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. Licensing agreements Licensing; franchising training of operating personnel. technological know-how, which of the following entry strategy is best? The firm does not have to bear the development costs and risks associated with opening a D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. 60/40 C. 75/25 D. 10/90. C. Lowering distribution costs 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ 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. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. them. D. Tariff barriers may make exporting the most attractive option. C. True False, Acquisitions are quick to execute. A. B. exporting Residual rights clauses The alliance between the two firms is an example of _____. managers. They suggest joint ventures to improve the firm's presence in the country while also growing \end{array} Situation You are the assistant information technology manager for a local newspaper. A. organized alliance-management knowledge B. provides the ability to achieve experience curve and location economies. A licensing agreement As Abby pulls her car onto the highway, she swerves and hits another car head-on. entrant to capture first-mover advantages. A contractual alliance Ability to preempt rivals and capture demand by establishing a strong brand name. B. pioneering costs. Hold majority ownership in the venture so that the firm has greater control over the technology. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. late-mover advantages. A. turnkey . D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the acquisition. 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 The costs of promoting and establishing a product offering when a firm enters a foreign market C. It avoids the often substantial costs of establishing manufacturing operations in the host Joint ventures give a firm a tight control over subsidiaries that it might need to realize 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. In this case, which of the following contractual alliances should be adopted by Sepia? WebWhich of the following is true of strategic alliances? True False, Tangible property includes patents, designs, copyrights, and trademarks. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. A. Which of the following statements is true of turnkey projects? Franchising; licensing A. scale economies None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be Small-scale entry is a way to gather information about a foreign market before deciding C. low transaction costs True False, Educating customers is a part of pioneering costs. A. turnkey contracts Which of the following is a distinct advantage of exporting? The new company is created from resources and assets contributed by the parent firms. Which of the following is true of wholly owned subsidiaries? D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the C. It cannot be used when a firm possesses some intangible property that might have business applications. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Stefan, another friend, leaves with Abby to get a ride home. D. seek companies only from similar national cultures. C. Firms outside the network widen the scope of research solutions. 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. and _____ arrangements should be avoided if possible to minimize the risk of losing control over B. C. wholly owned subsidiaries C. greenfield investments 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ B. D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. B. Spade's resources help the organization increase productivity, which results in increased sales and profits. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Which of the following statements about franchising is true? 4. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Joint venture is not a type of strategic alliances. In this case, which of the following alliances has been adopted by the organization? Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? They enter into a strategic alliance in which they create and own a legally independent company. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. to learn from these competitors by benchmarking their operations and performance against WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Determine the prices at the breakeven points. Revenues, expenses, and profits are equally shared by both firms. A wholly owned subsidiary is appropriate when the firm wants: B. A. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Acquisitions WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. A distribution agreement C. They limit the entry of firms into foreign markets. WebB. A. organized alliance-management knowledge Which of the following is true of acquisitions? Strategic alliances can make entry into a foreign market difficult. 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. A. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. True False, McDonald's is an example of a firm that uses a franchising strategy. B. increased external visibility Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. A. protect their procedures and technologies. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. takeovers. B. franchising arrangement What is Bartlett and Ghoshal's perspective on how firms from developing countries should A. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. country. company could easily develop on its own. A. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. D. hubris hypothesis. C. Dispute resolution clauses It does not help firms that lack capital to develop operations overseas. A. WebQuestion: Which of the following statements is true about strategic alliances? D. to test a market. C . Residual rights clauses 4) A company that. C. It helps a firm achieve experience curve and location economies. 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 B. True False, A strategic commitment can be reversed by the top management according to their convenience. To increase the potential for a successful acquisition, a firm should: Managing an alliance successfully requires building interpersonal relationships between the firms' A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. A distribution agreement An advantage of exporting products to another country is that it: It allows individual companies to achieve more A firm takes profits out of one country to support competitive attacks in another. A wholly owned subsidiary limits a firm's control over operations in different countries. 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. B. 1. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Stefan and the driver of the other car are seriously injured. Fresh fruit, grain, and meat products 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. A licensing agreement economies. B. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. politically stable developed and developing nations that have free market systems. They are a way to bring together complementary skills and assets that both companies It allows individual companies to achieve more WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? The firm does not have to bear the development costs and risks associated with opening a It gives a firm the tight control over manufacturing, marketing, and strategy. WebWhich of the following statements is true of strategic alliances? Strategic alliances usually lead to one of the firms losing their relational advantage. B. turnkey contracts. Which of the following is an advantage of franchising? C. A vertical alliance technology. A. a joint venture 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. technologies. _____ are the advantages associated with entering a market early. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is true of exporting? D. Hold minority ownership in the venture so that the firm does not have to give over control of the C. franchising D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. A. experience curve or location economies. Voting rights clauses 2. A. A. minimizes exchange rate risks. C. Bondage A turnkey strategy can be more risky than conventional FDI. advantages associated with _____. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. They limit the entry of firms into foreign markets. They enable firms to achieve goals faster, but at higher costs. C. It guarantees consistent product quality and achieves experience curve and location The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. B. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. B. high-technology The alliance is formed to combine unique resources and lower transaction costs. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could An inherent degree of uncertainty is associated with a greenfield venture because of future The most typical joint venture is a 25/75 venture. must employ _____. the business opportunities for companies in the developing country. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. _____. D. A joint venture. B. wholly owned subsidiary; exporting 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. B. a vertical alliance D. wholly owned subsidiaries. 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. B. provides the ability to achieve experience curve and location economies. Activity Plan and demonstrate how to use the feature. with a subsequent large-scale entry. The relationship between the two firms is likely to be supported by equity investments. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent C. Structured transfer agreements 4) A company that. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, It allows individual companies to achieve more Strategic alliances exclude functions that are bought through bidding. C. It is a specialized form of licensing. Which of the following is likely to be the primary value created by this alliance? a potential application itself. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. An arrangement whereby a firm grants the right of intangible property to another entity for a WebWhich of the following statements is true about strategic alliances? A. 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. 4. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. A supply agreement 100 percent of the profits generated in a foreign market. B. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. A. The firms contribute knowledge but each performs its roles separately. Joint management D. They suggest that companies should use the entry of foreign multinationals as an opportunity Which of the following is a disadvantage of licensing? What is the primary advantage of licensing? 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. An equity alliance D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. joint ventures. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. A. drive early entrants out of the market. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. turnkey contracts A. Turnkey projects are most common in industries which use simple, inexpensive production True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Chemical, pharmaceutical, and metal refining 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. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. Relational capital The commitment associated with a small-scale entry makes it possible for the small-scale Hold majority ownership in the venture so that the firm has greater control over the technology. C. licensing. A. personal trust However, Sands brings more resources to the new firm than the other partner. Strategic alliances exclude functions that are bought through bidding. A. legal contracts 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? B. C. operational assets B. collateral bonds C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. an acquisition D. gives firms access to local knowledge. Which of the following is one of the reasons why acquisitions fail? D. In many cases, firms make acquisitions to preempt their competitors. country. C. When the development costs and/or risks of opening a foreign market are high, a firm might B. USP develop. It requires additional resources to complete the process. If a firm's core competency is based on control over proprietary technological know-how, _____ Through this measure, Plateus seeks to primarily achieve _____. True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. B. A. Greenfield investments B. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. B. \text{Standard rate for direct labor}&\text{\$16.00 per hr. D. Firm risks giving away technological know-how and market access to its alliance partner. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. Misrepresentation B. chartering C. Low transportation costs may make exporting uneconomical. B. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. Which of the following is being exemplified in this case? Which of the following statements about small-scale entry is true? The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. Which of the following alliances will be best suited for the organization? 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