Strategic alliances in food and beverage and executive recruiting industries

Abstract

Strategic alliances, one component of a total quality management program, break down linkages of a supply chain and help alliance partners to address new markets that could not be economically satisfied by a single firm. In recent years, through numerous press releases and anecdotal references, there have been an increased number of reported strategic alliances. However, there have been no systematic studies of the prevalence and impact of strategic alliances in specific industries and no way to obtain information on the costs and benefits of these formal relationships. This current research addresses these gaps. As part of a long-term longitudinal research program covering diverse industries, two different industries, one in products (food and beverages) and the other in services (executive recruiting) were studied to determine the extent of penetration and effectiveness of strategic alliances. This paper presents examples of strategic alliances and the survey results describing penetration, types of alliances, business benefits, and expected costs.

Case study of processing firm‐distributor firm outsourcing alliance

“…However, as evident in a large number of studies, trial and error strategic initiatives and even opportunistic decision making are the reality in the SME sector particularly amongst low technology food processing and marketing enterprises. The response of Z and Y to business issues such as developing new markets, diversifying into new markets, accessing new sources of supply, the supply chain architecture that they developed and decisions to adopt an experimental alliance seems atypical of SMEs (Schindehutte et al , 2008; Wolff and Pett, 2006; Golann, 2006; Bhaskaran, 2006; Cante et al , 2004; Bence, 1995).…”

“…Notwithstanding that many studies have elucidated the benefits of outsourcing alliances, research on such endeavours is very much in its infancy. Several studies in the past decade (Mikkola, 2008; Brannemo, 2006; Rodriguez et al , 2006; Cante et al , 2004; Cox, 1999a, b; Razzaque and Sheng, 1998) have implicitly or tacitly discussed the need to conduct more detailed inquiry on outsourcing alliances. This paper aims to add to the body of knowledge on outsourcing alliances in a defined context, distribution outsourcing by small to medium enterprises (SMEs) in Australia's food industry.…”

“…Specialist distributors often provide expertise and knowledge about customers that the firm might not possess in‐house or expertise and knowledge that is difficult or costly to obtain from elsewhere (Sheehan, 1989). By sharing unique and scare resources and capabilities, alliance partners are better positioned to increase customer value through providing better quality and levels of service, generating greater productivity and efficiency in the supply chain and creating enduring customer relationships (Min et al , 2005; Cante et al , 2004; Smith et al , 1998; Probert, 1996; Shaw and Gibbs, 1995).…”

Dealing with the Alignment of Strategies Within the Collaborative Networked Partners

“…The literature has used different terms to refer to the alignment concept in the CNs context, such CN participants' alignment [8], strategic alliance [9], collaborative strategy [10] or values alignment [11]. As regards the alignment in the specific context of strategies, different works have been developed, by considering in most of the cases the alignment of two particular strategies (table 1).…”

Competitive Capabilities of Thai Logistics Industry: Effects on Corporate Image and Performance

“…Competent employees with good skills will be able to help organizations provide better services, leading to customer satisfaction, and increased corporate image. In the era of free trade and competitive intensity, a strategic alliance or business network is a must for firms to succeed; it can be used to build competitive advantage (Cante, Calluzzo, Schwartz, & Schwartz, 2004). Business networks and alliances represent new organizational paradigm that seeks to achieve better performance through collaboration than through competition (Todeva & Knoke, 2006).…”