Page 38 - E1 Integrated Workbook STUDENT 2018
P. 38
Chapter 2
Advantages joint venture Disadvantages joint venture
Good for sharing costs, risk and
expertise. Can be difficult to share costs,
decision making,
Can allow access to a restricted accountability, profits and to
market. agree on goals, time-scales
and risk appetites.
Potential for loss of confidential
information.
Advantages strategic alliance Disadvantage strategic alliance
Similar to a joint venture. Similar to a joint venture.
In addition, the alliance is not In addition, independence
constrained by having to form a makes it difficult to, say, collect
separate legal entity. information and measure
performance.
In addition, security of
confidential information may be
more of a concern.
26
