Business Marketing - Acme Corporation - Case Study Example

BUSINESS TO BUSINESS MARKETING 19TH August, 2008 Acme Corporation founded by Tom Shore is a pioneer organization established from the past eight years specializing in the B 2 B clientage. Its main interaction is with the ISP’s and cable and satellite providers. To tap the current market profitable opportunities, Acme Corporation should form an alliance with the Southern Technologies which is a major diversified technology company. The main purpose for Acme getting into this alliance was basically to access to both finance and new markets and provides future financial stability. However, there are quite a few efforts which Acme could look at so as to create and strengthen a working relationship between Southern Technologies and Acme. First and foremost being, the development of a partnering state of mind, as it becomes easier and comfortable for a person to get along with another, there are companies who show a commendable performance by embedding strong relationship values in their culture. One needs to clearly define and articulate the business purpose for managing and creating relationships effectively (Tabatoni P, Davies J, Barblan A, viewed on 19th August, 2008). Alliances and ventures or any other kind of business organization is formed to tap new markets, deploy new technologies and access knowledge and structural assets, without having to own those resources; an organization can enhance the turnover and the profit margins utilizing the optimum potential for faster growth and higher performance. Acme should aim for the maximum outcome by joining hands with Southern Technologies incorporating all cultures values simultaneously. Effective relationship management depends upon the way a business is conducted and advanced. It is generally seen that an eminent number of firms which have well defined systematic process enclosing all aspects such as procurement, sourcing, manufacturing, often overlook the management of relationships, to display a good execution, companies are advancing further, same as Acme Corporation, options such as training programs could enhance not only the routine work but even the negotiation skills and the techniques for managing strategic relationships. The strategic relationships could be formed in various ways such as alliances, joint ventures, partnerships, licensing, outsourcing and other kinds. Here in the case of Acme Corporation and Southern Technologies, entering into a merger or an acquisition is also one of the alternatives available because the motive is to achieve greater business scale and heights, integrating new capabilities and opportunities in their business. Acme specializes in products that help businesses overcome problems to access internet points at broadband frequencies and have been developing several new technologies, and on the other hand Southern Technologies advances in technology products and services supplied to the automotive aerospace and information technology market worldwide. Even an alliance could be beneficial in such a case as both of them are looking forward to merge together the different capabilities. They should adopt a learning attitude, more flexibility and broad frame of mind for a successful strategic relationship. Successful organizations emphasize more on converting a relationship management into a corporate capability. Relationship management requires sincere and dedicated attitude towards accomplishments of collaborative business aims. The advantages of the different options mentioned above for Acme and Southern Technologies to enter into partnership and realize a successful relationship management amongst each other are justified but they encompass certain disadvantages as well. Both the companies in their struggle to obtain corporate capability may fail to understand the needs of the customer. Uncertainty of the external environment may result in the failure of the strategic alliance or any other form of business tie up. Government intervention and over estimation of resource competence could sway the management of the relationship into unwanted directions. Different values, working styles, training sessions may result in domination of values of one culture over the other which may further result in discord, failure to coordinate, failure to obtain employee commitment, failure to manage changing environment. When a relationship between the two giants internalize into one corporate culture, it could lead to group disharmony and dissonance. In a strategic relationship, rationalization and innovation leads to a reorganization of the entire structures and development of the new functions which could result in miscommunications and unclear goals and aspirations (Ertel, Danny, 2001). One of the major concerns is that ignoring the need for preservation or retention in mergers and acquisitions, the weaker source can often endanger itself or reduce its assets by wasting the professional and technical experience of staff in times of failure of the collaboration thereby affecting the quality and the existing organizational climate. The traditional managerial framework in the long run could lead to inertia as it is difficult to change one from the pre-existing strategies. The different corporate and national cultures, technologies, structures and procedures of the two firms may pose great threats for integrating it into the parent company. Negative performance in form of inferior results can be an unexpected resultant. A weaker intensity of attachment between the managers of two firms could also lead to poor performances. The objectives that Acme would accomplish out of such a partnership are access to advance technology products. It may even get a chance to enter into diversified fields along with the cooperation of Southern technologies. Acme’s objective to attract considerable financial investment for the development of its product and strategizing the correct time for the launch of the products could be attained through such kind of partnership as Acme would be more exposed towards the market Southern Technology deals with in order to tap the market opportunities. Adequate finance can help Acme to strengthen its research and development department for constant growth and innovations. Apart from high profits, expansion, new developments, availability of finance there are many other advantages which Acme Corporation can attain from this partnership. Pool in of skills and resources, structures and systems, cultural styles and values can modify the climate of the organization into more healthy and cooperative environment. Economies of scale could be derived from many areas of the organization such as in production, purchasing and distribution (Bowman C, 2001). The overall strategic position of Acme could be enhanced through getting into partnership with Southern Technologies by creating synergy, strengthening market power, and gaining speedy access to foreign markets and Southern’s clients as well. Cost reduction can also be achieved. Infact maintaining synergy can be one of the foremost objectives of Acme Corporations as it can get a chance to leverage its core competency (Mehalli K, Frynas G J, Finlay P, 2006) . By joining hands with the already successful Technologies would help Acme attain a strong foothold in his partner’s home market as well .(Tabatoni P, Davies J, Barblan A, viewed on 19th August, 2008) The objective of mapping the business landscape the way it will be projected in the future is must to be achieved through such partnership. (Ghemawat P, 2005) It is possible that the existing organizational culture may not be conducive for the sustainability of the organization for a long term perspective, successful partnering can open channels to new learning both in terms of enhancing knowledge acquisition all through the enterprise , and in terms of using it constructively for organizational change. Such a partnership can be effective to have a prompt response to the changing market conditions, competing on different direct and indirect cost factors. The objective of a successful partnership can however be achieved only when each partner understands the key interests of the other, each partners listens to the other, each partner respects the other’s strengths and weaknesses prior to the collaboration, and above all that both the partners should share commitment and unique creative ideas of expansion and future growth. Lack of trust, understanding, respect for other’s capabilities limits creativity and undermines execution of strategic managerial functions. Both the organizations need to put in place processes that are in accord with the different phases relationships go through that is from the conception, exploration and negotiation, to implementation and adjustment. Apart from thinking from a merger, acquisition or an alliance point of view, Acme can also initiate to start up its own new venture by financing the investment from the private institutions. If the research and development which Acme wants to get into is highly beneficial for the government, even government could grant aid for the further processing. Instead of a pure private collaboration, a hybrid of government and private relationship could also be one of the available options. There are many big shots who outsource the research and development of their new products to various groups, Acme could also think about specializing in the researching area, where his own expenses could be kept intact and on the other side the corporation would be able to explore the market conditions for the timely launch of its products. Acme could also start a purely new company with a different objective in partnership with Southern Technologies having a share in the profits and taking care of the development and research department of the new product while offering the financial and distribution departments to Southern. By getting into such a partnership deed, it could give Acme access to both finance and new markets and provide future financial stability. BIBLIOGRAPHY 1. Tabatoni P, Davies J ,Barblan A, Strategic Management and Universities’ Institutional Development , Viewed on 19th August, 2008, http://www.eua.be/eua/jsp/en/upload/Strategic_Manag_Uni_institutional_Devlpt.1069322397877.pdf- 2. Ertel, Danny, Saturday, December 1 , 2001 , Alliance Management: A Blueprint for Success; Companies seeking to reach more markets and offer.., viewed on 19th August, 2008, .http://www.allbusiness.com/business-planning/business-development-strategic-alliances/830680-1.html- 3. Mehalli K, Frynas G J, Finlay P, 2006, Global Strategic Management : International Strategic Alliances; Partnership and Cooperation, Oxford University Press, New Delhi ed 1, p 213 4. Bowman C, 2001, The Essence of Strategic Management : the Organizational implications of different strategies, Prentice Hall of India, New Delhi, ed 5, p 73-75 5. Ghemawat P, 2005, Strategy and the Business Landscape, Text and Cases: Mapping the Business Landscape, Pearson Education, ed 5, p 52 Read More