B. licensing True False, First-mover advantages are the advantages associated with entering a market early. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. chartering True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. Which of the following is an advantage of establishing a joint venture? What performance is expected by Teal and White from each other They limit the entry of firms into foreign markets. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. As Abby pulls her car onto the highway, she swerves and hits another car head-on. A. B. market development costs A. C. greenfield investments Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. What is the effective annual yield? C. share the risks of developing new products or processes. B. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ WebWhich of the following statements is true of strategic alliances? b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. Misrepresentation Which of the following is a distinct advantage of exporting? Firms within the network could result in inbreeding of ideas. A. licensing; joint-venture True False, Large strategic commitments increase strategic flexibility. 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. D. developing nations where speculative financial bubbles have led to excess borrowing. approach international expansion? C. pioneering costs 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. An advantage of forming a strategic alliance is that it helps firms: It allows individual companies to achieve more C. Equity clauses D. Strategic alliances usually lead to Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. 4. ground up, called the _____. A. greenfield investments Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. turnkey contracts Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along 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. A. relational capital \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. 3. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . C. turnkey contracts; exporting D. wholly owned subsidiaries. C. share the risks of developing new products or processes. C. pioneering costs c)Strategic alliances exclude functions that are bought through bidding. B. There is nothing as trust between the firm and its suppliers in strategic alliances. Managing an alliance successfully requires building interpersonal relationships between the firms' _____ are the advantages associated with entering a market early. C. A distribution agreement Lowering distribution costs at all stages of the value chain Strategic alliances can make entry into a foreign market difficult. They enable firms to achieve goals faster, but at higher costs. D. greenfield strategy. B. C. A vertical alliance True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. C. Bondage Operating issues The parent organizations create a legally independent firm. to learn from these competitors by benchmarking their operations and performance against A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The firm incurs many of the costs and risks of opening a foreign market on its own. A. first-mover advantages. 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. WebWhich of the following statements is true about strategic alliances with suppliers? A. Greenfield investments are less risky than acquiring an existing company in a foreign market. C. turnkey contract The editor has asked you to show her writers a software feature that will make their job easier. A. Turnkey contracts To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. B. Which category of issues does the second clause address? Prepare a written outline of the points of your presentation. WebWhich of the following statements is true of strategic alliances? 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. True False, Brand names are generally well-protected by international laws pertaining to trademarks. This is sometimes referred to as _____. Stefan and the driver of the other car are seriously injured. A. Hold-up country. C. Dispute resolution clauses To increase the potential for a successful acquisition, a firm should: whether to enter on a significant scale. A. to learn from these competitors by benchmarking their operations and performance against c)Strategic alliances exclude functions that are bought through bidding. B. the firm wants 100 percent of the profits generated in a foreign market. C. faces less trade barriers. revenue and profit prospects. A. joint venture WebWhich of the following statements is true of strategic alliances? D. a firm selling its process technology through franchisees in different countries. Joint venture is not a type of strategic alliances. D. give later entrants a cost advantage over early entrants. A nonequity alliance D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a D. developing nations where speculative financial bubbles have led to excess borrowing. A. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the 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. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. turnkey project Which of the following is one of the reasons why acquisitions fail? The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. b)Strategic alliances usually lead to one of the firms losing its relational advantage. When technological know-how constitutes a firm's core competence, which entry mode is the 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. A. relational capital B. relational assets C. operational assets D. venture capital. C. a country subsequently proving to be a major market for the output of the process that has been exported. prepared for full integration. A. A profit alliance B. B. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. It is an attractive option for firms that have the capital to open overseas markets. C. licensing Joint venture is not a type of strategic alliances. B. Misrepresentation Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A. A. 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. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Gray helps design products that change how Victor is perceived by young customers. B. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. Use the table above to find the amount per $1.00 invested. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. A joint venture. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Licensing agreements. D. It increases a firm's ability to utilize a coordinated strategy. 1. Explain ways in which the feature can be used. Acquisitions The new company is created from resources and assets contributed by the parent firms. A. licensing contract C. A distribution agreement The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. A. top management staff Which of the following is a first-mover advantage? 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. Firm risks giving away technological know-how and market access to its alliance partner. B. franchising agreements B. C. It helps a firm achieve experience curve and location economies. C. It guarantees consistent product quality and achieves experience curve and location WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. They sign a contract that specifies the tasks of each party in alliance. Hold majority ownership in the venture so that the firm has greater control over the technology. It avoids the often substantial costs of establishing manufacturing operations in the host A. C . In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. organized alliance-management knowledge Which of the following suppliers is it most likely to choose as a partner? Costs that an early entrant has to bear that a later entrant can avoid are known as _____. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. Ability to preempt rivals and capture demand by establishing a strong brand name. of developing new products or processes. WebWhich of the following is true of strategic alliances? In this case, which of the following alliances has been adopted by the organization? Nate, the operations head, suggests extending the prospects by looking outside their usual network. D. Which of the following statements about franchising is true? True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew WebB. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ D. Apparel, shoes, and leather products, B. A. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. 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. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A. politically unstable developing nations that operate with a mixed or command economy. C. joint-venture the business opportunities for companies in the developing country. A horizontal alliance D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. The second firm is at the same level along the value chain. C. Firms outside the network widen the scope of research solutions. However, they do not have a supplier-buyer relationship. Small-scale entry is a way to gather information about a foreign market before deciding True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Voting rights clauses Which of the following is the primary objective of this strategic alliance? C. greenfield investment B. strategic alliances D. A vertical alliance. Combining unique resources along different stages of the value chain When an exporting firm finds that its local agent is also carrying competitors' products, the firm C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. D. seek companies only from similar national cultures. Alliance partnerships Many American firms that sold oil-refining technology to firms in the Gulf now find themselves standards for an industry difficult. B. licensing Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional 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. It allows individual companies to achieve more The firm does not have to bear the development costs and risks associated with opening a B. Together, they create a line of clothes using organic dye and fabric made from pure cotton. 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. It helps a firm avoid the development costs associated with opening a foreign market. C. a turnkey strategy A. B. C. They limit the entry of firms into foreign markets. B. B. Franchising; licensing The relationship between the two firms is likely to be supported by equity investments. C. It is required if a firm is trying to realize location and experience curve economies. Chemical, pharmaceutical, and metal refining. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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? They are less risky than greenfield ventures in the sense that there is less potential for Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? A. a joint venture How intellectual property will be shared by Teal and White There is a clash between the cultures of the acquired and the acquiring firms. arrangements. Activity Plan and demonstrate how to use the feature. A. 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? How can a firm protect its proprietary information in a joint venture arrangement? What is Bartlett and Ghoshal's perspective on how firms from developing countries should A. franchise In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 4) A company that. 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 Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. C. operational assets A. C. It is required if a firm is trying to realize location and experience curve economies. B. Which of the following is one of standpoint. B. collateral bonds B. McDonald's is an example of a firm that uses _____. Needs permission to test its new products or processes power to make decisions always! Is not a type of strategic alliances, the power to make decisions is always evenly amidst. 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