University of Business: Cooperative Strategies Report Analysis

This report delves into the intricacies of cooperative strategies, focusing on strategic alliances and joint ventures. It examines real-world case studies, such as those involving Cisco, IBM, and various airline collaborations like Sky Team, highlighting both successes and failures. The analysis covers critical aspects like internal and external management challenges, compatibility issues, strategic objective failures, and the impact of organizational culture gaps. The report also explores the role of competitors in fostering cooperation, cost management within alliances, and the balance between cost minimization and opportunity maximization. Key considerations include the selection of partners, the importance of proper planning and implementation, and the impact of factors such as inventory expenses, and the time frame of the alliance. References to relevant research and articles are included to support the analysis, offering a comprehensive understanding of the topic.

The case discusses cooperative strategies of actual situations that crashed for many
reasons, including high costs, competition of rivals, complete absence of proper management and
alliance-related dynamics, joint ventures and partnership strategies (Basir, Ahmad, & Kitchen,
2010). The situation is full of important examples including such Cisco and IBM, as well as
airline one-word collaboration and Sky Team, which formed an alliance even though they were
from the same division and competed with problems. Another interesting topic was the
relationship with DowAksa which is a carbon chemicals firm, but since it has already been in
collaboration with another firm, it has also generated organizational and functional difficulties.
The competition won by several other rivals in association with wrong collaborators and a weak
plan including the Red Box and Verizon are also complexities. The case underlines the
importance of a proper strategy and implementation; however, the choice of partner is far more
crucial.
Complexities in the creation of joint projects and partnerships collaboration strategies
Joint venture and partnerships may be closely related to work for the growth and
performance of the organization. The joint venture is indeed a long-term agreement with a large
number of assets and costs exchanged because the alliance is a scaling agreement (Starr, 2017).
As discussed in the case of cooperative strategies as well as other problems in Joint Venture and
Alliances are as follows:
• Internal and external management problems
• The associated company's compatibility
• Failure to prepare a proper strategic objective
• Incompetent planning
• Organizational culture gap

• Unreasonable demand with unsuitable classifications and management
Role of competitors for cooperation strategy
Competition between competitors provides the company with a sense of encouragement
and aims to enhance the output for companies which are associated and form alliances with it.
Therefore, working together with rivals is better than the industry's greatest rival. Collaboration
with rivals can externally lead to achieve a good reminder and gain customer value (Ismail,
2016). However, major factors for its performance should be identified, for example peaceful
activities, well planned agreements and limitations in decision making. Canon is Kodak's
supplier of photocopiers and offers both high quality and benefit, making them stand out from
companies such as Fuji, Nikon etc. in the marketplace.
Costs and management for strategic alliances growth
Alliances are generally made for increased margins and advantages and the investment
always pays off. Some of the main expenses involved during the formation of strategic
partnerships are inventory expenses, hard costs like interest rate, insurance and tax expenses;
although some soft expenses are layout fees, project management fees and employee training
expenses, etc. (Durmaz & Düśün, 2016). These expenses can be administered by an effective
supply chain system to minimize inventory expenses. The time frame for the product and service
(the objectives of the alliance) was minimum in the Zara as well as the South-West airline and
thus cost management can be reduced.
Cost minimization versus opportunity maximization as primary goal of cooperative
strategy
Minimizing costs eliminates costs by reducing the number of retail customers in a
business such as lead-time extension, inventory expenditures, equipment of fewer amounts,

agreements, etc. whereas maximization of opportunities is a matter of optimizing wealth through
the regular customers, joining an emerging business etc. (Athapaththu, 2016). These can be
accomplished with appropriate planning and preparation, based on personnel performance, cost
control, operational processes and the acquisition of the proper chances. Thus, with no
wasted time, companies can achieve cost reduction at the early phase and maximize
work opportunity (Darbi, 2012). This cannot be applied in all methods as short-term and long-
term minimization of cost. A monthly reliance, awareness of organizational methods and ability
to understand effective management will be important in order to reduce costs and optimize
opportunities.
References
Athapaththu, H. H. (2016). An Overview of Strategic Management: An Analysis of the Concepts
and the Importance of Strategic Management. International Journal of Scientific and
Research Publications, 124-127.
Basir, M. S., Ahmad, S. Z., & Kitchen, P. J. (2010). The Relationship Between Sales Skills And
Salesperson Performance: An Empirical Study in the Malaysia Telecommunications
Company. International Journal of Management and Marketing Research, 51-73.
Darbi, W. P. (2012). Of Mission and Vision Statements and Their Potential Impact on Employee
Behavior and Attitudes: The Case of a Public But Profit-Oriented Tertiary Institution.
International Journal of Business and Social Science, 95-109.
Durmaz, Y., & Düśün, Z. D. (2016). Importance of Strategic Management in Business. Expert
Journal of Business and Management, 38-45.
Ismail, H. (2016). Preference in Business and Corporate Strategies: The Role of Personal
Values . Contemporary Management Research, 25-46.

Starr, R. (2017, August 10). What Makes a Good Salesperson? 25 Qualities to Look For.
Retrieved from Small Business Trends: https://smallbiztrends.com/2017/08/what-makes-
a-good-salesperson.html