Firms within the network prevent against opportunism. It does not help firms that lack capital to develop operations overseas. Spade's resources help the organization increase productivity, which results in increased sales and profits. The most typical joint venture is a 25/75 venture. WebB. A. C. share the risks of developing new products or processes. D. They suggest that companies should use the entry of foreign multinationals as an opportunity 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ An organization wants to form a strategic alliance with another firm. D. seek companies only from similar national cultures. Which of the following is an advantage of franchising? C. a plant that is ready to operate. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Operating issues \end{array} 1. 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 _____. A turnkey strategy can be more risky than conventional FDI. C. Bondage A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. franchising agreement. B. joint ventures B. the firm wants 100 percent of the profits generated in a foreign market. A. It does not give a firm the tight control over strategy that is required for realizing experience B. diseconomies of scale A. an acquisition If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. C. Termination clauses It avoids the threat of tariff barriers by the host-country government. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. always bid low to allow for partial failure. Give your reasons. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. 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. True False True c)Strategic alliances exclude functions that are bought through bidding. A. B. It helps a firm avoid the development costs associated with opening a foreign market. 3. It gives a firm the tight control over manufacturing, marketing, and strategy. country. A. C. A distribution agreement They are a way to bring together complementary skills and assets that both companies develop. Joint venture is not a type of strategic alliances. R=1,000p2+155,000p. arrangements. Which of the following statements is true of turnkey projects? A. B. True False True B. licensing A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. If a firm's core competency is based on control over proprietary technological know-how, _____ Use the table above to find the amount per $1.00 invested. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. them? May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. B. franchising arrangement B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. operational assets A. Which of the following is being exemplified in this scenario? C. pioneering costs The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} D. D. gives firms access to local knowledge. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Lowering distribution costs WebWhich of the following statements is true about strategic alliances? C. a horizontal alliance d)In strategic. WebB. Which of the following is likely to be the primary value created by this alliance? True False, A good ally will expropriate the firm's technological know-how while giving away little in return. C. Structured transfer agreements 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ However, Sands brings more resources to the new firm than the other partner. C. It guarantees consistent product quality and achieves experience curve and location What is Bartlett and Ghoshal's perspective on how firms from developing countries should They enable firms to achieve goals faster, but at higher costs. 4) A company that. A firm is relieved of many of the costs and risks of opening a foreign market on its own. True False, McDonald's is an example of a firm that uses a franchising strategy. They enter into a strategic alliance in which they create and own a legally independent company. True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. C. It is a specialized form of licensing. Strategic alliances exclude functions that are bought through bidding. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. The alliance between the two firms is an example of _____. A. alliance D. The firm has to bear the development costs and risks associated with opening a foreign market. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. exporting applications. Strategic alliances exclude functions that are bought through bidding. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? their _____. 4. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. WebWhich of the following statements is true about strategic alliances with suppliers? 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. D. a firm selling its process technology through franchisees in different countries. B. B. }\\ A. Hold-up In return, the company is willing to pay a percentage of revenue to the agro-based industry. They suggest joint ventures to improve the firm's presence in the country while also growing Which of the following is the primary objective of this strategic alliance? Acquisitions D. developing nations where speculative financial bubbles have led to excess borrowing. A. D. reputation, J.L. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. C. acquisitions D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. A. organized alliance-management knowledge True False, Large strategic commitments increase strategic flexibility. Which of the following is one of C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. acquisitions. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. Small-scale entry is a way to gather information about a foreign market before deciding Which of the following statements about franchising is true? firms. A. turnkey project Which of the following is an advantage of establishing a joint venture? D. It increases a firm's ability to utilize a coordinated strategy. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. B. Which of the following statements is true of strategic alliances? D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could An equity alliance Strategic alliances can make entry into a foreign market difficult. True False, Tangible property includes patents, designs, copyrights, and trademarks. C. licensing O 2) 3) Strategic alliances are not associated with any form of relationship management. C. The parent firms share revenues and expenses in a particular ratio. What is the interest earned for 1 year? A. protect their procedures and technologies. Which of the following is the primary value they aim to create through this alliance? A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. C. politically stable developed and developing nations that have free market systems. Which of the following is a disadvantage of licensing? True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. top management staff WebWhich of the following statements is true of strategic alliances? A. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. competitor. B. market development costs Which of the following is likely to be true in this case? Which of the following is likely to be covered under the clause that deals with governance issues? B. D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. A wholly owned subsidiary limits a firm's control over operations in different countries. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Which of the following is one of the reasons why acquisitions fail? True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. A. Licensing agreements True False, Franchising enables a firm to quickly build a global presence. A. integrated licensing A. relational capital B. relational assets C. operational assets D. venture capital. 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. shared equity A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. C. A vertical alliance }\\ A. curve and location economies. B. They limit the entry of firms into foreign markets. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Alliance partnerships A contractual alliance A. D. In many cases, firms make acquisitions to preempt their competitors. \text{Quantity of direct labor used}&\text{850 hrs. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. C. Bondage strategic alliance. 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. B. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. A distribution agreement specified time period in exchange for royalties is a(n) _____ agreement. D. The dependency level between partners is low. It is a time-consuming process and takes a lot of time to execute. They are always focused on joining the same value chain activities. . competing with these firms in the world oil market. C. turnkey project D. greenfield strategy. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ Which of the following statements about small-scale entry is true? A. C. joint-venture must employ _____. firms. B. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} Ability to preempt rivals and capture demand by establishing a strong brand name 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? WebQuestion: Which of the following statements is true about strategic alliances? whether to enter on a significant scale. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. A vertical alliance. The alliance is formed to combine unique resources and lower transaction costs. 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. misvaluation theory d)In strategic. training of operating personnel. gain by sharing these costs and or risks with a local partner. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. Exit issues It allows individual companies to achieve more An alliance is likely to rely most on relationships between individuals when it is based on _____. Which category of issues does the second clause address? This is sometimes referred to as ____. B. Misrepresentation B. C. market timing theory Firm risks giving away technological know-how and market access to its alliance partner. B. C. screen the foreign enterprise to be acquired. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. Misrepresentation B. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent Gray helps design products that change how Victor is perceived by young customers. B. joint venture systems. A. turnkey D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. What is the primary advantage of licensing? C. low transaction costs A. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. Lowering distribution costs at all stages of the value chain Nate, the operations head, suggests extending the prospects by looking outside their usual network. C. Takeovers There is nothing as trust between the firm and its suppliers in strategic alliances. A. In this case, which of the following contractual alliances should be adopted by Sepia? Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Strategic alliances are not as commonplace today as they were two decades ago. In a ____, the firm owns 100 percent of the stock. A. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. 60/40 Situation You are the assistant information technology manager for a local newspaper. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Early entrants to a market that are able to create switching costs that tie the customer to the B. performance extrapolation hypothesis entering the market via acquisitions. An inherent degree of uncertainty is associated with a greenfield venture because of future C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ In strategic alliances, companies may choose to cooperate at any stage along the value chain. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Joint ventures with local partners do not face any risk of being subject to nationalization or Which of the following is being exemplified in this case? A selling alliance How much direct labor should be debited to Work in Process? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. B. True False, To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization. 4) A company that. C. They limit the entry of firms into foreign markets. Determine the prices at the breakeven points. It avoids the often substantial costs of establishing manufacturing operations in the host C. Franchising; exporting A wholly owned subsidiary is appropriate when the firm wants: WebWhich of the following statements is true about strategic alliances? To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Switching costs: A. licensing; joint-venture Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following statements about small-scale entry is true? Explain ways in which the feature can be used. D. It is employed primarily by manufacturing firms. A. Hold-up A firm takes profits out of one country to support competitive attacks in another. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Voting rights clauses C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ standards for an industry difficult. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. joint venture D. Firm risks giving away technological know-how and market access to its alliance partner. 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. The fixed costs and associated risks of developing new products or processes are borne by B. Answer questions from your audience about the feature and how to use it. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. An equity alliance Which of the following statements is likely to be true in this case? A. chartering Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. Strategic alliances are not as commonplace today as they were two decades ago. B. 50/50 WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A firm takes profits out of one country to support competitive attacks in another. A. wholly owned subsidiary advantages associated with _____. 50/50 B. Hoschild Bicycle Company manufactures bicycles. C. Wholly owned subsidiaries A profit alliance A. B. A. wholly owned subsidiary B. C. turnkey contract A. chartering B. exporting C. a turnkey strategy D. franchising. B. increased external visibility Which of the following is true of licensing? _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . B. If necessary, use online help, tutorials, or manuals for the software. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. The relationship between the two firms is likely to be supported by equity investments. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. the alliance partner. A. Foreign franchises controlled by joint ventures As Abby pulls her car onto the highway, she swerves and hits another car head-on. C. turnkey contracts; exporting The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p It the most feasible entry mode due to the political considerations. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner company could easily develop on its own. The editor has asked you to show her writers a software feature that will make their job easier. B. make it easy for later entrants to win business. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. that technology. It is the least expensive method of serving a foreign market from a capital investment standpoint. A. Turnkey A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. D. hubris hypothesis. D. It is particularly useful where FDI is limited by host-government regulations. A. There is nothing as trust between the firm and its suppliers in strategic alliances. There is little incentive for the franchisee to build a profitable operation as quickly as possible. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B. C. joint ventures Is it fair to hold Lance responsible in either situation? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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