a. Collaboration's importance to partners—One partner may give more management attention to a collaborative arrangement than the other does. a. If things go wrong, the active partner blames the less-active partner for its lack of attention, and the less-active partner blames the more active partner for making poor decisions. The difference in attention may be due to the different sizes of partners.
b. Differing objectives—Although companies enter into collaborative arrangements because they have complementary capabilities, their objectives may evolve differently over time. For instance, one partner may want to reinvest earnings for growth and the other may want to receive dividends. One partner may want to expand the product line and sales territory, and the other may see this as competition with its wholly owned operations. A partner may wish to sell or buy from the venture, and the other partner may disagree with the prices.
c. Control problems—By sharing the assets with another company, one company may lose some control of the extent or quality of the assets' use. When no single company has control of a collaborative arrangement, the operation may lack direction. Studies show that when two or more partners attempt to share in an operation's management, failure is much more likely than when one partner dominates. However, the dominating partner must consider the other company's interests. For this reason, studies also show that joint ventures with an even split in ownership are likely to succeed because the financial ownership ensures that management will consider both partners' interests.
d. Partners' contributions and appropriations—One partner's capability of contributing technology, capital, or some other asset may diminish compared to its partner's capability over time. In almost all collaborative arrangements, there is a danger that one partner will use the other partner's contributed assets, enabling it to become a competitor.
e. Differences in culture—Companies with different cultures differ in how they evaluate the success of their operations.
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
Joint Venture is “a partnership, individual, or corporation that pools labor and capital for a limited period of time” (Kubasek, Brennan, Browne, 2015, p. 431). This method can increase liability and limit outside opportunities where the business can not expand their product line and have to utilize the products provided by the company they have a joint in a agreement. The mission of the coffeehouse is to be unique and special. This type of model would not allow originality and for that reason, its not recommend that Shania get involved with a joint venture.
How can firms minimize or manage the bumps, hurdles, or conflicts that often occur when firms join together in an alliance or partnership?
By understanding its purpose, building trust, and working together a successful team becomes empowered and owns its responsibilities. They challenge, motivate, and encourage one another as they progress toward their goals. Team members with a common goal work harder for the benefit of the team. ¡§When the quality of collaboration improves, the speed and quality of work improves¡¨ (Steelcase, N.D.). An organization that empowers its employees gains a motivated workforce, which can result in greater productivity and thereby greater profitability.
Therefore, the strategic partnership between China Unicom and China Telecom Unicom S.K allowed to compete favorably as they had gained a technological edge. Share the financial risk. China Unicom and S.K can make use of the strategic arrangement to reduce the financial risk of their individual company. For example, when two companies jointly invested with an equal part in a project, the greater potential that each stand to lose is only half of the total project cost if not the company. Achieving synergy and competitive advantage.
Q2 what is intrapreneurship? How can a business organisation incentivise it and benefit from it?
Increasingly businesses are capitalizing on the benefits of teamwork. The adage that two heads are better than one, and four heads are better then two, appears to be a proven fact as more teams are formed and team dynamics are refined through increased management of conflict resolution.
...s of a partnership are the shared profit factor, which can cause a lot of animosity among the partners if things do not go as well or if there is an unequal amount of contribution among the partners. Additionally, there is both individual and joint liability with partnerships. This can often cause dissention between the partners (“SBA”). Essentially, the sole proprietorship is the best choice because the risks are minimal because it is solely one individual, who can make the best choices and decisions and deal with the consequences that arise accordingly.
Tsang, E.W.K. (2000), ‘Transaction Cost and Resource-Based Explanations of Joint Ventures: A Comparison and Synthesis’, Organization Studies, 21(1): pp. 215-242.
Teams have been around for many years. It is vital for members who are a part of any team to work together so that their labor is not in vain. A major advantage for working cohesively as teams is greater output and interpersonal skills. The drawback of not working in uniformity can lead to project delays and time constraints. Organizations create teams with the purpose of fulfilling certain obligations and acquiring business success. Roming (1996) states that togetherness and dependability means that members within the team assist each other and the team. Which in turn, yields a better-quality product.
...t must all come together to build a successful team, it can be done with proper planning and support from upper management. They must also discuss how to set up the compensation for the team, evaluation of team performance, and of individual performance. In my opinion, the benefits of increased productivity and efficiency that are seen by the organizations that properly build and successfully implement teams, far out-weigh the risks and costs of a team that fails. I would have to say that in today's competitive, globally oriented organizations, we cannot over stress the importance of teams. It seems that how much you get out of a team depends on how much you are willing to put into it, and most of what you need to put into it is some time spent doing the homework planning necessary to build the team that will take your business to the top.
Deciding how important decisions are made is crucial in any business structure, but even more so when there is more than one owner. Therefore, the partnership agreement mandates how the owners will make decisions by either unanimous vote or by majority vote. Capital contributions include funds provided by the partners to be utilized in the business. The partnership agreement dictates how much each partner will contribute to the business as well as plan for future financial obligations. Salaries and distributions are often classified as partner withdrawals and profit/loss allocation. The partnership agreement establishes when money is available for withdrawal and how much of the profits and losses are allocated based on capital contributions. All business entities should be prepared for worst-case scenarios involving death, disability, and dissolution. Deaths and disabilities are untimely, so the partnership agreement outlines who inherits the partnership’s assets through trusts and wills. Dissolution is never a pleasant topic to think about in the beginning, but it is essential nonetheless. The section inclusion in the partnership agreement enables the partners to be prepared in the event that a dissolution does occur (Neville
In order to explore the nature of the practice of collaboration, the author has specifically focused on some of the concepts which challenges the individuals involved in collaborative alliance. Two main concepts have been explored to justify the challenges of the individuals. They are (i) Collaborative advantage, and (ii) Collaborative inertia. There exist dilemmas between these two concepts. Both the terms create a dilemma and a question arise of – “If achievement of collaborative advantage is the goal for those who initiate collaborative arrangements, why is collaborative inertia so often the outcome.” [Huxham, C, and Vangen, S. p- 53] These two concepts draw out the reason of what is always taken as granted in collaboration and what actually happens. Such perspectives results in collaborative inertia, even if the goal is to achieve the collaborative advantage.
Loyal investors act as partnership; provide sustainable power of financial support, continuous development in new market, more benefit into the company, strong cash