International Strategic Alliance in Business

INTERNATIONAL
BUSINESS

EXECUTIVE SUMMARY
The report defines the understanding of international business and the concept of
international business is based on the fundamental that when an organisation operate ad trade
their goods and service across different borders and nations, the activities of the company are
carried into international business environment. International business environment creates an
opportunity for business to enhance their competitiveness by reducing the risk and uncertainties
that can be done through joining with different companies. Such alliance enables business to
improve their performance that can be helpful for generating higher revenues, facing challenges
effectively and managing organisational success. The report defines different approaches and
strategies of business in order to meet targets and objectives. The study also lists the several
benefits of forming an international strategic alliance. A critical examination of the worldwide
strategic challenges that are linked to the partners that are involved. The research will cover a
few recommendations for the company to implement more appealing methods in order to
achieve more success and prospects.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Define the use of international strategic alliance in foreign market expansion...........................4
ANALYSIS AND DISUSSION......................................................................................................7
Analyze the motivation behind the formation of international strategic alliance........................7
Define the benefits and challenges of international strategic alliance selected to the partners
involved.......................................................................................................................................8
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
International business is the trade of goods, services, technology, knowledge and capital
around national borders or at global level. The international business requires transactions of
business activities which involves cross border transactions and activities. International business
can be done through various mediums, which are related to exporting, licensing, franchising,
joint venture and Foreign direct investments (FDI). International trade refers to the exchange of
products, services, or resources between two or more countries beyond national borders. An
international strategic alliance is a partnership between a company and its parent company that
operates in various nations (Buckley, Enderwick and Cross, eds, 2018). Airline alliance is a
mutual agreement between group of airline companies to cooperate and manage all business
activities with the motive of earning maximum profits. British Airways is an airline operating in
UK and is one of the second largest airline after Easy Jet. The parent company of British
Airways is International Airlines Group. The headquarter of the company is in London, UK.
British Airways offers airline services over 160 destinations which involves 8 domestic flights
and 24 flights in US. British Airways has an international strategic alliance with Oneworld which
is an airline alliance. The report defines the literature related to use and practice of international
strategic alliance through which a business can operate in global market and industry. The report
is based on identification of various motivation factors for formation of international strategic
alliance and determine the benefits and challenges of international strategic alliance which are
faced by partners while operating in international markets.
TASK
LITERATURE REVIEW
Define the use of international strategic alliance in foreign market expansion
International strategic alliance- International strategic alliance is a collaborative
arrangement between organisation and parent companies operating in different countries.
International strategic alliance can engage in one activity or a combination of activities which
can be categorized under different classifications, such as- licensing, franchising, management
services, manufacturing, marketing, supply chain and others (Collinson and et.al, 2020). An