Alliance Defined A strategic alliance is when two or more businesses join together for a set period of time. The businesses, usually, are not in direct competition, but have similar products or services that are directed toward the same target audience. Alliance means "cooperation between groups that produces better results that can be gained from a transaction.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Strategic alliance is an agreement of firms to jointly pull their resources together with the aim of meeting an outlined objective s.
This research work carried out an analysis on the effect of strategic alliance on the corporate culture. The research significant, among others, shows how a Strategic alliance essay can determine, a priori, corporate cultural compatibility; how feasible this is among parties to the alliance.
A qualitative method is used in analyzing the drawn research questions. Among the findings of the research are that diversity in corporate culture would hinder the existing culture in the parties to the alliance, hence leading to its ineffectiveness and the unsuccessful outcome of the alliance.
Also, the involvement of human resource in the process of the alliance would go a long way in making them adapt to any management change that comes with the deal. Leadership has a significant role to play in the success of the alliance, hence, there is need to put in their will to coordinate resources and control variance in corporate culture.
Many organizations have resulted into forming g a strategic alliance a s a way out in gaining competitive advantage over other rivals. While acquisition is a firm taking over another by the buying over of the organization shares, and thus the bought organization loose its corporate identity to the buying firm; whereby the buying firm take over the running and management of the firm that is acquired.
Since then there has been a virtual explosion of strategic alliances by firms of all sizes in almost every industry, including air transportation, financial services, Strategic alliance essay entertainment and pharmaceuticals.
In recent times the level of strategic alliances has increased; more firms in different industries prefer strategic alliance to outright merger and acquisition. Among the reasons given for corporate alliance are: These include the issue of compatibility of corporate cultures of the firms forming the alliance, and other issues as leadership and human resource management in the implementation of the corporate alliance, inter alia.
Each firm has it own corporate culture, i. By their very nature, acquisitions are invasive. One firm, in essence, takes over the management and financial responsibility of another firm. In the case of strategic alliance, where there is no outright takeover, the firms agree to jointly put their resources together in order to attain the corporate objectives for their companies.
This comes as a result that each firm still maintain its entity and corporate identity while the alliance progresses. Hence, the likelihood that their organization w ay of operating may differ and this tend to affect the level of success in the corporate alliance.
The issue of human resource management also needs to be taken into proper consideration in the process of strategic alliance. The introduction of an alien corporate culture different from what operates in an organization, especially if the existing culture is a strong culture, this usually ail and the culture tend to affect the operation of the organization negatively.
According to Oden An existing strong culture can often resist a weak change effort.
The resistance to cultural change by some corporate culture is adduced to the level of how strong and how members of the organization have adapted to it; thus, the introduction of alien culture to what is practiced would be difficult to implement.
Any attempts to introduce management practices or organizational behavior changes that are radically different from the existing culture will almost certainly fail if these changes are incompatible with the existing culture. The culture- that sum of values, beliefs and assumptions that is the core of any organization- must support the new initiatives if these behavioral changes are to take hold.
Thus, the structure of an organizational culture goes a long way to affect the content and form of communication, and this stand to resisting changes introduced, especially when the culture is well rooted and strong in the organization. Another issue that has to be considered in strategic alliances is the issue of leadership.
Leadership capacity is an inevitable issue that should be looked into when addressing the process of strategic alliance. Since the organization senior executives are those in charge of the implementation process of the strategic alliance, it then boils on thm to be committed and give the necessary will and support to it success.
Laraja et al argue that leadership capacity is perhaps the one of the most necessary elements in the process of strategic alliance. The participation of senior mangers must go beyond the formation o a strategy based on alliances; the must personally be engaged and show their commitment and enthusiasm in the alliance.
What negative effects are opened to firms engaging in strategic alliances with different corporate culture? What are the effects this diversity in corporate culture of the aligning firms has on the success of their corporate alliance?
The incompatibility of corporate culture has been the major failure of much strategic alliance; how can this be assessed prior to the engagement on the process of the strategic alliance.
Strategic alliance may lead to the collapse in existing strong corporate culture.
Hence, this may result in its failure especially when the newly introduced cultural practice is alien and incompatible with it. What role has human resource in an organization engaging in strategic alliance got to play in the successful outcome of the corporate integration? To see how strategic alliance affect existing culture in the firms entering into the alliance.A Strategic Alliance is a vital building block for a company to attain stronger and effective market presence.
We also talk about forms, pros and cons of alliances. Join Family Policy Alliance for a nation where God is honored, religious freedom flourishes, families thrive, and life is cherished.
A strategic alliance involves at least two partner firms that: (1) remain legally independent after the alliance is formed; (2) share benefits and managerial control over the performance of assigned tasks; and (3) make continuing contributions in one or more strategic areas, such as.
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— The strategic recommendations start on page , when Marchionne assumes the position of CEO of Chrysler as well as continuing as the CEO of Fiat. — Fiat is the strategic driver (by evidence of their equity alliance and CEO Marchionne) and needs to be discussed in all 3 strategic recommendations.
Qantas and Emirates: Strategic Alliance Analysis Essay Words 9 Pages The strategic alliance between Qantas and Emirates was a result of a careful analysis of .