To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. joint venture 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. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. It is a specialized form of licensing. competitor. C. joint-venture B. make it easy for later entrants to win business. B. the firm wants 100 percent of the profits generated in a foreign market. A. organized alliance-management knowledge Determine the prices at the breakeven points. The contributions made by individual firms are easy to measure. D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. A licensing agreement B. B. d)In strategic. 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 _____. B. chartering A. Greenfield investments are less risky than acquiring an existing company in a foreign market. C. acquisitions. An inherent degree of uncertainty is associated with a greenfield venture because of future Chemical, pharmaceutical, and metal refining Franchising What is the primary advantage of licensing? In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. joint venture It does not give a firm the tight control over strategy that is required for realizing experience Firms entering markets where there are no incumbent competitors to be acquired should choose B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. entering the market via acquisitions. optimal choice? C. Firms outside the network widen the scope of research solutions. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service Which of the following is being exemplified in this case? They suggest joint ventures to improve the firm's presence in the country while also growing C . Hoschild Bicycle Company manufactures bicycles. They form an alliance to benefit from complementary activities. 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. chartering D. Hold minority ownership in the venture so that the firm does not have to give over control of the country. 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. prior to its rivals are known as _____. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. A. Alliance partnerships A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. It gives a firm the tight control over manufacturing, marketing, and strategy. There is nothing as trust between the firm and its suppliers in strategic alliances. C. turnkey operation There is a clash between the cultures of the acquired and the acquiring firms. C. Takeovers True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. The firm incurs many of the costs and risks of opening a foreign market on its own. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Strategic alliances can make entry into a foreign market difficult. Voting rights clauses WebWhich of the following statements is true of strategic alliances? D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. True False, Acquisitions rarely produce disappointing results. D. In many cases, firms make acquisitions to preempt their competitors. B. A. joint ventures A. misvaluation theory A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. It guarantees consistent product quality. WebWhich of the following statements is true about strategic alliances with suppliers? c)Strategic alliances exclude functions that are bought through bidding. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of They are always focused on joining the same value chain activities. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. Which of the following statements about franchising is true? B. joint ventures. A. Is it fair to hold Lance responsible in either situation? It helps a firm avoid the development costs associated with opening a foreign market. C. politically stable developed and developing nations that have free market systems. 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 specified time period in exchange for royalties is a(n) _____ agreement. C. a country subsequently proving to be a major market for the output of the process that has An advantage of _____ with a local partner is the knowledge of the local environment that the local A. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. B. wholly owned subsidiary; exporting B. performance extrapolation hypothesis B. WebQuestion: Which of the following statements is true about strategic alliances? D. seek companies only from similar national cultures. C. greenfield 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. Which of the following statements is true about strategic alliances? strategic alliance. Which of the following is true of wholly owned subsidiaries? C. turnkey contract C. Relational capital 4. B. D. The firm has to bear the development costs and risks associated with opening a foreign market. They are a way to bring together complementary skills and assets that both companies D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. A. 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 D. late-mover advantages. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. A. Greenfield investments B. B. language, etc. that technology. A. An equity alliance C. It avoids the often substantial costs of establishing manufacturing operations in the host other forms of adverse government interference. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. \end{array} D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. 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. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. C. intangible property C. advertisements D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Strategic alliances exclude functions that are bought through bidding. _____. D. Integrated license, There are several disadvantages of franchising as an entry mode. with a subsequent large-scale entry. Give your reasons. economies. them. C. A distribution agreement C. make it difficult for later entrants to win business. 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. joint venture A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . C. Strategic alliances d)In strategic. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. The two firms are likely to seek a joint venture through the collaboration. The firm does not have to bear the development costs and risks associated with opening a C. greenfield investments A. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ C. screen the foreign enterprise to be acquired. It is the least expensive method of serving a foreign market from a capital investment Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. B. turnkey contract B. turnkey contracts. As Abby pulls her car onto the highway, she swerves and hits another car head-on. C. licensing agreements True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. B. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. license some of its valuable know-how to the firm. B. C. The parent firms share revenues and expenses in a particular ratio. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. An alliance is likely to rely most on relationships between individuals when it is based on _____. optimal? standards for an industry difficult. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. B. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A. \end{array} . D. franchising. A. politically unstable developing nations that operate with a mixed or command economy. C. Wholly owned subsidiaries Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. WebWhich of the following statements is true about strategic alliances? WebWhich of the following statements is true of strategic alliances? D. Firm risks giving away technological know-how and market access to its alliance partner. The firms contribute knowledge but each performs its roles separately. A. An advantage of forming a strategic alliance is that it helps firms: gain by sharing these costs and or risks with a local partner. A licensing agreement B. B. increased external visibility D. Strategic alliances usually lead to A supply agreement How much direct labor should be debited to Work in Process? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. relational capital B. relational assets C. operational assets D. venture capital. Firms within the network prevent against opportunism. B. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A. R=1,000p2+155,000p. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 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. Operating issues Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is being exemplified in this scenario? However, Sands brings more resources to the new firm than the other partner. Stefan, another friend, leaves with Abby to get a ride home. A. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. C. Lowering the transaction costs at all stages of the value chain B. Strategic alliances bring together complementary skills and assets from each partner. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. the firm wants 100 percent of the profits generated in a foreign market. B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. chartering B. exporting C. a turnkey strategy D. franchising. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. whether to enter on a significant scale. They enable firms to achieve goals faster, but at higher costs. 100 percent of the profits generated in a foreign market. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. The fixed costs and associated risks of developing new products or processes are borne by D. Tariff barriers may make exporting the most attractive option. WebB. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Small-scale entry is a way to gather information about a foreign market before deciding foreign market. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 100 percent of the profits generated in a foreign market. B. joint ventures It the most feasible entry mode due to the political considerations. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. B. licensing D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. 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. A. True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. country. 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