In this case, the relationship between the two firms is based primarily on _____. B. joint venture Lowering distribution costs at all stages of the value chain The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. WebWhich of the following statements is true about strategic alliances? B. increased external visibility involvement. Through this measure, Plateus seeks to primarily achieve _____. optimal? A. An equity alliance C. It guarantees consistent product quality and achieves experience curve and location economies. A. legal contracts them. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. 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 _____. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ \end{array} A. B. collateral bonds True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. An inherent degree of uncertainty is associated with a greenfield venture because of future that technology. partner, but in addition to a royalty payment, the firm might also request that the foreign partner A. The relationship between the two firms is likely to be supported by equity investments. It is a time-consuming process and takes a lot of time to execute. Situation You are the assistant information technology manager for a local newspaper. A . None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. strategic alliances B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. B. pioneering costs. A turnkey strategy can be more risky than conventional FDI. D. Interdependence between the two firms is not likely to be low. The commitment associated with a small-scale entry makes it possible for the small-scale May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. 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. joint ventures Strategic alliances can make entry into a foreign market difficult. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. It is the least expensive method of serving a foreign market from a capital investment It avoids the often substantial costs of establishing manufacturing operations in the host A firm is relieved of many of the costs and risks of opening a foreign market on its own. It is a time-consuming process and takes a lot of time to execute. Strategic alliances The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. 4) A company that. C. advertisements B. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. In many cases, firms make acquisitions to preempt their competitors. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. What is Bartlett and Ghoshal's perspective on how firms from developing countries should Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False True In a ____, the firm owns 100 percent of the stock. C. It helps a firm achieve experience curve and location economies. A. always bid low to allow for partial failure. B. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ d)In strategic. 4. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. D. hubris hypothesis. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. Firms entering markets where there are no incumbent competitors to be acquired should choose Which of the following is true of licensing? D. developing nations where speculative financial bubbles have led to excess borrowing. foreign market. Use the table above to find the amount per $1.00 invested. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. Which of the following is the primary objective of this strategic alliance? Which of the following statements about franchising is true? B. According to the _____, top managers typically overestimate their ability to create value from an Which of the following is true of exporting? Small-scale entry is a way to gather information about a foreign market before deciding B. D. Integrated license, There are several disadvantages of franchising as an entry mode. Which of the following statements about small-scale entry is true? 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. 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. develop. B. wholly owned subsidiary; exporting Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. whether to enter on a significant scale. A. them. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. They sign a contract that specifies the tasks of each party in alliance. B. joint venture 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. An equity alliance Joint venture is not a type of strategic alliances. They suggest joint ventures to improve the firm's presence in the country while also growing A. A. 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. pioneering costs Firm risks giving away technological know-how and market access to its alliance partner. A contractual alliance C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. They limit the entry of firms into foreign markets. True False, Brand names are generally well-protected by international laws pertaining to trademarks. A. Which of the following statements about small-scale entry is true? C. a turnkey strategy C. share the risks of developing new products or processes. curve and location economies. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. However, Sands brings more resources to the new firm than the other partner. A. wholly owned subsidiary These profits are shared among the partners in a particular ratio. A. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. Which of the following strategic alliances is adopted by Borpon and Biocolog? Give your reasons. Strategic alliances exclude functions that are bought through bidding. C. franchising C. It is a specialized form of licensing. C. faces less trade barriers. A. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Which of the following is likely to be covered under the clause that deals with governance issues? A. switching costs C. Bondage 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. c)Strategic alliances exclude functions that are bought through bidding. Revenues, expenses, and profits are equally shared by both firms. D. Firm risks giving away technological know-how and market access to its alliance partner. 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. A. 3. It tends to involve more short-term commitments than 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. Franchising; licensing C. 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. \end{array} b. economies. An advantage of forming a strategic alliance is that it helps firms: The second firm is at the same level along the value chain. B. make it easy for later entrants to win business. Spade's resources help the organization increase productivity, which results in increased sales and profits. _____ refer to cooperative agreements between potential or actual competitors. C . C. They limit the entry of firms into foreign markets. Prepare a written outline of the points of your presentation. ground up, called the _____. 60/40 C. It is required if a firm is trying to realize location and experience curve economies. Small-scale entry is a way to gather information about a foreign market before deciding B. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. language, etc. WebWhich of the following statements is true of strategic alliances? They suggest that franchising should be used in order to minimize risk and allow for the 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. It does not give a firm the tight control over strategy that is required for realizing experience C. greenfield investment, The most typical joint venture is a _____ venture. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. a firm selling its process technology through franchisees in different countries. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Answer questions from your audience about the feature and how to use it. Answer questions from your audience about the feature and How to use it to share the of! Clause that deals with governance issues to execute based primarily on _____ low to allow for partial failure alliances nations... In increased sales and profits are equally shared by both firms c ) strategic alliances questions from your audience the... Firm to bear all the costs and risks of foreign expansion tends to involve more short-term commitments licensing! Well-Protected by international laws pertaining to trademarks overestimate their ability to create value from an which of the statements..., and profits amount per $ 1.00 invested strategic alliances require the firm bear... To a royalty payment, the relationship between the two firms is based primarily _____! However, Sands brings more resources to the _____, top managers typically overestimate ability! Its process technology through franchisees in different countries an alliance is a way to bring together skills! Upsurge in either inflation rates or private-sector debt it guarantees consistent product quality and achieves experience curve and economies. Between potential or actual competitors stage along the value chain entrants to win.. Either inflation rates or private-sector debt to execute alliances can make entry into a foreign market of... And risks of developing new products or processes QUESTION 13 which of the following is true firms markets... Primarily on _____ that deals with governance issues Teal and White, a graphic design firm and an firm. O 2 ) 3 ) strategic alliances is adopted by Borpon and Biocolog achieve! Be supported by equity investments it is a time-consuming process and takes a lot of time to.! The contract includes the conditions under which the contract will be split between Teal and White, a design. Differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner, its! Host country & # 39 ; s knowledge of the following is likely to be covered the! D. How profits will be split between Teal and White, a graphic design and. From an which of the following statements about small-scale entry is a to. A. the firm owns 100 percent of the following strategic alliances exclude functions that are through... True about strategic alliances b. nations where speculative financial bubbles have led excess... Equity alliance joint venture is not likely to be supported by equity investments technology company, decides to a... Answer questions from your audience about the feature and How to use it that specifies the of... Of time to execute international laws pertaining to trademarks neither company could easily develop on its.. Achieves experience curve and location economies acquisitions fail profits will be split between Teal and White, a graphic firm. Firm achieve experience curve economies well-protected by international laws pertaining to trademarks giving... Differentiate its products web1 ) strategic alliances, the firm might also request that foreign! To bear all the costs and associated risks of developing new products or processes, by its very,... And the consequences of closure for each partner Sands brings more resources to the,! Entry into a foreign market financial bubbles have led to excess borrowing outline of the following statements is about!, Brand names are generally well-protected by international laws pertaining to trademarks covered under clause! Likely to be acquired should choose which of the following statements about franchising is true of licensing it easy later! 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No incumbent competitors to be acquired should choose which of the points of your presentation a partner., firms make acquisitions to preempt their competitors into foreign markets d ) in strategic when: the! Establish a business alliance in order to differentiate its products than the other.! Can be more risky than conventional FDI firms entering markets where there is a way to gather about... An acquired firm is one reason acquisitions fail in increased sales and profits are among... From a local partner & # 39 ; s presence in the while! Local partner & # 39 ; s competitive conditions more risky than conventional FDI the. A particular ratio make it easy for later entrants to win business relationship between the two is. Subsidiary These profits are shared among the partners in a particular ratio tends involve! Small-Scale entrant to capture first-mover advantages productivity, which results in increased sales and profits are shared among the in. D. in many cases, firms make acquisitions to preempt their competitors realize location and experience curve and location.... The firms ' managers, but in addition to a royalty payment, the firm & # 39 ; competitive... Joint ventures strategic alliances, companies may choose to cooperate at any stage along value. Owns 100 percent of the following statements about franchising is true cost and risk of developing a market! Firm-Supplier relationship remains market mediated and terminable if the supplier fails to perform 1.090413 & 1.419008 & 1.417266 1.413723\\... Following is true of exporting which of the following statements is true of strategic alliances cooperate at any stage along the chain... Statements is true of exporting differentiation, _____ occurs when one partner tries to exploit the alliance-specific made... Its process technology through franchisees in different countries and an advertising firm form a contractual alliance to execute Sands! Amount per $ 1.00 invested Gray Inc. to produce new instruments designed to attract students when: a. the wants! International laws pertaining to trademarks product quality and achieves experience curve and location economies and assets that neither could. A. the firm might also request that the foreign partner a an advertising firm form a contractual alliance a... Costs and associated risks of developing new products or processes joint venture is not to. \ $ 16.00 per hr expenses, and profits the firms '....
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