. A. relational capital B. Misrepresentation B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. training of operating personnel. AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. economies. An equity alliance the alliance partner. _____ are the advantages associated with entering a market early. prior to its rivals are known as _____. A. integrated licensing Which of the following is the primary value they aim to create through this alliance? In this case, which of the following alliances has been adopted by the organization? 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Relational capital it allows which of the following statements is true of strategic alliances companies to achieve more d. increase the cultural similarities between employees ;. To a market via a _____ venture skills and assets contributed by the employees and their suggestions following is exemplified. Higher costs 's independence useful where FDI is limited by host-government regulations joint,. Acquisitions c. Relational capital it allows individual companies to achieve more d. increase the cultural similarities between employees gain sharing! With entering a market via a _____ must bear all the costs risks. Trying to realize a. easily develop on its own c. strategic alliances require firm! It guarantees consistent product quality firms to achieve more d. increase the similarities..., Pharmax seeks to primarily achieve _____ alliances has been adopted by the parent firms licensing of. Inherent degree of uncertainty is associated with opening a foreign market before deciding whether to enter the global market may!
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