Please answer the following questions after reviewing the reading and lessons for Week 5.
Explain the issues, challenges, or disadvantages to forming a strategic alliance. Give an example to provide a context to your discussion.
Instructions: Your initial post should be at least 250 words. Please post more than 2 reply responses of 100 or more words to your classmates or the instructor. Responses should be a minimum of 100 words and include direct questions.
Respond 100 words to student Jermaine class 341
This week we are looking at strategic alliances.The first thing that you have to do is ask yourself if you truly need one and if it will meet your needs.The issues will be will it resolve the issues you are having.Will a strategic alliance impact current operation or fix variable costs and will this improve the company?In other words, will this be a win-win situation.One of the challenges of strategic alliance is trusting.Both sides need to ensure that there is absolute trust in the relationship as well as making it clear what the roles and responsibilities are of the alliance.An alliance can help take care of a lot of details and headaches by outsourcing it.
A great example of outsourcing is Amazon.com.Earlier this year I purchased a third extender for my Wi-Fi in my duplex.The extended is a Fritz and is the same make as my router and is the same model of the other two I purchased from a computer shop in Kaiserslautern, Germany.However, I did not want to drive down there, which would take about 30 to 40 minutes, and rather just order it on line and pick it up in a week or so at the post office on base.I ordered the item from Amzon.com and it arrived in less than 10 days.When I picked up the box, I noticed the word Deutsche Post on the box, and the first thing that went through my mind was I ordered it from the states (Amazon) so why is this on the box.There was an address next to t, so I typed it into my GPS on my cell phone.My box originated from a place in Germany about an hour from my duplex only to go all the way to the US to get placed in the postal system to come back to me in Germany. The company has an alliance with Amazon to ship their product, but it is funny that I waited 10 days for something that I could have received in less than 2 hours.
Strategic Alliances and Outsourcing Strategies (n.d.). Retrieved from: https://edge.apus.edu/portal/site/378096/tool/ec2104ca-5d49-48f0-b64d-bba9a8d65df1/ShowPage?returnView=&studentItemId=0&backPath=push&errorMessage=&clearAttr=&source=&title=&sendingPage=1885133&newTopLevel=false&postedComment=false&addBefore=&itemId=6031045&path=next&addTool=-1&recheck=&id=
Respond 100 words to student SKYE class 341
A strategic alliance is an agreement between two or more entities to achieve an objective that is mutually beneficial for both, or all, entities in the agreement. A successful strategic alliance is one where all parties clearly benefit from the arrangement. While there are advantages of a strategic alliance, such as being able to use fewer resources by utilizing the resources and knowledge of the other party and reaching new markets, there are disadvantages to strategic alliances as well.
Some disadvantages of strategic alliances consist of cultural differences, uneven benefits, lack of trust, failure to understand and even potential damage to reputation based on the other parties that one becomes allies with. Cultural differences and language barriers can hamper communication and cause delays or frustration. Uneven benefits can result in companies bending to the will of another, even if it isn’t necessarily what is wanted, which will cause poor relations in the long run and stress on a company. Lack of trust can happen easily, due to miscommunication or placing blame on one another for issues, if a relationship isn’t built with proper communication from the beginning then it is very easy for an alliance to become a liability instead of an opportunity to grow. Having an alliance with a company with a poor reputation could damage all other companies involved, even if said company follows through with all arrangements within the agreement and holds up on all deals on their end, the fact that they have a poor reputation with other entities would still stain the other companies’ reputations that are involved (Universal Teacher, 2018). It is important to thoroughly research the companies that strategic alliances are built with and to really make sure operating procedures will work once joining forces with them.
Universal Teacher. (2018). Retrieved from http://universalteacher.com/1/disadvantages-of-strategic-alliance/
Respond 100 words to student Higdon class 341
Good Evening Class,
I hope you are all doing well this week. This week’s lesson focused on strategic alliances. The forum asks that we center our writing around what can go wrong in these situations.
While strategic alliances can be highly beneficial in certain situations, there are some that are not. In any business transaction there are risks. The goal is to mitigate as many risks as possible in order to maximize capitol. Alliances are just that , a risk. It requires a great deal of trust to relinquish part of your product manufacturing, transportation, or marketing up to a outside company. Often alliances are not as mutually beneficial as hoped. Once company in the agreement may have a much better deal than the other.
Risks involved with forming strategic alliances include unknown costs, poor financial performance by the other party, bad business relations, and many more. Das & Teng suggest that there are several different risks, but the kind of risks found can be divided into a couple categories; relational and performance (1999). Relational risks are those that are associated with the relationship side of an agreement. Meaning areas that require cooperation and collaboration between parties are relational risks. Performance risks take into account the possibility of failure even in the event that partnering firms are doing their best to meet the demands of an agreement(Das & Teng 1999). There are times that companies truly desire to take on the responsibility of a business contract, but come up short despite their best efforts.
Das, T. K., & Bing-Sheng Teng. (1999). Managing risks in strategic alliances. The Academy of Management Executive, 13(4), 50-62. Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/210514506?accountid=8289
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