An advantage of forming a strategic alliance is that it helps firms: Select one: a. Reduce the level of conflicts that occur within an organization. b. Homogenize their workforce. c. Protect their procedures and technologies. d. Share the risks of developing new products or processes.
Question
An advantage of forming a strategic alliance is that it helps firms:
Select one:
a. Reduce the level of conflicts that occur within an organization.
b. Homogenize their workforce.
c. Protect their procedures and technologies.
d. Share the risks of developing new products or processes.
Solution
d. Share the risks of developing new products or processes.
Strategic alliances allow firms to share resources and expertise, which can help mitigate the risks associated with developing new products or processes. This is particularly beneficial in industries where the cost of research and development is high. By sharing these risks, firms can pursue innovative projects that they might not be able to afford on their own.
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