THANKS TO ALL OUR GROUP MEMBER AND TO OUR BELOVED LECTURER MADAM NUR DIYANA BINTI ABDULLAH...

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Outsourcing Relationship Continuum

• Strategic alliance

A planned ongoing relationship where each party has needs that the other can fulfill and both firm share values , goals , and corporate strategies for mutual benefit .

• Contract logistic

Aspecifically defined relationship that is contractually oriented and dependent on the supplier meeting the shipper 's defined performance goals .

• Transaction logistic

A relationship built on a single event , or a series of separate single events . 

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information about alliances and partnership

Alliances are the corporate equivalent of "friends with benefits." 

The partners combine forces to achieve strategic goals of their own without getting married, being engaged, or dating exclusively. The commitment is slightly more than a roommate to share the rent, but not much. For example, airline alliances permit some linkages - frequent flyer programs, code-sharing - but also continuing competition -- e.g., American Airlines and British Airways compete across the Atlantic, while they partner in the One World Alliance globally. The smart ones take advantage of the chance to peek inside a partner's operations to learn new skills. That was one goal of NUMMI, a former alliance between General Motors and Toyota to make small cars. Toyota walked away with most of the learning benefits, you won't be surprised to hear.

Alliances must be part of everyone's thinking as the recession continues. 

 For startups and smaller organizations, alliances can reduce costs of duplicative activities while enabling parties to pursue their own paths. Smaller organizations can ride a network wave into places they could not reach on their own. Non-profit organizations can form strategic alliances to market to prospective donors or share back-office functions.

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Benefit of Partneship and Alliances

• Reduced cost and lower capital requirements

• access  to technology and management skills

• improved customer service

• competitive advantages such as through increased market penetration

• increased access to information for planning

• reduced risk and uncertainty

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Information about Wiltek's important alliances .

TestMart : 

 Willtek and Test Mart have established an agreement that will provide the U.S. government and federal contractors with special pricing on select Willtek spectrum analyzers, associated components and services.  TestMart is a leading sales, marketing and online strategy partner for the test and measurement community. 

Datang Mobile Communications Equipment Co. Ltd : 

Willtek Communications and Datang Mobile Communications Equipment Co. Ltd co-operate for the development of a tester specifically designed to support mass production of TD-SCDMA mobile phones.

PicoChip :

Willtek adopted picoChip’s PC8290 Software Reference Design for its UMTS solutions, which is used in conjunction with picoChip’s PC101/PC102 architecture.  Willtek sees a huge competitive advantage as this new design will enable it to offer major additions and improvements to its line of 3G wireless test equipment.  For more details, you can also visit picoChip at:http://www.picochip.com/solutions/test_measurement .

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Examples of strategic alliances .

  Joint venture

  

is a strategic alliance in which two or more firms create a legally independent company to 

share some of their resources and capabilities to develop a competitive advantage.

  Equity strategic alliance 

 is an alliance in which two or more firms own different percentages of the company they 

have formed by combining some of their resources and capabilities to create a competitive

advantage.

 Non-equity strategic alliance 

 is an alliance in which two or more firms develop a contractual-relationship to share some 

of their unique resources and capabilities to create a competitive advantage. 

 Global Strategic Alliances  

working partnerships between companies (often more than two) across national boundaries 

and increasingly across industries, sometimes formed between company and a foreign

government, or among companies andgovernments.

 

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Advantages of Business Alliance

• Get instant market access, or at least speed your entry into a new market.

  Alliances open access to each partner's network of customers and distribution channels. As an example, airline business alliances related to code-sharing increase efficiencies within the airline industry. A code-share agreement is a business arrangement between airlines that cooperate to sell space on the same flight to manage capacity on shared routes.

 

Knowledge Sharing

A business alliance provides access to the unique know-how of the partner company. For example, a tutoring company might find itself challenged to meet the demand for math tutors within the community it services. Understanding each party's underlying interests and concerns is a key part of contract negotiation. That same understanding must carry over into the implementation stage of an alliance. Each side needs to be attuned to the other's expectations for the alliance and open to new ways of doing things. That understanding can give partners the ability to be creative and innovative in how they work together to sustain or evolve the collaboration

Economies of Scale

Economies of scale might develop from business alliances. Economies of scale relates to the cost advantages that a company gains from expansion. In business alliances, this might include access to wider marketing channels, which a company might not otherwise be able to afford outside the partnership. Costs reductions might also result from joint investments on matters like research and development, or access to a partner's operational facilities.

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STAGE OF ALLIENCE FORMATION

Strategy Development :

 involves studying the alliances's feasibility , objective and rationale , focusing ont he major issues and challenges and development of resources strategies for production , technology , and people . it requires aligning alliances objective eith the overall corporate strategy .

Partner Assessment : 
involves analyzing a potential partner's strengths and weakness , creating strategies for accommodating all partner's management styles , preparing appropriate partner selection criteria , understanding a partner's motives for joining the alliance and addressing resource capability gaps that may exist for a partner .

Contract Negotiation : 
involves determining whether all parties have have realistics objectives , forming  high calibre negotiating teams , defining each partner's contributions penalties for poor performances , and highlighting the degree to which arbitration procedures are clearly states and understood .

Alliance Operation :
 involves addressing senior management's commitment , finding the calibre of resources devoted to the alliance , linking of budgets and resources with strategic priorities , measuring and rewarding alliance performances , and assessing the performances and result of the alliances 

Alliance Termination : 
involves winding down the alliance , for instance when its objectives have been met or cannot be met , or when a partner adjusts priorities or re-allocates resources elsewhere .

 

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