Strategic Alliances : Business Partnerships

1302 Words6 Pages
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…show more content…
Many companies find that the centralization of operations leads to inefficiencies in decision making. The mechanistic structure has advantages when the environment is more stable, because it allows companies around the world to produce uniform products at minimum costs. Their employees usually work separately and specialize in only one task at hand, and every worker is assigned a specific repetitive task. The mechanistic structure is more of an advantage to the new ventures when it comes down to it because; new businesses often suffer from a lack of structure. New ventures can achieve better performance starting out as a new company with the help of the structure it would receive from the presence of a mechanistic structure. Organic structures are flexible, decentralized structures with low levels of reinforcement and a lack of formally defined tasks. Decentralized companies give more authority to lower-level employees, resulting in a sense of empowerment. Decisions can be made more quickly, and employees often believe that decentralized companies provide greater levels of equality to employees. Employees that work for an organic structure tend to be more satisfied with their organization. Employees work in areas where they are comfortable and with their own levels of expertise, but usually have non-routine tasks. Organic structures are made up of many different departments which are like
Open Document