An organization wants to form a strategic alliance with another firm. The second firm is at the same level along the value chain. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. In order to accommodate these factors, they decide to start a legally independent firm. Which of the following alliances will be best suited for the organization?

Question

Quizplus · Accepted Answer

A joint venture would be the best choice for this situation. A joint venture is a separate legal entity that is created by two or more companies to carry out a specific project or business venture. It allows for the sharing of resources, knowledge, and risks while still maintaining some level of independence. This would be ideal for the organization and the other firm, as they can both contribute their respective expertise and resources while still retaining control over their own operations.

An Organization Wants to Form a Strategic Alliance with Another