Exam 13: International Strategic Alliances

Otis Elevator strives to enter emerging markets before competitors and work with local partners to minimize risks.

Feldman Insurance wants to enter the Brazilian market but is concerned about hostile government regulations in Brazil. Which of the following would most likely help Feldman overcome this problem?

Marketing alliances are relatively uncommon in the international airline industry.

How does the party secretary of the Chinese Communist Party affect the management of joint ventures between MNCs and Chinese firms?

Which of the following is not considered one of the primary pitfalls of strategic alliances?

What is a functional alliance?

Functional alliances are legally organized as joint ventures.

Comprehensive alliances are usually organized as non-joint venture strategic alliances.

General Mills and Nestle created a joint venture which fully integrated all the efforts necessary to compete against Kellogg in the European cereal market. This is an example of a(n) ________ alliance.

Executives at Bantam Bicycles realize that the firm lacks the necessary internal resources to compete internationally. Which of the following would most likely enable Bantam to compete in the global market?

Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture. Which of the following is the LEAST likely option?

________ refers to value achieved through the combination of market entry, risk sharing, and learning potential that is greater than what the firm could have done alone.

A joint venture is a type of strategic alliance.

What form does a joint venture usually take?

In a marketing alliance, the established firm assists the newcomer with ________.

Why did Boeing establish a strategic alliance with several Japanese partners to help develop its 777 jet? What was the scope of the alliance?

Because Nestle does not make cereal, the product on which it is collaborating with General Mills, the joint venture between the two firms is likely to be more successful.

Company X and Company Z have established a business arrangement whereby the two firms will cooperate for their mutual benefit. Which of the following has most likely been established?

Having a partner with products that are complementary to, but not directly competitive with its own, increases a firm's chance of a successful alliance.

Why would a firm establish a non-joint venture strategic alliance instead of a joint venture? What are the characteristics of a non-joint venture strategic alliance?