The paper "Strategic Alliances Contribute to a Firm’ s International Competitiveness" is an outstanding example of management coursework. The business dictionary defines a strategic alliance as an agreement that is made between two or more independent business organizations to work in unison towards a mutual objective (s). In contrary to a joint venture where the two organizations combine their operations to form a new entity, strategic alliance partners retain their autonomy during the period of collaboration. It is crucial that business owners and managers make a distinction between the alliances that are simply conventional and those are really strategic (Dyer & Nobeoka 2000). What Produces Positive Effects on Alliance Firms? In order to ensure that the effects of any alliance are positive, it is imperative that each of the firms entering the venture evaluates the core capabilities that are needed by the management in order to manage successful global alliances.
Being good and sensible negotiators also goes a long way in ensuring that the organization does not get a raw deal in comparison to other alliance partners. This should also come alongside having expertise at building and managing the alliance.
Such capabilities are crucial if the benefits of the strategic alliance are to be achieved by all the partners. As such, if a particular firm has in its possession managers that can successfully manage and establish global partnerships, then the company’ s, as well as the alliance’ s product breadth, profitability and market scope will be enhanced worldwide (Hill, Jones and Schilling 2003). Before firms can get into a strategic alliance, it is important that they put adequate thought behind the structure that the relationship is going to assume, as well as any details regarding the management.
Barney (1991), in his studies, argued that the definition of outcomes and results expected for the alliance partners from the relationship should be done well beforehand. This prevents future conflicts amongst the partners.
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