A Major Disadvantage of a Strategic Alliance Is That

question 9

Multiple Choice

A major disadvantage of a strategic alliance is that

• A) the firm runs the risk of quality control standards not being uniformly met and thus hurting the reputation of the firm.
• B) the firm runs the risk of losing its competitive advantage by giving away proprietary know-how to the partner.
• C) demand will be reduced as other firms develop manufacturing facilities.
• D) the firm may lose its cost advantage.

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Definitions:

Costs of Quality

The expenses associated with preventing, detecting, and correcting defective work, categorised into prevention costs, appraisal costs, and failure costs.

ISO 14000

A series of environmental management standards established by the International Organization for Standardization (ISO).

Source Inspection

Quality control methodology where components or materials are inspected at the supplier's site before shipment to the manufacturer.

Employee Empowerment

The practice of giving employees the autonomy, resources, and skills to make decisions within their roles, aiming to improve satisfaction and productivity.