Developing Successful Strategic Alliances Engineering Essay

The traditional romance between the consumer, consultants, main contractor, subcontractors and suppliers within the construction industry utilizing a traditional deal is generally but not all very contractual and adversarial one "Blame Culture" which is not effective in an enterprise as it about interactions, where the client and consultants places all of the risk to the main contractor who in turn passes it down the line to their distributor string i. e. Suppliers & Subcontractors, due to the dynamics of the development industry i. e. large and complex projects that require to be completed to unrealistic time frames, budget, quality, basic safety expectations, this is the direct reverse and should go against the grain of Strategic Alliances.

Gomes-Casseres 2003 p. 12&13 combines elements of item 1 & 2 above "Alliances are agreements between several separate organizations that require ongoing resource efforts from each to build joint value, are "incomplete contracts" where in fact the terms of the agreement cannot be completely specified and agreed at the outset and joint decision making to control the business and show value"

We will be adopting the characteristics of item 3 above in our business plan.

Alliances (large and small) have been around in one form or another since the early on 1990's, they are used in all different industries around the world and the development and executive industry is not a exception some notable projects that contain been completed throughout the world using alliances are: -

Burj Khalifa, Dubai UAE, the world's tallest building was built with a JV (type of strategic alliance) by Samsung Executive & Structure (South Korea), Besix (Belgium) and Arabtec from UAE;

The Dubai Shopping mall, Dubai, UAE, the world's largest retail development was built by the Joint Venture Relationship (kind of proper alliance) by Dutco Balfour Beatty (the writer used to work for this company) - Al Ghandi and Consolidated Contractors International Company (DBB/AG and CCC); and

Gateway Bridge Duplication & Update Task, Brisbane, Australia, was built by Leighton Contractors Abigroup Joint Venture at a cost of AUS$1. 88b it consisted of the duplication of Gateway Bridge and 20km upgrading of Gateway Motorway, like the Gateway Deviation.

This business plan has be developed using the principles of leading alliances academics, experts & practitioners in their field in particular Gomes-Casseres work to develop best practices that work, while recognising that all alliance is unique and there is no-one size suits all procedure.

This report is a work happening and we would be working with the potential lovers following the business alliance strategy has been founded by MCS Constructions, to jointly develop the alliance operating plan, this will build a solid foundation for a mutually beneficial romantic relationship.

The topic of this report is "Defining a Business Arrange for a Potential Strategic Alliance", there are numerous possible interpretations of the topic as proper alliances have been around in existence since the early 90's, are used in across a variety of different industries, companies both large and small, over a local and international level which can range between very easy to the complex.

Drawing upon my very own life/work activities, knowledge, skills and skills in the development and executive industry both local and international during the last a decade plus (refer CV in Appendix ?), and considering I really do not have access to relevant home elevators an existing alliance, I am looking at the feasibility of creating a potential proper alliance and defining an enterprise plan that may include but not limited to the next areas as layed out in the elective task specs (refer appendix ?): -

This is drawn on the considerable life/work encounters, knowledge, skills and requirements gained by the owner/director Mr. Matthew C. Smith in the construction and engineering industry both local and international over the last a decade plus (refer CV in Appendix ?), which is visible in the business today.

We are exploring the feasibility of setting up a Strategic Alliance with other respected companies within the industry, to provide its clients (People & Private) with single-source of responsibility, a one-stop shop to complete its jobs of various sizes and difficulty on time, to budget, quality and security that surpasses the client's targets and objectives.

In order to do this a strategic alliance would give a vehicle with capital/money, additional knowledge, skills, experiences, skills from the potential mate companies (Consultants, Major Preferred Suppliers and Major Preferred Subcontractors) both local & international, resources, contacts, capabilities and competencies, where in fact the clients projects require a wide range of expertise, some of which we may not have in-house.

We would be looking at growing this alliance capability to enter the overseas and remote tasks in growing and under-developed countries in particular Middle East / Africa / Asia etc. We'd also welcome alliances closer to home (Australia) when needed and depending on our client's requirements.

Is to provide its clients (People & Private) with a single-source of responsibility, a one-stop shop to complete its projects of various sizes and complexity promptly, to budget, quality and security that exceeds the client's objectives and objectives in an economic, efficient, moral, environmental lasting way.

At this stage of the business plan we have not determined any particular companies as potential partner organisations but MCS Constructions would be seeking to undertake a tactical alliance that contains both local and international businesses (large or small) within the building and anatomist industry supply string both along the lines.

The rationale for MCS Constructions to spouse with the source chain (as specified above) both up and down the brand (frontward and backward integration) for this to provide the alliances clients within the development and engineering industry, tasks that are promptly, to budget, quality and basic safety and exceeds the customers expectations and goals.

We offer our potential companions our main competency of Technological Know-How and Management Know-How within our chosen portion of knowledge, skills, experience and competence in commercial construction i. e. new build, fit-out, refurbishment and history listed work. We would be looking for a potential partner with which would enhance us and offer capital/funding, additional resources, capacities, competences, skills, experiences, knowledge, connections, skills etc.

The anticipated benefits would be that MCS Constructions can grow and grow its business overseas into new marketplaces with the additional capital/funding, resources, capabilities, skills, experience and know-how in their chosen area i. e. Consultancy, Major Preferred Suppliers and Major Preferred Subcontractors, to share risk/praise (Gain/Pain Show) and am possibility to learn.

Now we've made a decision to go into a strategic alliance, we've many selections to be produced that relate with the design of the alliance, scope, goals, management functions including legal, taxes, insurances, financing, framework etc. This will likely be discussed in a formal alliance contract (make reference to appendix ? for a sample duplicate).

In relation to legal, tax and insurances, performance bonds/guarantees, revenue etc. (for the purposes of this statement is outside its scope) this will depend on the neighborhood jurisdiction that the strategic alliance is under i. e. Country that the alliance is functioning set for example Dubai, UAE it is just a necessity that international companies setup a joint venture to spouse with an area company "sponsor" where 51% will been managed by the neighborhood company and 49% by the international company.

The creator used to help Dutco Balfour Beatty LLC in Dubai, UAE that was 51% owned by the local company Dutco and 49% had by Balfour Beatty the international company. On another note the writer used to be employed by Balfour Beatty in the UK.

There are three major forms of strategic alliances JV, Collateral Strategic Alliance and Non-Equity Strategic Alliances, the final decision on the proper execution will be negotiated between all gatherings to their common benefit, but it is envisaged that people use a Non-Equity Strategic Alliance (make reference to meanings section) which over time may turn into a Joint Venture.

Stage 1: - Utilise the alliance associates specialty in their chosen area, we will allocate tasks and tasks to each spouse on the basis of what they do best, we will tender and bet for constructions and executive projects in various target market segments/segments, tendering and bidding for jobs requires capital, resources, time, etc. , if we aren't successful at winning work we will continue to look for other opportunities, if we are successful at winning work then we will move into Level 2;

Stage 2: - Once we have successfully won and been awarded the project/contract from the client we will enter into the Project Stage where we will utilise the alliance partners specialty in their chosen area, we will allocate duties and obligations to each spouse on the basis of what they do best, the job stage will with respect to the type, size, complexity of the task be divided into various levels that may typically carrying out a traditional matrix: -

Alliances Specific Strategy and Alliances Analysis & Selection this will be performed be the Senior Management of MCS Constructions championed by the dog owner / director Mr. Matthew C. Smith but will including other internal resources HRM, Accounting / Financing / Legal and Operational Managers, as well as external consultants when required and needed such as Facilitator, Attorney, Investment Loan provider, Strategic Alliance Management Consultants i. e. Vantage Lovers to provide their competence as this is the first proper alliance for MCS Constructions.

Alliance Value-Creating Negotiations, Operational Planning and Structuring this will be extended by the owner / director Mr. Matthew C. Smith and the mature management of the most well-liked potential partner once a MOUP has been enacted by all celebrations including a non-disclosure confidentiality arrangement, this is to continue to build the relational capital and trust between your parties continue. Relating to (Gomes-Casseres 2003 p. 120 64% of poor or broken relationships between companies are the primary reason behind alliance inability.

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