Strategic Alliances
- Which alliance motivations are the most compatible with each other?
In alliances, organizations work to achieve common goals. It only happens when the motive for the formation of the coalition are aligned towards achieving common objectives. So when the causes behind alliance formation are compatible, it contributes significantly towards the success of the alliance. The most compatible reasons are ones where one of the organizations offers what the other does not have. Still, it is crucial for that organization to have a competitive edge in the market. For example, an organization with resources like buildings but needs knowledge capacity from another organization such as doctors so that they can partner to meet a common goal. The motivation behind alliance formation must complement the other involved party’s weakness or strength (Rothaermel, 2016).
- What are the primary motivations behind this alliance?
The alliance is based on an the-short-term-fund-long-term-fund-fustic motive. An altruistic motive is based on the need to help individuals that need help and the friend from India says that the reason why he wants to come together with the friend is to develop assisted living and skilled nursing facilities for the elderly in India. With the altruistic motive, it means the alliance is to focus on helping others more than it will benefit the two organizations that come together (Rothaermel, 2016). The friend from India has investments in real estate meaning he has the necessary premises for setting up the nursing facility but for that to happen the CEO to the nursing facility is needed to complement his friend who lacks the required human resource.
On a preliminary basis, what are the issues you would like to learn more about to help you assess this strategic alliance is viable?
It is necessary before joining an alliance is viable to ensure that our organization has a clear sense of strategic direction and priorities (Rothaermel, 2016). If our organization has clarity on these issues, then it means that there are sufficient reasons for joining the alliance and that the individual goals of the organization are met. They will act as the driving force behind us, deciding to join the coalition.
As an assistant, it will be crucial to investigate the organization we are to ally with to identify its strengths and witnesses to help establish what value the alliance is going to add to the services our organization offers. It is also vital to find out what the goals of the other organization are, find out what values they hold and the history of the partner. All these elements will help in assessing if an alliance between the two parties will be viable, and the CEO will be advised based on these findings. These elements are crucial in forming the basis for an alliance. Therefore, before deciding to join an alliance, they must be investigated for the success of the partnership.
References
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.