Strategies in Action
Global Strategies for a Changing World
Global is the new local as some might attest because of the need to have a network of resources throughout the market in order to be competitive or even avoid getting kicked out of the market completely. With the rising importance of brand power, research and development is critical to fueling a brand's ongoing success. The data suggest, however, that how we approach research and development partnerships is quite clearly evolving (Hagedoorn 2002). Not only are we changing the way that we manage research and development partnerships, but the overall number of partnerships has skyrocketed from near none in 1960 to almost 700 in 1996. Businesses began discovering the need for collaboration and inter-organizational agreements between inter domestic companies as well as intra global companies. One thing that also became clear is that the balance between cooperation and competition in highly dynamic industries is quite delicate.
Joint Venture (album)
A soldier launches a FGM-148 Javelin anti-tank mis...
English: 011129-C-0000P-001 Atlantic Ocean (Nov. 2...Something that equity and non-equity based relationships do have in common, however, is the collection of attributes required for cooperation, two of which are trust and transparency. Such a relationship between entities enables the ability to exchange knowledge through learning, provide resources and skill where required, and allow for the ultimate promotion of efficiency in the processes of all parties involved. By forming such a partnership, the parties will benefit from economies of scale, promote best practice and share continuous improvement initiatives.
While the classical approach to organizational relationships, such as the formation of joint ventures, worked well in the simpler world prior to World War II, the world has changed a great deal, and so has the way we manage businesses. There are cultural differences, as well as drastic technological advancements of which we must not lose sight. As the business world...