In: Economics
ead Jakada’s (2014) article, “Building Global Strategic Alliances and Coalitions for Foreign Investment Opportunities” on building global strategic alliances. What steps should the exporter take to ensure success when forming an alliance? What issues might arise when forming an alliance? What benefits might a global alliance bring?
kindly don't copy other writers answer
1.
The key steps that an exporter should follow for forming a successful alliance are:
Have an effective and efficient strategy for the alliance
Seek and find the right partner who shares common interest and goals
Communicate the benefit of the deal and adjustments required
Form an agreement according to the interest and requirement of both parties
Evaluate the progress and restructure the agreement as required
2.
The common issues that arise from forming an alliance are:
Lack of control within the organization, since it involves a partnership with another company, they will also have some rights so that would give them also controlling power and the total controlling authority gets divided.
Formulation of new policies and procedures can bring up conflicts in employees due to the sudden change
Chances of trade secrets of the company getting into wrong hands are possible
If one company which is in the alliance creates a bad image in the society, it affects the alliance even though the other company wasn't responsible for it
3.
It brings in new technology and skills
Helps in creating better strategies for new product development
Helps in capturing new markets globally
Helps in capturing new customers
If one company which is in the alliance creates a good image in the society, it promotes the alliance even though the other company wasn't responsible for it