Please Comment On The Effect That Alliances Such As Apple And Microsoft Can Have On Competition Within The Context Of Operations Management

472 words - 2 pages

Operations Management is the term applied to the correlation of activities which achieve the core objectives of an organisation.Apple and Microsoft are companies which come from very different cultures, Apple a very steady stable environment, which non-the-less appreciates and recognizes employee input. For example at Apple computers, Cupertino, California, all employees who worked on the design of the original Mackintosh computer had their signatures engraved on the inside of the models case. Microsoft's also has a strong employee focused culture but one which really embraces change. Their employees's based at Redmond, Washington, are used to a ...view middle of the document...

This ever changing culture, is directly responsible for their rapid growth which was sustained by major innovations, it enhances their innovative, but casual culture and is a direct contrast to Apples more formal approach to business.In the case study, it appears to me that these cultures clash, Apple are envious of the success and adaptability of Microsoft, but in the future will also rely on them to support their new operating system, an almost parasitic relationship. Instead of looking at this strategic alliance as an excellent way to share core competencies and reduce the cost of research and development, Apple are bickering about the integration of the system, Microsoft about the engineers employed by Apple, and the governmental stance to be successful. An alliance should be a win-win situation for both companies. They both need to understand the risks associated with any alliance, however small, they need to be similar both financially and culturally and as such need to have similar core ethics, or be prepared to negotiate and apply a new culture. If this cannot be achieved, it needs to be negotiated and both cultures adapted so that the core activities reflect the companies business aims. The cultures of these two companies, Apple and Microsoft are too far removed to nurture a successful alliance, and it appears that when the alliance was formed no negotiation took place which looked at the core objectives and focused on, how structurally, both companies could achieve these aims.

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