Strategies In Action Essay

3264 words - 13 pages

Strategies in ActionGlobal Strategies for a Changing WorldGlobal 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. 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 has become more competitive and globalized in most industries, consumers have higher expectations, resulting in an increased pressure on research and development. We have moved from very simplistic ways of managing business to complex structures and processes, with intent to manage the business in a holistic manner.The simple classical approach that will be discussed is the joint venture organization, whose primary focus is on the local perspective allowing for shareholder control of corporate strategy. The objective here is typically a cost management strategy as opposed to a more innovative outlook.On the other hand, the complex network approach, which focuses on organizational partnerships, has different characteristics which can be categorized into three themes: 1) cost efficiency, 2) innovation, and 3) self-interest. In some instances there is a combination of all of three. This approach contrasts sharply with the classical approach in that the primary locus of control now becomes the stakeholder as opposed to the shareholder. Each theme will be...

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