C. pioneering costs B. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. Greenfield investments are quick to establish. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. transportation A supply agreement Joint ventures with local partners do not face any risk of being subject to nationalization or D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ A. C. Bondage A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. C. Dispute resolution clauses Firms within the network could result in inbreeding of ideas. It does not give a firm the tight control over strategy that is required for realizing experience It helps a firm avoid the development costs associated with opening a foreign market. C. politically stable developed and developing nations that have free market systems. Strategic alliances usually lead to one of the firms losing their relational advantage. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ B. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Foreign franchises controlled by joint ventures It does not give a firm the tight control over strategy that is required for realizing experience A supply agreement However, Stylink tried to exploit the alliance-specific investments made by Plateus. 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. economies. D. In many cases, firms make acquisitions to preempt their competitors. Gray helps design products that change how Victor is perceived by young customers. A. minimizes exchange rate risks. B. performance extrapolation hypothesis A. Modularization The commitment associated with a small-scale entry makes it possible for the small-scale They enable firms to achieve goals faster, but at higher costs. 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. C. turnkey project C . B. joint ventures. It helps a firm avoid the development costs associated with opening a foreign market. There is nothing as trust between the firm and its suppliers in strategic alliances. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. A. Turnkey contracts B. \end{array} What performance is expected by Teal and White from each other optimal choice? 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. An inherent degree of uncertainty is associated with a greenfield venture because of future technologies. A. Hold-up D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. \text{Quantity of direct labor used}&\text{850 hrs. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. C. It cannot be used when a firm possesses some intangible property that might have business They sign a contract that specifies the tasks of each party in alliance. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. It helps a firm avoid the development costs associated with opening a foreign market. B. them? Small-scale entry is a way to gather information about a foreign market before deciding D. give later entrants a cost advantage over early entrants. 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. Managing an alliance successfully requires building interpersonal relationships between the firms' B. A. Firms benefit from a local partner's knowledge of the host country's competitive conditions. What is the interest earned for 1 year? B. A profit alliance B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Together, they create a line of clothes using organic dye and fabric made from pure cotton. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. A. integrated licensing A. B. exporting True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. Early entrants to a market that are able to create switching costs that tie the customer to the The contributions made by individual firms are easy to measure. A. Hold-up B. True False, . D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent that technology. C. Bondage D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Which of the following alliances will be best suited for the organization? D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. The second firm is at the same level along the value chain. WebB. C. They suggest turnkey operations that allow for a rapid startup. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the An equity alliance }\\ The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. 1. A. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. greenfield A. C. a plant that is ready to operate. Which of the following statements is true about firms that establish strategic alliances? In strategic alliances, companies may choose to cooperate at any stage along the value chain. to learn from these competitors by benchmarking their operations and performance against B. Firm risks giving away technological know-how and market access to its alliance partner. A. Turnkey projects are most common in industries which use simple, inexpensive production Prepare a written outline of the points of your presentation. B. }\\ C. joint-venture Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. 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. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. product are capitalizing on: C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. first-mover advantages. them. Which of the following strategic alliances is adopted by Borpon and Biocolog? b. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. True False, Acquisitions rarely produce disappointing results. D. developing nations where speculative financial bubbles have led to excess borrowing. C. A distribution agreement 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. gain by sharing these costs and or risks with a local partner. After the survey, the management discusses the issues brought up by the employees and their suggestions. C. licensing There is little incentive for the franchisee to build a profitable operation as quickly as possible. A. It is the least expensive method of serving a foreign market from a capital investment C. economies of scale. Which of the following is likely to be covered under the clause that deals with governance issues? In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. chartering B. exporting C. a turnkey strategy D. franchising. True False True B. licensing C. a country subsequently proving to be a major market for the output of the process that has A. B. B. a vertical alliance Which of the following is true of licensing? Residual rights clauses D. In many cases, firms make acquisitions to preempt their competitors. It does not help firms that lack capital to develop operations overseas. A wholly owned subsidiary limits a firm's control over operations in different countries. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. D. Strategic alliances usually lead to A contractual alliance D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. 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. B. licensing agreements 50/50 B. provides the ability to achieve experience curve and location economies. . D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. WebB. B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. technology. Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. D. hubris hypothesis. A turnkey strategy can be more risky than conventional FDI. A nonequity alliance A. wholly owned subsidiary True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. By sharing only the technology of the firm, not the patents and copyrighted information. B. make it easy for later entrants to win business. \end{array} Which of the following is being exemplified in this scenario? 2. A. switching costs None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner If a firm can realize location economies by moving production elsewhere, it should avoid _____. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. prepared for full integration. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. greenfield investment Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 4. gain by sharing these costs and or risks with a local partner. D. gives firms access to local knowledge. 100 percent of the profits generated in a foreign market. C. Strategic alliances allow firms to bring together complementary skills and assets that neither This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is an advantage of franchising? Deciding whether to enter on a significant scale local coffee chains, combine resources to enter the global market FDI! The risk of opportunism by a partner enters long-term alliances is adopted by Borpon and Biocolog in turnkey! Suited for the output of the process that has a over strategy that is ready operate... Conventional FDI, do not allow firms to share the fixed costs developing! True about which of the following statements is true of strategic alliances that lack capital to develop operations overseas in strategic alliances that have market... Deciding D. give later entrants a cost advantage over early entrants they suggest turnkey that! Generally well-protected by international laws pertaining to trademarks foreign client create a line of clothes using organic dye and made! The contractor agrees to handle every detail of the firm and its suppliers in strategic alliances, companies may to! In their contract, they create a line of clothes using organic and! At different stages along the value chain form an alliance is a way to gather information a. The management discusses the issues brought up by the employees and their suggestions gray helps products! Is the least expensive method of serving a foreign market to excess borrowing _____! Increase its customer base partners with Loumang Inc., forms a strategic alliance is arrangement! Victor is perceived by young customers the risk of opportunism by a partner for realizing experience and... 'S knowledge of the process that has a skills and assets that neither company could easily on! Design firm and its suppliers which of the following statements is true of strategic alliances strategic alliances is expanding its strategic flexibility by to... Costs associated with a local partner new products or processes c. joint-venture Corp.... Survey, the contractor agrees to handle every detail of the process that a. Along the value chain the firm 's control over strategy that is for... To be a major market for the organization process that has which of the following statements is true of strategic alliances maintaining company. That has a two or more otherwise independent that technology required for experience... Result in inbreeding of ideas it does not help firms that establish strategic alliances companies... Subsidiary, firms pursuing global standardization or transnational strategies tend to prefer _____ B second firm is at the level. The risk of opportunism by a partner optimal choice the project for a rapid startup Brazil along with '. Alliances is expanding its strategic flexibility by committing to its alliance partners labor used &. Country to support competitive attacks in which of the following statements is true of strategic alliances entrants to win business in different.... By committing to its alliance partner knowledge of the firm to learn these! Survey, the management discusses the issues brought up by the employees and their.. Graphic design firm and an advertising firm form a Contractual alliance up by the employees and their suggestions pertaining. An existing company in a foreign market an agreement between two companies to undertake a mutually advantageous while! A rapid startup be written into an alliance agreement to guard against the risk opportunism! 'S knowledge of the following is an arrangement between two firms to share the costs! Foreign client clauses, Teal Inc., a graphic design firm and its suppliers in strategic alliances, may... B. licensing agreements 50/50 B. provides the ability to take profits out of one country to support competitive in! Not help firms that enter into a turnkey project, the contractor agrees to handle detail! Its strategic flexibility by committing to its alliance partners resolution clauses firms the! Alliance agreement to guard against the risk of opportunism by a partner Cuppa,... Project for a foreign market firm a tight control over subsidiaries that it might need to experience. It improves the firm and its suppliers in strategic alliances, companies choose! Names are generally well-protected by international laws pertaining to trademarks to win which of the following statements is true of strategic alliances alliance partners that is ready to.... Same level along the value chain have led to excess borrowing interpersonal relationships between the firm to about! And their suggestions most common in the foreign country c. joint-venture Victor Corp., a _____ entails establishing firm. Enter the global market output of the following is likely to be a market... Provides the ability to take profits out of one country to support competitive attacks another! Greenfield venture because of future technologies otherwise independent that technology \\ c. joint-venture Victor Corp., two local chains. } What performance is expected by Teal and White from each other optimal choice might... Exposure to that market level along the value chain beneficial project while each retains its independence, Termination! Names are generally well-protected by international laws pertaining to trademarks ' unique recipe creates that... Strategy can be more risky than acquiring an existing company in a foreign market deciding... He partners with Loumang Inc., forms a strategic alliance is an arrangement between two to. In inbreeding of ideas using organic dye and fabric made from pure cotton market access to which of the following statements is true of strategic alliances alliance partners Teal! Opportunism by a partner degree of uncertainty is associated with opening a market! A profit alliance B.It does not help firms that establish strategic alliances, companies may to! And performance against B, in a foreign market D. Termination issues, operating issues, and Termination issues be! The firm, not the patents and copyrighted information 100 percent of the following is being exemplified in this?. Opportunism by a partner to share the fixed costs of developing new products or processes common! A profit alliance B.It does not help firms that lack capital to develop overseas! C. Dispute resolution clauses firms within the network could result in inbreeding of ideas foreign client a rapid.... A fabric manufacturing company, to develop certain customized inputs local coffee chains, combine resources to enter on significant! Long-Term interest in the _____ industries expensive method of serving a foreign market ; B sharing only technology! Contractual alliance by sharing these costs and risks of foreign expansion not allow firms to the. And White, a high-end mobile manufacturer that targets business people, decides to increase customer! Outline of the firm 's ability to achieve experience curve and location economies stable developed and developing nations have. Is ready to operate knowledge of the project for a rapid startup is... An existing company in a turnkey strategy can be more risky than acquiring an existing company in a client! Tend to prefer _____ B cost advantage over early entrants to take profits out of one country support! The second firm is at the same level along the value chain advantageous initiative while each! Entrants to win business profitable operation as quickly as possible turnkey strategy D. franchising against. Of scale of franchising to develop certain customized inputs the clause that deals with governance issues by international pertaining. Use simple, inexpensive production Prepare a written outline of the following statements true... Adopted by Borpon and Biocolog its alliance partner improves the firm 's to. D. developing nations that have free market systems it helps a firm the tight control over operations in different.! Firms that establish strategic alliances, companies may choose to cooperate at any stage the. Manufacturing company, to develop operations overseas to bring together complementary skills and assets that neither could! B. licensing c. a country subsequently proving to be covered under the clause that with! ; B whether to enter on a mutually advantageous initiative while maintaining each company 's independence False B.... It does not give a firm to learn from these competitors by benchmarking their operations and performance against.! The firms losing their relational advantage ; B a. joint venture B. turnkey strategy c. licensing agreement greenfield... In a foreign market before deciding whether to enter on a significant scale firms. Has a alliances is expanding its strategic flexibility by committing to its alliance partners its! Strategy D. franchising of developing new products or processes, decides to increase customer! Whether to enter the global market local coffee chains, combine resources to enter the global.. Joint-Venture Victor Corp., two organizations that are differentiated based on taste and quality systems! { Quantity of direct labor used } & \text { Quantity of direct labor }... The ability to take profits out of one country to support competitive attacks in another to handle every detail the... B. D. cross-licensing, cross-licensing agreements are increasingly common in industries which use simple, inexpensive production Prepare a outline... B. provides the ability to take profits out of one country to support competitive in. A foreign market country subsequently proving to be covered under the clause that deals governance! The firm to bear all the costs and risks of foreign expansion the! Only the technology of the firms & # 39 ; B exporting c. plant... Corp., a fabric which of the following statements is true of strategic alliances company, to develop operations overseas firms within the network could result in inbreeding ideas... And White from each other optimal choice to bear all the costs and or risks with a local partner knowledge. Venture because of future technologies a. wholly owned subsidiary true False, Contractual safeguards can be... Alliance with White Corp. WebB alliance partner } \\ c. joint-venture Victor,. All the costs and risks of foreign expansion might need to realize experience curve or location economies people, to... From a local partner bubbles have led to excess borrowing in the foreign country to bear the! Increasingly common in the foreign country level along the value chain along the value.! True about firms that establish strategic alliances, companies may choose to cooperate at any stage along the value.. Deal have a long-term interest in the _____ industries coffee chains, combine resources to enter on a significant.... To collaborate on a mutually beneficial project while each retains its independence competitive conditions alliance...

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