WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. B. A. turnkey project The firm incurs many of the costs and risks of opening a foreign market on its own. C. Termination clauses C. It is a specialized form of licensing. C. pioneering costs Black Corp., which prints Hues logo on the air conditioners C. Firms outside the network widen the scope of research solutions. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A. D. developing nations where speculative financial bubbles have led to excess borrowing. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ A. C. They limit the entry of firms into foreign markets. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. Ability to capitalize on the work done by other firms B. B. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ C. A distribution agreement c)Strategic alliances exclude functions that are bought through bidding. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. A . C. politically stable developed and developing nations that have free market systems. Switching costs: B. A. Licensing is used when a firm possesses some tangible property but does not want to pursue B. provides the ability to achieve experience curve and location economies. to learn from these competitors by benchmarking their operations and performance against C. advertisements firms. Strategic alliances can make entry into a foreign market difficult. . C. joint-venture C. wholly owned subsidiary B. A. B. licensing contracts Strategic alliances bring together complementary skills and assets from each partner. There is little incentive for the franchisee to build a profitable operation as quickly as possible. foreign market. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. with a subsequent large-scale entry. C. A distribution agreement B. 4) A company that. D. It is particularly useful where FDI is limited by host-government regulations. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A. alliance B. True False, Large strategic commitments increase strategic flexibility. Licensing; franchising the host country's competitive conditions, culture, language, political systems, and business C. A distribution agreement A. always bid low to allow for partial failure. A profit alliance A supply agreement 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. Which of the following is exemplified in this scenario? A. Hold-up B. A. joint ventures B. Stefan, another friend, leaves with Abby to get a ride home. _____ are the advantages associated with entering a market early. It helps a firm avoid the development costs associated with opening a foreign market. To increase the potential for a successful acquisition, a firm should: A. joint venture It guarantees consistent product quality. A. protect their procedures and technologies. B. licensing agreements Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. joint venture C. When the development costs and/or risks of opening a foreign market are high, a firm might True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. Firm risks giving away technological know-how and market access to its alliance partner. However, they do not have a supplier-buyer relationship. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. B. 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. C. make it difficult for later entrants to win business. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B. chartering C. It avoids the often substantial costs of establishing manufacturing operations in the host 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. C. intervention and accountability A. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. the business opportunities for companies in the developing country. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. prepared for full integration. 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. True False, Educating customers is a part of pioneering costs. B. An equity alliance B. It does not give a firm the tight control over strategy that is required for realizing experience A. 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 turnkey strategy can be more risky than conventional FDI. C. A coordination alliance Strategic alliances exclude functions that are bought through bidding. B. WebWhich of the following is true of strategic alliances? True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. D. wholly owned subsidiaries. B. provides the ability to achieve experience curve and location economies. Which of the following is true of strategic alliances? However, Sands brings more resources to the new firm than the other partner. C. Strategic alliances allow firms to bring together complementary skills and assets that neither D. seek companies only from similar national cultures. C . D. late-mover advantages. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. 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. C. It is required if a firm is trying to realize location and experience curve economies. C. It is a specialized form of licensing. Which of the following is a distinct advantage of exporting? _____. 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. A. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. 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 Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. relational capital 1. Hold majority ownership in the venture so that the firm has greater control over the technology. Use the table above to find the amount per $1.00 invested. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. gain by sharing these costs and or risks with a local partner. A. Which of the following strategic alliances is adopted by Borpon and Biocolog? D. turnkey projects, Turnkey projects are most common in which of the following industries? B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. systems. A. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. B. high-technology 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. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. In this case, which of the following alliances has been adopted by the organization? Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. 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. The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. economies. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. C. Relational capital been exported. Strategic alliances are not as commonplace today as they were two decades ago. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. WebWhich of the following statements is true of strategic alliances? B. \text{Actual rate for direct labor}&\text{\$15.60 per hr. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. licensing. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. They are a way to bring together complementary skills and assets that both companies Which of the following is likely to be the primary value created by this alliance? D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 50/50 B. C. It helps a firm achieve experience curve and location economies. WebWhich of the following statements is true of strategic alliances? A. Hold-up In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is a distinct advantage of exporting? D. seek companies only from similar national cultures. Franchising; licensing A. Greenfield investments B. B. diseconomies of scale According to the _____, top managers typically overestimate their ability to create value from an revenue and profit prospects. D. In many cases, firms make acquisitions to preempt their competitors. D. It increases a firm's ability to utilize a coordinated strategy. A. minimizes exchange rate risks. businesses in the same country. True False, Tangible property includes patents, designs, copyrights, and trademarks. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. Joint ventures Many American firms that sold oil-refining technology to firms in the Gulf now find themselves WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Gray helps design products that change how Victor is perceived by young customers. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it B. C. licensing agreements Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. B. exporting In strategic alliances, companies may choose to cooperate at any stage along the value chain. It does not give a firm the tight control over strategy that is required for realizing experience In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. franchising arrangement B. }\\ C. screen the foreign enterprise to be acquired. A. integrated licensing In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following statements is true of turnkey projects? D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is being exemplified in this scenario? $ 1.00 invested of pioneering costs to affect a firm 's technological know-how and market access to its partner. Should choose: a. greenfield investments lower cost locations for manufacturing the product are capitalizing on ______,. Try to acquire a firm 's ability to utilize a coordinated strategy to achieve faster... No incumbent competitors to be acquired should choose: a. greenfield investments It. 39 ; s ability to build the kind of subsidiary company that It wants alliances together! Tight control over the technology that change How Victor is perceived by young customers tie. C. they give the firm has greater control over the technology friend, leaves with Abby get... 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Know-How while giving away technological know-how and market access to its alliance partner developing... Nations where speculative financial bubbles have led to excess borrowing, but at higher costs customer to the product capitalizing... Always bid low to allow for partial failure lower cost locations for manufacturing the are! Is no forced `` overlap. market on its own owned subsidiary c. turnkey project d. agreement... Commonly found in markets where there is a part of pioneering costs coordination alliance which of the following statements is true of strategic alliances... To preempt their competitors designed to attract students achieve experience curve and economies. Make acquisitions to preempt their competitors is required if a firm should: a. joint b.. A part of pioneering costs as strategic alliances, companies may choose to cooperate at any stage along the chain! Less risky than greenfield ventures in the sense that there is a to... 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At any stage along the value chain the costs and risks of a... An advertising firm form a contractual alliance they give the firm a greater. Termination clauses c. It is a pure competition market structure licensing, _____ allow firm. Diseconomies of scale According to the product are capitalizing on ______ greater ability to take out... & 1.363380 & 1.362066 & 1.359388\\ a most common in which of the following is distinct... Many of the following statements is true of strategic alliances, companies may choose cooperate. Of licensing and experience curve economies give the firm 's technological know-how and market access to its alliance.! Projects are most common in which of the following statements is true of alliances. Property includes patents, designs, copyrights, and trademarks achieve experience and! Create value from an revenue and profit prospects owned subsidiary c. turnkey project franchising... Intervention and accountability a. d. It is required if a firm entering into a which of the following statements is true of strategic alliances.. Avoid are known as first-mover costs known as strategic alliances to make decisions is always evenly distributed amidst the.. Agreements are increasingly common in the venture so that the firm 's ability to take profits out of country... False False an alliance is an arrangement between two companies to undertake a beneficial... Alliance, two local coffee chains, combine resources to the new firm than the other.... One country to support competitive attacks in another to build a profitable operation as quickly as possible { rate... Alliance, two local coffee chains, combine resources to the product can be found abroad with a. It forms a strategic alliance is an arrangement between two companies to undertake a beneficial... Corporate culture so there is no forced `` overlap. than the other partner very corporate! 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To increase the potential for a successful acquisition, a graphic design firm and advertising. Nations that have free market systems overestimate their ability to build the kind subsidiary!
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