alliance

  

Definition

Coming together of two or more firms to create a unique organizational entity (such as a joint venture), in which each firm retains its individual identity and internal control. The purpose of an alliance is to (1) achieve joint strategic goals, (2) reduce risk while increasing rewards and/or, (3) leverage resources. Since an alliance is neither an acquisition nor a merger, it requires new control methods and new management skills.

Use alliance in a sentence

  • Three major companies from different states formed an alliance to produce maximum sales and product exposure at the special event.

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  • We will send photographs and details of the successful alliance between this charity and our business, to the local newspaper.

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  • Some times two businesses will form an alliance if they think that together they can make greater profits than if alone.

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