Companies always face a limitation of financial resources; however, they have to keep investing in order to improve their profitability, market share and consequently the capital base. Such activities that the company does to improve the core value of their products is referred to as the core activities. As compared to the peripheral activities which add minimal value to the organization, core activities are strategic activities that provide competitive advantage for the business (Jacques, 2006). Most companies have decided to invest in the global market in order increase their market share. However, the global competition has become more complicated with the reduction of international communication and transport costs. New markets continue to open and the global landscape has created new threats as well as opportunities. According to Fletcher & Seminara, (2014) in order to achieve maximum profitability; multinational companies should be organized into divisions or geographic locations in order to assist the company to achieve its goals and objectives. The company must also be willing to have joint partnerships with other companies so as to strengthen its base in the international market.
T-Mobile USA is a national provider of messaging, wireless voice, and data services. It is an openly traded company with the Deutsche Telekom owning 67% of its share (T-Mobile, n.d). So as to penetrate the international market, it should adopt an organizational structure that would make it maintain a competitive ground in the global market.
Strategic Growth Options
Strategic Alliance
According to Wakeam, (2003) building of alliances by companies always balloon their portfolios with willing partners. The process of liaising with other companies i...
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...14: THE CONTROL FUNCTION IN INTERNATIONAL BUSINESS. CHAPTER 14: THE CONTROL FUNCTION IN INTERNATIONAL BUSINESS. Retrieved April 6, 2014, from http://sabahanjtp293.blogspot.com/2014/01/the-control-function-in-international.html
Jacques, V. (2006). International outsourcing strategy and competitiveness: study on current outsourcing trends, IT, business processes, contact centers. Paris: Publibook.
Miyamoto, K. (2008). International management accounting in Japan: current status of electronics companies. Hackensack, NJ: World Scientific.
Shong, J. L. (2008). International Management. New York: Aberdeen University Press service.
Wakeam, J. (2003, June 1). THE FIVE FACTORS OF A STRATEGIC ALLIANCE - Ivey Business Journal. Ivey Business Journal. Retrieved April 6, 2014, from http://iveybusinessjournal.com/topics/strategy/the-five-factors-of-a-strategic-alliance#.U0Do5qiSzyE
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Outsourcing relationships demand the same care and attention to sound management principles and practices as do in-house operations and valued employees. Managed well, continuous improvement, increasing value, and constant innovation can be expected. Managed poorly, the services and overall relationship deteriorates resulting in higher costs, operational disruption and lost business opportunities. Financial savings from lower international labor rates were the most important motivation for the early outsourcing decisions. Offshoring, next-shoring, re-shoring and near-shoring are several strategies that will be covered next as part of understanding a globalization strategy for a company.
How can firms minimize or manage the bumps, hurdles, or conflicts that often occur when firms join together in an alliance or partnership?
Because of the codesharing involved with the alliance, the other business’ reputation is very important. For example, if a Qantas customer from Australia buys a plane ticket to England, and stops at Dubai to get onto the second half of the trip which is operated by Emirates, the customer’s experience with Emirates may impact on the customer’s view of Qantas’ image. If, for example, the customer service was undesirable on the Emirates flight, then customers may feel that Qantas is a bad company as it partners with a business that has bad customer service. Therefore, one challenge of is alliance is that one business’ flaws may make customers feel that the business’ partners may also be
Sinderman, Martin. (1994, Nov). Strategic Alliances Evolve as New Way of Doing Business. National Real Estate Investor, pp. 72(5)
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
Sulaiman, M. b., Nik Ahmad, N. N. & Alwi, N., 2004. Management accounting practices in selected Asian countries: A review of the literature. Managerial Auditing Journal, 19(4), pp. 493-508.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognized. These include: the increasing globalization of the world's economy resulting in intensified global competition, the proliferation and disbursement of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order to critique Ohmae's opinion, it will be necessary to review other literature on the topic. Thirdly, a discussion of the various viewpoints and studies, that have hence arisen, will be discussed in detail. Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances.
...om the imagination that needs to combines those two experts from each areas to make the innovative product become true. Also I've learned that, even these companies are such a big companies worldwide and seems that they don't really conflict between each other but the problem in alliances can happen anywhere in the operation process such like the conflict between their designers team. In order to strengthen the performance of the company in specific task, sometime the company needs to get some help from the other company to fulfill the operation. The alliances has its own life cycle and will not stay long forever. From that reason, the company that consider whether to do the alliance or not might need to be careful and think more about the framework, plan, and financial split before doing any alliances because one day, our partner can become our competitor anytime.
Ensign PC 2004, ‘A resource based view of interrelationships among organizational groups in the diversified firms’, Strategic Change, Vol. 13. pp. 125-137.
Organisational change can arise due to a change in strategy and this begins with examining capabilities and the internal environment. This is portrayed in the Strategy diamond. Firstly through arenas the organisation can plan where they will be active in and which part to place most emphasis on for example technologies or value creation strategies. Only after determining this can they implement a positive change, leading to the next element, vehicles to get them where they need to be such as alliances. This can lead to change in management along with strategic partnerships, and the way managers transition to this change will determine if the strategy impacts on the overall organisation in a way that reinforces its purpose and goals. Partnerships indicate how an organisation can strengthen its capabilities by merging with businesses who possess the skills they lack. (Carpenter et al. 2010)
Eisenhardt and Schoonhoven, (1996) examine the formation of strategic alliances through two themes - strategic needs for cooperation and social opportunities for cooperation. They posit that firms form strategic alliances when they are in vulnerable strategic positions – which can be because they may be struggling with unstructured markets or ambiguous/uncertain scenarios – such as competing in emergent or highly competitive markets or introducing pioneering technical strategies. For instance, for innovative firms, the role of complementary assets becomes crucial for diffusion of new innovation. Complementary assets reflect the interdependencies of assets and they must evolve in parallel with the new innovation; otherwise it becomes a constraint
Firstly, multinational corporations are not something new in this 21st century. There are more and more international corporation as people try to boost the process of globalization. The development of these multinational corporations depends on the management of the owners. Transnational strategy is needed in order to operate such a big system of companies. Every nation in this system has to be managed thoroughly in order to help running the corporation, as well as to keep the system as one consistent body of business. Managers also find it important to look for opportunitie...