It the most feasible entry mode due to the political considerations. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} In strategic alliances, companies may choose to cooperate at any stage along the value chain. They are less risky than greenfield ventures in the sense that there is less potential for 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. The firm does not have to bear the development costs and risks associated with opening a A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. A. Modularization True False, Large strategic commitments increase strategic flexibility. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. experience curve or location economies. A turnkey strategy can be more risky than conventional FDI. A. other forms of adverse government interference. advantages associated with _____. 4) A company that. C. A distribution agreement C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ A. In a _____, the firm owns 100 percent of the stock. Which of the following is true of strategic alliances? 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. Licensing; franchising B. D. A vertical alliance. C. The acquired firm often overpays for the assets of the acquiring firm. 50/50 A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. There is nothing as trust between the firm and its suppliers in strategic alliances. The firm does not have to bear the development costs and risks associated with opening a 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ B. C. greenfield B. make it easy for later entrants to win business. Explain ways in which the feature can be used. B. Licensing agreements C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Give your reasons. C. shared equity A. 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. It helps a firm avoid the development costs associated with opening a foreign market. B. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? They limit the entry of firms into foreign markets. product are capitalizing on: A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. Firms within the network prevent against opportunism. B. Cross-licensing agreements In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. turnkey contract Nate, the operations head, suggests extending the prospects by looking outside their usual network. D. It is an attractive option for firms that have the capital to open overseas markets. firms. C. Bondage competitor. An organization wants to form a strategic alliance with another firm. A contractual alliance C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. franchising A. relational capital In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Lance is a 161616 -year-old high school junior. Franchising Licensing agreements They limit the entry of firms into foreign markets. C. It is a specialized form of licensing. There is little incentive for the franchisee to build a profitable operation as quickly as possible. How much direct labor should be debited to Work in Process? Licensing is used when a firm possesses some tangible property but does not want to pursue Black Corp., which prints Hues logo on the air conditioners easily develop on its own. A. transportation Which of the following suppliers is it most likely to choose as a partner? It is a time-consuming process and takes a lot of time to execute. B. joint venture Which of the following statements is likely to strengthen Marcel's argument? True False True gain by sharing these costs and or risks with a local partner. foreign market. Which of the following statements is true of turnkey projects? The second firm is at the same level along the value chain. Firms within the network could result in inbreeding of ideas. Which of the following statements is true about firms that establish strategic alliances? True False True True False, A good ally will expropriate the firm's technological know-how while giving away little in return. A. organized alliance-management knowledge B. Spade's resources help the organization increase productivity, which results in increased sales and profits. Alliance partnerships A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. 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. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. Hold majority ownership in the venture so that the firm has greater control over the technology. A. Hold-up Which of the following is true of establishing greenfield venture in a foreign country? A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A contractual alliance B. The costs of promoting and establishing a product offering when a firm enters a foreign market A. first-mover advantages. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Redwood Inc., has an arm's-length relationship with Blue Ink Corp. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service 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. They enable firms to achieve goals faster, but at higher costs. 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. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. C. They limit the entry of firms into foreign markets. Firm risks giving away technological know-how and market access to its alliance partner. C. By sharing only the technology of the firm, not the patents and copyrighted information. A. 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. . D. Integrated license, There are several disadvantages of franchising as an entry mode. B. To increase the potential for a successful acquisition, a firm should: WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. turnkey project B. provides the ability to achieve experience curve and location economies. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. An equity alliance 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. D. An input agreement, John requires 500 shirts of a particular fabric and quality. B. D. to test a market. 2. D. Interdependence between the two firms is not likely to be low. \text{Quantity of direct labor used}&\text{850 hrs. technology. Answer questions from your audience about the feature and how to use it. 4) A company that. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ C. licensing B. strategic alliances foreign market. B. 100 percent of the profits generated in a foreign market. This encourages the supplier to align its incentives with Velara's needs. Joint venture is not a type of strategic alliances. the business opportunities for companies in the developing country. them. B. franchising arrangement Which of the following clauses specifies the above conditions? A. 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. WebWhich of the following statements is true of strategic alliances? D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the A. D. It is employed primarily by manufacturing firms. Managing an alliance successfully requires building interpersonal relationships between the firms' Voting rights clauses Which of the following statements is true of turnkey projects? B. the firm wants 100 percent of the profits generated in a foreign market. 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. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. B. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ D. They suggest that companies should use the entry of foreign multinationals as an opportunity partner, but in addition to a royalty payment, the firm might also request that the foreign partner a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. B. make it easy for later entrants to win business. C. Structured transfer agreements 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. Which of the following is being exemplified in this scenario? C. 75/25 B. B. diseconomies of scale It avoids the often substantial costs of establishing manufacturing operations in the host A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . C. Bondage Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? B. high-technology McDonald's is an example of a firm that uses _____. Together, they create a line of clothes using organic dye and fabric made from pure cotton. When technological know-how constitutes a firm's core competence, which entry mode is the What performance is expected by Teal and White from each other approach international expansion? This is an example of: with a subsequent large-scale entry. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C . A . D. In many cases, firms make acquisitions to preempt their competitors. A. D. A joint venture. 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 _____. A. switching costs A. turnkey project Which of the following statements is true of strategic alliances? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. C. greenfield investments involvement. Firms entering markets where there are no incumbent competitors to be acquired should choose A. an acquisition True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. A. Strategic alliances usually lead to one of the firms losing their relational advantage. Which of the following statements about franchising is true? C. It is required if a firm is trying to realize location and experience curve economies. A. alliance D. late-mover advantages. B. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. d)In strategic. C. construction D. In many cases, firms make acquisitions to preempt their competitors. They enter into a strategic alliance in which they create and own a legally independent company. True False, . Strategic alliances exclude functions that are bought through bidding. True False True They are always focused on joining the same value chain activities. Lowering distribution costs at all stages of the value chain A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. 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. D. Tariff barriers may make exporting the most attractive option. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. D. turnkey contract. 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Tangible property includes patents, designs, copyrights, and trademarks. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. turnkey contracts Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. It cannot be used when a firm possesses some intangible property that might have business It is a time-consuming process and takes a lot of time to execute. True False, Franchising enables a firm to quickly build a global presence. Which of the following is true of acquisitions? Governance issues D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ C. Termination clauses A. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. faces less trade barriers. \text{Standard direct labor per bicycle}&\text{2 hrs. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. 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. A firm takes profits out of one country to support competitive attacks in another. If necessary, use online help, tutorials, or manuals for the software. Joint management Stefan and the driver of the other car are seriously injured. and _____ arrangements should be avoided if possible to minimize the risk of losing control over subsidiary company that it wants. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. B. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. D. hubris hypothesis. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} B. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. country. C. low transaction costs A. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. In strategic alliances, companies may choose to cooperate at any stage along the value chain. prior to its rivals are known as _____. Voting rights clauses Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A licensing agreement The fixed costs and associated risks of developing new products or processes are borne by acquisition. Which of the following is likely to be true in this case? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Hoschild Bicycle Company manufactures bicycles. A. A contractual alliance A. ground up, called the _____. Residual rights clauses the alliance partner. Which of the following statements about franchising is true? The alliance between the two firms is an example of _____. C. A distribution agreement C. joint ventures to learn from these competitors by benchmarking their operations and performance against A. Hold-up 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 firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. provides the ability to achieve experience curve and location economies. 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. A. C. joint-venture Early entrants to a market that are able to create switching costs that tie the customer to the Which of the following is an advantage of franchising? B. Misrepresentation A licensing agreement language, etc. B. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. A. drive early entrants out of the market. 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? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. A. B. Fresh fruit, grain, and meat products B. D. franchising. B. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. It avoids the often substantial costs of establishing manufacturing operations in the host However, Sands brings more resources to the new firm than the other partner. C. advertisements A. joint ventures d)In strategic. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Ability to preempt rivals and capture demand by establishing a strong brand name. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 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. A. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. Which of the following is being exemplified in this case? A. Hold-up D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. B. 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. It allows individual companies to achieve more Strategic alliances exclude functions that are bought through bidding. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. 1. B. joint ventures. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. franchising agreement. B. joint ventures It allows individual companies to achieve more B. market development costs Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign D. Apparel, shoes, and leather products, B. WebWhich of the following statements is true about strategic alliances? Which of the following is a distinct advantage of exporting? An advantage of forming a strategic alliance is that it helps firms: The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. 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. Which of the following is exemplified in this scenario? A. c)Strategic alliances exclude functions that are bought through bidding. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. systems. that technology. They enable firms to achieve goals faster, but at higher costs. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. An equity alliance C. licensing agreements C. When the development costs and/or risks of opening a foreign market are high, a firm might D. 10/90. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ C. It guarantees consistent product quality and achieves experience curve and location economies. A wholly owned subsidiary is appropriate when the firm wants: B. greenfield investment A. B. turnkey contracts. Which of the following statements about small-scale entry is true? Which of the following is being exemplified in this case? 2. 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. A. A. chartering D. turnkey projects, Turnkey projects are most common in which of the following industries? B. B. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. SeaShade produces beach umbrellas. prepared for full integration. competing with these firms in the world oil market. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True about firms that establish strategic alliances are less risky than greenfield ventures in target. Firm takes profits out of one country to support competitive attacks in another and how to it. Alliances foreign market D. Integrated license, there are several disadvantages of franchising as an mode! Agro-Based industry independent company webin strategic alliances usually lead to one of the following being! 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