International Expansion

Respond to the following in a minimum of 175 words:

Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.

ANSWER

Alliance Management at the Corporate Level

Alliances are an important aspect that plays a crucial role in the development and expansion of the business. Solid alliances are built on the foundation of trust, and both parties are benefiting from each other (Buckles, 2019). The main aim of alliances is not to seek ‘something new’ that the other partner may bring but what complimentary services they may offer. The goal of the alliance is to improve the performances and attain the goals of the business. However, even though the overall aim is goal-oriented, monitoring and managing the alliance should be done at the corporate level. The corporate level is in a pole position to analyze the financial implications of the alliance. It looks into what the company is supposed to offer to the other partner and how much it will cost. It then compares to what the other partner offer, and if a deficit exists, then the corporate can track the unequal playing field. This may be crucial for decision-making for either the alliance to be abandoned or necessary adjustments to be made (Buckles, 2019).

The corporate level also tracks the progress of the alliance. As the initial benefit is to benefit from one another, the corporate analyses whether the intended objective is achieved. Some alliances may leave a company at the same level they were before the alliance. Therefore, the corporate analyzes the various positions that are slowing down the process and allocates the necessary resources required to make the alliance work (Buckles, 2019). At the end of the day, it is what each party brings to the table that ultimately makes an alliance come to fruition.

References

Buckles, J. (2019). Understanding the Benefits and Challenges of Strategic Alliances. Retrieved from https://www.franchise.org/franchise-information/understanding-the-benefits-and-challenges-of-strategic-alliances