Instead of Entering into an Alliance or Partnership, Smith Limited

question 3

Essay

Instead of entering into an alliance or partnership, Smith Limited opts to merge with Design Limited. What are the reasons for preferring a merger to an alliance or partnership? Explain the other organizational mechanisms that are also preferable to alliances.

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Definitions:

Mediation

A confidential and voluntary process in which a neutral third-party facilitator helps disputing parties to reach a mutually acceptable agreement.

E-commerce Disputes

Conflicts or disagreements arising from the buying and selling of goods and services over the internet.

National Arbitration Forum

An organization that provided arbitration and mediation services for disputes, primarily involving consumer and commercial issues.

Alternative Dispute Resolution Act

Legislation that provides for the settlement of disputes through mechanisms other than litigation, such as arbitration or mediation.