_____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. Which of the following is likely to be the primary value created by this alliance? They enter into a strategic alliance in which they create and own a legally independent company. In the second clause, they specify how intellectual property will be shared and protected. A. 45. a. They sign a contract that specifies the tasks of each party in alliance. Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Which of the following statements is true about strategic alliances? Which of the following statements is true of explicit knowledge? Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. (p. 312) Which of the following statements about strategic alliances is true? Through this measure, Plateus seeks to primarily achieve _____. There are five general criteria that differentiate strategic alliances from conventional alliances. Which of the following is the primary value they aim to create through this alliance? These profits are shared among the partners in a particular ratio. Which of the following defines what business or businesses the firm is in or should be in? Strategic alliances exclude functions that are bought through bidding. E. Attacking a market leader is always unwise. i. C) In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies. A. However, Stylink tried to exploit the alliance-specific investments made by Plateus. In this case, which of the following alliances has been adopted by the organization? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Cloudflare Ray ID: 611f7ef48b97203f They are a way to bring together complementary skills and assets that both companies develop. Which of the following suppliers is it most likely to choose as a partner? B) They reduce the possibilities of trust and commitment. Which of the following statement/s about management accounting is/are true? 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. Which of the following is the primary objective of this strategic alliance? _____ strategies are used to pursue prodcut and market diversification, one type could be Franchising. Which of the following statements is true of joint ventures? When one firm makes more transaction-specific investments in a strategic alliance than partner firms make, that firm may be subject to a form of cheating called _____ that occurs when a firm that has not made significant transaction-specific investments demands returns from an alliance that are higher than what the partners agreed to when they created the alliance. It ... Get solutions A) They enable the exchange of both tacit and explicit knowledge. Zeal Inc., a software firm, decides to enter the publishing industry. Please enable Cookies and reload the page. A strategic alliances between two international companies make it easy for foreign companies to establish their business. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Corporate strategy . In this case, the relationship between the two firms is based primarily on _____. Entering into strategic alliances and collaborative partnerships can be competitively valuable because. A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A) Explicit knowledge is about knowing how to do a certain task. C. The alliance between the two firms is an example of _____. Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. In this case, which of the following contractual alliances should be adopted by Sepia? Which of the following is likely to be true in this case? There are integration difficulties due to clashes of organizational and national cultures. Which of the following statements about strategic alliances is true? He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. 1. A. i and ii B. i, ii and iii C. iii D. ii Which of the following statements is true about firms that establish strategic alliances? It requires additional resources to complete the process. Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project. 4. Two firms that produce industrial machinery decide to form a strategic alliance. What is it that makes an alliance truly strategic to a particular company? The four major categories of business customers are: producers, resellers, governments, and institutions. Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. The strategic goals of an organization should be limited to top management. It is relied on by external users to make investment decisions. D) Equity knowledge is acquired only through actively participating in a process. d. National strategy . A graphic design firm and an advertising firm form a contractual alliance. The second firm is at the same level along the value chain. _____ 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. - is true of the strategic goals of an organization. Which of the following statements is likely to be true in this case? However, they do not have a supplier-buyer relationship. Which of the following is a result of forming strategic alliances administrator 0 Comments Classical Macroeconomics market economy works wells, aggregate fluctuations ( govt cannot improve the efficiency of the market economy). -Both sides had common weaknesses. An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. The new company is created from resources and assets contributed by the parent firms. 3. Which of the following statements is true of strategic alliances as disadvantages? This encourages the supplier to align its incentives with Velara's needs. They form an alliance to benefit from complementary activities. ... (M&As), which of the following statements is true? The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. Managers typically do not devote enough time screening potential partners in financial terms. b. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Nate, the operations head, suggests extending the prospects by looking outside their usual network. Strategic alliances exclude functions that are bought through bidding. • • Answer: True 6. For the alliance to work, the partners must develop the human relationships in the partnerships. B. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. Answer: True 7. Each of the parties remains an independent entity. Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Problem 19MCQ from Chapter 7: Which of the following is true of strategic alliances?A. a. Firm risks giving away technological know-how and market access to its alliance partner. There are 3 standard approaches are often used to jointly manage a strategic alliance, which is the true : ... but also to create higher profile in a highly competitive market” is statement by who: A. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. A global strategic alliance means cooperation between international companies and it can take various forms, such as co-funding of research projects, sharing of production facilities and marketing of each others products using current distribution networks. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Which Of The Following Is A Result Of Forming Strategic Alliances Answers Classical Macroeconomicsmarket economy works wells, aggregate fluctuations ( govt cannot improve the efficiency of the market economy).Monetarist Another way to prevent getting this page in the future is to use Privacy Pass. Spade's resources help the organization increase productivity, which results in increased sales and profits. A. -The Triple Alliance had the benefit of U.S. support. A. Indicate whether the statement is true or false. Question: Which Of The Following Is A Disadvantage Of A Strategic Alliance? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Question: Which Of The Following Statements Is NOT True About Strategic Alliances? Which of the following is being exemplified in this scenario? C. Which one of the following statements regarding the basis for offensive attack on rivals is false? Which of the following statements is true of an equity alliance? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. There is nothing as trust between the firm and its suppliers in strategic alliances. C) They are characterized by single reporting lines. 14. B) Alliance management capability is based on three alliance-related tasks. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Which of the following statements is true about strategic alliances with suppliers? Which of the following statements strengthens Sanah's argument? To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. D) They cannot entail long negotiations. A Firm That Enters Long-term Alliances Is Expanding Its Strategic Flexibility By Committing To Its Alliance Partners. c.They limit the entry of firms into foreign markets. C. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Which of the following is being exemplified in this case? B. In order to accommodate these factors, they decide to start a legally independent firm. Together, they create a line of clothes using organic dye and fabric made from pure cotton. Is it possible for an alliance to be strategic to only one of the parties in a relationship? He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Many alliances default to some form of revenue generation—which is certainly important— but revenue alone may not be truly strategic to the objectives of the business. Which of the following statements are true of the two alliances? Strategic alliances usually lead to one of the firms losing their relational advantage. #8. Teal Inc., forms a strategic alliance with White Corp. Crimson Corp., a painting unit, collaborates with a car manufacturing company. _____ strategies are implemented through organizational structures in which the Strategic Centre firms play a critical role. Which of the following is being exemplified in this case? Which category of issues does the second clause address? Which of the following statements is likely to strengthen Marcel's argument? The alliance is formed to combine unique resources and lower transaction costs. Strategic Marketing (10th Edition) Edit edition. Managers typically do not devote enough time screening potential partners in financial terms. b. -The Triple Entente's main advantage was its central location in Europe. 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. A) Forming an alliance with another firm prohibits that firm from forming other alliances. Which of the following statements is true about firms in a joint venture? A collaborative relationship frequently is an appropriate first step on the road to a strategic alliance. Which of the following is being exemplified in this case? Strategic alliances usually lead to one of the firms losing their relational advantage. It is a part of an organisation's management information system. 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 statements is true about strategic alliances? Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Which of the following clauses specifies the above conditions? Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. You may need to download version 2.0 now from the Chrome Web Store. Two organizations that are positioned at different stages along the value chain form an alliance. Answer: True 8. Which of the following statements is true about strategic alliances? Your IP: 167.99.32.20 QUESTION 13 Which of the following statements is true of strategic alliances? 15. A) An equity alliance is based on contractual agreements rather than partial ownership. Which of the following is being exemplified in this scenario? Through this measure, J.L. C) Explicit knowledge is shared in non-equity alliance firms. Test bank Questions and Answers of Chapter 15: Entry Strategy and Strategic Alliances Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. Strategic Alliances Refer To Cooperative Agreements Between Potential Or Actual Competitors. Revenues, expenses, and profits are equally shared by both firms. Business strategy . Which of the following is likely to be true in this case? 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. Strategic alliances are formed between companies within in the same industry. Which of the following is likely to be covered under the clause that deals with governance issues? _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. B) Explicit knowledge is knowledge that cannot be codified. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. Which of the following is exemplified in this scenario? Which of the following statements is true of strategic alliances? Which of the following alliances will be best suited for the organization? Although forming an alliance could be beneficial to a business, but there are also some risks of strategic alliances in business. John requires 500 shirts of a particular fabric and quality. True. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. Monetarist It is relied on by managers to plan and control an organisation's operations. Select One: ) O A. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. Corporate strategy Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Collaborative relationships are typically used for the procurement of non-commodity items and services. Strategic alliances are voluntary agreements of cooperation between firms. Which of the following strategic alliances is adopted by Borpon and Biocolog? The parent organizations create a legally independent firm. Ans. Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Business strategy . Which Of The Following Is A Result Of Forming Strategic Alliances Test Questions Classical Macroeconomicsmarket economy works wells, aggregate fluctuations ( govt cannot improve the efficiency of the market economy). In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Which of the following statements is true about managing alliance-related tasks? In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. b.They are a way to bring together complementary skills and assets that both companies develop. O B. Entering Into A Strategic Alliance Makes It Difficult For A Firm To Enter Into A Foreign Market. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Which of the following statements is true about strategic alliances? With such an alliance, both companies take advantage of and boost their business. Which of the following defines how each individual business unit will attempt to achieve its mission? primarily seeks to achieve _____. c. Functional strategy . In return, the company is willing to pay a percentage of revenue to the agro-based industry. The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. Performance & security by Cloudflare, Please complete the security check to access. After the survey, the management discusses the issues brought up by the employees and their suggestions. a.The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. An alliance is likely to rely most on relationships between individuals when it is based on _____. B. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Through these measures, Pharmax seeks to primarily achieve _____. Builds the image of the brand: Strategic alliances with leading companies improves the image of a company in the market. B. iii. Alliances tend to be low-risk and high-return vehicles for realizing a firm's strategy. Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. 2. -The Triple Alliance had such strong nationalism, there was no internal strife. A strategic alliance (also see strategic partnership) is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.. 44. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Strategic alliances exclude functions that are bought through bidding. J.L. However, Sands brings more resources to the new firm than the other partner. Which of the following statements is not true of strategic alliances? Gray helps design products that change how Victor is perceived by young customers. … _____ strategies often employ in vertical/horizontal alliance networks. An organization wants to form a strategic alliance with another firm. C) A merger is one of the three options for alliance design and governance. Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. C. Strategic alliances are short-term relationships that benefit only the independent suppliers. ii. B. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. 14. For the alliance to work, the partners must develop the human relationships in the partnerships. B) In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible. b. Which of the following is being exemplified in this case? Firms That Enter Into A Strategic Alliance With A Foreign Firm Tend To Face Higher Trade Barriers. 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 …
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