Strategic alliances are only a strategic approach, and it makes sense when other internal options are not achievables. Globalization, the increasing complexity of the business environment, increasing customer diversity, and the necessary response speed, are some of the factors that drive a company to establish business partnerships. In this environment, organizations view alliance as a way to share risks and integrate business operations to their mutual benefit.
The way that cultures of two possible partners can coexist and be compatible, is a critical indicator of the potential success of the alliance, especially when frequent and close interaction is required. The culture of the organization can have an impact on the business logic, behavior with the competition, and decision-making. For this reason, the partners should be assessed after thorough analysis of a possible strategic, cultural and organizational fit.
The culture of a company is also reflected through their operating practices, including organizational and management structure, how to make decisions and their employment policies. It is important to ensure that accounting practices and financial management are compatible, and that there will be sufficient financial capacity to meet the needs of the alliance. A key factor for success is the existence of a good personal chemistry and mutual respect.
Decide the right strategy, the right partner and the right structure is just the beginning. The real work begins when companies start up the alliance. Regardless of the objectives, the initial focus should be developing confidence by improving mutual understanding and sharing of tasks between the partners. The good negotiations are characterized by the flow of accurate and honest information exchanged between the partners, with a clear focus on objectives and plan to achieve them.
Source of information:
Schaan, Jean Louis. Kelly, Micheál. Tanganelli, David. Gestión de las alianzas estratégicas.
Post written by Carmen Rafecas.