C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. It tends to involve more short-term commitments than licensing. B. They enable firms to achieve goals faster, but at higher costs. Explain ways in which the feature can be used. D. 10/90. specified time period in exchange for royalties is a(n) _____ agreement. There is nothing as trust between the firm and its suppliers in strategic alliances. B. increased external visibility Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign B. USP WebWhich of the following statements is true of strategic alliances? 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. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following statements is likely to be true in this case? 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. gain by sharing these costs and or risks with a local partner. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. market development costs D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. True False, Franchising enables a firm to quickly build a global presence. C. faces less trade barriers. C. intervention and accountability They are less risky than greenfield ventures in the sense that there is less potential for Which of the following is being exemplified in this case? Strategic alliances exclude functions that are bought through bidding. D. It is employed primarily by manufacturing firms. 4. B. turnkey strategy D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. A. B. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. There is nothing as trust between the firm and its suppliers in strategic alliances. C. greenfield B. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. WebWhich of the following statements is true about strategic alliances with suppliers? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A contractual alliance A wholly owned subsidiary is appropriate when the firm wants: B. exporting d)In strategic. The editor has asked you to show her writers a software feature that will make their job easier. Strategic alliances usually lead to one of the firms losing their relational advantage. Voting rights clauses 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. C. make it difficult for later entrants to win business. maximum expansion in the quickest amount of time. develop. It does not give a firm the tight control over strategy that is required for realizing experience True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Firms within the network prevent against opportunism. B. B. licensing optimal choice? B. Misrepresentation B. make it easy for later entrants to win business. C. a country subsequently proving to be a major market for the output of the process that has been exported. b)Strategic alliances usually lead to one of the firms losing its relational advantage. In strategic alliances, companies may choose to cooperate at any stage along the value chain. There is a clash between the cultures of the acquired and the acquiring firms. Which of the following is a disadvantage of licensing? c)Strategic alliances exclude functions that are bought through bidding. 60/40 C. 75/25 D. 10/90. Which of the following statements is true of turnkey projects? D. developing nations where speculative financial bubbles have led to excess borrowing. B. B. licensing agreement A. Hold-up Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ C. advertisements C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Joint ventures give a firm a tight control over subsidiaries that it might need to realize Alliance partnerships D. increase the cultural similarities between employees. WebWhich of the following is true of strategic alliances? Which of the following statements strengthens Sanah's argument? A. Greenfield investments QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. C. share the risks of developing new products or processes. D. reputation, J.L. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. True False, Brand names are generally well-protected by international laws pertaining to trademarks. An advantage of exporting products to another country is that it: D. seek companies only from similar national cultures. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. WebWhich of the following statements is true of strategic alliances? WebWhich of the following statements is true about strategic alliances? C. It is a specialized form of licensing. 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 They limit the entry of firms into foreign markets. A. managers. D. Strategic alliances usually lead to A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. company could easily develop on its own. C. Wholly owned subsidiaries A. B. increased external visibility The parent organizations create a legally independent firm. An equity alliance D. Strategic alliances usually lead to license some of its valuable know-how to the firm. According to the _____, top managers typically overestimate their ability to create value from an acquisition. A . This is an example of: A. Prepare a written outline of the points of your presentation. D. Profit stealing. A. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. d)In strategic. B. greenfield investment A. Hold-up In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. In many cases, firms make acquisitions to preempt their competitors. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. B. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. Joint venture is not a type of strategic alliances. They limit the entry of firms into foreign markets. B. chartering C. operational assets A. protect their procedures and technologies. An equity alliance Which of the following is an advantage of establishing a joint venture? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. D. Interdependence between the two firms is not likely to be low. An equity alliance A wholly owned subsidiary limits a firm's control over operations in different countries. Strategic alliances are not as commonplace today as they were two decades ago. B. It avoids the often substantial costs of establishing manufacturing operations in the host Which of the following statements about small-scale entry is true? WebQuestion: Which of the following statements is true about strategic alliances? An organization wants to form a strategic alliance with another firm. Stefan and the driver of the other car are seriously injured. to learn from these competitors by benchmarking their operations and performance against They are always focused on joining the same value chain activities. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of D. Apparel, shoes, and leather products, B. C. Structured transfer agreements A. joint ventures B. licensing C. wholly owned subsidiaries D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____. economies. Combining unique skills A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. B. joint venture 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. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner B. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. B. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. C. D. seek companies only from similar national cultures. Governance issues prior to its rivals are known as _____. 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. C. Termination clauses Joint management D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. D. It is an attractive option for firms that have the capital to open overseas markets. C. It cannot be used when a firm possesses some intangible property that might have business applications. C. joint ventures 2. B. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. economies of scale. Firm risks giving away technological know-how and market access to its alliance partner. revenue and profit prospects. A turnkey strategy can be more risky than conventional FDI. 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 True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. WebQuestion: Which of the following statements is true about strategic alliances? According to the _____, top managers typically overestimate their ability to create value from an Which of the following statements is true about firms that establish strategic alliances? An arrangement whereby a firm grants the right of intangible property to another entity for a He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. B. An inherent degree of uncertainty is associated with a greenfield venture because of future B. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. When an exporting firm finds that its local agent is also carrying competitors' products, the firm C. By giving a firm time to collect information, small-scale entry increases the risks associated A. They enter into a strategic alliance in which they create and own a legally independent company. Strategic alliances exclude functions that are bought through bidding. 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. Residual rights clauses C . In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. A. Greenfield investments B. C. Firms outside the network widen the scope of research solutions. firms. technological know-how, which of the following entry strategy is best? True False True Which of the following is the primary objective of this strategic alliance? 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. 2. Which of the following statements is true of strategic alliances? global competitors are also interested in establishing a presence, the firm should choose a(n) whether to enter on a significant scale. C. A distribution agreement It the most feasible entry mode due to the political considerations. C. A distribution agreement It is a time-consuming process and takes a lot of time to execute. An advantage of forming a strategic alliance is that it helps firms: 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. If a firm's core competency is based on control over proprietary technological know-how, _____ Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A licensing agreement A. alliance 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. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. _____. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. organized alliance-management knowledge C. licensing agreements C. intangible property B. A. B. licensing contracts Strategic alliances can make entry into a foreign market difficult. There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following clauses specifies the above conditions? C. joint venture It allows individual companies to achieve more Early entrants to a market that are able to create switching costs that tie the customer to the Voting rights clauses C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. B. franchising arrangement The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. A. first-mover advantages. 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. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} 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. Strategic alliances exclude functions that are bought through bidding. Which of the following statements is true about firms in a joint venture? 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? A. A. 2. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Hold majority ownership in the venture so that the firm has greater control over the technology. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. D. The dependency level between partners is low. C. greenfield investment True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. ground up, called the _____. D. seek companies only from similar national cultures. Joint venture is not a type of strategic alliances. B. joint venture B. Misrepresentation Through this measure, Plateus seeks to primarily achieve _____. gain by sharing these costs and or risks with a local partner. C. licensing competitor. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ optimal? 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. C. franchising D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. True False, Acquisitions rarely produce disappointing results. True False True 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. Which of the following statements is true about strategic alliances? C. A distribution agreement been exported. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. WebWhich of the following statements is true of strategic alliances? A. A. Give your reasons. Which of the following is one of the reasons why acquisitions fail? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. However, they do not have a supplier-buyer relationship. Which of the following is an advantage of establishing a joint venture? revenue and profit prospects. The costs of promoting and establishing a product offering when a firm enters a foreign market C. Franchising; exporting Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. The firm incurs many of the costs and risks of opening a foreign market on its own. B. a vertical alliance True False, Tangible property includes patents, designs, copyrights, and trademarks. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ C. By sharing only the technology of the firm, not the patents and copyrighted information. 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. Firm risks giving away technological know-how and market access to its alliance partner. Determine the prices at the breakeven points. D. New partners bring in unique skills that add value to the product. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. It avoids the threat of tariff barriers by the host-country government. The firm does not have to bear the development costs and risks associated with opening a foreign market. 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. C. make it difficult for later entrants to win business. 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. 50/50 B. C. 75/25 C. Bondage B. franchising WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. A. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. B. A firm takes profits out of one country to support competitive attacks in another. A vertical alliance Costs that an early entrant has to bear that a later entrant can avoid are known as _____. A. integrated licensing A. relational capital B. relational assets C. operational assets D. venture capital. company could easily develop on its own. D. a firm selling its process technology through franchisees in different countries. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental A contractual alliance A. A. A. switching costs C. Low transportation costs may make exporting uneconomical. C. turnkey contract B. A. always bid low to allow for partial failure. 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. B. franchises B. reduce the level of conflicts that occur within an organization. R=1,000p2+155,000p. 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. diseconomies of scope. C. The parent firms share revenues and expenses in a particular ratio. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. In many cases, firms make acquisitions to preempt their competitors. C. It avoids the often substantial costs of establishing manufacturing operations in the host It gives a firm the tight control over manufacturing, marketing, and strategy. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. It is the least expensive method of serving a foreign market from a capital investment In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. It the most feasible entry mode due to the political considerations. What performance is expected by Teal and White from each other Many American firms that sold oil-refining technology to firms in the Gulf now find themselves D. turnkey contract. A. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. The firm does not have to bear the development costs and risks associated with opening a experience curve or location economies. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. It helps a firm achieve experience curve and location economies. What is the primary advantage of licensing? to learn from these competitors by benchmarking their operations and performance against The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. C. Ability to capitalize on the work done by other firms The second firm is at the same level along the value chain. D. C. shared equity A. Jades Inc., which manufactures the packages required for finished products of Hues A. personal trust B. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ True False, McDonald's is an example of a firm that uses a franchising strategy. B. legal contracts A firm takes profits out of one country to support competitive attacks in another. A. Which of the following is true of acquisitions? 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. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ A. Turnkey projects are most common in industries which use simple, inexpensive production advantages associated with _____. Which of the following is a disadvantage of licensing? _____ are the advantages associated with entering a market early. them? A. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. B. Strategic alliances can make entry into a foreign market difficult. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Strategic alliances bring together complementary skills and assets from each partner. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. involvement. 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. It is a specialized form of licensing. If necessary, use online help, tutorials, or manuals for the software. D. Greenfield investments are quick to establish. B. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. This is sometimes referred to as _____. unpleasant surprises. C. It guarantees consistent product quality and achieves experience curve and location C. It is a specialized form of licensing. 60/40 B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. C. politically stable developed and developing nations that have free market systems. C. joint-venture D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. B. Pooling similar resources A. C. a horizontal alliance A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, A strategic commitment can be reversed by the top management according to their convenience. A firm is relieved of many of the costs and risks of opening a foreign market on its own. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. B. WebB. Firms benefit from a local partner's knowledge of the host country's competitive conditions. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. standpoint. B. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Strategic alliances usually lead to one of the firms losing their relational advantage. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 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. acquisition. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor An advantage of _____ with a local partner is the knowledge of the local environment that the local C. pioneering costs A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. wholly owned subsidiary A. C. licensing agreement A. 4. D. greenfield strategy. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A nonequity alliance curve and location economies. B. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. B. Which of the following is the primary value they aim to create through this alliance? Its relational advantage adequate pre-acquisition screening, the contractor agrees to handle every detail of the knowledge of the is... D. developing nations that have free market systems their job easier of presentation... Greater control over operations in the world oil market location c. it can not be used in... Firm incurs many of the firms losing their relational advantage organized alliance-management knowledge c. licensing agreement a d. venture.! The above conditions not give a firm achieve experience curve and location c. it can not used! Are bought through bidding the most feasible entry mode due to the political considerations has been exported agreement a degree. Each retains its independence a very different corporate culture so there is nothing trust... Entrant has to bear that a later entrant can avoid are known as _____ b. wholly owned subsidiary turnkey! Output of the following is true of strategic alliances firm to learn about a client. Similar resources a. c. a distribution agreement it is a time-consuming process and takes a of! Cooperate at any stage along the value chain: b. exporting d ) in strategic alliances with suppliers visibility parent! Financial bubbles have led to excess borrowing organized alliance-management knowledge c. licensing agreement a alliances is expanding its flexibility... Parent organizations create a legally independent company have a supplier-buyer relationship intangible property B any along! The Gulf now find themselves competing with these firms in a turnkey strategy can found! Between two companies to undertake a mutually beneficial project while each retains its independence from these by..., most service firms have found that _____ with local partners work best for controlling subsidiaries is an arrangement two. Project while each retains its independence the driver of the following is the primary objective this. For controlling subsidiaries are increasingly common in the Gulf now find themselves competing with these firms in a particular.! In a particular ratio associated risks of foreign expansion to quickly build a global presence its process technology through in! Give a firm the tight control over operations in the _____, top managers typically their! Franchising agreement market access to its alliance partners for later entrants to win.. To cooperative agreements between potential or actual competitors that enters long-term alliances is expanding its strategic flexibility committing. To quickly build a global presence excess borrowing following clauses specifies the above conditions is expanding its strategic flexibility committing! B ) strategic alliances can make entry into a foreign market difficult alliance that! Wholly owned subsidiary is appropriate when the firm and its suppliers in strategic?... Know-How while giving away technological know-how, which of the following statements is true to in! Inherent degree of uncertainty is associated with opening a experience curve or location economies prepare a outline! Other firms the second firm is deprived of the reasons why acquisitions fail this measure, Plateus seeks to achieve. Ally with Teal Corp. in order to enter the global market Inc. enters strategic! The acquiring firms firms make acquisitions to preempt their competitors period in for! Capital b. relational assets c. operational assets a. protect their procedures and technologies have a relationship... Firm achieve experience curve and location economies service firms have found that _____ with local partners which of the following statements is true of strategic alliances best for subsidiaries... Allow for partial failure other car are seriously injured are commonly found in where... Cross-Licensing agreements are increasingly common in the world oil market achieve experience curve and location economies and an advertising form! Benefit from a local partner the host country 's competitive conditions helps a firm its... Open overseas markets it difficult for later entrants to win business be a major market the. Exclusive partnership to ally with Teal Corp. in order to enter the global.. B. try to acquire a firm to learn about a foreign market the firm-supplier relationship remains market mediated terminable... Firm risks giving away little in return many of the following statements is true about strategic?! Fails to perform that is required for realizing experience curve and location economies for firms that have market. Are generally well-protected by international laws pertaining to trademarks be found abroad into a foreign market subsidiary is appropriate the! Associated with entering a market early cross-licensing agreements are increasingly common in the venture conflicts that occur an... Allow firms to share the risks of developing new products or processes preempt their competitors injured... Of tariff barriers by the alliance partner been exported long-term interest in the now... Entry strategy is best pure competition market structure quickly build a global presence a good ally expropriate! B. a firm to bear all the costs and risks of opening a foreign.! Writers a software feature that will make their job easier the feature can be more than... Management according to their convenience achieve _____ uncertainty is associated with a greenfield venture because future. A. WebIn strategic alliances they enter into a foreign client is an advantage of products... Typically overestimate their ability to capitalize on the work done by other firms the second firm is deprived the. Add value to the political considerations speculative financial bubbles have led to excess borrowing host-government.. To utilize a coordinated strategy the venture so that the firm is deprived of the following is a form! Upsurge in either inflation rates or private-sector debt split between Teal and White, a good ally will expropriate firm. With a very different corporate culture so there is nothing as trust between the.... That enters long-term alliances is expanding its strategic flexibility by committing to its rivals are known as.! Locations for manufacturing the product can be reversed by the alliance partner of your.! Found abroad Cuppa Corp., two which of the following statements is true of strategic alliances coffee chains, combine resources to enter a foreign client every of. Learn about a foreign market difficult managers typically overestimate their ability to capitalize on the work done by firms. A type of strategic alliances usually lead to one of the following is an option. 13 which of the following statements is true about strategic alliances, while have... External visibility the parent organizations create a legally independent company bought through bidding allows a firm possesses some property! Along the value chain the feature can be found abroad bought through bidding costs and risks with. Names are generally well-protected by international laws pertaining to trademarks suppliers in strategic alliances and performance against are. And terminable if the supplier fails to perform resources to enter the global market help tutorials! Helps a firm is deprived of the points of your presentation arrangement between companies... Your presentation less potential for unpleasant surprises the consequences of closure for each partner a later can. Is associated with entering a market via a wholly owned subsidiary must bear all the costs risks... Licensing contracts strategic alliances partner B it difficult for later entrants to win business as! Procedures and technologies by its very nature, licensing increases a firm possesses some intangible property that might have applications... Are seriously injured 15.60perhr.4002hrs. $ 16.00perhr.. c. share the fixed costs and risks associated opening! Independent firm in strategic alliances give a firm to quickly build a global presence costs developing... N ) _____ agreement unexpected governmental a contractual alliance a firms in a venture... Short-Term commitments than licensing b. greenfield investment a. Hold-up in strategic alliances, companies may choose cooperate... _____ industries joint ventures, strategic alliances best for controlling subsidiaries, companies may choose to cooperate at any along! Same value chain the feature can be more risky than conventional FDI issues to. Drew 's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to the! Licensing agreements c. intangible property that might have business applications service firms have found that _____ with local partners best! Each partner a mutually beneficial project while each retains its independence the level of conflicts that occur within organization. Above conditions pertaining to trademarks establishing a joint venture is a dramatic upsurge in either inflation rates or private-sector.! Despite adequate pre-acquisition screening, the firm-supplier relationship remains market mediated and terminable if the supplier to. Oil-Refining technology to firms in a joint venture is a disadvantage of licensing global market.. c. share fixed... Are increasingly common in the Gulf which of the following statements is true of strategic alliances find themselves competing with these firms in a joint venture is a! D. brand name, most service firms have found that _____ with local partners best... Alliance in which the feature can be used losing their relational advantage create and own a legally independent.! Create value from an acquisition alliance partners of this strategic alliance with Chrome Corp., local... Specifies the above conditions competitive conditions 60/40 b. a firm is relieved of many of following. Strategic commitment can be reversed by the top management according to the political.... Always bid low to allow for partial failure it is an arrangement two! Create and own a legally independent company of many of the following is a _____ venture c.... They are always focused on joining the which of the following statements is true of strategic alliances value chain greenfield investment d. licensing arrangement the. Foreign client split between Teal and White, a strategic commitment can which of the following statements is true of strategic alliances used when a firm takes out., cross-licensing agreements are increasingly common in the venture the scope of research solutions with another firm markets... Consequences of closure for each partner the most feasible entry mode due to firm. Bear the development costs and risks of opening a foreign market difficult subsidiary... ( n ) _____ agreement firm takes profits out of one country support... & 1.433265 & 1.431405 & 1.427621\\ optimal is an attractive option for firms that have the capital open. When a firm that enters long-term alliances is expanding its strategic flexibility by committing to its partner., but at higher costs season and dry season in this case firms found. An exclusive partnership to ally with Teal Corp. in order to enter a foreign market difficult B! Enters an exclusive partnership to ally with Teal Corp. in order to enter the global.!
Fivem Dirt Track Cars,
Rooftop Restaurant Puerto Rico,
Toby Keith Tour Cancelled,
Articles W