Discussion assignment 2

Discussion assignment 2 - Discussion assignment 2 Strategic...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Discussion assignment 2 Strategic alliance is an agreement between two or more separate companies in which there is strategy to produce a projected outcome that is mutually beneficial to all companies. This is used as a tool of strategy because it is more complex. There are five factors that make the strategic alliance different than a business arrangement. There is an important objective that the company must achieve. The partnership helps foster a core competence or gives a competitive advantage, or it could block a competitive threat to the organization. It helps open up important new market opportunities, and it also helps mitigate a significant risk to a company’s business. Companies will choose to pursue a strategic alliance because of the need to become a global market leader or they are looking to gain a strong position in the future of its industry. There are six pros when it comes to strategic alliances. Picking out a good partner is important because having unequally yoked partnerships can lead to mediocre results. Being sensitive to cultural differences is also valuable because if there is a big indifference in the respect for another culture it will most likely not work out. Recognizing that the alliance must benefit both sides, because one of the companies can end up trying to over profit by being dishonest and cause the partnership to break apart so finding an alliance that benefits both side and maintains trust and honesty is important. Ensuring that both parties live up to their commitments and produce or do what they have stated to do is crucial because if one company is working inadequately of the other then there is an imbalance to the structure involved. Structuring the decision-making process ensures that actions can be made swiftly when required is very fundamental because one company can take a very long time to answer or gain approval from the higher-ups and this may bog down the other company involved. Managing the learning process and then adjusting the alliance agreement over time to fit new circumstances, for example when computer came out
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Discussion assignment 2 - Discussion assignment 2 Strategic...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online