Cross-Sector Partnership Strategies and Benefits

This assignment provides a comprehensive analysis of cross-sector partnerships between Heathrow Airport and APCOA Parking. The report discusses the advantages of partnership in terms of satisfying customer needs, resolving environmental, social, and economic issues, and increasing profits. Strategies for successful partnership include open communication, consistent communication norms, three-way value proposition, trust-building, shared vision and mission, and proper utilization of each other's strengths.

Peer Reflection

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Organisations Overview..............................................................................................................1
Identifying and reviewing of current partnership using relevant theory.....................................1
Impact of partnership on each organisation's strategy and likelihood of success.......................2
Comparison of partnership strategy to how other councils deal with same theme.....................3
Future options and strategies to assist partnership......................................................................3
The way organisation can be successful in partnership..............................................................4
CONCLUSION................................................................................................................................4

INTRODUCTION
Peer Reflection is defined as the process of consciously observing one self in deeper
sense and get feedbacks from peers about their own work or self reflection. In the present
assignment, given cross sector partnership is between Heathrow Airport and APCOA Parking.
This presentation covers identify and review of current partnership using appropriate theory and
influence of partnership on organisation's strategy and success. Future options and strategies are
also proposed to assist partnership and how firms be successful in it is defined in this project.
This presentation aims to evaluate success of partnership for each partner.
TASK
Organisations Overview
Heathrow Airport:
Heathrow Airport is the major international airport situated in London, United Kingdom.
It is one of the busiest airport of the world by total passenger traffic. From this premier
international airport of United Kingdom, some eighty airlines directly fly to more than 180
destinations of world (https://www.heathrow.com/more/about-us#).
APCOA Parking:
APCOA Parking AG is one of the longest established full service firm of Europe which
deals in parking management. The company is headquartered in Stuttgart, Germany and
managing approximately 1,400,000 parking spaces across twelve nations. It offers complete
parking service package for proprietors.
Identifying and reviewing of current partnership using relevant theory
Partnership refers to the formal arrangement where two or more firms cooperate to
manage and run business. Cross sector partnership refers to the commitments among private
public or non profit organisations in which individuals from partner firm commit several
resources and ready or agree to work collectively towards common goals. In such partnership,
partners are willing to share costs, risks and benefits. The main aim of cross sector partnership is
to resolve social, economic and environmental issues by collaboration, often by addressing
regulatory and institutional voids. Here, the cross sector partnership is in between two
organisations, i.e., Heathrow Airport which is a public sector firm and APCOA Parking which is
a privately owned company. Partnership between these two firms provides various benefits to
both the firms as well as economy and society. It supports corporate social responsibility
1

strategies of business and its operations. In addition to this, their partnership can helps in access
new markets, strengthen vitality and quality of supply chain and improve relationship with
stakeholders. Effective cross section partnership combines respective strengths of Heathrow
Airport and APCOA Parking, harmonizing development interventions delivery with profit
interests of companies. As the passenger traffic is more on Heathrow Airport, it is difficult to
manage it effectively. Partnership with APCOA Parking helps company in managing rush on
airport. Their current partnership helps both the organisations in fulfilling unique needs of
customers related with airport parking and also assist in gaining high competitive advantage in
market. Under this theory, both the companies separately report their respective shares of
deductions and income.
Aggregate theory of partnership:
This partnership theory depicts that partnership doesn't have separate legal existence like
corporation. Aggregate theory is grounded in partnership definition, '”a group of two of more
individuals work together to attain common goals.” This theory impacts various principles of
business such as ownership rights, separation of partners from entity, interaction with third party,
rights to sue and be sued. Under this theory, partnership is only sum of individuals who make it
up. As per this theory, each partner (Heathrow Airport and APCOA Parking) is treated as owner
of undivided and direct interest in partnership liabilities, operations and assets and is not seen as
taxpaying entity (https://definitions.uslegal.com/a/aggregate-theory-of-partnership/). The cross
section partnership between both the organisations focuses on imperative to realize advantages
for wider community instead of special interest. The partnership between Heathrow Airport and
APCOA Parking is expected to deliver innovative and improved solutions for social, economic
and environmental issues through combination of resources and capabilities firms works across
different sectors.
Impact of partnership on each organisation's strategy and likelihood of success
Partnership impacts on operations and strategies of business in positive or negative way.
The concept of cross sector partnership is a new paradigm for strategy in distinct sectors is
evident in their increasing empirical pervasiveness. Some impacts of partnership on businesses
of Heathrow Airport and APCOA Parking are defined below:
Influence of partnerships on existing strategy of the organisation:
2

Earlier the firm only focuses on providing airline services to clients. Its main focus was
on providing high quality services to passengers. But for managing airport operations effectively,
it is not enough. It is required that the services are also attractive and ensures safety. By cross
sector partnership or partnership with APCOA Parking, Heathrow Airport enables to provide car
parking facilities to customers in which they can park their car economically and safely. This
will assists company in providing additional facility to clients of safely parking their vehicles.
This enables firm to provide high quality services to customers which ultimately contributes in
its success.
Influence of partnerships on existing strategy of the organisation:
Partnership with Heathrow Airport helps company in meeting need and requirement of
every passenger of airport by providing long stay or short stay parking. This will help firm in
providing more efficient services to customers. It impacts on corporate social responsibility
strategy of company. From the perspective of environment, it assists in reducing CO2 emissions.
This partnership helps APCOA Parking in addressing needs of airport passengers and provide
them best experience. It ultimately results in increasing satisfaction level of customers that
impacts on its likelihood of success. It helps company in aligning and connecting policies and
policies at different levels: regional, national and international. Earlier the strategy of company is
more inclined towards earning profits but, after partnership, it incline towards social welfare
along with earning profits.
Comparison of partnership strategy to how other councils deal with same theme
In transportation sector, partnership between Heathrow Airport and APCOA Parking
provides various advantage to both the organisation in terms of satisfying needs and
requirements of customers. On the other hand, Manchester airport is also one of the firm that
provides car parking facilities to its passengers so that they do not feel any kind of inconvenience
in parking their vehicles when they reach to airport. This will provides an ease in transportation
to customers. Cross sector partnership of Manchester Airport with Indigo park services enables
them to provide safer parking facilities to its passengers. The challenge face by Manchester
Airport in this partnership is that it increases cost of firm of managing more number of
passengers.
3

Future options and strategies to assist partnership
There are some future options and strategies that assists partnership of Heathrow Airport
and APCOA Parking. Some of these are defined below:
Contracts and agreements:
In order to assist partnership for long term, it is important to contractually all the details
like responsibilities, rewards, payments, mutual risks, service level agreements, rules of
engagement etc. This will declines the chances of conflicts among partners and help them in
maintaining strong partnership relationship among both the firms.
Building media partnership:
With the assistance of other agency partners, the firms can develop good partnership
relations. It is essential to ensure consistent communication externally and internally throughout
the alliance. Agency partnership will assists them in keeping ahead in pace of change.
The way organisation can be successful in partnership
Open and honest communication is the key to good and successful partnership. It can be
develop by creating norms of communication and utilizing structures for supporting decisions.
Consistent communication norms are utilized by successful partnership in every meeting and
interaction. By ensuring 3 way value proposition, Heathrow Airport and APCOA Parking can be
successful in partnership. This value proposition requires to deliver value to three parties
involving partner, customer and organisation. Developing and maintaining trust is also one of the
way by which both the organisations can be successful in their partnership. So, it is very essential
for both the organisations to constantly maintain trust in partnership. Forming shared vision and
mission, ensuring that partner's needs and expectations are fulfilled and proper utilisation of each
others strength are also the ways that can help companies in successful partnership.
CONCLUSION
As per the above mentioned report, it has been concluded that cross sector partnership is
the partnership between 2 organisations which are from different sectors, i.e., private, public and
non profit. The main purpose of this partnership is to resolve environmental, social and economic
issues. Effective communication between partners is the key to successful partnership. Strategies
like building media partnership and contracts and agreements are assists in maintaining long
term partnership.
4

5