Alliances usually go wrong if
A)firms squabble over the contributions and returns from the alliance.
B)each firm really wants to acquire the other's core capabilities.
C)the firms are customer and supplier.
D)either a or b.

Question

Quizplus · Accepted Answer

Alliances can go wrong if firms engage in disputes or conflicts over the allocation of resources or benefits from the alliance, or one firm seeks to gain control or access to the other's key assets or knowledge. These issues can arise when the firms have different objectives, priorities, or expectations for the alliance. Therefore, both options A and B are likely factors that can lead to failure of an alliance. Option C, on the other hand, refers to only one type of alliance, namely vertical integration, where one firm is dependent on the other for inputs or outputs. This type of alliance may or may not lead to failure, depending on the terms and conditions of the relationship, the power dynamics between the firms, and the stability of the industry environment. Therefore, option C is less likely to be a general cause of alliance failure than options A and B.

Alliances Usually Go Wrong If