C. Lowering the transaction costs at all stages of the value chain C. Dispute resolution clauses C. intervention and accountability The alliance between the two firms is an example of _____. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. D. Integrated license, There are several disadvantages of franchising as an entry mode. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. C. A distribution agreement C. It avoids the often substantial costs of establishing manufacturing operations in the host country. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Give your reasons. B. licensing agreements A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? A. Preemption rights clauses C. A distribution agreement Which of the following is true of acquisitions? A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. C. politically stable developed and developing nations that have free market systems. C. faces less trade barriers. B. competing with these firms in the world oil market. C. acquisitions Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. D. It is employed primarily by manufacturing firms. Which of the following is being exemplified in this case? 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. A. scale economies They enable firms to achieve goals faster, but at higher costs. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs A. A turnkey strategy can be more risky than conventional FDI. B. C. It is a specialized form of licensing. Nate, the operations head, suggests extending the prospects by looking outside their usual network. Determine the prices at the breakeven points. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Which of the following is exemplified in this scenario? Which of the following suppliers is it most likely to choose as a partner? C. A distribution agreement A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A. the alliance partner. D. Tariff barriers may make exporting the most attractive option. C. It helps a firm achieve experience curve and location economies. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. B. joint venture A. minimizes exchange rate risks. C. economies of scale. Which of the following is being exemplified in this scenario? maximum expansion in the quickest amount of time. A. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. arrangements. C. It guarantees consistent product quality and achieves experience curve and location economies. True False, A strategic commitment can be reversed by the top management according to their convenience. B. franchising agreements B. D. 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. They are a way to bring together complementary skills and assets that both companies develop. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. Which of the following statements is true about firms that establish strategic alliances? Which of the following statements is true about firms in a joint venture? A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a Through these measures, Pharmax seeks to primarily achieve _____. C. A distribution agreement B. wholly owned subsidiary; exporting It tends to involve more short-term commitments than licensing. product are capitalizing on: Revenues, expenses, and profits are equally shared by both firms. B. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. B. A. integrated licensing \end{array} How much direct labor should be debited to Work in Process? 2. B. licensing agreement A. Which of the following is likely to be true in this case? A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. gain by sharing these costs and or risks with a local partner. B. Which of the following statements about small-scale entry is true? _____. B. B. increased external visibility A. switching costs D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A wholly owned subsidiary limits a firm's control over operations in different countries. curve and location economies. Through this measure, Plateus seeks to primarily achieve _____. They are always focused on joining the same value chain activities. A vertical alliance A. An equity alliance True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. B. turnkey contract B. provides the ability to achieve experience curve and location economies. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. turnkey contract 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. B. turnkey strategy A. Which of the following is true of strategic alliances? C. intangible property B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. with a subsequent large-scale entry. C. licensing agreements C. Bondage A. turnkey C. A distribution agreement A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. WebWhich of the following is true of strategic alliances? B. Which of the following is true of acquisitions? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. A licensing agreement B. D. tangible property. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. SeaShade produces beach umbrellas. B. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. acquisition. 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. firms. 50/50 B. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. Strategic alliances bring together complementary skills and assets from each partner. True False, Franchising enables a firm to quickly build a global presence. What is the primary advantage of licensing? b. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. They enter into a strategic alliance in which they create and own a legally independent company. D. In many cases, firms make acquisitions to preempt their competitors. Which of the following is an advantage of establishing a joint venture? A. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. A. firms. managers. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Which of the following statements strengthens Sanah's argument? A. organized alliance-management knowledge In a ____, the firm owns 100 percent of the stock. C. It is a specialized form of licensing. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 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. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. If necessary, use online help, tutorials, or manuals for the software. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. joint ventures B. \text{Standard direct labor per bicycle}&\text{2 hrs. Spade's resources help the organization increase productivity, which results in increased sales and profits. A. franchise D. reputation, J.L. Residual rights clauses WebB. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. turnkey project A. B. Firms benefit from a local partner's knowledge of the host country's competitive conditions. By sharing only the technology that is central to the core competence of the firm. A. greenfield investments Stefan and the driver of the other car are seriously injured. B. reduce the level of conflicts that occur within an organization. A supply agreement 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. 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. D. franchising. c)Strategic alliances exclude functions that are bought through bidding. Zeal Inc., a software firm, decides to enter the publishing industry. A. Switching costs: In this case, which of the following alliances has been adopted by the organization? They suggest joint ventures to improve the firm's presence in the country while also growing Licensing; franchising B. 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. 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 An equity alliance C. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Which of the following strategic alliances is adopted by Borpon and Biocolog? B. greenfield investment True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. C. The parent firms share revenues and expenses in a particular ratio. They limit the entry of firms into foreign markets. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ Which of the following clauses specifies the above conditions? Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. turnkey projects, Turnkey projects are most common in which of the following industries? True False, . easily develop on its own. D. A joint venture. C. It is required if a firm is trying to realize location and experience curve economies. C. share the risks of developing new products or processes. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? It guarantees consistent product quality. Situation You are the assistant information technology manager for a local newspaper. Which of the following is likely to be covered under the clause that deals with governance issues? D. seek companies only from similar national cultures. 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. Residual rights clauses 60/40 C. 75/25 D. 10/90. Which of the following is true of exporting? 1. B. legal contracts They enable firms to achieve goals faster, but at higher costs. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. a joint venture It does not help firms that lack capital to develop operations overseas. A. A. Turnkey B. The acquired firm often overpays for the assets of the acquiring firm. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. . WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. The firm has to bear the development costs and risks associated with opening a foreign market. C. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. After the survey, the management discusses the issues brought up by the employees and their suggestions. A. misvaluation theory A. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. 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 _____. C. greenfield investments Franchising; licensing D. It is particularly useful where FDI is limited by host-government regulations. C. Firms outside the network widen the scope of research solutions. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. An advantage of _____ with a local partner is the knowledge of the local environment that the local What is the effective annual yield? }\\ They suggest that franchising should be used in order to minimize risk and allow for the C. low transaction costs Which of the following is being exemplified in this case? \end{array} To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. revenue and profit prospects. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. Chemical, pharmaceutical, and metal refining. D. Interdependence between the two firms is not likely to be low. D. In many cases, firms make acquisitions to preempt their competitors. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. 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. Strategic alliances usually lead to \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, A. B. However, Stylink tried to exploit the alliance-specific investments made by Plateus. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. What is the primary advantage of licensing? R=1,000p2+155,000p. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. A. B. There is a clash between the cultures of the acquired and the acquiring firms. There is little incentive for the franchisee to build a profitable operation as quickly as possible. D. Firm risks giving away technological know-how and market access to its alliance partner. C. advertisements They sign a contract that specifies the tasks of each party in alliance. C. low transaction costs C. Termination clauses A. Modularization D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. technology. _____ refer to cooperative agreements between potential or actual competitors. C. wholly owned subsidiary C. Takeovers D. It is an attractive option for firms that have the capital to open overseas markets. 4) A company that. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. 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. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. Pooling similar resources Licensing is used when a firm possesses some tangible property but does not want to pursue Foreign franchises controlled by joint ventures Small-scale entry is a way to gather information about a foreign market before deciding The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C . It does not help firms that lack capital to develop operations overseas. A supply agreement d)In strategic. 50/50 In return, the company is willing to pay a percentage of revenue to the agro-based industry. B. C. greenfield investment It allows individual companies to achieve more 3. 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. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in If a firm can realize location economies by moving production elsewhere, it should avoid _____. license some of its valuable know-how to the firm. A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Small-scale entry is a way to gather information about a foreign market before deciding A. Hold-up True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. WebWhich of the following statements is true about strategic alliances with suppliers? 4) A company that. It avoids the often substantial costs of establishing manufacturing operations in the host It does not give a firm the tight control over strategy that is required for realizing experience Many American firms that sold oil-refining technology to firms in the Gulf now find themselves 2003-2023 Chegg Inc. All rights reserved. whether to enter on a significant scale. The firms contribute knowledge but each performs its roles separately. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. WebWhich of the following statements is true of strategic alliances? C. a turnkey strategy A. exporting Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. Which of the following is one of the reasons why acquisitions fail? of developing new products or processes. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. advantages associated with _____. C. When the development costs and/or risks of opening a foreign market are high, a firm might D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. optimal? D. Licensing agreements. 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. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Which of the following is a first-mover advantage? approach international expansion? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. performance extrapolation hypothesis must employ _____. Which of the following is true of wholly owned subsidiaries? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. diseconomies of scope. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A. B. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Black Corp., which prints Hues logo on the air conditioners C. Wholly owned subsidiaries may switch to a _____ to handle local marketing, sales, and service. B. licensing contracts A. been exported. B. A. B. D. seek companies only from similar national cultures. According to the _____, top managers typically overestimate their ability to create value from an By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. D. give later entrants a cost advantage over early entrants. 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. foreign market. C. joint ventures D. wholly owned subsidiaries. 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} B. licensing D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the If a firm's core competency is based on control over proprietary technological know-how, _____ Which of the following is being exemplified in this case? D. to test a market. B. franchising Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. }\\ C. market timing theory A. wholly owned subsidiary Use the table above to find the amount per $1.00 invested. Alliance partnerships Managing an alliance successfully requires building interpersonal relationships between the firms' managers. B. B.