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6.1 United Technologies - Case Study Example

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This is because both countries have established government policies that support the outsourcing sector. Additionally, the governments’ of these…
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Case Study 6.1 United Technologies
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OBTAINING TECHNOLOGY Obtaining Technology Do you think United Technologies was wise to focus only on subcontractors in India and the United States? Why or why not?
I strongly believe that United Technologies was wise by focusing on subcontractors based in the United States of America and India. This is because both countries have established government policies that support the outsourcing sector. Additionally, the governments’ of these two countries are struggling to pull lots of foreign direct investments, and this has enabled the technology to reach the grassroots. Government’s support has ensured that there are enough funds to ensure that outsourcing sector performs well. In this case, there are established and world-class outsourcing companies that specialize in areas of their businesses (Margaret & Bruton, 2010). Therefore, United Technologies was advantaged to outsource its activities to reputable and successful companies. The government efforts and funds pumped into the sector implied that United Technologies would not use massive funds in establishing their operations in those two countries.
Both India and United States of America have an extraordinary manpower. Additionally, the manpower from these two countries is known for their quantity and quality. Americans and Indians are known for their adjustability, tenacity and immense talent. Therefore, United Technologies was going to benefit a great deal from the specialized talent they would get from the two chosen countries (Margaret & Bruton, 2010). They would be giving their services to skilled professionals, who know how to do their job. In this way, there was no way the company was going to register failures and losses.
Lastly, United Technologies was wise to choose USA and India because the two countries have developed infrastructures. This would make United Technologies incur minimal start-up costs. Additionally, the already established support systems implied the transition costs of United Technologies would be reduced significantly to an extent that the company would not feel the pinch.
2. The Otis unit of United Technologies illustrates differences that occur in a worldwide firm as it manages alliances. What are some of the other differences illustrated? What other issues should be considered?
There are several differences that occur in firms managing alliances. These may include; strategic and nonstrategic activities of firms, among others. In order for a firm to succeed in its alliance, it must have focused strategic goals (Margaret & Bruton, 2010). It is essential for organizations to set realistic goals, as well as have an understanding of what the companion firm should bring to the alliance. Thereafter, the firm should take the initiative to understand the costs that can be incurred in the alliance and decide which firm to partner with.
In cases where the alliance partners do not share the same visions, the firm should act fast to either exit the alliance or build a shared vision. This is because lack of common goals may result to failure of the alliance (Margaret & Bruton, 2010). Firms should also ensure that their alliances with other organizations do not interfere with their own competitive advantages. In this way, they aim at remaining relevant to their missions and goals as they learn about new technologies that they wish to acquire. Lastly, firms should understand the accurate profits and costs of the alliance. This would enable them to make sound judgments that would improve the efficiency of the alliance.

Reference
Margaret, W. & Bruton, G. (2010). The Management of Technology and Innovation: A Strategic
Approach. Boston: South-Western College Publishers Read More
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