Global Alliance Management

In: Business and Management

Submitted By sawex
Words 1151
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Managing global alliance

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INTRODUCTION

The field over which businesses compete is becoming globalized. More firms are becoming multinationals by forming alliances with other firm in other countries. Global competition is now becoming a driving force in organizations throughout the world. Companies are trying to attain competitive advantage, which is easily accessible through international alliance. This form of none equity alliance between firms is increasingly becoming a popular way of doing business on a global scale. Reasons for the occurrence of such alliance have been identified, and include; increased globalization of the world economy brought about by intensified global competition, technology proliferation, and shortening of product lifecycle (Snyder, 1997. pg 45-50). This paper review is about management of the global alliance.

MANAGEMENT OF GLOBAL ALLIANCES.

"Globalization mandates alliances and makes them unconditionally necessary". (Ohmae,1982 . pg 67). Kenichi Ohmae's point of view, that globalization necessitates alliance as a vehicle for customer oriented value, with four issues facing today’s companies. These issues include; convergence of customers needs technology dispersion and ease of accessibility, importance of fixed cost and danger of equity. Ohmae concludes his argument with the "logic of entente". Here, there are two main points: shift from return on investment to sales return. He likens strategic alliance to marriage. The author believes that shift in thinking to focus on return on sales is necessary for the success of global strategic alliance.

Doing business on a global scale requires adoption to reflect the culture and other differential factors that vary from country to country. Political stability varies with contrast becoming unenforceable due to internal…...

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