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Posted on April 21st, 2014, by

Good Corp is considering forming an alliance with supplier. What are five things that you can tell them that will increase the chance of alliance success (brief explanation of each)? (25 points)

The company should choose the supplier carefully and choose the supplier, who has already proved its ability to provide the company with products of the required quality. In such a way, finding a reliable supplier, the company can be certain that the new business partner will be able to meet the company’s growing needs.

Furthermore, the company should consider the prospect of the integration of the supplier in its organizational structure. For instance, the company has to decide, whether the supplier will preserve its organizational structure, its management team or probably the top executive will be transferred from Good Corp. In such a way, the company will not waste time on restructuring after the creation of the alliance.

Also the company should consider the potential of the supplier. If the supplier has limited potential and cannot grow along with the company, the company would better refuse from the alliance. Otherwise, the company will have to invest substantial funds to increase the production capacity of the supplier as Good Corp grows.

In addition, the company should consider the costs of the alliance and to assess whether benefits of the alliance can outweigh costs. For instance, if the company has to spend substantial costs, Good Corp should consider would not it be better to keep things unchanged and to keep using suppliers instead of making the alliance.

Finally, the company should consider effects of the alliance in a long-run perspective. Good Corp should find the place for the supplier in its long-run strategy. For instance, if Good Corp plans some changes, probably the company will not need the supplier in several years. Hence, alliance would be unnecessary.

4. Good Corp is now considering expanding into Canada. Good Corp’s leadership is surprised to learn that the Canadian government wants Good Corp to partner with a Canadian manufacturer to form a joint venture. Currently, the negotiations between Good Corp, the Canadian manufacturer, and the Canadian government are stalled because the Canadian government seems unhappy with the way things are going. What do you think the Canadian government wants from the potential joint venture? (25 points)

The Canadian government is definitely seeking for benefits for the local company and Canadian budget as well as employees. The Canadian government is interested in the development of business activities in Canada. Hence, the government wants the joint venture to develop bike manufacturing in Canada. In addition, the government wants the local company to take the decision on the business development to meet interests of Canadian employees, business and government. Finally, the government expects the creation of new jobs for Canadian employees.

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