An Agreement To Cooperate In The Management And Control Of A Firm

A strategic alliance (see also the strategic partnership) is an agreement between two or more parties to pursue a number of agreed objectives that are needed, while remaining independent organizations. The "dark side" of strategic alliances has received increasing attention in various areas of management, such as corporate ethics,[19] marketing[20] and supply chain management. [21] The term "dark side" has been widely used to refer to the risks and negative dimensions of strategic alliances, ranging from harmful outcomes to unintentional or unethical practices. [22] A cooperation agreement on the management and control of a company (excluding ownership) is referred to as a/an - Strategic alliances have moved from an option to a necessity in many markets and sectors. Different markets and requirements are leading to a growing relied on strategic alliances. Integrating strategic alliance management into the company`s overall strategy is essential to promote products and services, open new markets and use technology and research and development. Today, global companies have many alliances in domestic markets, as well as global partnerships, sometimes even with competitors, which creates challenges such as safeguarding competition or protecting their own interests while leading the alliance. Thus, the management of an alliance today focuses on using differences to create added value for the customer, to face internal challenges, to manage the day-to-day competition of the alliance with its competitors and to manage risk management, which has become a company-wide company. The share of revenues for the 1000 largest U.S. state-owned enterprises generated by strategic alliances increased from 3 to 6% in the 1990s to 40% in 2010, demonstrating the need for rapid focus on partnerships.

The number of equity alliances has increased significantly in recent years, while the number of acquisitions has decreased by 65% since 2000. For a statistical study, more than 3,000 alliances announced in the United States were verified between 1997 and 1997, and the results showed that only 25% of these alliances were capital-based. Between 2000 and 2002, this percentage reached up to 62% of equity-based alliances among the 2500 newly created alliances. [3] [9] Partners can deliver strategic alliance with resources such as products, distribution channels, manufacturing capabilities, project financing, capitalization, knowledge, expertise or intellectual property. . In the 1980s, strategic alliances were aimed at achieving economies of scale and scale. The parties have attempted to consolidate their positions in their respective sectors. During this period, the number of strategic alliances increased significantly. Some of these partnerships lead to great success in products such as Canon photocopiers, sold under the Kodak brand, or the partnership between Toshiba and Motorola, whose pooling of resources and technologies leads to great success in microprocessors. Michael Porter and Mark Fuller, founding members of Monitor Group (now Monitor Deloitte), distinguish the types of strategic alliances according to their objectives: this phase focuses on creating a legal and organizational framework for the strategic alliance relationship, the agreement and finalization of operational plans, ensuring the need for key leadership and creating a risk and reward formula that encourages both parties to carry out their relationship.

This phase ends with the signing of the contract. [30] The use and operation of strategic alliances is not just opportunities and benefits. There are also risks and restrictions that need to be taken into account. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, strategic differences and lack of confidence. Some of the risks are listed below:[2][18] Some analysts may say that strategic alliances are a current phenomenon in our time