which of the following is not a benefit of a strategic alliance? course hero

Which of the following is a not a strategic alliance?

Joint Venture is not an example of a strategic alliance. In a strategic alliance, the two companies remain separate entities. In a joint venture, a new entity is formed.

What are the benefits of having strategic alliance?

Strategic alliances allow partners to scale quickly, build innovative solutions for their customers, enter new markets, and pool valuable expertise and resources. And, in a business environment that values speed and innovation, this is a game-changer.Aug 13, 2019

Which of the following is true about strategic alliances?

Which of the following is true of strategic alliances? Strategic alliances allow firms to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following is true of the international strategy? The strategy is not viable in the long-run.

Which of the following is a disadvantage of strategic alliances?

Weaker management involvement or less equity stake. Fear of market insulation due to the local partner's presence. Less efficient communication. Poor resource allocation.Oct 29, 2019

What are the advantages and disadvantages of strategic alliances?

Strategic Alliance Vocabulary, Advantages & DisadvantagesAdvantagesDisadvantagesOrganizational: strategic partner may provide goods & services that complement your ownSharing: trade secretsEconomic: reduced costs & risksCompetition: strategic alliances may create a potential competitor3 more rows•Sep 21, 2021

What is the problem of strategic alliance?

Risks. Using and operating strategic alliances does not only bring chances and benefits. There are also risks and limitations that have to be taken in consideration. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, strategic goal divergence and insufficient trust.

Which of the following describes a strategic alliance?

A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.

Which of the following is feature of strategic alliance?

Strategic alliances produce a powerful competitive advantage, impact organizations long-term destiny, and have significant consequences when they are not successful. Tactical alliances tend to be shorter term, more project oriented and formed with a specific end-point in mind.Jun 27, 2018

How does LYFT benefit from its strategic alliances with GM and Waymo?

How does lyft benefit from its stategic alliances with GM and Waymo? It allows Lyft to more effectively compete against Uber, its more powerful competitor. How can firms build alliance management capability?

What are the advantages and disadvantages of a joint venture?

Joint venture advantages and disadvantagesaccess to new markets and distribution networks.increased capacity.sharing of risks and costs (ie liability) with a partner.access to new knowledge and expertise, including specialised staff.access to greater resources, for example, technology and finance.

What are the possible risks of the alliance?

The two major types of risk in alliances—relational risk and performance risk—represent two major sources of unsatisfactory performance, one internal to the relationship and the other external to the relationship.

Why are Seldom a superior strategic alternative to forming alliances or partnerships with these same companies?

Seldom are a superior strategic alternative to forming alliances or partnerships with these same companies because of the financial drain of using the company's cash resources to accomplish the merger or acquisition.

What is the difference between merger and acquisition?

A merger is a combination of three or more companies whereas an acquisition is a pooling of interests of just two companies. E. A merger involves two or more companies deciding to adopt the same strategy whereas an acquisition involves one company taking over the strategy-making function of another company. B.

What is Pearltech Inc?

Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. 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.

What is Zeal Inc?

Zeal Inc., a software firm, decides to enter the publishing industry. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher.

Is Sepia a fertilizer company?

Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. In return, the company is willing to pay a percentage of revenue to the agro-based industry.

Who is Marcel the CEO of?

Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance.