B. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Stefan, another friend, leaves with Abby to get a ride home. A. of developing new products or processes. C. joint-venture Zeal Inc., a software firm, decides to enter the publishing industry. B. market development costs The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. 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 B. B. 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. C. franchising After the survey, the management discusses the issues brought up by the employees and their suggestions. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. The editor has asked you to show her writers a software feature that will make their job easier. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. True False, . D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. involvement. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Through this measure, J.L. An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. _____. A. Strategic alliances can make entry into a foreign market difficult. A. 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. c)Strategic alliances exclude functions that are bought through bidding. A. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. 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. B. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. C. low transaction costs b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. Misrepresentation A. Firms within the network could result in inbreeding of ideas. Which of the following statements about franchising is true? A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. A. Which of the following statements is likely to strengthen Marcel's argument? Prepare a written outline of the points of your presentation. B. Which of the following statements is true about firms that establish strategic alliances? Lower research and development costs and marketing costs than other firms It is a time-consuming process and takes a lot of time to execute. When technological know-how constitutes a firm's core competence, which entry mode is the An inherent degree of uncertainty is associated with a greenfield venture because of future C. screen the foreign enterprise to be acquired. Managing an alliance successfully requires building interpersonal relationships between the firms' The parent organizations create a legally independent firm. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. B. B. legal contracts Joint ventures with local partners do not face any risk of being subject to nationalization or C. pioneering costs systems. A supply agreement \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ There is nothing as trust between the firm and its suppliers in strategic alliances. Licensing; franchising If a firm's core competency is based on control over proprietary technological know-how, _____ A. greenfield investments Many American firms that sold oil-refining technology to firms in the Gulf now find themselves and _____ arrangements should be avoided if possible to minimize the risk of losing control over They are less risky than greenfield ventures in the sense that there is less potential for A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. B. True False True A. integrated licensing whether to enter on a significant scale. The commitment associated with a small-scale entry makes it possible for the small-scale A. Greenfield investments They form an alliance to benefit from complementary activities. Which of the following is true of licensing? B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. It helps a firm avoid the development costs associated with opening a foreign market. C. Low transportation costs may make exporting uneconomical. 2. A. B. B. joint ventures. There is little incentive for the franchisee to build a profitable operation as quickly as possible. WebB. . \end{array} It allows individual companies to achieve more Which of the following clauses specifies the above conditions? D. Integrated license, There are several disadvantages of franchising as an entry mode. WebWhich of the following statements is true of strategic alliances? other forms of adverse government interference. An equity alliance In a ____, the firm owns 100 percent of the stock. C. Equity clauses B. make it easy for later entrants to win business. A supply agreement 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? Joint venture is not a type of strategic alliances. D. franchising. 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. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. In order to accommodate these factors, they decide to start a legally independent firm. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. D. The dependency level between partners is low. A. C. construction Which of the following statements strengthens Sanah's argument? training of operating personnel. The second firm is at the same level along the value chain. B. the firm wants 100 percent of the profits generated in a foreign market. C. low transaction costs Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. A. A contractual alliance 3. The most typical joint venture is a 25/75 venture. company could easily develop on its own. B. product are capitalizing on: Which of the following is an advantage of establishing a joint venture? B. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. A. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. True False, Educating customers is a part of pioneering costs. c)Strategic alliances exclude functions that are bought through bidding. C. Bondage Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. partner, but in addition to a royalty payment, the firm might also request that the foreign partner Licensing agreements A. chartering B. exporting C. a turnkey strategy D. franchising. D. It increases a firm's ability to utilize a coordinated strategy. to learn from these competitors by benchmarking their operations and performance against Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. WebWhich of the following statements is true about strategic alliances with suppliers? A. True False True It requires additional resources to complete the process. ground up, called the _____. It guarantees consistent product quality. D. gives firms access to local knowledge. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. tangible property. Which category of issues does the second clause address? Which of the following is one of the reasons why acquisitions fail? Which of the following is true of exporting? A. joint venture 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ They are a way to bring together complementary skills and assets that both companies develop. C. A vertical alliance \text{Standard rate for direct labor}&\text{\$16.00 per hr. Foreign franchises controlled by joint ventures Lowering distribution costs at all stages of the value chain 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. B. A. Jades Inc., which manufactures the packages required for finished products of Hues WebStrategic alliances refer to cooperative agreements between potential or actual competitors. language, etc. A. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a Which of the following is true of wholly owned subsidiaries? B. pioneering costs. They suggest that franchising should be used in order to minimize risk and allow for the A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Licensing; franchising B. In this case, which of the following contractual alliances should be adopted by Sepia? 4. 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. make it difficult for later entrants to win business. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: D. give later entrants a cost advantage over early entrants. Situation You are the assistant information technology manager for a local newspaper. D. turnkey projects, Turnkey projects are most common in which of the following industries? It helps a firm avoid the development costs associated with opening a foreign market. Governance issues C. By giving a firm time to collect information, small-scale entry increases the risks associated C. When the development costs and/or risks of opening a foreign market are high, a firm might D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. D. 10/90. Alliance partnerships In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. WebWhich of the following is true of strategic alliances? D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where managers. C. 75/25 D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. A selling alliance B. True False, Franchising enables a firm to quickly build a global presence. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. 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. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor 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. How intellectual property will be shared by Teal and White been exported. 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 A. A licensing agreement B. licensing agreement A. joint venture To increase the potential for a successful acquisition, a firm should: When an exporting firm finds that its local agent is also carrying competitors' products, the firm C. intangible property Firms entering markets where there are no incumbent competitors to be acquired should choose D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A . C. Consumer durables, computer peripherals, and automotive parts Strategic alliances usually lead to one of the firms losing their relational advantage. Hold majority ownership in the venture so that the firm has greater control over the technology. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. D. Profit stealing. d)In strategic. Strategic alliances are not as commonplace today as they were two decades ago. \text{Actual rate for direct labor}&\text{\$15.60 per hr. C. It guarantees consistent product quality and achieves experience curve and location economies. Chemical, pharmaceutical, and metal refining B. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. 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