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    Strategic Alliance Issues

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    To begin, strategic alliances consist of two or more organizations that merge together resources and talents to achieve a common goal, which otherwise cannot be done in a single organization (Judge & Ryman, 2001). The issues facing strategic alliances can impact production and success within the alliances. These issues can include cross-cultural concerns, diversity, values, ethics, leadership, and teamwork. Many organizations face unique challenges of strategic alliances considering the strategic alliance to be a contractual agreement. The contractual agreements exist to impart precise responsibilities for each firm and the governance of the alliance (Judge & Ryman, 2001).

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    Organizational Challenges of Strategic Alliances:

    Strategic alliances follow specific membership criteria to include or exclude members. For this reason, it eliminates the potential for unnecessary challenges if it can be avoided. The selection process separates alliances from coalitions and trade associations, which are likely to encourage as many organizations as possible to join the alliance (Judge & Ryman, 2001). Although new alliances are growing at a 25 percent rate, it is projected that more than half of strategic alliances will fail to meet its objectives (Judge & Ryman, 2001). As a result of the unusually high failure rates, it is important to understand and analyze the unique leadership issues surrounding strategic alliances.

    Leadership challenges:

    One of the challenges of leadership in strategic alliances is the lack of focus in establishing effective processes of inter-organizational relationships. New ideas are needed to include key behaviors of effective leaders within the alliance. To overcome leadership challenges, the process should involve aligning dissimilar leadership skills and interests with people who lack these skills (Judge & Ryman, 2001). A successful strategic alliance includes two or more leaders with comparatively extensive power and ...

    Solution Summary

    The expert examines strategic alliance issues. The precise responsibilities for each firm and the governance is determined.