When the alliance's tasks are characterized by extensive functional interdependencies
A) it is preferable to have a dominant partner that can assume the functional tasks.
B) it is preferable to merge both companies.
C) the development of clear operating rules is the only way to maintain boundaries between the functions.
D) the creation of a separate entity is the most effective way to manage the linkages between the various functions.

Question

Quizplus · Accepted Answer

When the alliance's tasks are characterized by extensive functional interdependencies,there is a need for a high level of integration in the decision-making process related to those shared tasks.In such circumstances,the creation of a separate entity is often the only effective way to manage such dense interlinkages.In contrast,an alliance between two companies with the objective of marketing each other's existing products may need only a few simple rules and a single joint committee to review the outcomes periodically.

When the Alliance's Tasks Are Characterized by Extensive Functional Interdependencies