no less than 100 words

In book citations

Wheelen, T.L., Hoffman, A., Hunger, D. J. & Bamford, C. (2018). Concepts in strategic management and business policy; Globalization, innovation and sustainability (15th ed.). Retrieved from https://vitalsource.com/

• Chapter 7: Strategy Formulation: Corporate Strategy
• Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice

There are both advantages and disadvantages to cooperative strategies. The purpose ” behind the cooperative strategy is that a company cannot always stand or go alone. Reasonably, it can make stronger its effectiveness through bring into being partnerships with other companies” (HigherStudy.org, n.d.). Recently, cooperative strategies have been more and more common for multiple reasons, some include more intense competition, advances in telecommunication and information technology, business globalization, and more (HigherStudy.org, n.d.). There are two types of cooperative strategies and they are: strategic alliance and joint venture. A strategic alliance or partnership “is a collaborative arrangement between two or more organizations… the strategic alliance is formed to help each other in organizational or business functions for mutual benefits” (HigherStudy.org, n.d.). A joint venture “denotes a new organization recognized by two or more groups. It is an agreement where two or more firms hold equity capital in a venture” (HigherStudy.org, n.d.).

There are most definitely risks when engaging in a cooperative strategy. Some of the risks might include the inability to work cohesively with the partners, rivalry, issues in equally dividing control in a joint venture, or how to run the business (what business decisions need to be made, etc.). To mitigate these issues, the partners should know each other fairly well and discuss the terms and decisions in great length before actually deciding to join together.