Tuesday, 16 June 2015.
Lessons learned from experience
Because of the development of technology and the financial crisis in the global market, organizations were forced to change their business strategies. The strategic alliance is considered to be one of the best strategies for increasing shareholder value, regardless of the problems facing the full implementation (Vanpoucke & Vereecke, 2010 p. 6716). Organizations engaged in strategic alliances should invest in partnerships that provide long-term benefits to all parties involved. It should also ensure that both sides have been committed for a long time. In most cases, market leaders in a particular area may not be the most ideal for strategic alliances, since most of them do not usually have a partnership. Organizations need to look for companies that can offer long-term benefits
When forming an alliance, it is important to develop the evaluation criteria and the implementation plan in advance. In addition, one can learn that there is no partnership that can last forever. Companies should have proper planning when entering into an agreement with the alliance, as it helps to support the integration in the verification process. On the other hand, it will also contribute to improving relations, as each party will take a serious attitude. Companies in the strategic alliance should be ready for future withdrawal. The Partnership provides the opportunity to work directly with each other and to ensure the interaction of technology. This can be useful for an entire organization unit. Perhaps there are problems that may hinder maximum growth and watch the coming out, the company is likely to realize its goals
Culture plays an important role in the management of strategic alliances, as it determines the results of the work. There are certain countries with a high cultural background. In order to ensure successful strategic alliances, a culture must be established as a mandatory component of the organization. If this culture is not properly addressed, the alliances will not be able to resolve the problems that arise and even adversely affect decision-making, thereby increasing the length of development planning
Which could have been done better
For the success of Nokia-Microsoft Alliance, it is necessary for both organizations to clearly link their objectives with the respective organizations. We’ve spent so much time discussing the rumors and the fears of the partnership. It has been viewed by many as a chance for Microsoft to restore itself as the leading software vendors. But others also saw that Nokia could prove itself as the world’s leading mobile device maker. The lack of a clear link jeopardized the success of the partnership. It is imperative that both sides effectively link the desired objectives of the alliance
A successful strategic alliance must have leaders who have come together to ensure proper coordination and ownership of resources. Unity of leadership is the ability of management to make bold decisions quickly and without being stuck in the system
In a strategic alliance, partners should be involved in coordinating efforts to manage the interdependence of tasks that flow from a single division of labour or production technologies that are used in the processing of uncertainties that may be linked to an external environment or internal challenges. alliances should be formed, taking into account the expected synergies of additions, as they create several cups. The higher level of complementarity is the result of a more complex division of labour, as each player’s task becomes specialized. This reinforces the interdependence, thus the need for closer coordination. Good coordination ensures compatibility between the parties involved. This will ensure further success of the alliance and the benefits for all equal partners (Ghulati, Wohlgezogen & Zhelyakov, 2012 p. 546).
In strategic alliances, the two sides must support the unity of the leadership, as it can help to accelerate decision-making, and to fulfil the commitments to the goals. The central theme of the alliance must be mobilized. Through leadership, the leaders of both companies will have the courage to take tough decisions and compassion to be attentive to the needs of another partner (Doz & Kosonen, 2008, p. 96). Strategic alliances should be adequately funded. Each partner must be honest about its time and financial obligations to the joint venture. The resources available provide a simple and quick transformation of business models, as well as operations systems. When you create reports about how assets have been used in your company, you can customize the financial statements to meet the needs of your partnership. In the same way, it should not go into the standard reporting formats for each organization in the alliance. This will increase transparency and confidence in working together (Doz & Kosonen, 2008). P. 96)
Doz, Y., & Kosonen, M. (2008). Dynamics of strategic flexibility: EXPERIENCE GAINED.
Gulati, R., Wohlgezogen, F., & Zheazazkov, P. (2012). Two facets of cooperation: cooperation and coordination in strategic unions.
Vanpoucke, E., & Vereecke, A. (2010). Precise predictive value of behavioural characteristics for the success of strategic alliances.