A Business Alliance Is An Open Ended Agreement That Governs The Co Operation Between Two Or More Companies

879 Words Mar 1st, 2015 4 Pages
A business alliance is an open-ended agreement that governs the co-operation between two or more companies. An alliance may take different forms ranging from technology licensing arrangement to a partnered production venture. Alliances between companies have become integral to business success, particularly in high-tech industries. Recent trends indicate the increase in business partnerships between China and Western countries (Ulijin, 2010). Strategy plays a key role in business alliances and is an integral aspect of the arrangement. Each company has a human resource (HR) department that handles matters regarding the work force of the company. This renders the human resource an important player during the planning and execution of business partnerships. Human resource would, therefore, be a key aspect of a business partnership between a United States company and a Chinese company. This paper will outline the role of HR in a partnering decision and its function in the partnership. It will also analyse the factors that drive cross-cultural business alliances.
People residing in different countries have different cultures. A business alliance between companies in different countries will, therefore, consist of employees with different cultural backgrounds. The difference in cultures poses a risk to a business partnership. Despite the risk, there are factors that drive cross-cultural businesses and prove such alliances beneficial. One of the factors that drive cross-cultural…
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