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Assignment: Discussion Questions (4) - Essay Example

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“Strategic alliances are partnerships between two or more firms which decide they can better pursue their mutual goals by combining their resources – financial, managerial, technological – as well as their existing distinctive competitive advantages”. (Blanchard 2006,…
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Assignment: Discussion Questions (4)
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Download file to see previous pages facilitating the formation of a new form on competition; (3) creation of mistrust and secrecy in areas of sensitivity even among cross border allies; (4) “in addition to potential loss of technology and knowledge-skill base, other areas of incompatibility often arise, such as conflicting strategic goals and objectives, cultural clashes, and disputes over management and control systems.” (Blancard 2006, 13)
For companies to implement a global sourcing strategy successfully, the following guidelines would provide assistance, to wit: (1) “choose a partner with compatible strategic goals and objectives; (2) seek alliances where complementary skills, products, and markets will result; (3) work out with the partner how you will each deal with proprietary technology or competitively sensitive information; and (4) recognize that most alliances last only a few years and will probably break up one a partner feels it has incorporated the skills and information it needs to go it alone” (Blanchard 2006, 16).
As noted, the success of implementing a global sourcing strategy lies in compatibility of goals, skills, resources, as well utilization of technology and delicate information for the allies’ operations. There is a need for constant monitoring of these elements to ensure that all variables remain compatible at the span of the companies’ global transactions.
Host governments provide governing rules and regulations which global corporations must comply with. At times, host governments do not share the same interests with global corporations in forming alliances within their national domain. Complicating the matter in the implementation of strategic alliance is the status of political structure currently practiced by the host government. The political risks should be incorporated in implementation of strategies which would influence and affect the operations of the allies.
Any risk associated with the political structure would have a drastic influence on the ...Download file to see next pagesRead More
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