Six/ hcm

Six/ hcm

Strategic Alliance Development Strategic Alliance Development Like any relationship or partnership, strategic alliance even goes through different stages of development; these stages start from forming, carry on with operating and end or consolidate with outcomes (Ulijn, 2010, p. 22). In the formation stages various activities take place, these activities include: a strategy is created between the alliances for an alliance between them, the individuals and organization involved in the alliance are identified, bargaining of contract between them takes place and the contract is signed and an alliance is thus created. In the operating stage the individuals and organizations involved in alliance start working according to the signed agreement. In the outcome stage, results of the alliance are identified and cost and benefit analysis of the implementation of the alliance are analyzed and decision of whether to continue the alliance, break the alliance or to make changes to the alliance are made.
When alliances are created between competitors, the will to stand against competitors and fight with competitors may decrease day by day as competitors might stop viewing each others as threat (Burns, 2011, p. 310). When alliances are created, the organizations focus on their own aims and objectives becomes lower and the firms start focusing on aims and objectives created as an alliance. If an alliance breaks, the chances are that either the firms or one of the firms lack behind in their own industry or their competitors may end up performing better because they were focusing on their own growth and were not in an alliance with other competitors.
Works cited:
Burns, L. R., Shortell, S. M., & Kaluzny, A. D. (2011). Shortell and Kaluznys healthcare management. Clifton Park, N. Y: Delmar.
Ulijn, J., Duysters, G., & Meijer, E. (2010). Strategic Alliances, Mergers and Acquisitions: The Influence of Culture on Successful Cooperation. Cheltenham: Edward Elgar Pub.