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Essay / Research Paper Abstract
This 12 page paper considers a case provided by the student with a shipping company that wishes to expand. The writer looks at the choices of operating alliance, joint venture and management contract. The bibliography cites 8 sources.
Page Count:
12 pages (~225 words per page)
File: TS14_TEshipex.rtf
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Unformatted sample text from the term paper:
seen as pull factors in formalising a partnership by way of an operating alliance. In the case of the company in the case study; a ship owning company, Demetrious Agonis
(DA) Ltd, there is the desire to increase the operating margins, WE are assuming that where the statistics given in the case study as a return on property of 25%
- 30% compared with 6% on the shipping is assumed to be the operating profit. The aim f the alliance here is to create an increased profit, as 6% is
seen as unacceptable. The operation works on a hub a spoke basis, with different commodities being carried over the Mediterranean area. An operating alliance will enable the company to
extend its activities and crate economies of scale with another operator in the same potion. The company has a programme of replacing ships every five years, and increasing the
capacity at the same time, however, by instigating an alliance there are many benefits. Alliances are strategic in nature. If an alliance its to be considered then the ramification as
well as the aim need to be considered as well as the final structure of such a venture and the way in which this may impact on investment in the
future. An operating alliance is a group of two more companies that have a common aim and a common customer base (Anonymous, 2002). The operating alliance is a tightly
knit group of members, in this case it may only be two, but does not need to be limited to two, and the companies will develop strategic operations that are
in line with each other, so that they work together rather than against each other. This may mean that the companies may need to develop operating systems that are compatible
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