SPP Strategic Partnerships & Alliances 4

Question 1

Which of the following represents a 'scale alliance' as opposed to a 'link alliance'?

Accepted Answer

Two airlines jointly purchasing aircraft to reduce unit costs

Answer

Scale alliances combine similar resources from partners to achieve economies of scale, whereas link alliances combine complementary resources.

Question 2

When evaluating whether to terminate an alliance, the primary strategic question is:

Accepted Answer

Do the anticipated future benefits outweigh the future costs of continuation?

Answer

Alliance continuation decisions should be forward-looking, weighing projected future benefits against future costs while ignoring sunk costs as irrelevant.

Question 3

A 'hub-and-spoke' alliance network structure gives the hub firm which primary advantage?

Accepted Answer

Structural advantage through information brokerage and coordination control

Answer

The hub firm gains brokerage power by controlling information flows and coordination among spoke partners, creating structural competitive advantage.

Question 4

Which condition most strongly justifies forming an alliance rather than pursuing internal development?

Accepted Answer

The required capability exists in a potential partner and time-to-market is critical

Answer

When a partner already possesses the needed capability and speed matters, alliances outperform internal development on time and risk dimensions.

Question 5

In cross-sector alliances (e.g., corporate + NGO), the greatest source of tension typically arises from:

Accepted Answer

Differing success metrics and organizational value systems

Answer

Corporate and NGO partners often measure success differently — profit vs. social impact — creating fundamental tensions that require explicit alignment.

(SPP) Strategic Planning Professional Practice Test

(SPP) Strategic Planning Professional Practice Test

SPP Strategic Partnerships & Alliances 4