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Two fashion designers based in New South Wales have decided to jointly fund the marketing of their designs overseas for the next five years - HSC - SSCE Business Studies - Question 5 - 2010 - Paper 1
Question 5
Two fashion designers based in New South Wales have decided to jointly fund the marketing of their designs overseas for the next five years. These designers usually ... show full transcript
Worked Solution & Example Answer:Two fashion designers based in New South Wales have decided to jointly fund the marketing of their designs overseas for the next five years - HSC - SSCE Business Studies - Question 5 - 2010 - Paper 1
Step 1
Which of the following best describes the arrangement between the fashion designers?
Answer
The arrangement between the two fashion designers can be best described as a Strategic Alliance. This term refers to a cooperative agreement between two or more firms that decide to work together towards a common goal, while still maintaining their independence. In this case, both designers are choosing to collaborate on marketing efforts, which is characteristic of a strategic alliance, rather than forming a complete merger or other types of organizational structures.