ibi chap15

Meg's company was the initial producer of three-wheeled bikes in parts of Europe and benefited greatly because her company captured the demand early. This is an example of a _____ advantage.

• First-Mover Advantage

• Economies of Scale Advantage

• Cost Leadership Advantage

• Quality Differentiation Advantage

Answer explanation

slide 8

Cultural differences do not typically play a role in acquisitions

• False

• True

Answer explanation

(Slide 23, 24)

1. Bob's Bicycle Company is planning to enter into foreign markets where there are already well-established incumbent enterprises and global competitors are also interested in establishing a presence. Based on these circumstances, Bob's Bicycle Company should enter the foreign markets via _____.

Answer explanation

Slide 23, 24

1. As a way to enter the foreign market, Camille's company is considering purchasing a business in their target market rather than trying to build a subsidiary from scratch. They are considering a(n) ______ strategy.

Answer explanation

Slide 23, 24

 One advantage of a strategic alliance is that it can help the firm develop technological standards for the industry that will, in turn, benefit the firm.

• True

• False

Answer explanation

Slide 27

Which form of market entry refers to a cooperative agreement between potential or actual competitors?

• franchise

• strategic alliance

• acquisition

• greenfield venture

Answer explanation

Slide 26, 27

When a company has a skill that is difficult to articulate, it is easier for that company to enter a foreign market through a greenfield venture

• True

• False

1. When a company decides that it will take too long to establish a sizable presence in a country by using a greenfield venture, it might instead benefit the firm to enter the country by using a(n) ______.

Answer explanation

(Slide 23, 24)

Which statement is true of acquisitions?

• They are more risky compared to greenfield ventures.

  
  

• They cannot be easily executed.

  
  

• They create more value rather than destroy it

• They help preempt competitors.

  
  

Answer explanation

Slide 23, 24

What are three disadvantages of greenfield ventures? Choose all that apply

• preemption by other competitors

  
  

• loss of tax revenue

  
  

• uncertainty of future revenue

  
  

• take longer to establish

  
  

• considered first-movers