Report on Strategic Alliance of SABIC & ABB

Added on - Oct 2019

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DECISION THEORY WITH GLOBALWORKPLACE
Table of ContentsINTRODUCTION...........................................................................................................................1Challenges that could be faced by the firm by forming an alliance with the global firm locatedin Europe......................................................................................................................................1Applying prescriptive or descriptive decision-making method with an aim to accomplishalliance initiative..........................................................................................................................2Evaluating different decision-making methods...........................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONThe strategic alliance is also called a strategic partnership in which agreement is formedbetween two or more parties with the desire to attain the specific goal of the firm (Vohs andet.al., 2018). The strategic alliance is the type of agreement in which two or more party takesdecision for attaining some common objective. This report is based on the strategic alliance ofSABIC and ABB. SABIC is the Saudi based firm that is planning to form a strategic alliancewith Europe based organization such as ABB. This study will entail about the challenges that arerelated to the strategic alliance. Further, it will also give a description about decision-makingmethod that could be used by the firm.Challenges that could be faced by the firm by forming an alliance with the global firm located inEuropeThere are different types of challenges examined that could be faced by SABIC whileforming its strategic alliance with ABB. However, these challenges couldalso affect the Saudivision 2030 that is to build sustainable economic future by working on the strengths and policies.The details of the same are given below:To establish coordination between firms: In order to gain success in the market, it isvery important for the firm that it should have effective coordination with the partner towhom it is aligning. This is because; if a given thing is not found then the work of thefirm will become quite difficult. Here, coordination is the big challenge because bothSABIC and ABB comes from different work culture and thus the way to deal with theproblem is also difficult. Hence, in the future, there are chances that both could notreach some particular conclusion because of the difference. This thing could affect theoperation of the firm in an effectual way (Tomlinson, 2018).1
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