All too typically, nevertheless, the value that such alliances include at the business-unit level is negated by the resulting damage to the business due to the incompatibility of the brand-new alliance with existing ones. Forming a collaboration with a business that is an arch competitor of an existing partner, for circumstances, can develop such ill will that it leads to the general damage of value in the business.
The option, the authors say, depends on both structure and procedure: Companies need to develop a main "alliance function"-a specific or a department at the business level that is accused of working together with the development and managing of brand-new alliances. And the choice of whether to get in into a proposed alliance ought to undergo a strenuous set of analytical actions in which the business analyzes the expenses and advantages of the proposed alliance, not just for business system that is straight included however likewise for the business as a whole.
PUBLICATION DATE: April 01, 2010 PRODUCT #: SMR349-HCB-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
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