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is a holistic approach that is adopted by organisations in planning the future course of business and as Mintzberg points is out, “strategies are both plans for the future and patterns from the past” (Mintzberg, 1987, P. 67). Of the various methods that organisations generally adopt in order to manifest strategic success, strategic alliance is very popular, and as Kanter propounds, “business alliances are living systems, evolving progressively in their possibilities” (Kanter, 1994, P. 97). She further suggests that “relationships between companies begin, grow, and develop – or fail – much like relationships between people” (Kanter, 1994, P. 99). This essay will focus on the strategic alliances and their conceptual tenets. This essay will focus on the strategic alliance that was struck between Avebe and Noveon in March 1995, and was terminated in September 1999. It was observed that the alliance was based on shared-supply as they jointly developed a product but marketed it independently (Dussauge & Garrett, n.d., P. 63).
When companies wish to enter into a shared-supply alliance, comparative analysis of core competencies is indispensable in evaluating technological and other resources-related compatibility and thus helps in anticipating the outcomes of such alliances. Generally firms also take into consideration the mutual competencies in terms of marketing as well in order to project the future prospects of the novel products, if any, that are focused on developing. While conducting an internal appraisal, organizations should also consider their cultural aspects and try their best to enhance employee-involvement so that they are properly aligned with strategic objectives. Das and Teng suggest that “the first stage in forming alliances is the selection of partner firms” (Das & Teng, 1999, P. 56-57). Prior to formulating any organizational strategy, the management should take into consideration the external business environment as these
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