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