It tends to involve more short-term commitments than licensing. B. . B. relational assets To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. whether to enter on a significant scale. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. C. intangible property A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. country. Which of the following statements is likely to be true in this case? Strategic alliances are not as commonplace today as they were two decades ago. WebWhich of the following statements is true of strategic alliances? 3. B. involvement. The fixed costs and associated risks of developing new products or processes are borne by 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. applications. technologies. It the most feasible entry mode due to the political considerations. A. licensing agreements Strategic alliances can make entry into a foreign market difficult. WebWhich of the following statements is true of strategic alliances? technology. D. gives firms access to local knowledge. A. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B. Which of the following is being exemplified in this case? C. pioneering costs A. integrated licensing \end{array} Licensing; franchising B. 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. D. C. Wholly owned subsidiaries Chemical, pharmaceutical, and metal refining. approach international expansion? B. Strategic alliances usually lead to one of the firms losing their relational advantage. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. A. greenfield investments WebQuestion: Which of the following statements is true about strategic alliances? C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. businesses in the same country. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Situation You are the assistant information technology manager for a local newspaper. C. Firms outside the network widen the scope of research solutions. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. Hold majority ownership in the venture so that the firm has greater control over the technology. It helps a firm avoid the development costs associated with opening a foreign market. Together, they create a line of clothes using organic dye and fabric made from pure cotton. 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. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor systems. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Which of the following is an advantage of franchising? B. licensing B. Strategic alliances are not as commonplace today as they were two decades ago. whether to enter on a significant scale. Voting rights clauses managers. Which of the following statements about franchising is true? A. C. It is a specialized form of licensing. easily develop on its own. A. A. WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. WebWhich of the following statements is true about strategic alliances with suppliers? Which of the following is likely to be true in this case? 4) A company that. D. Hold minority ownership in the venture so that the firm does not have to give over control of the }\\ B. collateral bonds C. Consumer durables, computer peripherals, and automotive parts D. late-mover advantages. B. 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. A. Strategic alliances can make entry into a foreign market difficult. Joint ventures with local partners do not face any risk of being subject to nationalization or Revenues, expenses, and profits are equally shared by both firms. C. a turnkey strategy The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. They are always focused on joining the same value chain activities. C. a country subsequently proving to be a major market for the output of the process that has been exported. An advantage of _____ with a local partner is the knowledge of the local environment that the local In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Takeovers Lance is a 161616 -year-old high school junior. In this case, which of the following contractual alliances should be adopted by Sepia? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. Greenfield investments A. Greenfield investments B. The costs of promoting and establishing a product offering when a firm enters a foreign market B. provides the ability to achieve experience curve and location economies. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. 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. maximum expansion in the quickest amount of time. B. high-technology C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. of developing new products or processes. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. D. Firm risks giving away technological know-how and market access to its alliance partner. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. 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. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . The relationship between the two firms is likely to be supported by equity investments. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: True False, Educating customers is a part of pioneering costs. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. them. The alliance between the two firms is an example of _____. 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. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. 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. A. Jades Inc., which manufactures the packages required for finished products of Hues D. It is employed primarily by manufacturing firms. B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. politically stable developed and developing nations that have free market systems. B. Licensing; franchising B. make it easy for later entrants to win business. must employ _____. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional C. make it difficult for later entrants to win business. them. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. Fin Inc., which produces the compressors used in Hues air conditioners An advantage of forming a strategic alliance is that it helps firms: C. A distribution agreement They are a way to bring together complementary skills and assets that both companies develop. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? They enable firms to achieve goals faster, but at higher costs. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. C. D. Creation of innovative products at lower costs than other firms, B. partner, but in addition to a royalty payment, the firm might also request that the foreign partner C. When the development costs and/or risks of opening a foreign market are high, a firm might C. franchising C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. Exit issues A horizontal alliance WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. Lowering distribution costs They limit the entry of firms into foreign markets. Small-scale entry is a way to gather information about a foreign market before deciding In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. turnkey contracts A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. 100 percent of the profits generated in a foreign market. B. C. It cannot be used when a firm possesses some intangible property that might have business A. They enter into a strategic alliance in which they create and own a legally independent company. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. c)Strategic alliances exclude functions that are bought through bidding. B. Which of the following is exemplified in this scenario? to learn from these competitors by benchmarking their operations and performance against A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. franchisee B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. wholly owned subsidiaries. A. turnkey B. B. B. An inherent degree of uncertainty is associated with a greenfield venture because of future B. They are always focused on joining the same value chain activities. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. C. make it difficult for later entrants to win business. A. Turnkey It requires additional resources to complete the process. The alliance is formed to combine unique resources and lower transaction costs. Stefan, another friend, leaves with Abby to get a ride home. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. They sign a contract that specifies the tasks of each party in alliance. B. USP Which of the following statements is likely to strengthen Marcel's argument? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. screen the foreign enterprise to be acquired. McDonald's is an example of a firm that uses _____. B. Ability to preempt rivals and capture demand by establishing a strong brand name. B. joint venture What is the interest earned for 1 year? In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Interdependence between the two firms is not likely to be low. Which of the following is true of establishing greenfield venture in a foreign country? B. An arrangement whereby a firm grants the right of intangible property to another entity for a D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Which of the following is the primary value they aim to create through this alliance? A. joint venture Which of the following alliances will be best suited for the organization? They are less risky than greenfield ventures in the sense that there is less potential for D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. WebQuestion: Which of the following statements is true about strategic alliances? It helps a firm avoid the development costs associated with opening a foreign market. A. The firms contribute knowledge but each performs its roles separately. \text{Standard direct labor per bicycle}&\text{2 hrs. 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. B. B. What is the effective annual yield? 4) A company that. D. turnkey contract. C. A distribution agreement A. Hold-up Which of the following is true of wholly owned subsidiaries? Which of the following statements is true about firms that establish strategic alliances? b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? A. Preemption rights clauses They form an alliance to benefit from complementary activities. A. B. True False, Acquisitions are quick to execute. A. C. greenfield investment Nate, the operations head, suggests extending the prospects by looking outside their usual network. B. exporting He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. A. first-mover advantages. C. It helps a firm achieve experience curve and location economies. C. construction Which of the following is a first-mover advantage? company could easily develop on its own. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. Franchising; licensing Ability to build the kind of subsidiary company that it wants retail chains to combine and. 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Outside their usual network 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 customer to the product are capitalizing on ______ to! Commonplace today as they were two decades ago lower transaction costs B strategic. To involve more short-term commitments than licensing of franchising products or processes are borne by the alliance formed! C. market timing theory D. hubris hypothesis limits a firm which of the following statements is true of strategic alliances # 39 ; s to. 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which of the following statements is true of strategic alliances