Strategic alliance research paper

Companies will be able to improve the operations because of the efficiency gained which ended-up in increasing the returns. This paper is aimed to examine the impact of various forms of strategic alliances on the organization's performance. Description of the Organization Hewlett-Packard Company which is famously known as HP Co. was founded in 1939 by David Packard and Bill Hewlett and its headquarters is situated in Palo Alto, California (Kidd, A. (Ed. This led to a reduction of its market share by approximately, o. 5% challenging the company to up the game. Also, Lenovo is expanding its server through the purchase of IBM's server costing $ 2. 1 billion to increase its market space. HP made a mistake of not acquiring IBM before its competitor in the market.

Z. If the company had taken advantages of being the starter in the market, when its competitors were still futile, HP Co. could have been ahead of the rest. In fact, taking of IBM Co. , the company could have been much ahead but instead gave a chance to the main rival Lenovo to acquire IBM Co. The alliance formed between HP Co. and Global SI Co. has enabled them to improve in networking which has fostered customer services. Utilization of resources in the environment has been boosted They further argued that the company has formed a strategic alliance with Global SI in order to manoeuvre in the market due to great competition and technology progress posing a lot of threats in the market.

This has increased the common strategy to survive and grow in the market despite the competition from other firms. Also, the company has its unique culture which has enabled it to shift to higher heights in technological development. Further, differentiated products have propelled the company through earth-shaking shifts in the manufacturing sector. There are different departments in the company like the Hewlett Packard Enterprise Company which specializes in networking, consulting, support and storage. This department is further segmented into Financial Services and Enterprise Group. HPE later became DXC Technology through a merger with Computer Science Corporation. This means the behaviour accorded in the organization is standard. In order for the company to realize the achievement of the founders' goals, there are eleven rules which guide the operations of the HP Co.

Basing on the rules postulated in question 3 above, HP Co. uses an organic model due to its flexibility in the adoption of new ideas into the organization. This is very key in the dynamic business environment because of technological progress which is threatening many companies (Debackere, K. Because of the flexibility experienced in the organization, the organization is doing a good job in managing its hierarchy (Liu, C. Z. This is because of its freedom at every level to give room for discussion of ideas. For instance, members in the Human Resource Department can hold a forum and discuss an issue affecting the members of the Human Resource Department. In addition, problems are solved efficiently since a small group of people is involved as they can reach a consensus within a short period of time.

Also, through its reinvention, the company is efficient in meeting customers' needs and professional development of its staff members. HP Co. stakeholders are the customers, employees and the companies’ owners or directors. The mail of the organization is to make sure the clients are satisfied through service delivery like producing products which meets consumer needs (Gunz, H. P. This might occur due to ideological differences in the uncertainty of the expected return from the new idea. Some may believe they will lose their jobs which might not be the case since everything will be discussed to make sure each and every member is satisfied and the company will have that opportunity to expand. For instance, merging the company with another, the top manager might believe, losing their positions thus sabotaging the process in order for the idea to lose meaning and fail.

This limit the benefits which the company could have gain through creativity and innovation which might be experienced through merging. Further, some of the company’s owners might dispute a new idea fearing their assets can be lost, while others who have an idea concerning the change are pushing for implementation (Janssen, M. However, the company delayed in initializing the process due to internal issues and another company (Lenovo) took advantage of acquiring. Currently, Lenovo is the main competitor of HP in the market and has secured a higher percentage in terms of market share. But HP Co. has some plan to acquire some companies which will boost its productivity in terms of the network which is expected to yield positive results in terms of profitability of the organization.

External Environment According to Stonehouse and Pemberton (2002), investigating the business environment where the business operates is an important strategic analysis which enables the company to understand the market better. Because of technological advancement experienced in the world nowadays, there is high competition which has given the company sleepless nights. He opines that external forces which the company has to with are the technical aspect which is revolving highly. This will enhance product differentiation which is a protective measure in a competitive world. Thus, great competition HP Co. is facing mainly from Lenovo has forced the company to revisit its strategic pillars to allow it to recapture its initial market share. Further, there are sectors which interact with the organization for it to achieve its goal, they include, raw material sector or the suppliers of the material, international sector, industry and the market sectors and human resources (Tschirley, D.

, Poulton, C. , & Labaste, P. (Eds. These sectors are very crucial since they involve factors of production as sometimes the employees might demand higher salaries putting pressure on the company reducing its efficiency. (2009), boundary spanning Also the plans which company has placed on acquisition will enable the company to get enough finance which is key in coping with the situation and managing the uncertainties in the market boosting the efficiency. The technological advancement has made the elements in the environment to be dynamically making the market operations hectic to the company. This because the company has to continuously revise the production and marketing strategy to fit the situation. For instance, Lenovo Co. which is the main competitor to HP Co. (2002), in order for the organizational goals to be achieved, the company should have a system which outlines the direction of the activities within the firm.

The activities include responsibilities, roles and rules of the company influencing the flow of information to the top from the bottom level via middle level depending on the type of structure. And the organization chart assists in knowing the type of organization structure which exist within the company. Since the hierarchy of the firm is clear, the decision is made at a faster rate which increases the efficiency which fosters the productivity of the organization. This is because every staff member at every level is responsible and thus, focused on time and energy since they want to achieve their goals. Highly motivated employees can produce marvellously because they can discuss with the rest depending on the culture built in the division.

However, due to divisional competition, there are high chances of politics rather than sound strategic think tanks on the allocation of resources (Singh, L. Besides, incompatibilities may occur due to compartmentalization interfering with other divisions. For instance, one division might develop a social connector which hinders integrations of windows live and Microsoft Share Point. In this circumstance, LinkedIn is interfaced by a social connector, making its products incompatible within business units. This allows multiple transformations which impact on the technical system throughout the organization due to attainment in personnel and knowledge requirements. Through reviews of various literature on the sociology of technology, a supportive and buffering subsystem will be adopted by the company which influences communication patterns between the individuals and the leadership of the organization (J.

D Thompson, 2001). The vision of HP Co. is to develop a technology which is consumable and turning the lives of much better everywhere they are found in the world. has been the steer –wheel in the engineering new methods of handling the production of commodities and services to suit the current demand. Perrow further argued that technology has enabled workers to minimum efforts and handle exceptions when applying existing analytical methods instead of relying on guesswork and intuition. Hence, four categories of technology; craft, routine, engineering and non-routine technology. But HP Co. has been using the engineering type of technology in order to cope with the dynamic world characterized by swinging demands accompanied by ever-changing consumer preferences. To this extent, HP Co.

applies some elements of organic structure to handle some ideological advancement in the organization. This is experienced in how the company ascend in the development of new products and services. This ensures market demand is met and thus corresponding to the engineering type of technology characterized by standards and comprehensiveness maintain by the organization. HP Co. Every company in its production process undergoes various cycles over a period of time, like the biological organism which is born, grows and eventually dies after getting matured. Thus, each organization has varied conceptual resulting in observable outcomes which are in line with the vision and the structure. There are four organizational life cycle; entrepreneurial stage, expansion, consolidation and decline. Through the analysis, the company has grown at a higher speed since it started as an audio oscillator in California 1939 but now it is a multinational company serving the global market.

It has many subsidiaries which are operating in various countries in the world. , the entrepreneur is the President or the CEO. The third stage is where the entrepreneur delegates crucial roles to the next level of management. At this stage, the CEO has less influence and mostly applies strategic interventions in the operations of the company. The company has developed various products and services which have to be handled by the managers at the divisional level. Growing to the next level, coordination of various units is very vital due to diversification experienced in the organization. F. (2005), the company is at the fifth stage planning for the sixth stage through networking by acquisition. When a company has expanded, there are some problems erupting due to management issues.

For instance, employees complaining about salary increment which the organization observes as a problem. On the other hand, market changes have been hectic due to high competition especially the overtaking by Lenovo Co. In the dynamic market where there a lot of competition, the company is forced to reverse its marketing and production strategy in order to remain competitive in the market (Zollo, M. , & Singh, H. Further, the continuous changes in consumers' preference have forced the company to reinvent its production plans in order to generate a differentiated product. For instance, the introduction of Windows 8 was to recoup the initial confidence which the consumers had about its products. Any change encounters resistance from different levels in the organization which include financial challenge which limits the extension of the transformation.

, & Clift, B. The most powerful subunit is the research and design subunit which has relevant information about the market trends. This is the subunit which dictates most of the operations in the company as they have basic data concerning the market. The management usually makes decisions basing on the analyzed data in order to develop reliable predictions using the forecasts. When there political instability and conflicts in the country, the operations in the country will be adversely affected reducing the profitability of the company due to low sale turnover. Measuring progress and evolution in science and technology–II: The multiple uses of tech-nonmetric indicators. International Journal of Management Reviews, 4(3), 213-231. Gulati, R. , Puranam, P. , & Tushman, M. Jabr, R. A. Robust self-scheduling under price uncertainty using conditional value-at-risk.