2. What is the difference between an alliance problem and an alliance Essay

2. What is the difference between an alliance problem and an alliance symptom, and what does this difference mean in terms of managerial intervention - Essay Example Most of the time differencing between alliance problems and symptoms becomes a challenge for the organization. There is always a difference between these two. Problems are usually not visible on the front line and symptoms on the other hand are quite clear and are a constant reminder of an upcoming problem. In strategic alliances the organizations usually consider a symptom as a problem and instead of doing an in-depth analysis of that symptom they take initiatives to solve it. This false interpretation of problems and symptoms can lead towards greater hazards. An example of difference between alliance symptom and problem is: when an organization observes an unenthusiastic change in the behavior of its partner it should not immediately take initiatives to change this behavior instead it should try to find out the root cause of this change. This change in behavior can be a result of lack of trust among the partners, in-competitive behavior of one of the partners, difference in the atm osphere of the two organizations or a difference between work schedule and strategies of the two organizations. If the organization over-looks these core problems and misinterprets the symptom as a problem then it can endanger the alliance. This misinterpretation is the cause of failure of more than 66 percent of the alliances. Even though the above mentioned factor can be a hurdle in the success of an alliance but proper and effective senior management is the most important factor for overcoming these hazards. If the top management is committed to the success of the alliance then it should take proper steps in order to avoid these problems and their misinterpretation with the symptoms. The management should try to understand the philosophies of the management of their partner organization. If the attitudes and thinking of both the managements would be similar then most of the core problems would be avoided. Another important factor is effective