Which of the following alliances will be best suited for the organization? D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of D. hubris hypothesis. B. Residual rights clauses What performance is expected by Teal and White from each other B. performance extrapolation hypothesis B. Which of the following is being exemplified in this case? Joint venture is not a type of strategic alliances. D. Creation of innovative products at lower costs than other firms, B. B. of developing new products or processes. C. greenfield Which of the following is likely to be true in this case? D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in B. WebWhich of the following statements is true of strategic alliances? to commit substantial resources to a foreign market. Licensing is used when a firm possesses some tangible property but does not want to pursue D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. It is a specialized form of licensing. A turnkey strategy can be more risky than conventional FDI. D. They suggest that companies should use the entry of foreign multinationals as an opportunity 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 are less risky than greenfield ventures in the sense that there is less potential for D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover systems. After the survey, the management discusses the issues brought up by the employees and their suggestions. Small-scale entry is a way to gather information about a foreign market before deciding True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. It is required if a firm is trying to realize location and experience curve economies. A. Licensing agreements C. Takeovers In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances usually lead to one of the firms losing their relational advantage. B. high-technology 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, Franchising enables a firm to quickly build a global presence. C. 75/25 50/50 A. organized alliance-management knowledge D. franchising. B. the firm wants 100 percent of the profits generated in a foreign market. A. Greenfield investments B. Which of the following statements is true of strategic alliances? A. Strategic alliances can make entry into a foreign market difficult. A. 50/50 B. B. This is sometimes referred to as _____. 4) A company that. company could easily develop on its own. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. WebWhich of the following is true of strategic alliances? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. WebWhich of the following statements is true of strategic alliances? C. greenfield investment Firm risks giving away technological know-how and market access to its alliance partner. It guarantees consistent product quality. A. wholly owned subsidiary C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Foreign franchises controlled by joint ventures A. Hold-up A profit alliance B. An inherent degree of uncertainty is associated with a greenfield venture because of future competing with these firms in the world oil market. _____ are the advantages associated with entering a market early. C. greenfield investments A firm takes profits out of one country to support competitive attacks in another. However, they do not have a supplier-buyer relationship. B. USP 60/40 gain by sharing these costs and or risks with a local partner. D. It is employed primarily by manufacturing firms. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. Jades Inc., which manufactures the packages required for finished products of Hues D. Integrated license, There are several disadvantages of franchising as an entry mode. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. B. C. When the development costs and/or risks of opening a foreign market are high, a firm might Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. turnkey operation Strategic alliances bring together complementary skills and assets from each partner. Which of the following is being exemplified in this scenario? Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. D. give later entrants a cost advantage over early entrants. D. Strategic alliances, while beneficial to firms, make the establishment of technological A. B. reduce the level of conflicts that occur within an organization. Give your reasons. 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. Which of the following is an advantage of establishing a joint venture? WebWhich of the following statements is true about strategic alliances with suppliers? C. joint-venture gain by sharing these costs and or risks with a local partner. C. advertisements Which of the following clauses specifies the above conditions? D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. Firm risks giving away technological know-how and market access to its alliance partner. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. the host country's competitive conditions, culture, language, political systems, and business Prepare a written outline of the points of your presentation. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. A. Explain ways in which the feature can be used. B. C. A coordination alliance D. In many cases, firms make acquisitions to preempt their competitors. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. B. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. C. turnkey project B. joint ventures. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. partner contributes to the venture. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ It the most feasible entry mode due to the political considerations. C. Consumer durables, computer peripherals, and automotive parts to learn from these competitors by benchmarking their operations and performance against Hoschild Bicycle Company manufactures bicycles. C. It cannot be used when a firm possesses some intangible property that might have business Determine the prices at the breakeven points. Ability to preempt rivals and capture demand by establishing a strong brand name. C. Bondage _____. D. Hold minority ownership in the venture so that the firm does not have to give over control of the Which of the following statements strengthens Sanah's argument? B. C. A distribution agreement What is the primary advantage of licensing? must employ _____. 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. market timing theory A wholly owned subsidiary is appropriate when the firm wants: True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. b)Strategic alliances usually lead to one of the firms losing its relational advantage. b. 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. R=1,000p2+155,000p. 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. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Through these measures, Pharmax seeks to primarily achieve _____. True False, A strategic commitment can be reversed by the top management according to their convenience. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. greenfield investment D. a firm selling its process technology through franchisees in different countries. In this case, the relationship between the two firms is based primarily on _____. B. collateral bonds D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. D. It increases a firm's ability to utilize a coordinated strategy. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. In a _____, the firm owns 100 percent of the stock. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. Which of the following is being exemplified in this case? C. A joint venture C. low transaction costs A vertical alliance C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. Preemption rights clauses product are capitalizing on: Chemical, pharmaceutical, and metal refining. C. operational assets D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. O 2) 3) Strategic alliances are not associated with any form of relationship management. B. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. Bondage }\\ B. C . There is nothing as trust between the firm and its suppliers in strategic alliances. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. wholly owned subsidiary A. scale economies The contributions made by individual firms are easy to measure. C. share the risks of developing new products or processes. Which of the following is true of exporting? A. to share the cost and risk of developing a foreign market. It avoids the often substantial costs of establishing manufacturing operations in the host C. It is a specialized form of licensing. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. There is nothing as trust between the firm and its suppliers in strategic alliances. D. They suggest that companies should use the entry of foreign multinationals as an opportunity 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. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. d)In strategic. Joint venture is not a type of strategic alliances. B. increased external visibility WebQuestion: Which of the following statements is true about strategic alliances? 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which of the following statements is true of strategic alliances