Question

American Snacks Inc., a conglomerate, has a strategic alliance with Très Bien Limité, a French snack-maker. However, Très Bien managers are concerned that the different business units of American Snacks will set up partnerships with direct competitors of Très Bien in France. What can owners and managers at American Snacks do to respond to Très Bien's concern?
(A) Require business units at American Snacks and Très Bien to sign loyalty pledges.
(B) Encourage business units at American Snacks to act independently.
(C) Arrange for the alliance to be managed at the corporate level.
(D) Sever the relationship with Très Bien and find a more trusting corporate partner.

Answer 1

Answer:

The correct answer is letter "C": Arrange for the alliance to be managed at the corporate level.

Explanation:

A strategic alliance is a cooperative arrangement between two or more organizations sharing resources for a common objective. In the case, American conglomerate Snacks Inc., established an alliance with French Très Bien Limité but the latter has doubts about units of Snacks Inc. making partnerships with Très Bien Limité direct competitors. In such cases, if the strategic alliance is set up at corporate label the other possible partnerships would be avoided making sure Très Bien Limité will be the exclusive snack-maker Snacks Inc. will deal with.

Answer 2

Answer:

(C) Arrange for the alliance to be managed at the corporate level.

Explanation:

The correct answer is C. The managers and owners of American Snacks Inc., should arrange the alliance to be managed at corporate level. If the alliance will be managed at the corporate level decisions will affect the whole company. The corporate level strategy is designed by American Snacks Inc. to form a strategic alliance with Tres Bien Limite. The managers of Tres Bien Limite should be responded by American Snacks Inc. with the corporate level alliance management.