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