Unlike one-off sales transactions-strategic alliances

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Finally, unlike one-off sales transactions, strategic alliances suggest an on-going interdependence between parties. In this case, the McDonalds are dependent upon Ray Kroc to grow (franchise) their idea and he is compensated for this (royalties) in the license. At the same time, the franchisee (Ray Kroc) remains dependent upon the franchisor (McDonald’s) to provide the highest reputation, the know-how (e.g, most efficient methods of providing “fast food”), etc. The McDonald’s also receive royalties under the contract for this service. Nevertheless, strategic alliances can be temporary arrangements – things change. Does this one end? If it ends, why and how do you think it ends?

Reference no: EM132230022

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