Question

Please brifly answer the following after reading;  Jakada’s (2014) article, “Building Global Strategic Alliances and Coalitions for Foreign Investment Opportunities” on building global strategic alliances.

1)What steps should the exporter take to ensure success when forming an alliance?

2)What issues might arise when forming an alliance?

3)What benefits might a global alliance bring?

Answer 1

SOLUTION :-

1.

The key steps that an exporter should follow for forming a successful alliance are:

Have an effective and efficient strategy for the alliance

Seek and find the right partner who shares common interest and goals

Communicate the benefit of the deal and adjustments required

Form an agreement according to the interest and requirement of both parties

Evaluate the progress and restructure the agreement as required  

2.

The common issues that arise from forming an alliance are:

Lack of control within the organization, since it involves a partnership with another company, they will also have some rights so that would give them also controlling power and the total controlling authority gets divided.

Formulation of new policies and procedures can bring up conflicts in employees due to the sudden change

Chances of trade secrets of the company getting into wrong hands are possible

If one company which is in the alliance creates a bad image in the society, it affects the alliance even though the other company wasn't responsible for it

3.

It brings in new technology and skills

Helps in creating better strategies for new product development

Helps in capturing new markets globally

Helps in capturing new customers

If one company which is in the alliance creates a good image in the society, it promotes the alliance even though the other company wasn't responsible for it