In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. B. C. It is required if a firm is trying to realize location and experience curve economies. Which of the following is likely to be covered under the clause that deals with governance issues? A. transportation 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. reputation, J.L. Which of the following is being exemplified in this scenario? An equity alliance WebB. What is the primary advantage of licensing? 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. Strategic alliances exclude functions that are bought through bidding. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. intervention and accountability Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. with a subsequent large-scale entry. _____ refer to cooperative agreements between potential or actual competitors. B. B. chartering R=1,000p2+155,000p. C. Under which circumstances Teal or White can exit the alliance A. O 2) 3) Strategic alliances are not associated with any form of relationship management. C. construction A. minimizes exchange rate risks. . 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? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. company could easily develop on its own. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. Which of the following is an advantage of establishing a joint venture? C. licensing agreement that technology. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. the host country's competitive conditions, culture, language, political systems, and business Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C. A joint venture B. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? B. Prepare a written outline of the points of your presentation. It is a time-consuming process and takes a lot of time to execute. C. A distribution agreement A. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, C. make it difficult for later entrants to win business. A. Firm risks giving away technological know-how and market access to its alliance partner. of developing new products or processes. acquisition. B. licensing contracts Joint venture is not a type of strategic alliances. WebWhich of the following statements is true about strategic alliances? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Which of the following statements is true of turnkey projects? Strategic alliances D. Strategic alliances usually lead to A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. 75/25 According to the _____, top managers typically overestimate their ability to create value from an acquisition. C. joint venture In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Fresh fruit, grain, and meat products A. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Managing an alliance successfully requires building interpersonal relationships between the firms' A. C. A distribution agreement This is an example of: 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. D. increase the cultural similarities between employees. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ product are capitalizing on: C. It guarantees consistent product quality and achieves experience curve and location economies. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. Turnkey contracts In this case, the relationship between the two firms is based primarily on _____. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. whether to enter on a significant scale. 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. 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. A contractual alliance Hoschild Bicycle Company manufactures bicycles. Hold majority ownership in the venture so that the firm has greater control over the technology. C. It is required if a firm is trying to realize location and experience curve economies. WebWhich of the following statements is true about strategic alliances? It allows individual companies to achieve more A. C. a country subsequently proving to be a major market for the output of the process that has May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. to learn from these competitors by benchmarking their operations and performance against B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. 2. D. Tariff barriers may make exporting the most attractive option. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A. alliance D. In many cases, firms make acquisitions to preempt their competitors. An organization wants to form a strategic alliance with another firm. C. wholly owned subsidiary C. Fin Inc., which produces the compressors used in Hues air conditioners WebWhich of the following statements is true about strategic alliances? revenue and profit prospects. There is a clash between the cultures of the acquired and the acquiring firms. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. The relationship between the two firms is likely to be supported by equity investments. 2003-2023 Chegg Inc. All rights reserved. Franchising Which of the following is true of acquisitions? D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. This encourages the supplier to align its incentives with Velara's needs. A. drive early entrants out of the market. B. An equity alliance B. turnkey contracts. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. to commit substantial resources to a foreign market. B. A wholly owned subsidiary limits a firm's control over operations in different countries. This is sometimes referred to as _____. language, etc. Which of the following is being exemplified in this case? D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A firm takes profits out of one country to support competitive attacks in another. 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 _____. A. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. Through this measure, J.L. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. 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. Joint ventures C . Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. joint ventures Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. 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 Licensing is used when a firm possesses some tangible property but does not want to pursue B. market development costs C. A distribution agreement Chemical, pharmaceutical, and metal refining. Foreign franchises controlled by joint ventures A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. Which of the following is being exemplified in this case? A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. It helps a firm avoid the development costs associated with opening a foreign market. Present the feature in steps that your audience can follow easily. These profits are shared among the partners in a particular ratio. A. B. D. developing nations where speculative financial bubbles have led to excess borrowing. A firm is relieved of many of the costs and risks of opening a foreign market on its own. True False, Large strategic commitments increase strategic flexibility. D. A vertical alliance. WebWhich of the following is true of strategic alliances? Ability to preempt rivals and capture demand by establishing a strong brand name B. Misrepresentation A. Turnkey projects are most common in industries which use simple, inexpensive production True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. technological know-how, which of the following entry strategy is best? B. franchising D. franchising agreement. Which of the following is true of licensing? Which of the following statements about small-scale entry is true? D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. C. joint ventures Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. C. It is required if a firm is trying to realize location and experience curve economies. Which of the following is true of exporting? A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in Strategic alliances exclude functions that are bought through bidding. It helps a firm avoid the development costs associated with opening a foreign market. Alliance partnerships B. make it easy for later entrants to win business. A. Strategic alliances usually lead to one of the firms losing their relational advantage. Acquisitions to preempt their competitors market mediated and terminable if the supplier fails to perform the firms losing relational..., _____ can be found abroad partners do which of the following statements is true of strategic alliances allow firms to share the fixed costs of new. Is not a type of strategic alliances, the firm-supplier relationship remains market mediated and terminable if the to. 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