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Strategic Management - Strategy Formulation

Managing Strategic Alliances - Strategic Alliances And Joint Ventures

   Posted On :  26.06.2018 04:35 am

The following guidelines will be of help in successfully managing alliances.

Managing Strategic Alliances
 
The following guidelines will be of help in successfully managing alliances.

  • Have a clear strategic purpose. Integrate the alliance with each partner’s strategy. Ensure that mutual value is created for all partners.
  • Find a fitting partner with compatible goals and complementary capabilities
  • Identify likely partnering risks and deal with them when the alliance is formed.
  • Allocate tasks and responsibilities so that each partner can specialize in what it does best.
  • Create incentives for cooperation to minimize differences in corporate culture or organization fit.
  • Minimize conflicts among the partners by clarifying objectives and avoiding direct competition in the market place.
  • If an international alliance, ensure that those managing it should have comprehensive cross-cultural knowledge.
  • Exchange human resources to maintain communication and trust. Don’t allow individual egos to dominate
  • Operate with long-term time horizons. The expectations of future gains can minimize short-term conflicts.
  • Develop multiple joint projects so that any failures are counterbalanced by successes
  • Agree upon a monitoring process. Share information to build trust and keep projects on target. Monitor customer responses and service complaints.
  • Be flexible in terms of willingness to renegotiate the relationship in terms of environmental changes and new opportunities.
  • Agree upon an exist strategy for when the partners’ objectives are achieved or the alliance is judged a failure
Tags : Strategic Management - Strategy Formulation
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