strategic partnership

Examples of strategic partnership in the following topics:

• Partnerships

  • There are two types of partnerships: a relational and strategic partnership.
  • Strategic partnerships are created to uncover and exploit joint opportunities while minimizing joint weaknesses.
  • Both parties will contribute financially, and consequently take significant risks in order to provide the partnership with a strategic advantage.
  • An example of a strategic partnership was evident in 2007 when Time Warner's AOL strengthened their strategic partnership with Google.
  • These strategic partnerships tend to be very successful because products and services are created that are not offered by competitors.

• Choosing the right relationship

  • In the previous example, the strategic partnership formed between Time Warner's AOL and Google was justified, because the company expects a return great enough to justify the investment.
  • Conversely, Google would not have entered into a strategic partnership with a small, local Internet provider, because a smaller company would not have enough production capability to meet Google's demand.
  • Strategic partnerships may be established in order to gain access into a specific niche or market.
  • Other partnerships may be formed in an effort to improve a company's image.
  • A partnership may be developed in order to gain access to technological innovation.

• Afghanistan

  • In 2005, the United States and Afghanistan signed a strategic partnership agreement, committing both nations to a long-term relationship.
  • In 2012, Presidents Obama and Karzai signed a strategic partnership agreement between their respective countries, designating Afghanistan as a major non-NATO ally.

• Operations management provides competitive advantage!

  • Strategic and tactical operations decisions determine how well the organization can accomplish its goals.
  • For example, United Parcel Service, an international package delivery service, formed a partnership with its customer, Toshiba computers.
  • The result of this operations innovation is better service to Toshiba customers and a strong and profitable strategic partnership between and its customer, Toshiba.

• Phases of relationship development

  • Strategic partnerships experience four major developmental phases and Exhibit 36 represents the life cycle of such a relationship.
  • Partnerships can have various types of relationships; some areas may only need to be functional, whereas others may seek to be strategic.
  • During this phase, parties engage in exchanges to explore potential partnership costs and benefits.
  • This stage is usually the final and most complex stage of a strategic relationship.
  • The dissolution phase is the decision to end the partnership.

• Strategic Management

  • Strategic management entails five steps: analysis, formation, goal setting, structure, and feedback.
  • Strategic management analyzes the major initiatives, involving resources and performance in external environments, that a company's top management takes on behalf of owners.
  • As strategic management is a large, complex, and ever-evolving endeavor, it is useful to divide it into a series of concrete steps to illustrate the process of strategic management.
  • Leaders allocate resources to specific projects and enact any necessary strategic partnerships.
  • Identify the five general steps that allow businesses to develop a strategic process

• Foundations of successful relationships

  • Trust, however, is only one building block of several involved in the creation of strategic partnerships.
  • In order for a partnership to be successful, trust must be mutual.
  • Proposed partnerships perceived as contrary to the existing structure or cultures are candidates for enhanced scrutiny.
  • Once a partnership is entered into it is necessary to develop programs such as training and rewards to establish the desired partnership behaviors.
  • Thus, it is important to evaluate the level of intrinsic gain that has been established through the partnership.

• Implementing Strategy

  • Strategic planning involves managing the implementation process, which translates plans into action.
  • The following stages constitute the strategic implementation process:
  • Doing business with protectionist countries such as India and China, which require market entrants to operate via partnerships with local firms
  • One of the core goals when drafting a strategic plan is to develop it in a way that is easily translated into action plans.
  • The strategic management process never ends.

• Pros and Cons of a Partnership

  • The partnership structure has the benefit of simplicity and control but the drawback of personal liability for the partnership's activities.
  • The partnership is one type of business structure.
  • This means that the partnership structure is only as good as the partnership at the relational level.
  • If the mutual consent to form a partnership breaks down, the partnership breaks down as well; partnerships are considered to be an aggregate of their partners rather than a separate entity.
  • Types of partnership beyond the general partnership have developed to mitigate some of the disadvantages of the structure.

• Advantages and Disadvantages of Partnerships

  • Partnerships have certain default characteristics relating to both the relationship between the individual partners and the relationship between the partnership and the outside world.
  • Each general partner is deemed the agent of the partnership.
  • However, in a partnership of any size, the partnership agreement will provide for certain electees to manage the partnership along the lines of a company board.
  • Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement
  • As in sole proprietorships, partnerships have unlimited liability.