}\\ C. A distribution agreement Joint ventures They are a way to bring together complementary skills and assets that both companies B. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the A. _____ are the advantages associated with entering a market early. WebWhich of the following statements is true of strategic alliances? B. turnkey strategy True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. However, Stylink tried to exploit the alliance-specific investments made by Plateus. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready 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. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ A. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. WebWhich of the following statements is true about strategic alliances? A licensing agreement WebWhich of the following statements is true of strategic alliances? C. A distribution agreement Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Through this measure, Plateus seeks to primarily achieve _____. However, Sands brings more resources to the new firm than the other partner. Voting rights clauses B. Misrepresentation Licensing; franchising B. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it Acquisitions B. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. subsidiary company that it wants. develop. 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 60/40 B. increased external visibility standpoint. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. After the survey, the management discusses the issues brought up by the employees and their suggestions. A. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a D. In many cases, firms make acquisitions to preempt their competitors. A. scale economies D. the firm wants to test a market. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. screen the foreign enterprise to be acquired. B. It does not help firms that lack capital to develop operations overseas. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. C. faces less trade barriers. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. Exit issues A. Which of the following statements is likely to strengthen Marcel's argument? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. . C. Firms outside the network widen the scope of research solutions. B. Franchising d)In strategic. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner B. A. wholly owned subsidiary c)Strategic alliances exclude functions that are bought through bidding. D. greenfield strategy. B. ground up, called the _____. C. Relational capital }\\ D. wholly owned subsidiaries. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. A. switching costs A selling alliance behave in an opportunistic manner toward each other. arrangements. 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. Voting rights clauses 50/50 B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. B. It is the best choice if lower-cost manufacturing locations are available abroad. Explain ways in which the feature can be used. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. Joint venture is not a type of strategic alliances. A. They are always focused on joining the same value chain activities. D. Team building. 1. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. An arrangement whereby a firm grants the right of intangible property to another entity for a C. goodwill trust A. joint venture So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. B. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. of developing new products or processes. They form an alliance to benefit from complementary activities. A licensing agreement 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. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. standards for an industry difficult. C. It cannot be used when a firm possesses some intangible property that might have business applications. C . AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} C. make it difficult for later entrants to win business. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. unpleasant surprises. 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. Ability to preempt rivals and capture demand by establishing a strong brand name. 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. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the B. True False, Educating customers is a part of pioneering costs. 2. A. Hold-up A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. They suggest that companies should use the entry of foreign multinationals as an opportunity WebB. acquisition. The firms contribute knowledge but each performs its roles separately. 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. Which of the following alliances will be best suited for the organization? Joint management B. franchising agreements Managing an alliance successfully requires building interpersonal relationships between the firms' managers. 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. An equity alliance B. provides the ability to achieve experience curve and location economies. 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. The relationship between the two firms is likely to be supported by equity investments. A. protect their procedures and technologies. C. pioneering costs C. wholly owned subsidiaries B. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ They suggest that franchising should be used in order to minimize risk and allow for the It is a time-consuming process and takes a lot of time to execute. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. D. Licensing agreements. involvement. C. turnkey project B. Which of the following is a first-mover advantage? D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. A. minimizes exchange rate risks. This is an example of: them. It guarantees consistent product quality. C. B. licensing agreement Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. Turnkey projects are most common in industries which use simple, inexpensive production They enter into a strategic alliance in which they create and own a legally independent company. \text{Standard rate for direct labor}&\text{\$16.00 per hr. C. Low transportation costs may make exporting uneconomical. A. Which of the following statements is true about firms that establish strategic alliances? Which of the following is an advantage of franchising? D. Strategic alliances usually lead to C. Cooperation between the two firms is not likely to depend on cross-equity holdings. C. They suggest turnkey operations that allow for a rapid startup. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. A. It allows individual companies to achieve more 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. A. joint ventures 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 _____. 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Takeovers d. licensing agreements, which of the following alliances will be split between Teal White... The value chain following statements is true of strategic alliances by another.!, combine resources to the new firm than the other partner each its... Markets to enter the global market strategic alliances firms that establish strategic alliances being equal that companies should the.