Strategic Alliance: Decision-Making, Approaches, and Models Report

This report provides an overview of strategic alliances, particularly in the context of Saudi Arabia's Vision 2030, using SABIC and GB Lubricants as examples. It discusses the challenges in forming alliances with global organizations, such as building mutually beneficial relationships and maintaining trust. The report explores the application of prescriptive decision-making methods for accomplishing alliance initiatives, emphasizing the leveraging of real-time data for actionable insights. Additionally, it evaluates various decision-making methods to insure alliances against competition, highlighting the complexities managers face in integrating processes across internal and external boundaries. The analysis concludes that understanding the interdependence of partners' interests and adopting a rational, comprehensive approach are crucial for successful strategic alliance management.

Running head: LEADERSHIP DECISION-MAKING: APPROACHES AND MODELS
Leadership Decision Making: Approaches and Models
Name of the Student:
Name of the University:
Author Note:

1LEADERSHIP DECISION-MAKING: APPROACHES AND MODELS
Executive Summary:
The report focuses on the aspect of strategic alliance formed between an organization of Saudi
Arabia and Europe with respect to the strategic vision of 2030. The report commences with a
discussion on strategic vision and goes on to discuss the challenges of alliance formation. The
report also describes how prescriptive methods aids in the accomplishment of the alliance
initiative. There is also discussion on the various decision making methods that insures the
alliance from the effective competition.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Strategic Vision 2030......................................................................................................................3
Challenges Faced in Forming Alliance with Global Organization Located in Europe...................4
Application of the Prescriptive or Descriptive Decision Making Methods for Accomplishing
Alliance Initiative............................................................................................................................5
Decision Making Methods for Better Insuring the Alliance against Competition..........................6
Conclusion:......................................................................................................................................7
References:......................................................................................................................................7

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Introduction:
The report gives an overview of the outcome gained through strategic alliance between a
successful organization in Saudi Arabia and a global organization of Europe. The chosen
organization of Saudi Arabia is SABIC while the organization in Europe is GB Lubricants.
SABIC represented a diversified manufacturing company of Saudi Arabia that put across
chemicals, petrochemicals, fertilizers, metals and industrial polymers (sabic.com, 2019). On the
other hand, GB lubricants represented a privately owned manufacturer of quality lubricants in
United Kingdom (gblubricants.co.uk. 2019). The report primarily revolves around strategic
vision 2030 and uses it as backdrop for the analysis. The report puts forward a discussion on the
challenges faced through formation of the alliance. The report also discusses about how
descriptive or prescriptive methods can be applied for accomplishing the initiative of the
alliance. Further, the report puts across various methods of decision making that might be used
for better insuring the alliance from effective competition.
Discussion:
Strategic Vision 2030
In order to build the best future for the country, the kingdom of Saudi Arabia plans to
base its vision on the three pillars that would represent its unique competitive advantages. The
status would enable the country in building a leading role as heart of the Arab and the Islamic
world. The country also plans to use its investment power for the creation of sustainable and
diverse economy. The country also plans to use its strategic location for building the role as the
integral driver for the international trade by connecting the three continents, Africa, Europe and

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Asia. The three themes on which the vision of the country is built includes a thriving economy,
vibrant society and ambitious nations (Alshuwaikhat & Mohammed, 2017). The first theme
would be vital in achieving a stronger foundation of economic prosperity since the country
believes in the importance of the vibrant society. The members of such societies would live in
accordance with Islamic moderation principle and remain proud of the national identity and
ancient heritage. They are also able to enjoy good life within the beautiful environment and
remain protected by the caring families and supported by health and social care system.
According to the second theme, a thriving economy is able to provide opportunities for building
the education system in alignment with the market needs thereby leading to the creation of
economic opportunities for entrepreneur belonging to the small and the large corporation.
Therefore, the country plans in developing the investments tools for unlocking the promising
economic sectors, diversification of the economy and the creation of the job opportunities. The
country also plans to expand the economy through improvement of the quality of services,
through privatization of the government service and improvement of business environment,
attraction of the finest talent and best investments along with leveraging the unique strategic
location in creating connection across the three continents. The third theme depends on building
effective, accountable, transparent, high performing and enabling government. Besides, the
country prepares the appropriate environment for the citizens, non- profit and the private sectors
for undertaking responsibilities and taking necessary initiative in facing the seizing and the
challenging opportunities.
Challenges Faced in Forming Alliance with Global Organization Located in Europe
Despite the strategic vision of Saudi Arabia it will not be devoid of the challenges while
forming the strategic alliance with the global organization of Europe. The challenges include:

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Building Mutually Beneficial Alliance: The biggest challenge in entering strategic
alliance remains in ensuring that the partnership needs to benefit both the business of Saudi
Arabia and Europe (Albers, Wohlgezogen & Zajac, 2016). However, with the basic human
natures of remaining motivated through self interest often creates a problem in entering into
business relationship with the goal of benefiting other party similar to the benefit created for its
own brand.
Upholding Honesty and Trust: The next challenge lies in maintaining honesty and trust
between the partnerships. Without certain degree of honesty and trust, a strategic alliance does
not have foundation (Bengtsson & Kock, 2014). It is therefore necessary for both the parties in
setting clear and concise expectations before solidification of the partnership otherwise it would
impact the foundation and the agreement with the partner.
Reassessing Alliance and Change of Foundation: All business experience constant
change and flux of initiatives. The challenge lies in the fact that things that have been prosperous
at the present times might not seem appropriate in a matter of three years down the line. For
ensuring a mutually beneficially business alliance between both the parties the challenge lies in
reassuring the alliance and change of the foundation (Sambasivan et al., 2013). It is however
necessary for both the business to understand that the change is inevitable and they should work
together in reaching the newer agreements with time.
Application of the Prescriptive or Descriptive Decision Making Methods for Accomplishing
Alliance Initiative
Prescriptive decision making method is used by real decision maker and turned towards
the specific situation and the needs of decision maker (Bouyssou et al., 2013). This method

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depends on the stronger theoretical foundation of the normative theory in combination with
observation of the descriptive theory. Through real time action via prescriptive decision making,
the leading organization in Saudi Arabia can leap frog the fiercest competitors in the global
market place through the formation of the strategic alliance. With time, companies are having
gradual transition from the descriptive analysis that depended on reporting and business
intelligence to prescriptive analytics that puts forward recommendations based on the human
action. Prescriptive decision making ensures leveraging power towards the strategic alliance
initiative through actionable insights of the associates (Clemen & Reilly, 2013). In doing so, it is
however necessary in grasping the real time availability of the data through the strategic alliance
between both the organization and convert them into certain actionable steps. For instance, when
sales are down as a result of the non availability of the particular variety in a particular location
then prescriptive tools helps in alerting the associate about sales demand and ensures its
immediate replenishment. Prescriptive method of decision making also helps in the identification
of the regional preferences within chain thereby allowing improved allocation of the product for
better satisfying the desires of the strategic alliance. The method also provides advanced
notification to the managers displaying information about the products shipped between the
countries. Besides, prescriptive analysis puts across real time data and helps in improving the
quantity of items mostly preferred thereby leading to an increase in the revenue.
Decision Making Methods for Better Insuring the Alliance against Competition
Strategic alliances represent voluntary agreements amongst the independent firms for
commercializing and developing newer technology, product or services. This broader definition
include joint ventures, joint research and development or the production agreements, distribution
or marketing agreements along with technological exchange (Li, Qian & Qian, 2013). A joint

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venture group is however distinct at inter organizational level irrespective of the structure of the
alliance. The management of the alliance usually represented as factional group which implied
that the members have been legislative body of both the coalition partners who remained aware
of the status of the delegate (Tjemkes, Vos & Burgers, 2017). In fact the distinction between the
firm and the level of alliance remains prominent in the mind of the managers.
Irrespective of the fact that the decision process within corporations and business units
remains challenging, strategic alliance add more uncertainty and complexity to the agenda of the
managers. Alliance managers not only remain involved in the decision making process of
decision making within organization but they also tried to integrate and cope with processes
across the internal and the external boundaries of the organization. For instance, the constant
gush of the resources such as the human capital, technology and the shared business system
requires to be managed through both partners at firm and the alliance level. Within such decision
context, a rational analytical and comprehensive approach seems a more preferable option. Thus,
the alliance managers not only need to seem sensible of the vague information but also
understand the interdependy of the interest of both the partners and select a promising but
alternative decision.
Conclusion:
On a concluding note it can be said that there are various challenges in forming an
alliance with global organization. The report further shows how a prescriptive analysis helps in
accomplishing the initiative of the alliance. There is also evaluation of the varied decision
making methods for accomplishing alliance initiative.

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References:
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An organization
design perspective. Journal of Management, 42(3), 582-614.
Alshuwaikhat, H. M., & Mohammed, I. (2017). Sustainability matters in national development
visions—Evidence from Saudi Arabia’s Vision for 2030. Sustainability, 9(3), 408.
Bengtsson, M., & Kock, S. (2014). Coopetition—Quo vadis? Past accomplishments and future
challenges. Industrial marketing management, 43(2), 180-188.
Bouyssou, D., Dubois, D., Prade, H., & Pirlot, M. (Eds.). (2013). Decision making process:
Concepts and methods. John Wiley & Sons.
Clemen, R. T., & Reilly, T. (2013). Making hard decisions with DecisionTools. Cengage
Learning.
gblubricants.co.uk. (2019). Retrieved from https://www.gblubricants.co.uk/about-us
https://www.gblubricants.co.uk/about-us
Li, L., Qian, G., & Qian, Z. (2013). Do partners in international strategic alliances share
resources, costs, and risks?. Journal of Business Research, 66(4), 489-498.
sabic.com. (2019). Retrieved from https://www.sabic.com/en/about
Sambasivan, M., Siew-Phaik, L., Mohamed, Z. A., & Leong, Y. C. (2013). Factors influencing
strategic alliance outcomes in a manufacturing supply chain: role of alliance motives,

9LEADERSHIP DECISION-MAKING: APPROACHES AND MODELS
interdependence, asset specificity and relational capital. International Journal of
Production Economics, 141(1), 339-351.
Tjemkes, B., Vos, P., & Burgers, K. (2017). Strategic alliance management. Routledge.