Companies setting up operations in India are considered strategic alliances. Two key components of the alliances are accountability and visibility. Accountability goes beyond the scope of responsibility it determines who is functionally and/or morally responsible for each action the business makes. Visibility is the outcome or synergy each partner gains from the alliance collective effort being greater than those from individual efforts. Understanding the advantages and disadvantages of the partnership is critical to the success of a strategic alliance and the business. Joint Venture With An Indian Partner Advantages of joint ventures include, marketing and distribution channels are already established, availability to financial avenues, and partners relationship with local businesses and the community. All companies incorporated in India are considered to be a domestic company for the purposes of income tax. “A company is considered to be resident in India if it is incorporated in India, or if during any fiscal year (1 April to 31 March), the control and management of its affairs is situated wholly in India” (Kotak, 2012) . Treaties between the United States and India allows parties to avoid double taxation. The potential for conflicts and …show more content…
Although the English language is spoken partners must be able to communicate effectively ensuring messages are conveyed correctly. For example, management styles differ in India and the United States most companies in the United States encourage teamwork and employee input is seen as a positive initiative whereas “Indian companies tend to be much more hierarchical than Western firms, with leaders expecting to micro-manage their staff, who are often discouraged from showing initiative ” (Tapper, 2014, a). In addition, partnership principals and practices may differ in management by regions within
Within an organization one of the key tools that they use is that of: communication. Communication is a primary key to any organization and without it there is no cohesion, no leadership, and no functionality. As communication begins to diminish, so does the organization – as one article puts it: “These new economic…. imperatives have significantly contributed to the demise of the old classic command-and-control bureaucracy…” (Tiernan et al, 2002, 47-48). From what this article states, the lack of communication has led to a semi-collapse of the mechanistic structure of an organization. Though communication does seem like a huge factor of an organization, communication does not come without its troubles within the inter-organizations; if there is communication going on in a company, there is going to also be a lack of communication. When a company has employed thousands of people (or maybe just a small amount) they are hiring a whole selection of individuals to work as whole group in unity – though this does seem like an amazing idea, these sets of individuals will have quite ...
Watson, J.C., & Gellar, S.M. (2005). The relation among the relationship conditions, working alliance, and outcome in both process-experiential and...
For example, in the French work environment, agreements are written and usually well detailed, work is expected before friendship and credibility is earned due to performance/ efficient management of time.
Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice. (New York and London: M.E. Sharpe, Inc.).
However, were increasing opportunities to do business while less the power of control may is some concerns that the owner has to think before make a decision. (Suarez and Canal, 2003) commented that the benefit of strategic alliances can help the company improve the competitive of opportunity, such as a company might be turning a potential rival into a partner which helps each other’s or the benefit in term of revenue because that can turn create new market opportunities, it is allowing for imitation or competition in the same market was more difficult.
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.
There is not a proper definition of a “joint venture.” The phrase is best interpreted by the presence of specific attributes, understandings and preparations. An international joint venture is often interpreted as the joining of two or more business partners from different territories to barter resources, share risks and split the rewards that come from having a joint enterprise. One of the partners is usually physically based in the jurisdiction where the joint venture is located. A joint venture has similarities of a partnership, but is customarily formed for a specific reason or project. For this reason, joint ventures are mostly limited in duration and scope. The input of the joint venture partners are often different and are usually discussed prior to joining together.
A 2001 study on export partnerships published in the Journal of International Marketing supports the importance of this multi-cultural factor (Alon & Jaffe 2013). It states that relationships with people in other countries are most successful when in the hands of skilled professionals with experience across cultures and language
...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.
Change in the management of an organization automatically triggers change in how tasks are carried out in the organization. This is because different managers exhibit different leadership styles and have varied preferences as to how tasks should be done. However, for G.E India, change in management brought more than just change in how tasks are performed in the organization. The appointment of John Flannery the helm of leadership in G.E India, as the president and C.E.O, marked the beginning of a fundamental change in the company's organization structure. Until his appointment, G.E India, just like other multinational corporation subsidiaries, had a matrix organizational structure (Ganguly, 2012). In the matrix organizational structure, the local business heads would report directly to the heads at the headquarters in Fairfield, who were at the same level as the country heads. However, John Flannery brought about a new structure that had not been previously used by G.E globally. In this new organizational structure, the matrix structure was done away with, ...
Tallman, S., & Shenkar, O. (2004). International Cooperative Ventures Strategies: Outward Investment and Small Firms from NICs. Management International Review. Vol. 39 (5), 299-315.
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)
The way people communicate varies widely between, and even within, cultures. One aspect of communication style is language usage. Language has always been perceived as a link between people but it can also constitute a barrier. Across cultures, some words and phrases are used in different ways. For example, even in countries that share the English language, the meaning of "yes" varies from "maybe, I'll consider it" to "definitely so," with many shades in between . Furthermore, communication between cultures which do not share the same language is considerably more difficult . Each culture, has its distinct syntax, expressions and structure which causes confusion in intercultural communication. For example , in Asian countries the word “no” is rarely used, so that “yea” can mean “no” or “perhaps”. Therefore, an American traveling to Japan might be considered impolite if he ignores this rule. Furthermore, individuals who are not comfortable with a certain language may not be taken seriously. Such is the case in the classroom, where a student who has a perfect knowledge of the subject in question may have difficulty expressing his idea due to his inability to write properly and therefore he would not receive the grade he truly deserves. Similarly intercultural communication is dominant in the workplace. In the past, many companies and organizations could operate entirely within their country of origin and conduct their activities exclusively in their own native language. But now, due...
India is a nation that is on the move towards becoming one of the leaders in the global economy. While the country still has a long way to go, it is making significant strides towards competition with nations such as the United States and England. Indian leaders have been moving towards "a five-point agenda that includes improving the investment climate; developing a comprehensive WTO strategy; reforming agriculture, food processing, and small-scale industry; eliminating red tape; and instituting better corporate governance" (Cateora & Graham p. 56, 2007). These steps are geared to begin India's transformation from a third world nation into a global economic leader. The current marketing environment in India is in transition, with both similarities and differences in comparison to the marketing environment in the US.
The Harvard Business School case study Silvio Napoli at Schindler India summarizes the various problems and issues facing Schindler India regarding its entrance into the new foreign market, India. Schindler Holdings Ltd. is a Swiss-based manufacturer of escalators and elevators which is looking for potentially entering into the Indian elevator market. Main executive committee members predicted that the Indian industry showed great promise in terms of future growth potential. The company’s objective was to manufacture standardized elevators at a cost lower than current customized elevator market. Silvio Napoli, who is vice president of Schindler in Asia, was chosen to lead the new entry into India. To successfully enter and penetrate the Indian market, Silvio and company needed to consider a variety of factors like but not limited to: mode of entry and type of strategy to implement, organizational structure, outsourcing and logistics approaches, marketing, and domestic and global hiring procedures.