The Main Risk in a Strategic Alliance Is That

question 66

Multiple Choice

The main risk in a strategic alliance is that:

• A) the alliance will not result in a successful innovation.
• B) critical employees will be hired away by the strategic partner.
• C) one partner will use the other partner's knowledge and use it to enhance its own competitive abilities.
• D) the partners will lose control over their internal processes.

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Definitions:

Seasonal Pattern

The fluctuation in data or activities that occur regularly each year in a predictable manner.

Stable Product Costs

Costs that remain consistent over time without significant fluctuations, making budgeting and pricing strategies more predictable.

Flexible Budgets

Budgets that adjust or flex based on changes in the level of activity or volume.

Service Organisations

Service Organisations are businesses that provide intangible products or services to consumers, relying heavily on human capital and expertise.