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Exam (elaborations)

Strategic Alliance

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Examines strategic alliances between businesses, including what they are, why companies form them, and examples of companies that work together to achieve business goals.

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BBB4M – Ch2 P1 Strategic Alliances Marchese


Strategic Alliances /18
Instructions: Please complete the following questions regarding Strategic
Alliances.
1. Choose any ONE of the ‘Top 10 Strategic Alliances’ and explain how each
of the members of the Strategic Alliance benefits. [4 marks]
Top 10 Strategic Alliances
 Uber and Spotify.
 Starbucks and Target.
 Starbucks and Barnes & Noble.
 Disney and Chevrolet.
 Red Bull and GoPro.
 Target and Lilly Pulitzer.
 T-Mobile and Taco Bell.
 Louis Vuitton and BMW.

Licensing Agreements /18
Instructions: Please complete the following questions regarding Licensing
Agreements.
1. Choose any ONE of the businesses with Licensing Agreements and explain
how each of the member of the Licensing Agreement benefits. [4 marks]
Companies with Licensing Agreements
 Starbucks & Nestle
 Disney & Lego
 Monopoly & McDonalds
 Intel & Microsoft

, BBB4M – Ch2 P1 Strategic Alliances Marchese


How does a Licensing Agreement differ from an Exclusive Licensing Agreement? [1 mark]
1. What is a Strategic Alliance? [2 marks]

A strategic alliance is an agreement between two or more independent businesses, in which they
cooperate with each other and consolidate efforts to achieve a specific goal. The cooperation is
carried out by jointly sharing resources, information, technologies, expertise, and marketing
possibilities. Companies that enter into alliance relationships benefit from the connection and
supplement each other’s resources and capabilities.

2. How does a Strategic Alliance differ from a Joint Venture? [1 mark]



A strategic alliance is the cooperation of independent entities that form a partnership and perform
joint activities while retaining their independence. Meanwhile, a joint venture is a collaboration
in which two or more companies create a new legal entity to carry out the joint project.


3. How do Strategic Alliances create value? (5 ways) Explain. [10 marks]



1. Sharing of resources and knowledge.

Strategic alliances are formed when companies decide to combine their resources and knowledge
to get access to unique expertise, technologies, and data. In an alliance, each company brings
something new to the table, so that they all benefit. Partnerships allow organizations to tap into
resources they could not afford on their own.

2. Access to new markets or customers.

A strategic alliance can give a company access to a wider customer base. Companies that have
previously been operating in separate markets can expand their operations to sell to the alliance
partners’ clients.

3. Reduction of costs and risks.

Partnerships allow partners to minimize costs and reduce risks. In a strategic alliance, costs and
expenses are shared between the partners, while the risks are minimized due to the distribution of
responsibilities.

4. Innovation.

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