Question

10. Which one of the following is not a factor that makes an alliance “strategic” as...

10. Which one of the following is not a factor that makes an alliance “strategic” as opposed to just a
convenient business arrangement?
A. The alliance involves joint contribution of resources, shared risk, and is mutually beneficial.
B. The alliance helps block a competitive threat or open up new market opportunities.
C. The alliance helps mitigate a significant risk to a company’s business.
D. The alliance helps build, enhance, or sustain a core competence or competitive advantage.
E. The alliance is critical to the company’s achievement of an important objective.

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Answer #1

Blocking a competitive threat or opening up new market opportunities; mitigating risk to company's business; building, enhancing, or sustaining a core competence or competitive advantage; and achieving important decisions are all strategic decisions. An alliance formed to meet any of the above criteria makes the alliance "strategic".

However, only joint contribution of resources, shared risk, and mutually beneficial relation may not be for strategic reasons. Hence this is not a factor that makes an alliance "strategic".

Correct option is (A)

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