Partnerships in Businesses - Essay Example

On the other hand, Kaplan & Hurd (2002) argue that partnership allows sustainability in organizations by establishing a strong link between organizations with common objectives. It enables them to utilize the available opportunities through a supportive approach. For example, an organization may source a partnership with another company that possesses particular skills that are essential in production but are lacking.

The partnership between Tata Motors and organizations such as Ariba Inc. is a partnership whereby Ariba offers the automobiles company assistance in management-related issues. This partnership has led to the expansion of the market for Tata automobiles hence improved competition and reduced bargaining power of suppliers that have made it possible for the company to attract more suppliers in a rationalized manner. On the other hand, Ariba maintains competence through these partnerships and is renowned for its diversity in management solutions, which enables it to maintain a substantial number of clients. Gadman & Cooper (2005) argue that the more an organization is capable of identifying useful partners, the greater the chances of expanding its opportunities because each partnering organization has unique capabilities that can be useful when shared, making it possible for businesses to utilize their potential to the maximum.       

References

Carr, N. (2004). In praise of walls. MIT Sloan Management Review, Vol. 45(3), pp 10-13

Gadman, S., & Cooper, C. (2005). Strategies for collaborating in an interdependent impermanent world. Leadership & Organization Development Journal, Vol. 26(1/2), p 23. 

Kaplan, N., & Hurd, J. (2002). Realizing the promise of partnerships. The Journal of Business Strategy, Vol. 23, No. 3, pp.38–43

The efficiencies gained through partnerships are mainly a result of the organization’s efforts that are aimed at accomplishing organizational objectives. In essence, every organization entering into a partnership seeks to benefit from it. Otherwise, partnerships would not be meaningful for organizations if they have no positive impacts on their productivity. Gensemera & Kanagaretnam (2004) observe that for high commitment in partnership to be accomplished, each partner needs to understand the benefits that are likely to be derived, which is a source of motivation. Partnerships usually seek to accomplish a major goal of organizational sustainability. However, this common goal is based on an individual organization’s strategic objectives. The goal-setting process of a partnership has to put into consideration the interests of each partner, which postulates that the goals of each organization are represented. Colombo (2003) argues that partnerships lead to long-term sustainability, which is a major objective for organizations that is accomplished through improved efficiency. Partners collaborate to assist each other in pproblem-solving leading to organizational competence. It is therefore clear that the organizational objectives are the driving force towards engagement in partnerships.

The partnership between Ariba and Tata motors is based on the strategic objectives of each organization. For Tata to accomplish its objectives of maintaining effectiveness in the highly competitive market, it requires the expertise of Ariba in managing its expenditure and reducing wastage. This relationship has enabled Tata motors to maintain competitiveness and sustained growth. On the other hand, Ariba, with Tata motors being one of its partners has been able to accomplish its mission of providing management solutions and has maintained leadership for many years in the provision of modern internet procurement solutions. The relationship presents a clear view of the efficiencies that organizations accomplish from partnerships as they pursue organizational objectives.