6. Business 2
Business 1
Production facilities
Distribution channels
Favorable reputation
Patents, copyrights, etc.
Specialized skills
Manufacturing facilities
6-*
Synergy
32. Part 1: Post a Response
"Strategic Alliance Performance" Please respond to the
following:
· From the case study, predict three (3) potential challenges that
can arise in the strategic relationships among Yum!,
McDonald’s, and Sinopec. Recommend three (3) actions that
these companies can take in order to either prevent or mitigate
these potential problems. Provide a rationale for your response.
· According to the textbook, four (4) factors may influence the
performance of alliances and networks: (1) equity, (2) learning
and experience, (3) nationality, and (4) relational capabilities.
Use the Internet to research one (1) strategic alliance.
Determine which one (1) of the aforementioned influential
factors has been the most influential in the selected strategic
alliance’s success. Provide a rationale for your response.
**Please review the power point and let us know what you think
(As attach file).**
Part 2: Respond to a Peer
From the case study, predict three (3) potential challenges that
can arise in the strategic relationships among Yum!,
McDonald’s, and Sinopec. Recommend three (3) actions that
these companies can take in order to either prevent or mitigate
33. these potential problems. Provide a rationale for your response.
Potential Challenges:
1. Cross-cultural clashes: McDonald’s and Sinopec are
companies formed in two completely separate countries. One of
the possible reasons that McDonald’s was being outperformed
by KFC and Pizza Hut may have been attributed, at least in part,
to an incomplete understanding or appreciation of the Chinese
culture and/or business environment. The relationship from
Sinopec could strengthen McDonald’s acceptance into and
understanding of Chinese culture and business. It could also
suffer if McDonald’s American leadership is too rigid and
inflexible in these areas in the area of cultural assimilation.
- Cross-cultural activities that help Chinese employees &
leadership understand American culture better and that help
American employees understand Chinese culture better
- Open communication and encouraged communications across
all lines of business at all levels of the business
- Understanding and embracing differences
2. Inability to unify behind a single macro message: A fast food
restaurant and a gas station do have some fundamental
characteristics in common. However, they are also completely
different types of businesses that customers ultimately expect
different experiences from interactions from fast food joints
than they do from gas stations. Forming one vision from two
separate entities (both with long successful histories of doing
business) may prove to be a challenge and without a unified
message there is no common goal to work towards.
- Figure out if customers are expected to view this relationship
- Explain to customer the benefit of the having a gas station and
a restaurant in one place
34. - Create separateness inside the business so that even though
customers are eating their meal at a gas stations there is a real
separation of dining space and gas station
3. Unrealistic expectations: There needs to be a clearly defined
expectation before this strategic relationship occurs or each
company may be working towards objectives and goals that
don’t fit into the other company’s business model.
- How much do both companies expect to grow from this
relationship?
- How much does each company expect to grow from this
relationship?
- Make sure that the flow from one space (restaurant) the other
(gas station) is seamless.
https://www.linkedin.com/pulse/strategic-alliances-success-
failures-ron-byron-phd
According to the textbook, four (4) factors may influence the
performance of alliances and networks: (1) equity, (2) learning
and experience, (3) nationality, and (4) relational capabilities.
Use the Internet to research one (1) strategic alliance.
Determine which one (1) of the aforementioned influential
factors has been the most influential in the selected strategic
alliance’s success. Provide a rationale for your response.
Apple & IBM: To quote IBM, its new partnership with Apple
“brings together the analytics and enterprise-scale computing of
IBM with the elegant user experience of iPhone and iPad to
deliver a new level of value for businesses”. The alliance will
draw on Apple’s consumer experience, hardware and software
integration and help invigorate IBM’s image, which has sagged
a bit in recent years. The partnership will leverage IBM’s big
data analytics and more than 100,000 industry sales consultants
and software developers, to help Apple penetrate the global
35. corporate enterprise market. To quote Apple “the partnership
will add a new class of apps to connect users to big data &
analytics, on their iOS devices”.
https://www.forbes.com/sites/michellegreenwald/2014/12/11/11
-of-the-bestsmartestmost-interesting-strategic-brand-
partnerships-of-2014/#69ef31eb38f8
I believe that learning and experience is the most influential
factor in the relationship between IBM & Apple. Both
companies are built upon colorful histories of innovation and
ingenuity that has led each to be pioneers and leaders in the
technological industry.