A game company in Thailand wants TJ Soft to join it and work ...

[B]

A game company in Thailand wants TJ Soft to join it and work together to create a new game that bears the brand name of both companies. What would be an appropriate approach for this venture?
 
  A) global strategic alliance
  B) licensing agreement
  C) joint venture
  D) franchise

Question 2

A firm in South America wants to open a TJ Store in a shopping mall. What is the best approach for this firm?
 
  A) strategic alliance
  B) licensing agreement
  C) franchise
  D) foreign subsidiary

[gstein359]

Answer to Question 1

Answer: A
Explanation: Since the game company wants the game to have the name of both companies, the two should form a global strategic alliance but not a joint venture. A joint venture would require the two partners to create a new company to create the gamesomething that neither partner wants to do. This project is too symmetrical to call for a licensing agreement or franchise. Both of those options have the parent company selling the rights to use its brand, where in this case each company uses its own brand equally.

Answer to Question 2

Answer: C
Explanation: Since the firm wants more than just the right to sell TJ Soft productsit wants to run an entire TJ Soft storeit should buy a franchise. The franchise will give it the right to operate a store under the TJ Soft name selling TJ Soft products. The relationship should not be a strategic alliance since TJ Soft wants to maintain control of its brand. A licensing agreement is not extensive enough since the company wants to do more than sell TJ Soft products. A foreign subsidiary is also not appropriate because it requires TJ Soft to own the foreign operation and this is not possible since the firm already exists.