1. is a strategic alliance, how does it differ from a merger and what checks should be made before entering into one?
Strategic alliance refers to a contracts or agreement between two business organisations for sharing resources such as products, equipments and knowledge without merger. Both business organisations have separate identity. In merger two separate organisations combine in a single body organisation. Before entering into strategic alliance it is necessary to check partner’s strengths and weaknesses. Partner’s objects and management style, resource’s availability, potential profits and conditions of strategic alliance.
Strategic alliance refers to a contracts or agreement between two business organisations for sharing resources such as products, equipments and knowledge without merger. Both business organisations have separate identity. In merger two separate organisations combine in a single body organisation. Before entering into strategic alliance it is necessary to check partner’s strengths and weaknesses. Partner’s objects and management style, resource’s availability, potential profits and conditions of strategic alliance.