Multinational Enterprise's ) Implementations Of Strategic Alliance

Last but not least, having a cross-border strategic alliance with a partner will help to bring unique resources, skills, and personnel when working together. Because B/E Aerospace already has its operations in the global market, this method works when the company learns how to develop new core competencies and new capabilities from its global partner(s). However, the challenges of a cooperative strategic alliance lay between the differences of the organizational culture and the partner’s culture. The very first stage of strategic alliances is to choose the right partner based on the foundation of trust and honesty. Complex laws, regulations, and initiatives can be hard to mutually benefit both partners.

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

Strategic alliances advantages and disadvantages can be many different things when it comes to business partnerships. Strategic alliances can be for a good or bad partnership, where two or more firms choose to work together, to combine corporation ideas and technologies for mutual benefit. We call this a cooperative strategy to advance creating a relationship with trust between corporations. The alliance creates an opportunity to make mutual benefits with cost reductions of shared fixed costs, combined resources, and research possibilities with both corporations working together as a team. Cooperation is usually always the best way to achieve goals. If corporations have the willingness to work together they can accomplish goals, but that

Due to their management of many key points and their competitive and marketing powers, alliances could lead to the downfall of some companies that have to compete as low cost companies.

A global strategic alliance is usually established when a company wishes to edge into a related business or new geographic market -- particularly one where the government prohibits imports in order to protect domestic industry. Typically, alliances are formed between two or more corporations, each based in their home country, for a specified period of time. Their purpose is to share in ownership of a

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

With the benefits being widely seen to outweigh the disadvantages smaller companies are looking for the arrangements internationally that would best serve their interests of growth and expansion with companies from lesser developed countries now also looking to capitalize as well by creating synergies at the basic level by expanding their market horizons overseas, penetrating first and expanding as demand and relationships develop. This shift in the world economy towards greater integration and interdependence is one way of describing Globalization (Hill 2011, p.7).

International business has grown rapidly because of developments in communication technology, business confidence, freer borders, and increased global competition. Some of the strategic imperatives of international growth include the need to leverage core competencies, acquire resources, seek new markets, and match the actions of rivals. Although strategic imperatives indicate why firms wish to internationalize their operations, significant changes in the political and technical environment have no doubt facilitated the explosive growth in international business activity that has since World War 2. The growth of the internet and other information technologies is likely to redefine global competition and ways of doing international business once again. We will explore many of these factors in our review of the Davis Group case study.

The four basic strategies used by MNC’s are international strategy, multi-domestic strategy, global strategy, and transnational strategy. Global strategy is an integrated strategy based primarily on price competition, therefore it is most commonly applied in situations where the need for integration is high and awareness of differentiation is low. Multi-domestic Strategy is differentiated strategy emphasizing local adaptation. Multi-Domestic Strategy is the opposite of Global Strategy, it is typically implemented when the need for differentiation is high but the concern for integration is low. International Strategy is a mixed strategy combining low demand for integration and responsiveness, it incorporates those cases in which both the need for integration and awareness of differentiation are low. Transnational Strategy is the integrated strategy emphasizing both global integration and local responsiveness. The need for integration and differentiation are both high. There is a strong need for integration in production along with higher requirements for regional differentiation in marketing.

As the world becomes more connected through the internet, many companies expand their businesses into foreign market space. According to Michalski (2015), the success of international expansion depends on the right market entry strategy, understanding of environmental factors, enterprise capacity, marketing activities (p. 111). In order to improve tis chance of success, a company should carefully examine various aspects of the business (i.e. performance, human resources, financial resources, production resources, and logistics resources), find ways to capitalize on its strengths, and remedy its weaknesses (Michalski, 2015, p.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

A strategic partnership is considered the least viable option for three reasons after taking consideration of all relevant facts and analysis. The first reason is that it is extremely hard to find a suitable partner to form a strategic alliance. It does not only have to be reasonable, rational and love cooperation; it also has to be in a position where a mutual benefit can be found existence. The second reason is that sometimes even after forming the strategic partnership, the parties involved do not feel that secure since they might still worry their counterpart would turn on their back is the payoff is lucrative. The third is that the process it takes to form a strategic alliance is often long and complicated. It involved many back and forth negotiation to maximize each party’s interest and the legal issue can be complicated as well. In fact, in some countries, a secret alliance between

Strategic alliances risk factors, every strategic alliance have some type of risks that may occur during a partnership; some strategic alliances, sometimes use partners to strengthen their competitive advantages against each other. This creates a new competitor for both parties, to avoid this risk the companies will sign an agreement stating that after the strategic alliance is terminated, the other is not permitted to use or sell certain equipment or technologies for a period of time; for example, within a 3 year period. Another risk is leadership, who will make the decisions in the strategic alliances; this sometimes can cause a problem that will create issues between the two

Business Strategy approach: - this is based on the idea of Pragmatism (Welford and Prescott, 1994) with the company making trade-offs between a number of unstable decision to internationalize and the way it adopts to do so Reid (1983) argues that foreign expansion is contingency based and

There are four international competitive strategies that include: global standardization, localization, transnational, and international. Global standardization is a business model based on pursuing a low-cost strategy on a global scale. Localization, on the other hand is a strategy that is focused on increasing profitability by customizing the company’s goods or services so that the goods provide a favorable match to tastes and preferences in different national markets. Moving on transnational strategy, which is a business model that simultaneously achieves low cost, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company’s global network operations. Last of the international competitive strategies is the international strategy which involves making products at home, while leaving other functions to foreign business units.