Certified Supply Chain Professional (CSCP) Practice Exam

What is an important factor when forming an alliance among organizations?

1. High entry costs

2. A common goal

3. Complex hierarchies

4. Strong competition

The correct answer is: A common goal

Forming an alliance among organizations is fundamentally driven by a shared or common goal. When different organizations come together, it's essential that they align their objectives; this creates a unified purpose that guides their collaborative efforts. A common goal helps to establish trust, encourage teamwork, and ensures that all parties are working towards a mutual benefit. This alignment not only fosters cooperation but also enhances the overall effectiveness and efficiency of the alliance, as each organization understands its role in achieving the shared objectives. In contrast, factors such as high entry costs or complex hierarchies can create barriers to forming such alliances. High entry costs may deter organizations from embarking on collaborative ventures, while complex hierarchies can complicate communication and decision-making processes, making it challenging to maintain focus on a common objective. Strong competition can also hinder alliances, as organizations may be more inclined to view each other as rival entities rather than potential partners. Therefore, a common goal stands out as a critical factor in successfully forming and sustaining an alliance between organizations.