Question

Analyze the effects of foundation accords, governance accords, and change accords on the success of a strategic alliance.

• How should the organization’s overall strategy drive the accords?
• What are the potential risks and benefits associated with each type of accord on the success strategic alliances?
• Which type of accord do you consider most important for the long-term success of the strategic alliance? Why?

Answer 1

Analysis of government, foundation and change accord

The effects of the government accord on the success of alliance strategy are that it is restricting alliances formed to compete more effectively intended to protect the consumer from exploitation by the monopolies. Also, the government accord affects the alliance strategy by alliances becoming quickly private to meet competitive advantages.

The foundation accord affects the success of alliance strategy in that it determines the occurrence of the agreement. It determines the people, government, and partners that make the organization tick. The change accord affects the alliance strategy success in that It enables access to new markets both domestic and international market.

Organization’s Strategy

The overall organization strategy should drive accords to ensure that the objectives of the organization are met without breaking any accord. The benefit of the government accord is that it will protect alliances from ineffective competition from foreigners. Hence ensuring the safety of the business. The risk is that the alliance company may lose an international market as other government may block them. The foundation accord helps in the making of a sound decision as all information are made available for all partners.

Potential risks and benefits

The risk with this accord is that we may lose some good chances because we are so honest with all our information. The benefit of change accord is that it enables acquisition of new technologies which will enhance the success of the alliance. But the risk is that it might lead to additional costs regarding training and also some technology is ill become outdated. The foundation accord is important for the long-term of the strategy alliance because it determines whether the agreement will be entered or not. There it’s important as it influences the decision making of the partners.