In An Alliance The Success Of An Integrative Equality Agreement Requires

 10 April 2021      

In the initial phase of an alliance in Europe, a representative of the French company took his American counterpart to meet a French government official in a ministry that was partly under the tutelage of the agreement. The American director gave a lecture on the benefits of free market capitalism. The French heads of state and government are proud of their intelligence, so the form and content of the meeting caused considerable problems. Subsequently, French leaders had to smooth things out within the ministry and inform the American of the appropriate behavior. In the 1970s, strategic alliances focused on product performance. The partners wanted to obtain the best quality raw materials at the lowest possible price, the best technology and better market penetration, while the focus has always been on the product. The analysis phase sets performance targets for the partnership. These objectives are used to determine the general skills of the business that are needed. During the selection phase, these performance objectives are used as criteria for evaluating and selecting potential alliance partners.

The most frequently related activities related to the analysis phase are: [25] Before the alliance, for example, Publicis was a 75% private company whose CEO dominated strategic choices. The CBF was a public company with a large number of executives who tried to work together and generate a lot of paperwork: reports, annual accounts and long minutes of meetings. An important American leader, who worked slowly by others according to an enabling philosophy, was considered weak by the French, accustomed to a rather edible style. At the beginning of the relationship, some American leaders found Publicis too hierarchical, but some French leaders found frequent meetings and FCB papers too bureaucratic. And the abstractions and predilection of French directors for theory were at odds with the Americans` desire for concrete empirical facts. Like romances, alliances rely on hopes and dreams – which could happen if certain possibilities were followed. Michael Porter and Mark Fuller, founding members of Monitor Group (now Monitor Deloitte), distinguish the types of strategic alliances according to their objectives: many companies are struggling to exploit their alliances as they had imagined and many of these partnerships are not achieving their defined goals. Some common mistakes are as follows: the FCB-Publicis alliance is proof that potential partners must find compatibility of legacies, philosophy and desires, especially in rapidly changing sectors, as some possibilities are often ephemeral and do not maintain a long-term relationship.