informal, voluntary agreements among individuals or groups of similar or complementary interests for the purposes of achieving objectives



Your reading assignment this week defines alliances as “informal, voluntary agreements among individuals or groups of similar or complementary interests for the purposes of achieving objectives.” When organizations form alliances for strategic purposes we call these relationships strategic alliances.

There are many advantages or benefits for joining an alliance. One of the reasons is to reduce uncertainty and share risk. However, risk is also one of the reasons that some organizations are hesitant to join an alliance. What types of things can go wrong with an alliance? What are the risks that are involved for the organizations? Is there some situation or circumstance where you feel alliances are very risky? What are some ways to overcome potential risks and problems with alliances?



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