PIB - Tutorial 12 by Rae Hooi https://padlet.com/raehooi/qkywtogdlfnr en-us 2020-03-26 05:39:19 UTC 2025-11-28 11:51:18 UTC hello@padlet.com 2. What are the four common types of functional alliances? Briefly explain each. raehooi https://padlet.com/raehooi/qkywtogdlfnr/wish/475766577 Financial Alliance is one of the functional alliances used to reduce financial risk associated with a project. Partners of firm share equally in contributing financial resource to the project.On the other hand, one partner may provides the majority financing while the other one provides expertise or other contributions are provided by its partner in lieu of financial investments.For example,ING Group is a Dutch multinational banking and financial services corporation which have chosen to specialize in just a few select services.

Marketing alliance is a functional alliance in which two or more firms share marketing services or expertise. In most cases, one partner introduces its products or services into a market in which the other partner already has a presence. The established firm helps the newcomer by promoting, advertising, or distributing its products or services.
For example, U.S. toymaker Mattel and its Japanese rival Bandai established a strategic marketing alliance that served their mutual interests. Bandai agreed to distribute Mattel products such as Barbie dolls, Hot Wheels, and Fisher Price toys in Japan, and Mattel agreed to market Bandai’s Power Rangers and Digimon in Latin America, where Mattel’s distribution networkis strong but Bandai’s nonexistent.

Production alliance is where two or more firms manufacture products or provide services in a shared or common facility. A production alliance may utilize a facility one partner already owns.
For example, the NUMMI joint venture between Toyota and GM is housed in a formee GM assembly plant in carlifornia , which the company had closed down.

In an R&D alliance, the partners agree to undertake joint research to develop new products or services but not formed as joint ventures, since scientific knowledge can be transmitted through private research conferences, exchange of scientific papers, and laboratory visits. Instead, each partner may simply agree to cross-license whatever new technology is developed in its labs. So, they will have equal access to all technology developed by the alliance, an arrangement that guarantees none of the partners will fall behind in the technological race. In addition, partners are freed from legal disputes among themselves over ownership and validity of patents. Because of the importance of high-tech industries to the world economy, many countries are supporting the efforts of R&D consortia as part of their industrial policies. ]]> 2020-03-26 05:42:09 UTC https://padlet.com/raehooi/qkywtogdlfnr/wish/475766577 3. What basic set of factors must a firm consider when selecting a location for a production facility? raehooi https://padlet.com/raehooi/qkywtogdlfnr/wish/475766703 1. Product Related Issues
- A product’s value-to-weight ratio and the required production technology is the importance of customer feedback.

- A product’s value-to-weight ratio affects the importance of transportation costs in the product’s delivered price.
- A production technology used to manufacture the good also may affect facility location. Whereby a firm must compare its expected product sales with the efficient size of a facility in the industry.
- The relative importance of customer feedback also may influence the location decision. Products for which firms desire quick customer feedback often are produced close to the point of final sale.

2. Government Policies
- Factors such as the stability of the political process, national trade policies, economic development incentives, and the existence of foreign trade zones.

3. Organizational Issues
- revolves around the firm's business strategy and its organizational structure

Country-related issues affect resource availability and cost, infrastructure, and country-of-origin marketing effects]]> 2020-03-26 05:42:27 UTC https://padlet.com/raehooi/qkywtogdlfnr/wish/475766703 4. Why is it important for organizations to control productivity? raehooi https://padlet.com/raehooi/qkywtogdlfnr/wish/475766807 1.  It helps determine a firm’s overall success and contributes to its long-term survival.

2.  Productivity contributes directly to the overall standard of living within a particular country in which the firm operates by raising GDP per capita.

3. productivity improvements spill over from the firm into the broader economy in which the firm operates

4. as firms increase their productivity, they become more profitable and solidify their competitive advantage]]> 2020-03-26 05:42:41 UTC https://padlet.com/raehooi/qkywtogdlfnr/wish/475766807 5. What are the basic factors involved in deciding whether to use standardization or customization? raehooi https://padlet.com/raehooi/qkywtogdlfnr/wish/475767020 a firm following a policy of standardization simply markets its products the same way everywhere, while a firm following a policy of customization adapts the marketing mix to meet the needs of each target market

standardization is attractive to firms because it permits efficiency in R&D, production economies of scale can be achieved, it promotes lower marketing costs, it enables a firm to centralize control of the marketing prgm, and it reflects the trend toward a single world market

customization reflects varying conditions of product use, recognizes local differences in buyer behavior, promotes local initiative and motivation in implementing the mktg prgm, and allows a firm to better meet the needs of individual markets]]> 2020-03-26 05:43:10 UTC https://padlet.com/raehooi/qkywtogdlfnr/wish/475767020 1. What are the basic differences between joint ventures and other types of strategic alliances? https://padlet.com/raehooi/qkywtogdlfnr/wish/480828759 We can determine the differences through the purpose, scope and duration. The joint venture will have a wider purpose and scope with a longer duration. 

Conversely, the non-joint venture has narrower purpose and scope with shorter duration. In other words, we can say that the non-joint venture strategic alliance may be formed merely to allow the partners to overcome a particular hurdle that each faces in the short run. It will be more helper if the two firms are planning to have a long- term relationship through joint ventures.

For example, if the firm wanted to cooperate in the design or production or sales of a board line of telecommunication equipment in North America, they can plan to form a joint venture.

The non-joint venture will be less stable than the joint venture since it has a narrower purpose and scope. 

For example, Codex and Fuji were terminated in 1996 after six years. This is because a new standard developed.

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