Strategic Strategy And Risk Assessment

1366 Words6 Pages
The business dictionary has defined success as the achievement of an objective or pre-determined goal. For this study, being successful will mean strategic alliance partners achieving those objectives that necessitated their partnership. Uddin & Akhter (2011) argued that strategic alliance success requires cooperative behaviour from all partners. They went further to state that alliance success depends on several factors such as active involvement in problem’s solution, being trustworthy; to create value combining partners resources and capabilities and persuasion among the partners for cooperation and coordination of activities in a cooperative behaviour. Thomas (2014) outlined some key success factors for strategic alliances and are :- (1) Strategic Rationale - Derive cooperation areas systematically from business strategy including business case evaluation and risk assessment - Engage in partnership only in case benefit generated and risks involved justify additional complexity compared to alternative solutions (2) Select partner - High strategic and cultural fit between the partners - Complementary capabilities, resources and/or reground footprint - Matching product portfolios (3) Negotiate and establish - Have a common vision of partnership, agree on fundamental values and convictions and have general rules and standards established - Share main assumptions and realistic targets of all partners clearly at the start of a project - Define clear decision processes
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