Remove word in the Strategic Alliance Agreement Template

Aug 6th, 2022
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6 Disadvantages Of A Strategic Alliance Experience communication challenges. A disadvantage of strategic alliances a company may experience is communication challenges. Earn unequal benefits. Risk a companys reputation. Encounter conflicts. Face culture or language barriers. Confront challenging alliance management.
One disadvantage is sharing. Strategic alliances require you to share resources and profits, and often require you to share knowledge and skills as well.
The deal between Starbucks and Barnes Noble is a classic example of a strategic alliance. Starbucks brews the coffee. Barnes Noble stocks the books. Both companies do what they do best while sharing the costs of space to the benefit of both companies.
Strategic alliances are voluntary collaborations between organizations that involve product exchange, sharing or co-development, technology development or the provision of services that pursue a common set of goals (Gulati 1998).
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.
Control Issues: Alliances involve multiple parties, and coordinating strategies and decision-making can be challenging. If one partner feels that they dont have enough control or influence over the alliances direction, it can lead to frustration and conflict.
Strategic alliances also involve risks and uncertainties that can affect your performance and relationship with your partner. Some of these risks include opportunistic behavior, cultural clashes, misalignment of goals, loss of control, and external changes.
Answer: b; There are many benefits to strategic alliances, such as risk sharing, transfer of technologies, access to new markets, acquisition of knowledge, etc. However, transferring employees to reduce operating costs is not one of these benefits.

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