Introduction
This paper will introduce possible consulting ideas that one could use to assist a firm that manufactures titanium alloys for industrial and military applications to establish a strategic alliance with a competitor. The preliminary discussion will include how the external environment, SWOT, corporate governance, and alliance will assist in establishing a strategic alliance with a competitor. In addition, this paper will consider the possible risk of establishing an alliance with the competitor and how to possibly minimize those risk.
Preliminary Discussion As the consultant, consider the firm’s competitive external environment and how best to work within the preferred industry (Boso, Cadogan, Micevski, & Kadić-Maglajlić, 2013).
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This tool strategically identifies the strengths, weaknesses, opportunities, or threats to the firm existing or new business ventures (Lee, 2015). The use of SWOT may compel management to engage further in developing a proper strategy and business plan based on their findings. Although, sustaining the strategic management process may prove to be very difficult. This is why for existing or new business ventures SWOT analysis is useful in evaluating the internal and external environments to assess possible competitors to decide whether or not a business venture is worth the time or money, and if the market will be profitable (Lee, …show more content…
Assuming, an organization follows the regulations of corporate governance principles, which maximizes profits and enhances stakeholder’s interests that accommodate the shareholder value (Madhani, 2015). There are no guarantees that if a firm implemented the concepts of corporate governance there would not be any unethical business practices; however, if these concepts were properly implemented corporate governance may improve the functionality of an organization (Verhezen and Morse, 2009).
With concerns of ethics is it worth having an alliance with another company? Alliances can have benefits with many advantages but the risk can increase when entering unknown markets. As a consultant, implement a reasonable alliance strategy taking consideration all of the and pros and cons (Park, & Kang, 2013). For instance, consider the clients cost and benefits as well as the perceived competitors. If this alliance is needed for the client make sure that the competitor is provided with enough information to make an informed decision.
As a business in a competitive market we must be able to determine what may assist us to accomplish our objectives? What obstacles we must overcome or minimise to achieve our desired results? To achieve this we must carry out a strategic plan, which is a straightforward model known as a SWOT analysis (strengths, weakness, opportunities and threats). This will help us to establish our overall strategic position, based on internal issues (strengths and weakness) and external issues (opportunities and threats).
The evaluation of the strategic alliance from a TCE perspective has identified bounded rationality and opportunism as sources of potential economic hazards that could create inefficiencies in the vertical chain. Further investigation would be required to identify the extent of these efficiencies.
Market and Competitive analysis provoked the creation of TOWS matrix. Unlike SWOT framework, TOWS analysis observes threats and opportunities before weaknesses and strengths. Having this matrix, TBTC can examine the organisation’s advantage of opportunities and minimise the threats by developing strengths and fixing weaknesses (Smith, 2015) Therefore, the TOWS analysis helps our client to get a better understanding of the strategic choices that TBTC face as following below.
Running a business or organization can be challenging, however, if there is strategic planning in place then the task seems less daunting. Strategic planning consists of carefully thinking about strengths and weaknesses and carefully comparing one business to another (Bateman & Snell, 2013). SWOT Analysis is step number 4 out of 6 steps that some businesses utilize in order to examine their business and some to get back on their feet (Bateman & Snell, 2013). This writer will be discussing in greater detail strategic planning, SWOT Analysis and will be exemplifying via a corporation of choice, with is McDonalds. This writer will be reflecting on a worksheet outlined in Bateman & Snell (2013) textbook to help the reader better understand such
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
A SWOT analysis is an examination of an organization’s internal strengths and weaknesses, its opportunities for growth and improvement, and the threats the external environment presents to its survival (Harrison, 2010). Generally, the information gathered for the analysis is organized into matrix form, howe...
If I were to write a follow-up article, I would focus on the positive side of collaboration and consultation. In my personal opinion, they do play a significant role and serve its purpose when it comes to businesses that require their collaboration. The shared purpose of a client-agency collaborative process is to create successful plans, products, operations or creative materials to advance your mission. Whether for short-term or long-term purposes, I believe the outcomes will be better if the process is based on trust and
The definition of SWOT analysis is comprehensively summaries the internal and external conditions, critical evaluate advantages and disadvantages of organization, facing the opportunities and threats, in order to the combination of company 's strategy and internal resources and external environment (Yuan, 2013). In contrast, SWOT analysis method is a descriptive model, because the enterprise strategy is often a typical uncertainty problem, the lack of adequate analysis and logic, and a SWOT analysis cannot provide the specifically, format of strategic advice (David,
In most cases, a company has to make a decision about whether to inquire on whether to use internal consultants or hire external consultants to resolve the issues of the business, but one has to be sure to cautiously deliberate the advantages and disadvantages with each. Looking at the role of the internal and external consultant, one has to be aware there are significant differences in, viewpoints, requirements and challenges. One can’t define all the differences or resemblances, here are a few similes to get underway. Let’s evaluate some of how the external may differ from an internal
How can firms minimize or manage the bumps, hurdles, or conflicts that often occur when firms join together in an alliance or partnership?
...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.
Qualitative research provides insight into developing phenomena or offers a new perspective on current trends. Prior to the creation of a dynamic strategic plan, the SWOT analysis offers a critical assessment of an organization’s competitive position, though the four areas of assessment are not weighted, nor does the utilization of the tool provide specific direction for the organization and requires subjective interpretation of the data. Input from stakeholders brings validity to the information gathered while conducting a SWOT
Strategic management is a universal concept that can help many different fields with their planning, their mission, and their competitive advantages. One huge similarity between Marketing, Supply Chain Acquisition, Human Resources, and Information Systems is the use of a SWOT analysis. A SWOT is an “analysis, which takes information from an environmental analysis and separates it into internal strengths and weaknesses, as well as its external opportunities and threats” (Investopedia, 2016). This is important in any field since it can potentially help identify a competitive advantage as well. What is interesting is that these SWOT analyses are used in such differing ways all to accomplish the same
The SWOT analysis is used to gauge a company’s strengths and weaknesses. It also outlines opportunities for tapping and presents possible threats that could affect a company’s operations.