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Essay / Research Paper Abstract
A 10 page paper examining the changes of attitude toward both domestic and international business alliances. In the early days of the concept of strategic alliances – particularly in those involving a foreign company – the primary goals were to defray fixed costs while expanding markets (Ohmae, 1989). Today that role has shifted more to generating revenues (Segil, 2004). The purpose here is to review Ohmae's (1989) article for concepts that have persisted in today's business environment. Bibliography lists 7 sources.
Page Count:
10 pages (~225 words per page)
File: CC6_KSintlBizAlly.rtf
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Unformatted sample text from the term paper:
of the concept of strategic alliances - particularly in those involving a foreign company - the primary goals were to defray fixed costs while expanding markets (Ohmae, 1989). Today
that role has shifted more to generating revenues (Segil, 2004). The purpose here is to review Ohmaes (1989) article for concepts that have persisted in todays business environment. Article
Summary The article chosen as the basis for research is Kenichi Ohmaes "The Global Logic of Strategic Alliances," published in Harvard Business Review
in 1989. Though dated by todays standards, the article provides a view of the foundation of successful international business ventures involving strategic alliances with other companies. The focus
of the article can best be summarized in the last line, "In todays uncertain world, it is best not to go it alone" (Ohmae, 1989; p. 155).
Ohmae (1989) stresses that alliances are worth more than only providing an experienced partner in a foreign market, that alliances also can help to defray costs
and expand to other markets. Even though these are desirable benefits, alliances also require that managers relinquish a measure of control (or at least perceived control) and that "managers
dont like that. After all, for them, management has come to mean total control. Alliances mean sharing control. The one precludes the other" (Ohmae, 1989; p. 143). "The tradition
of Western capitalism lies behind" (Ohmae, 1989; p. 149) the Western need for control. That need is characterized by ...the dangerously incorrect arithmetic that equates 51% with 100%
and 49% with 0%. Yes, of course, 51% buys you full legal control. But it is control of activities in a foreign market, about which you may know little as
...