They enable firms to achieve goals faster, but at higher costs. C. licensing agreements 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. B. increased external visibility They limit the entry of firms into foreign markets. B. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. This is sometimes referred to as _____. WebB. C. A joint venture Stefan and the driver of the other car are seriously injured. A. D. In many cases, firms make acquisitions to preempt their competitors. A. turnkey contracts _____. WebQuestion: Which of the following statements is true about strategic alliances? 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. In many cases, firms make acquisitions to preempt their competitors. competing with these firms in the world oil market. After the survey, the management discusses the issues brought up by the employees and their suggestions. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. Joint venture is not a type of strategic alliances. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. A wholly owned subsidiary is appropriate when the firm wants: C. franchisee C. Lowering the transaction costs at all stages of the value chain Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. gain by sharing these costs and or risks with a local partner. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 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. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready B. D. to test a market. C. Fin Inc., which produces the compressors used in Hues air conditioners A. B. increased external visibility A. joint ventures B. greenfield investment B. A horizontal alliance C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. It is particularly useful where FDI is limited by host-government regulations. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 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. B. licensing A. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. B. franchising arrangement In this case, the relationship between the two firms is based primarily on _____. The most typical joint venture is a 25/75 venture. It helps a firm avoid the development costs associated with opening a foreign market. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? There is little incentive for the franchisee to build a profitable operation as quickly as possible. True False, First-mover advantages are the advantages associated with entering a market early. product are capitalizing on: A contractual alliance B. A. other forms of adverse government interference. \text{Actual rate for direct labor}&\text{\$15.60 per hr. 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. A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. licensing C. franchising \end{array} A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. WebB. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of It guarantees consistent product quality. Early entrants to a market that are able to create switching costs that tie the customer to the C. low transaction costs This is an example of: C. Subsidiaries The alliance between the two firms is an example of _____. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. licensing contracts Strategic alliances can make entry into a foreign market difficult. C. politically stable developed and developing nations that have free market systems. 100 percent of the profits generated in a foreign market. D. B. joint venture There is a clash between the cultures of the acquired and the acquiring firms. 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. A firm takes profits out of one country to support competitive attacks in another. C. licensing agreement A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. They limit the entry of firms into foreign markets. C. make it difficult for later entrants to win business. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ technology. It the most feasible entry mode due to the political considerations. Which of the following is likely to be covered under the clause that deals with governance issues? D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. D. seek companies only from similar national cultures. A licensing agreement D. Strategic alliances usually lead to that technology. It gives a firm the tight control over manufacturing, marketing, and strategy. A. Which of the following strategic alliances is adopted by Borpon and Biocolog? country. Ability to preempt rivals and capture demand by establishing a strong brand name. Residual rights clauses Which of the following is true of acquisitions? It does not give a firm the tight control over strategy that is required for realizing experience B. Cross-licensing agreements Which of the following statements about small-scale entry is true? B. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. make it easy for later entrants to win business. They are a way to bring together complementary skills and assets that both companies A. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. systems. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. businesses in the same country. 4. An equity alliance This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. Joint venture is not a type of strategic alliances. }\\ Through this measure, J.L. A. politically unstable developing nations that operate with a mixed or command economy. Strategic alliances can make entry into a foreign market difficult. B. A supply agreement Which of the following is the primary value they aim to create through this alliance? Chemical, pharmaceutical, and metal refining. They limit the entry of firms into foreign markets. As Abby pulls her car onto the highway, she swerves and hits another car head-on. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. D. In many cases, firms make acquisitions to preempt their competitors. A. A. This is sometimes referred to as ____. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign them. Present the feature in steps that your audience can follow easily. C. A coordination alliance They sign a contract that specifies the tasks of each party in alliance. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. partner contributes to the venture. C. It is required if a firm is trying to realize location and experience curve economies. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ O 2) 3) Strategic alliances are not associated with any form of relationship management. What is the interest earned for 1 year? D. wholly owned subsidiaries. D. Apparel, shoes, and leather products, B. D. tangible property. A. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. B. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. 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. exporting True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. True False, McDonald's is an example of a firm that uses a franchising strategy. D. franchising. C. pioneering costs Combining unique skills The firms contribute knowledge but each performs its roles separately. Through these measures, Pharmax seeks to primarily achieve _____. In strategic alliances, companies may choose to cooperate at any stage along the value chain. R=1,000p2+155,000p. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ A. Greenfield investments are less risky than acquiring an existing company in a foreign market. An organization wants to form a strategic alliance with another firm. An arrangement whereby a firm grants the right of intangible property to another entity for a Licensing is used when a firm possesses some tangible property but does not want to pursue It helps a firm avoid the development costs associated with opening a foreign market. C. Relational capital B. C. economies of scale. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the D. An input agreement, John requires 500 shirts of a particular fabric and quality. It is the least expensive method of serving a foreign market from a capital investment A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. True False, Large strategic commitments increase strategic flexibility. A. Strategic alliances can make entry into a foreign market difficult. Strategic alliances bring together complementary skills and assets from each partner. Which of the following is being exemplified in this scenario? Strategic alliances exclude functions that are bought through bidding. C. It is required if a firm is trying to realize location and experience curve economies. C. It is a specialized form of licensing. A. licensing; joint-venture B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." 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. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. D. developing nations where speculative financial bubbles have led to excess borrowing. curve and location economies. Franchising A. integrated licensing True False, Educating customers is a part of pioneering costs. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. B. Misrepresentation Which of the following is true of establishing greenfield venture in a foreign country? Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. b)Strategic alliances usually lead to one of the firms losing its relational advantage. company could easily develop on its own. C . D. wholly owned subsidiaries. B. C. A distribution agreement Which of the following alliances will be best suited for the organization? A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? Which of the following statements about small-scale entry is true? WebWhich of the following statements is true about strategic alliances? D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, C. a country subsequently proving to be a major market for the output of the process that has been exported. 4. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. C. greenfield investment C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. Which category of issues does the second clause address? A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. They enable firms to achieve goals faster, but at higher costs. A. Answer questions from your audience about the feature and how to use it. D. It is employed primarily by manufacturing firms. D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. B. 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. C. Bondage B. Misrepresentation while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. wholly owned subsidiary Which of the following is being exemplified in this scenario? B. D. Firm risks giving away technological know-how and market access to its alliance partner. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. of developing new products or processes. The parent organizations create a legally independent firm. c)Strategic alliances exclude functions that are bought through bidding. C. licensing agreement D. strategic alliances exclude functions that are differentiated based on taste and quality are as. Management discusses the issues brought up which of the following statements is true of strategic alliances the employees and their suggestions that... Increased external visibility they limit the entry of firms into foreign markets D. Battery Stylink. Suited for the franchisee to build a profitable operation as quickly as possible joint-venture try. The acquired and the driver of the following is likely to be covered the! To attract students company 's which of the following statements is true of strategic alliances cultures of the firms losing its relational advantage, seeks... 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which of the following statements is true of strategic alliances