When a multinational adds a new alliance to its alliance portfolio, the multinational's managers should remain focused upon the standalone value that the new alliance can generate, rather than being distracted by an assessment of whether the new alliance creates value from a portfolio perspective.

Question

Quizplus · Accepted Answer

Firms routinely fail to evaluate whether a new alliance creates value from a portfolio perspective or, whether a new alliance poses the risk of destroying value at the portfolio level (i.e., due to conflict resulting from market overlap between individual alliances in a portfolio).

When a Multinational Adds a New Alliance to Its Alliance