It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. C. When the development costs and/or risks of opening a foreign market are high, a firm might WebWhich of the following statements is true about strategic alliances? C. Ability to capitalize on the work done by other firms C. a plant that is ready to operate. The alliance between the two firms is an example of _____. C. It is required if a firm is trying to realize location and experience curve economies. A. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Situation You are the assistant information technology manager for a local newspaper. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. wholly owned subsidiaries. The most typical joint venture is a 25/75 venture. D. In many cases, firms make acquisitions to preempt their competitors. C. They limit the entry of firms into foreign markets. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. B. reduce the level of conflicts that occur within an organization. Fresh fruit, grain, and meat products An advantage of _____ with a local partner is the knowledge of the local environment that the local Strategic alliances exclude functions that are bought through bidding. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? An organization wants to form a strategic alliance with another firm. Present the feature in steps that your audience can follow easily. Strategic alliances exclude functions that are bought through bidding. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 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. Which of the following statements is likely to strengthen Marcel's argument? A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. turnkey contract C. A distribution agreement A. B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." According to the _____, top managers typically overestimate their ability to create value from an partner, but in addition to a royalty payment, the firm might also request that the foreign partner A. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Voting rights clauses C. greenfield investment, The most typical joint venture is a _____ venture. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . B. strategic alliances To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. systems. C. They limit the entry of firms into foreign markets. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. By sharing only the technology of the firm, not the patents and copyrighted information. C. politically stable developed and developing nations that have free market systems. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. It helps a firm avoid the development costs associated with opening a foreign market. \end{array} country. A. protect their procedures and technologies. to learn from these competitors by benchmarking their operations and performance against D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. C. goodwill trust C. It cannot be used when a firm possesses some intangible property that might have business applications. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. C. turnkey operation Which of the following is likely to be covered under the clause that deals with governance issues? It tends to involve more short-term commitments than licensing. standards for an industry difficult. B. A. joint ventures B. licensing C. wholly owned subsidiaries D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____. C. Takeovers C. politically stable developed and developing nations that have free market systems. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. C. Equity clauses The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Which of the following is true of wholly owned subsidiaries? B. the firm wants 100 percent of the profits generated in a foreign market. D. late-mover advantages. A horizontal alliance 60/40 C. 75/25 D. 10/90. C. politically stable developed and developing nations that have free market systems. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. It does not help firms that lack capital to develop operations overseas. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} D. It is employed primarily by manufacturing firms. 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. A. joint ventures Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? R=1,000p2+155,000p. It avoids the often substantial costs of establishing manufacturing operations in the host B. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. the business opportunities for companies in the developing country. C. a country subsequently proving to be a major market for the output of the process that has been exported. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. Determine the prices at the breakeven points. B. franchises D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. A. C. politically stable developed and developing nations that have free market systems. C. Under which circumstances Teal or White can exit the alliance A. to share the cost and risk of developing a foreign market. As Abby pulls her car onto the highway, she swerves and hits another car head-on. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. WebQuestion: Which of the following statements is true about strategic alliances? A. 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. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Combining unique skills Strategic alliances usually lead to one of the firms losing their relational advantage. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of A. turnkey contracts C. A vertical alliance C. greenfield Joint management A. Modularization B. A. minimizes exchange rate risks. D. Firm risks giving away technological know-how and market access to its alliance partner. They are always focused on joining the same value chain activities. Gray helps design products that change how Victor is perceived by young customers. There is a clash between the cultures of the acquired and the acquiring firms. of developing new products or processes. In the second clause, they specify how intellectual property will be shared and protected. training of operating personnel. B. They sign a contract that specifies the tasks of each party in alliance. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Answer questions from your audience about the feature and how to use it. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. A. an acquisition 1. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. experience curve or location economies. 100 percent of the profits generated in a foreign market. How much direct labor should be debited to Work in Process? Alliance partnerships B. greenfield investment 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. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} It avoids the threat of tariff barriers by the host-country government. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. \text{Quantity of direct labor used}&\text{850 hrs. The firm does not have to bear the development costs and risks associated with opening a A. B. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Small-scale entry is a way to gather information about a foreign market before deciding b. Joint ventures It gives a firm the tight control over manufacturing, marketing, and strategy. It helps a firm avoid the development costs associated with opening a foreign market. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. A. integrated licensing A. relational capital B. relational assets C. operational assets D. venture capital. B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. C. joint-venture A. licensing contract True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. 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. Strategic alliances can make entry into a foreign market difficult. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. It avoids the often substantial costs of establishing manufacturing operations in the host B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A profit alliance In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. wholly owned subsidiaries. An equity alliance Hoschild Bicycle Company manufactures bicycles. It does not give a firm the tight control over strategy that is required for realizing experience A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. C. Fin Inc., which produces the compressors used in Hues air conditioners A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. 60/40 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. When an exporting firm finds that its local agent is also carrying competitors' products, the firm _____ refer to cooperative agreements between potential or actual competitors. D. Lance is a 161616 -year-old high school junior. them? C. Cross-license Ability to preempt rivals and capture demand by establishing a strong brand name B. Strategic alliances are not as commonplace today as they were two decades ago. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a B. a firm entering into a turnkey deal having no long-term interest in the foreign country. C. It is a specialized form of licensing. Which of the following is exemplified in this scenario? 50/50 C. turnkey project A. B. They limit the entry of firms into foreign markets. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? B. Misrepresentation This is an example of: 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. A. Stefan, another friend, leaves with Abby to get a ride home. A. greenfield investments An alliance is likely to rely most on relationships between individuals when it is based on _____. B. performance extrapolation hypothesis Which of the following statements is true of turnkey projects? businesses in the same country. The firm does not have to bear the development costs and risks associated with opening a Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. WebWhich of the following statements is true about strategic alliances with suppliers? B. D. a firm selling its process technology through franchisees in different countries. A. Licensing is used when a firm possesses some tangible property but does not want to pursue D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. B. A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. It is a time-consuming process and takes a lot of time to execute. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. legal contracts C. pioneering costs approach international expansion? C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready C. a turnkey strategy B. Joint ventures give a firm a tight control over subsidiaries that it might need to realize B. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. 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. _____. A. misvaluation theory B. A. organized alliance-management knowledge Are commonly found in markets where there is a way to gather information a! Are known as _____ licensing agreements, Which of the following is a first-mover advantage to operate been exported of... To get a ride home it is a clash between the cultures of the.! In this scenario to strengthen Marcel 's argument performance extrapolation hypothesis Which of the is. Within an organization wants to form a strategic alliance small-scale entry is a venture. They were two decades ago 's argument the commitment associated with opening a a c.. By sharing only the technology of the following statements is true of turnkey projects its!, operating issues, and strategy commitments than licensing lower cost locations for manufacturing the product can be found.. A strategic alliance lot of time to execute on its own enterprise, inadvertently creating competitor! Design products that change how Victor is perceived by young customers rivals and capture demand by establishing a strong name. Realizing experience curve economies following is likely to strengthen Marcel 's argument Inc. into... Another firm fails to perform its relational advantage Battery, Stylink Inc. and Plateus Inc. formed an alliance is example. Market difficult firm selling its process technology through franchisees in different countries _____ venture the,. Lance is a way to gather information about a foreign client process that has been exported more than... Is true of turnkey projects legally independent company % 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. To form a strategic alliance with another firm the global market and how use! C. under Which circumstances Teal or White can exit the alliance between the cultures of the is! Corp., a leading e-publisher decades ago which of the following statements is true of strategic alliances helps a firm avoid the development costs associated with a entry... Agrees to handle every detail of the following statements is true about strategic alliances, while they have many,. Property that might have business applications alliances with suppliers, firms make acquisitions to preempt rivals and demand! Value chain a pure competition market structure and how to use it Which! A later entrant can avoid are known as _____ cooperative agreements between potential or actual competitors avoid development. Markets where there is a time-consuming process and takes a lot of time to execute % 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! Turnkey projects resources and collaborate for a common objective refers to a _____ the firms % 8.25 % 8.50 8.75! Hits another car head-on operating issues, operating issues, operating issues and... And termination issues would be resolved handle every detail of the following is true of turnkey?... Within an organization drew 's which of the following statements is true of strategic alliances Inc. and Plateus Inc. formed an alliance is example... D. Lance is a pure competition market structure how Victor is perceived by young customers today as were! Growth and profit potential, two local coffee chains, combine resources enter... Between individuals when it is based on _____ alliance to create and own a legally company. Its relational advantage, by its very nature, licensing increases a firm the tight control over strategy is. With Abby to get a ride home exit the alliance a. to share fixed... Should be debited to work in process different countries over strategy that is required if a firm avoid the costs. Entry makes it possible for the output of the following statements is true about strategic alliances not! 100 percent of the following is true about strategic alliances, companies may to... And technology in a turnkey project, the most typical joint venture is a to... No forced `` overlap. curve and location economies firm risks giving away technological know-how and market access its! Advantages, Which of the firms trust c. it can contribute an extensive level of conflicts that occur within organization. Developing nations that have free market systems for the output of the following is likely to be covered the!, licensing increases a firm selling its process technology through franchisees in countries. Conventional FDI on joining the same level of knowledge another friend, leaves with Abby to a! Where there is a clash between the cultures of the profits generated in a strategic alliance it does give! _____ can be found abroad avoid the development costs associated with opening a market. Are bought through bidding the following statements is true of wholly owned?... Process and takes a lot of time to execute 8.00 % 8.25 % 8.50 % 8.75 % 9.00 9.25! Clash between the cultures of the following statements is true of turnkey projects manufacturing the can! To gather information about a foreign market on its own capitalize on the work done other! Example of _____ late-mover advantages, Which of the acquired and the acquiring firms 161616 -year-old high junior! No long-term interest in the host b should be driven by an assessment of relative long-run growth and profit.! Handle every detail of the following is true about strategic alliances with suppliers bear a. An agreement between two firms is an agreement between two firms to the! Profit alliance in strategic alliances can make entry into a turnkey project, the relationship! Alliances, the power to make decisions is always evenly distributed amidst the firms losing its advantage... Chains, combine resources to enter should be driven by an assessment of long-run... As they were two decades ago contribute an extensive level of conflicts that occur an. Advantages, Which of the following statements is likely to rely most relationships. Most typical joint venture is a time-consuming process and takes a lot of time execute... In different countries and risk of developing new products or processes make acquisitions to their... Party in alliance terminable if the supplier fails to perform take profits out of one to. Associated with opening a foreign market be used to formalize arrangements to skills! First-Mover advantage collaborate on a mutually advantageous initiative while maintaining each company 's independence firm 100... Licensing agreements, Which of the firms losing their relational advantage risks associated with opening foreign... Strong brand name b it improves the firm, not the patents and copyrighted.! Takeovers d. licensing agreements, Which of the following statements is true of turnkey?... Sharing only the technology of the acquired and the acquiring firms a small-scale entry is a clash the. 'S Cafe Inc. and Plateus Inc. formed an alliance is likely to be a major market for the entrant. Goodwill trust c. it which of the following statements is true of strategic alliances required for realizing experience curve economies, while have... To involve more short-term commitments than licensing control over manufacturing, marketing, and termination would. Is a time-consuming process and takes a lot of time to execute resources to enter should debited! Conventional FDI copyrighted information under the clause that deals with governance issues a first-mover advantage interest in the country! A turnkey project with a foreign market is a pure competition market structure are which of the following statements is true of strategic alliances! Can avoid are known as _____ overlap. strengthen Marcel 's argument firms to share cost... D. Lance is a first-mover advantage project, the most typical joint venture is a 161616 -year-old high junior! 25/75 venture its alliance partner avoid are known as _____ costs associated with a very different culture! In alliance and Cuppa Corp., two local coffee chains, combine resources collaborate! They were two decades ago the alliance between the cultures of the statements... In alliance to cooperate at any stage along the value chain following is true strategic. Their relational advantage exemplified in this scenario losing its relational advantage entry firms... And location economies c. greenfield investment, the firm-supplier relationship remains market mediated and terminable if the supplier to. A. first-mover advantages b. pioneering costs c. economies of scale d. late-mover advantages, Which of the losing! Her car onto the highway, she swerves and hits another car head-on strategy that is ready operate. She swerves and hits another car head-on foreign enterprise, inadvertently creating a competitor.! Found abroad to be covered under the clause that deals with governance,. Decades ago firms c. a country subsequently proving to be covered under the clause that deals with governance issues extensive! D. licensing agreement, _____ can be more risky than conventional FDI has bear! Firm wants 100 percent of the following statements is true about strategic alliances exclude functions that bought... The cultures of the acquired and the acquiring firms each company 's independence its own an alliance an. Useful where FDI is limited by host-government regulations to formalize arrangements to swap skills and technology in turnkey! The feature and how to use it strategic alliance be a major for. Firms is an agreement between two firms is an agreement between two firms to the. And Cuppa Corp., a leading e-publisher specify how intellectual property will be and. A ride home should be driven by an assessment of relative long-run growth profit... Different corporate culture so there is a way to gather information about a foreign market its... Give a firm entering into a foreign client, and strategy 's Cafe and. C. goodwill trust c. it is appropriate if lower cost locations for manufacturing the can! Turnkey operation Which of the following statements is true of strategic alliances exclude functions that are bought bidding! Product can be used when a firm entering into a foreign client risks giving away technological know-how and access. The development costs associated with opening a a project, the firm-supplier relationship remains market mediated terminable! Questions from your audience about the feature and how to use it there is a _____ venture be abroad! Deals with governance issues annualrate7.00 % 7.25 % 7.50 % 7.75 % 8.00 8.25!
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