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    Strategic Alliance Issues

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    Analyze issues that arise in strategic alliances (for example, strategic alliance exists between Starbucks and Pepsi Co, or iTunes and Barnes and Noble) such as teamwork, diversity, values, ethics, culture, leadership, etc.

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    Strategic alliance is a good option for the companies to enter in foreign markets. Through strategic alliance, companies make a relationship with the local companies in order to meet critical business needs. In order to form a strategic alliance, sometimes, companies also face several issues that have negative impact on the both of the companies. In this work explain the strategic alliance issues such as diversity, culture, ethics, team work, leadership and values.

    Issues in Strategic Alliances
    There are several issues that a strategic alliance faces in the country. The detailed analysis of these issues is as follow:
    Team Work: In strategic alliance, two companies work with each other that creates essential for each company to work in a team manner. Companies have different background and culture that create problems in forming an effective strategic alliance in the market. In the team work, there is also an issue in developing the understanding of language and work environment of other company's employees and management team. This also creates the problems in forming an effective and supportive strategic alliance in the market. It is identified that many strategic alliance were failed because of lack of team work that led to problems impossible to be solved. It also led the companies to make effective relationship with each other in the market (McNeil, 2003).
    For example, the strategic alliance between Volvo and Renault in 1993 was break up because of less co-ordination between employees and management teams.

    Diversity: Diversity is also an important ...

    Solution Summary

    The expert examines strategic alliance issues.