Question

Cooperative Strategy" Please respond to the following:

From an ethical perspective, determine how much information a firm is obliged to tell a potential strategic alliance partner about what it expects to learn from the cooperative arrangement. Explain your rationale.

Cooperative Strategy" Please respond to the following:

From an ethical perspective, determine how much information a firm is obliged to tell a potential strategic alliance partner about what it expects to learn from the cooperative arrangement. Explain your rationale.

e-Activity :Use the Internet to research two U.S.-based companies you believe would mutually benefit from working together in some way. Be prepared to discuss  From the e-Activity, determine which type of cooperative strategy would most benefit the two companies you researched. Provide specific examples to support your response.

Answer 1

In a strategic alliance, two companies join together their knowledge, competencies and resources for mutual benefit. The firms form an alliance to achieve agreed objectives. A strategic alliance is formed by companies when together they can achieve greater than their individual efforts. It depends on the companies partnering in the strategic alliance to define the kind of goals they are having from the strategic alliance. Accordingly they will tell the potential partner their expectations of learning from the strategic alliance. Mostly strategic alliances are formed for sharing knowledge, expertise, products, distribution channels, manufacturing capability and project funding.

A formal agreement between the two partners can define the expectations each of the partner is having from the alliance. A strategic alliance can be successful only when each of the partner has some kind of benefit to offer to the other party otherwise it is not a partnership. For the partnership to be successful their has to be accountability , proper communication , sharing of risk and dedicating resources as agreed to each other. Both the partner can discuss based on their common mindset and ethics about their expectations and working of the strategic alliance.

Food chain McDonald's can form a strategic alliance with Walmart to offer fast food and drinks at Walmart stores. Walmart has lot of customer traffic at its stores. Entering strategic alliance will benefit both the partners as it will help the customers visiting Walmart stores enjoy their experience and will prolong their visit. In turn , Mc Donald's will get additional retail opportunity and space and a different channel to sell their products. The type of cooperative strategy that can mutually benefit the two is Equity strategic alliance. In this type of alliance the companies enter a contractual agreement about sharing resources and cooperation . Each of the partner share equal risk and the benefits from the partnership and equally own a part of the venture created. Hence each of the partner can share the resources which are beneficial for the alliance while keeping focus on their main business.

For example, Starbucks has partnered with United Airlines promoting Starbucks coffee brand to be served on its flights with starbucks logo on the cups. This has helped the brand to promote itself and build a relationship with the customers. United airlines in turn has been able to provide a better in flight experience to the customers by serving their choicest coffee brand while travelling and thus making a distinct brand position for itself.