SYMPTOM:
When a user tries to create a new object or modify an existing object in Strategy Developer 9.x, the following error occurs:
Database Error <> : Execute Query failed. Error type:ODBC error. Odbc operation attempted: SQLExecDirect. Cannot resolve collation conflict for UNION operation.
CAUSE:
The above error usually occurs when there is a conflict among the collations selected for the metadata database, temp database, master database, etc. A collation is used to specify the bit patterns representing each character, and it also specifies how characters are sorted and compared, as shown below:

ACTION:
To resolve the issue, select the same collation for the metadata as is set for other related databases, such as the temp database or master database. As this is a database specific issue, seeking further assistance from a database administrator is recommended.
Consider the following example of how this can be solved in Microsoft SQL Server:
The default collation for SQL Server was Latin1_General_CI_AS. The temp database used same collation, but Strategy metadata repository was using SQL_Latin1_General_CP1_CI_AS.
To resolve this issue, change the Strategy metadata repository to use the default collation by following the steps below:
As every table also has collation (on the columns,) these will need to be changed too:
Another way of doing this can be to rebuild the master database; this is tricky however, as the whole database system is depending on this.