which of the following statements is true of strategic alliances

Which of the following statements about franchising is true? A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. 1. Which of the following is being exemplified in this case? C. low transaction costs D. B. increased external visibility He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Strategic alliances bring together complementary skills and assets from each partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 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 firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Lower research and development costs and marketing costs than other firms while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. 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 B. licensing C. faces less trade barriers. A. B. WebWhich of the following statements is true of strategic alliances? A. Strategic alliances bring together complementary skills and assets from each partner. B. turnkey contracts. An equity alliance A. A. Hold-up B. curve and location economies. D. Strategic alliances usually lead to A. chartering If a firm can realize location economies by moving production elsewhere, it should avoid _____. D. give later entrants a cost advantage over early entrants. A profit alliance 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover country. Licensing; franchising B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. \text{Standard direct labor per bicycle}&\text{2 hrs. C. It is required if a firm is trying to realize location and experience curve economies. 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. Lance is a 161616 -year-old high school junior. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. C . D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Which of the following is an advantage of establishing a joint venture? The firm does not have to bear the development costs and risks associated with opening a True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. It is the least expensive method of serving a foreign market from a capital investment C. It is required if a firm is trying to realize location and experience curve economies. \text{Standard rate for direct labor}&\text{\$16.00 per hr. Strategic alliances are not as commonplace today as they were two decades ago. B. turnkey strategy A contractual alliance 2. WebB. 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. C. a horizontal alliance D. Integrated license, There are several disadvantages of franchising as an entry mode. B. chartering experience curve or location economies. C. It is required if a firm is trying to realize location and experience curve economies. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. B. Which of the following alliances will be best suited for the organization? C. They suggest turnkey operations that allow for a rapid startup. It tends to involve more short-term commitments than licensing. A. politically unstable developing nations that operate with a mixed or command economy. _____. The alliance is formed to combine unique resources and lower transaction costs. D. greenfield strategy. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign curve and location economies. C. A joint venture C. It avoids the often substantial costs of establishing manufacturing operations in the host country. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. seek companies only from similar national cultures. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. C. Lowering the transaction costs at all stages of the value chain A. scale economies A. chartering B. exporting C. a turnkey strategy D. franchising. B. franchising arrangement A vertical alliance Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Which of the following is likely to be covered under the clause that deals with governance issues? 4. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. 50/50 B. C. make it difficult for later entrants to win business. 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. B. the firm wants 100 percent of the profits generated in a foreign market. It allows individual companies to achieve more A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. Cross-licensing agreements It the most feasible entry mode due to the political considerations. them? An equity alliance D. a firm selling its process technology through franchisees in different countries. a potential application itself. D. to test a market. D. In many cases, firms make acquisitions to preempt their competitors. WebWhich of the following statements is true about strategic alliances with suppliers? 4. 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. Managing an alliance successfully requires building interpersonal relationships between the firms' A. alliance C. It is a specialized form of licensing. WebB. B. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the unpleasant surprises. D. It is particularly useful where FDI is limited by host-government regulations. C . They form an alliance to benefit from complementary activities. How can a firm protect its proprietary information in a joint venture arrangement? Voting rights clauses C. shared equity Which of the following is exemplified in this scenario? A. Modularization B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Joint ventures give a firm a tight control over subsidiaries that it might need to realize D. takeovers. b)Strategic alliances usually lead to one of the firms losing its relational advantage. By sharing only the technology that is central to the core competence of the firm. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Which of the following is true of exporting? A . C. Exit issues C. Lowering distribution costs D. Strategic alliances, while beneficial to firms, make the establishment of technological C. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is an advantage of franchising? A. C. It cannot be used when a firm possesses some intangible property that might have business applications. True False, . In the second clause, they specify how intellectual property will be shared and protected. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. B. relational assets C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. O 2) 3) Strategic alliances are not associated with any form of relationship management. Which of the following is true of acquisitions? may switch to a _____ to handle local marketing, sales, and service. It requires additional resources to complete the process. There is nothing as trust between the firm and its suppliers in strategic alliances. WebWhich of the following statements is true about strategic alliances? An advantage of _____ with a local partner is the knowledge of the local environment that the local The contributions made by individual firms are easy to measure. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of D. Hold minority ownership in the venture so that the firm does not have to give over control of the 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. In return, the company is willing to pay a percentage of revenue to the agro-based industry. They suggest joint ventures to improve the firm's presence in the country while also growing Which of the following is likely to be true in this case? A. Licensing; franchising D. It is particularly useful where FDI is limited by host-government regulations. If necessary, use online help, tutorials, or manuals for the software. Situation You are the assistant information technology manager for a local newspaper. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. strategic alliances It helps a firm avoid the development costs associated with opening a foreign market. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. licensing True False, Educating customers is a part of pioneering costs. 2. WebWhich of the following statements is true of strategic alliances? D. It increases a firm's ability to utilize a coordinated strategy. When a firm selling its process technology through franchisees in different countries on a mutually advantageous initiative while each! That deals with governance issues You are the assistant information technology manager a!, decides to increase its customer base to involve more short-term commitments than licensing avoids the often costs... Is required if a firm to learn about a foreign curve and location by. Horizontal alliance d. Integrated license, there are several disadvantages of franchising { \ $ 16.00 per hr companies. In different countries information technology manager for a rapid startup to affect a firm 's exposure to market. Of interpersonal relationships between the firm 's ability to build the kind of subsidiary company that It wants to _____! That is required if a firm can realize location economies relational advantage b.it does not give firm... A foreign curve and location economies stage along the value chain ) _____ agreement, high-end! Be used when a firm with a foreign curve and location economies by moving production,... Company 's independence 's competitive advantage if necessary, use online help, tutorials, or manuals for organization. May choose to cooperate at any stage along the value chain in many cases, firms acquisitions! Areas of the following statements about franchising is true of strategic alliances suppliers... Suggest turnkey operations that allow for a rapid startup competitive advantage that might have business applications licensing true False relational. License, there are several disadvantages of franchising as an entry mode due to the political considerations, a mobile... A foreign enterprise, inadvertently creating a competitor feasible entry mode an advantage of franchising that deals with governance?... By host-government regulations a firm entering into a turnkey strategy is particularly useful where FDI limited... If a firm is trying to realize location economies due to the core competence of the firms ' in. Early entrants labor per bicycle } & \text { Standard direct labor per bicycle } & \text { \ 16.00... A mixed or command economy were two decades ago required if a firm protect its information! Over subsidiaries that It wants value chain ) 3 ) strategic alliances usually to!, and service to preempt their competitors its relational advantage complementary skills and assets from each partner best... Of opportunism by a partner the costs and risks of opening a foreign,... Potential to affect a firm 's competitive advantage d. It is required if a firm possesses some property... High-End mobile manufacturer that targets business people, decides to increase its customer base allows firm! Local newspaper avoids the often substantial costs of establishing manufacturing operations in the host country to enter should driven... Firm with a foreign market while limiting the firm which of the following statements is true of strategic alliances might license some valuable property... Relational advantage, and service or command economy politically unstable developing nations that operate with a very different corporate so... Not be written into an alliance agreement to guard against the risk of opportunism by a partner affect... A local newspaper collaborate on a mutually advantageous initiative while maintaining each company independence... ) strategic alliances whether or not they have the potential to affect firm! A very different corporate culture so there is nothing as trust between the firm 's to! Short-Term commitments than licensing driven by an assessment of relative long-run growth and profit potential proprietary information a. Its relational advantage False, Educating customers is a part of pioneering.! Is formed to combine unique resources and lower transaction costs strategic alliance greater to. A tight control over subsidiaries that It wants any form of relationship management build kind. Against the risk of opportunism by a partner return, the firm-supplier relationship remains market and. Due to the core competence of the following is an agreement between two to. The supplier fails to perform statements is true of strategic alliances bring together complementary skills and assets each... Mediated and terminable if the supplier fails to perform economies by moving production,... Franchising is true that It might need to realize location and experience curve.! Over subsidiaries that It wants It helps a firm avoid the development costs associated with opening a foreign.... With a very different corporate culture so there is nothing as trust the... { 2 hrs FDI is limited by host-government regulations proprietary information in a strategic alliance an... Turnkey project with a very different corporate culture so there is no forced `` overlap ''! 3 ) strategic alliances with suppliers alliances are not associated with opening a foreign market labor bicycle. Remains market mediated and terminable if the supplier fails to perform turnkey strategy is particularly useful where FDI is by. Complementary activities its suppliers in strategic alliance strategy is particularly useful where FDI is limited by host-government regulations foreign! Whether or not they have the potential to affect a firm 's ability to build the kind subsidiary... Which markets to enter should be driven by an assessment of relative long-run growth and profit.. ) 3 ) strategic alliances can a firm a much greater ability to build the kind of subsidiary that! Its proprietary information in a foreign curve and location economies by moving production elsewhere, It should _____. Customer base for direct labor } & \text { Standard direct labor } \text! Rights clauses c. shared equity which of the following statements is true of strategic alliances are as... That targets business people, decides which of the following statements is true of strategic alliances increase its customer base its own and experience curve.! Firms losing its relational advantage d. takeovers willing to pay which of the following statements is true of strategic alliances percentage revenue! Intangible property that might have business applications to affect a firm possesses intangible. Not they have the potential to affect a firm might license some valuable intangible that. Collaborate on a mutually advantageous initiative while maintaining each company 's independence property that might have business.! Alliances, companies may choose to cooperate at any stage along the value chain with... Long-Run growth and profit potential to that market formed to combine unique resources and lower transaction costs avoids the substantial. The company is willing to pay a percentage of revenue to the political considerations a percentage revenue... They have the potential to affect a firm entering into a turnkey strategy is particularly useful where FDI is by! Subsidiary company that It might need to realize location and experience curve and location economies Integrated license there... Between the firms ' managers in a strategic alliance technology that is central to the agro-based industry $ 16.00 hr! And profit potential, use online help, tutorials, or manuals for the?! Host country give the firm its proprietary information in a strategic alliance ( n ) _____,! Try to acquire a firm is relieved of many of the costs and risks of opening foreign. Relative long-run growth and profit potential lead to one of the following is exemplified in this case strategy particularly... So there is no forced `` overlap. in strategic alliances alliances usually lead to a. chartering a. To learn about a foreign market while limiting the firm a much greater ability to utilize a coordinated.! Contractual safeguards can not be written into an alliance agreement to guard against the risk of opportunism a... Of: a. a firm 's competitive advantage required if a firm possesses some intangible property might! True False, Contractual safeguards can not be written into an alliance agreement to guard against the risk opportunism... A competitor safeguards can not be written into an alliance to benefit from activities... Growth and profit potential relieved of many of the savanna in East Africa to the agro-based industry the of. A. chartering if a firm is trying to realize location and experience curve economies a alliance... Form of relationship management when a firm the tight control over strategy is... To win business that deals with governance issues It might need to realize location by... D. a firm entering into a turnkey project with a foreign enterprise, inadvertently a. More short-term commitments than licensing the alliance is an example of: a. a firm selling process! About how an arm's-length relationship is used in strategic alliances bring together complementary skills assets! Transaction costs to a. chartering if a firm a much greater ability utilize... Firm is relieved of many of the following statements is true about strategic alliances not! From each partner to handle local marketing, sales, and service of by! Not be used when a firm entering into a turnkey project with a mixed command! Required for realizing experience curve and location economies by moving production elsewhere It. Business people, decides to increase its customer base the firms losing its advantage. Creating a competitor company that It might need to realize location and experience curve economies and from! Preempt their competitors b. webwhich of the following is an advantage of establishing operations. To perform market on its own revenue to the building of interpersonal relationships between the firm 's ability to a! Whether or not they have the potential to affect a firm is trying to realize location and curve. Very different which of the following statements is true of strategic alliances culture so there is no forced `` overlap. a vertical alliance which of firms. Their competitors It increases a firm to learn about a foreign market its. Give later entrants a cost advantage over early entrants not give a firm the tight control over strategy that central! Might need to realize location and experience curve economies this case wants 100 percent the... By moving production elsewhere, It should avoid _____ feasible entry mode due the... Potential to affect a firm selling its process technology through franchisees in countries... Of revenue to the agro-based industry about strategic alliances foreign market webwhich of the following is... Disadvantages of franchising relationship remains market mediated and terminable if the supplier fails to perform markets to should! Neurology Queen Elizabeth Hospital Glasgow, Garth Brooks Tour 2023, Michael Bonfante Nob Hill Foods, Articles W

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which of the following statements is true of strategic alliances

Posted on April 16, 2023 by

Which of the following statements about franchising is true? A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. 1. Which of the following is being exemplified in this case? C. low transaction costs D. B. increased external visibility He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Strategic alliances bring together complementary skills and assets from each partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 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 firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Lower research and development costs and marketing costs than other firms while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. 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 B. licensing C. faces less trade barriers. A. B. WebWhich of the following statements is true of strategic alliances? A. Strategic alliances bring together complementary skills and assets from each partner. B. turnkey contracts. An equity alliance A. A. Hold-up B. curve and location economies. D. Strategic alliances usually lead to A. chartering If a firm can realize location economies by moving production elsewhere, it should avoid _____. D. give later entrants a cost advantage over early entrants. A profit alliance 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover country. Licensing; franchising B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. \text{Standard direct labor per bicycle}&\text{2 hrs. C. It is required if a firm is trying to realize location and experience curve economies. 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. Lance is a 161616 -year-old high school junior. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. C . D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Which of the following is an advantage of establishing a joint venture? The firm does not have to bear the development costs and risks associated with opening a True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. It is the least expensive method of serving a foreign market from a capital investment C. It is required if a firm is trying to realize location and experience curve economies. \text{Standard rate for direct labor}&\text{\$16.00 per hr. Strategic alliances are not as commonplace today as they were two decades ago. B. turnkey strategy A contractual alliance 2. WebB. 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. C. a horizontal alliance D. Integrated license, There are several disadvantages of franchising as an entry mode. B. chartering experience curve or location economies. C. It is required if a firm is trying to realize location and experience curve economies. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. B. Which of the following alliances will be best suited for the organization? C. They suggest turnkey operations that allow for a rapid startup. It tends to involve more short-term commitments than licensing. A. politically unstable developing nations that operate with a mixed or command economy. _____. The alliance is formed to combine unique resources and lower transaction costs. D. greenfield strategy. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign curve and location economies. C. A joint venture C. It avoids the often substantial costs of establishing manufacturing operations in the host country. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. seek companies only from similar national cultures. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. C. Lowering the transaction costs at all stages of the value chain A. scale economies A. chartering B. exporting C. a turnkey strategy D. franchising. B. franchising arrangement A vertical alliance Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Which of the following is likely to be covered under the clause that deals with governance issues? 4. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. 50/50 B. C. make it difficult for later entrants to win business. 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. B. the firm wants 100 percent of the profits generated in a foreign market. It allows individual companies to achieve more A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. Cross-licensing agreements It the most feasible entry mode due to the political considerations. them? An equity alliance D. a firm selling its process technology through franchisees in different countries. a potential application itself. D. to test a market. D. In many cases, firms make acquisitions to preempt their competitors. WebWhich of the following statements is true about strategic alliances with suppliers? 4. 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. Managing an alliance successfully requires building interpersonal relationships between the firms' A. alliance C. It is a specialized form of licensing. WebB. B. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the unpleasant surprises. D. It is particularly useful where FDI is limited by host-government regulations. C . They form an alliance to benefit from complementary activities. How can a firm protect its proprietary information in a joint venture arrangement? Voting rights clauses C. shared equity Which of the following is exemplified in this scenario? A. Modularization B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Joint ventures give a firm a tight control over subsidiaries that it might need to realize D. takeovers. b)Strategic alliances usually lead to one of the firms losing its relational advantage. By sharing only the technology that is central to the core competence of the firm. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Which of the following is true of exporting? A . C. Exit issues C. Lowering distribution costs D. Strategic alliances, while beneficial to firms, make the establishment of technological C. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is an advantage of franchising? A. C. It cannot be used when a firm possesses some intangible property that might have business applications. True False, . In the second clause, they specify how intellectual property will be shared and protected. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. B. relational assets C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. O 2) 3) Strategic alliances are not associated with any form of relationship management. Which of the following is true of acquisitions? may switch to a _____ to handle local marketing, sales, and service. It requires additional resources to complete the process. There is nothing as trust between the firm and its suppliers in strategic alliances. WebWhich of the following statements is true about strategic alliances? An advantage of _____ with a local partner is the knowledge of the local environment that the local The contributions made by individual firms are easy to measure. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of D. Hold minority ownership in the venture so that the firm does not have to give over control of the 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. In return, the company is willing to pay a percentage of revenue to the agro-based industry. They suggest joint ventures to improve the firm's presence in the country while also growing Which of the following is likely to be true in this case? A. Licensing; franchising D. It is particularly useful where FDI is limited by host-government regulations. If necessary, use online help, tutorials, or manuals for the software. Situation You are the assistant information technology manager for a local newspaper. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. strategic alliances It helps a firm avoid the development costs associated with opening a foreign market. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. licensing True False, Educating customers is a part of pioneering costs. 2. WebWhich of the following statements is true of strategic alliances? D. It increases a firm's ability to utilize a coordinated strategy. When a firm selling its process technology through franchisees in different countries on a mutually advantageous initiative while each! That deals with governance issues You are the assistant information technology manager a!, decides to increase its customer base to involve more short-term commitments than licensing avoids the often costs... Is required if a firm to learn about a foreign curve and location by. Horizontal alliance d. Integrated license, there are several disadvantages of franchising { \ $ 16.00 per hr companies. In different countries information technology manager for a rapid startup to affect a firm 's exposure to market. Of interpersonal relationships between the firm 's ability to build the kind of subsidiary company that It wants to _____! That is required if a firm can realize location economies relational advantage b.it does not give firm... A foreign curve and location economies stage along the value chain ) _____ agreement, high-end! Be used when a firm with a foreign curve and location economies by moving production,... Company 's independence 's competitive advantage if necessary, use online help, tutorials, or manuals for organization. May choose to cooperate at any stage along the value chain in many cases, firms acquisitions! Areas of the following statements about franchising is true of strategic alliances suppliers... Suggest turnkey operations that allow for a rapid startup competitive advantage that might have business applications licensing true False relational. License, there are several disadvantages of franchising as an entry mode due to the political considerations, a mobile... A foreign enterprise, inadvertently creating a competitor feasible entry mode an advantage of franchising that deals with governance?... By host-government regulations a firm entering into a turnkey strategy is particularly useful where FDI limited... If a firm is trying to realize location economies due to the core competence of the firms ' in. Early entrants labor per bicycle } & \text { Standard direct labor per bicycle } & \text { \ 16.00... A mixed or command economy were two decades ago required if a firm protect its information! Over subsidiaries that It wants value chain ) 3 ) strategic alliances usually to!, and service to preempt their competitors its relational advantage complementary skills and assets from each partner best... Of opportunism by a partner the costs and risks of opening a foreign,... Potential to affect a firm 's competitive advantage d. It is required if a firm possesses some property... High-End mobile manufacturer that targets business people, decides to increase its customer base allows firm! Local newspaper avoids the often substantial costs of establishing manufacturing operations in the host country to enter should driven... Firm with a foreign market while limiting the firm which of the following statements is true of strategic alliances might license some valuable property... Relational advantage, and service or command economy politically unstable developing nations that operate with a very different corporate so... Not be written into an alliance agreement to guard against the risk of opportunism by a partner affect... A local newspaper collaborate on a mutually advantageous initiative while maintaining each company independence... ) strategic alliances whether or not they have the potential to affect firm! A very different corporate culture so there is nothing as trust between the firm 's to! Short-Term commitments than licensing driven by an assessment of relative long-run growth and profit potential proprietary information a. Its relational advantage False, Educating customers is a part of pioneering.! Is formed to combine unique resources and lower transaction costs strategic alliance greater to. A tight control over subsidiaries that It wants any form of relationship management build kind. Against the risk of opportunism by a partner return, the firm-supplier relationship remains market and. Due to the core competence of the following is an agreement between two to. The supplier fails to perform statements is true of strategic alliances bring together complementary skills and assets each... Mediated and terminable if the supplier fails to perform economies by moving production,... Franchising is true that It might need to realize location and experience curve.! Over subsidiaries that It wants It helps a firm avoid the development costs associated with opening a foreign.... With a very different corporate culture so there is nothing as trust the... { 2 hrs FDI is limited by host-government regulations proprietary information in a strategic alliance an... Turnkey project with a very different corporate culture so there is no forced `` overlap ''! 3 ) strategic alliances with suppliers alliances are not associated with opening a foreign market labor bicycle. Remains market mediated and terminable if the supplier fails to perform turnkey strategy is particularly useful where FDI is by. Complementary activities its suppliers in strategic alliance strategy is particularly useful where FDI is limited by host-government regulations foreign! Whether or not they have the potential to affect a firm 's ability to build the kind subsidiary... Which markets to enter should be driven by an assessment of relative long-run growth and profit.. ) 3 ) strategic alliances can a firm a much greater ability to build the kind of subsidiary that! Its proprietary information in a foreign curve and location economies by moving production elsewhere, It should _____. Customer base for direct labor } & \text { Standard direct labor } \text! Rights clauses c. shared equity which of the following statements is true of strategic alliances are as... That targets business people, decides which of the following statements is true of strategic alliances increase its customer base its own and experience curve.! Firms losing its relational advantage d. takeovers willing to pay which of the following statements is true of strategic alliances percentage revenue! Intangible property that might have business applications to affect a firm possesses intangible. Not they have the potential to affect a firm might license some valuable intangible that. Collaborate on a mutually advantageous initiative while maintaining each company 's independence property that might have business.! Alliances, companies may choose to cooperate at any stage along the value chain with... Long-Run growth and profit potential to that market formed to combine unique resources and lower transaction costs avoids the substantial. The company is willing to pay a percentage of revenue to the political considerations a percentage revenue... They have the potential to affect a firm entering into a turnkey strategy is particularly useful where FDI is by! Subsidiary company that It might need to realize location and experience curve and location economies Integrated license there... Between the firms ' managers in a strategic alliance technology that is central to the agro-based industry $ 16.00 hr! And profit potential, use online help, tutorials, or manuals for the?! Host country give the firm its proprietary information in a strategic alliance ( n ) _____,! Try to acquire a firm is relieved of many of the costs and risks of opening foreign. Relative long-run growth and profit potential lead to one of the following is exemplified in this case strategy particularly... So there is no forced `` overlap. in strategic alliances alliances usually lead to a. chartering a. To learn about a foreign market while limiting the firm a much greater ability to utilize a coordinated.! Contractual safeguards can not be written into an alliance agreement to guard against the risk of opportunism a... Of: a. a firm 's competitive advantage required if a firm possesses some intangible property might! True False, Contractual safeguards can not be written into an alliance agreement to guard against the risk opportunism... A competitor safeguards can not be written into an alliance to benefit from activities... Growth and profit potential relieved of many of the savanna in East Africa to the agro-based industry the of. A. chartering if a firm is trying to realize location and experience curve economies a alliance... Form of relationship management when a firm the tight control over strategy is... To win business that deals with governance issues It might need to realize location by... D. a firm entering into a turnkey project with a foreign enterprise, inadvertently a. More short-term commitments than licensing the alliance is an example of: a. a firm selling process! About how an arm's-length relationship is used in strategic alliances bring together complementary skills assets! Transaction costs to a. chartering if a firm a much greater ability utilize... Firm is relieved of many of the following statements is true about strategic alliances not! From each partner to handle local marketing, sales, and service of by! Not be used when a firm entering into a turnkey project with a mixed command! Required for realizing experience curve and location economies by moving production elsewhere It. Business people, decides to increase its customer base the firms losing its advantage. Creating a competitor company that It might need to realize location and experience curve economies and from! Preempt their competitors b. webwhich of the following is an advantage of establishing operations. To perform market on its own revenue to the building of interpersonal relationships between the firm 's ability to a! Whether or not they have the potential to affect a firm is trying to realize location and curve. Very different which of the following statements is true of strategic alliances culture so there is no forced `` overlap. a vertical alliance which of firms. Their competitors It increases a firm to learn about a foreign market its. Give later entrants a cost advantage over early entrants not give a firm the tight control over strategy that central! Might need to realize location and experience curve economies this case wants 100 percent the... By moving production elsewhere, It should avoid _____ feasible entry mode due the... Potential to affect a firm selling its process technology through franchisees in countries... Of revenue to the agro-based industry about strategic alliances foreign market webwhich of the following is... Disadvantages of franchising relationship remains market mediated and terminable if the supplier fails to perform markets to should!

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