Reference no: EM132159994

Part 1: Post a Response

"Strategic Alliance Performance" Please respond to the following:

• From the case study, predict three (3) potential challenges that can arise in the strategic relationships among Yum!, McDonald's, and Sinopec. Recommend three (3) actions that these companies can take in order to either prevent or mitigate these potential problems. Provide a rationale for your response.

• According to the textbook, four (4) factors may influence the performance of alliances and networks: (1) equity, (2) learning and experience, (3) nationality, and (4) relational capabilities. Use the Internet to research one (1) strategic alliance. Determine which one (1) of the aforementioned influential factors has been the most influential in the selected strategic alliance's success. Provide a rationale for your response.

**Please review the power point and let us know what you think (As attach file).**

Part 2: Respond to a Peer

From the case study, predict three (3) potential challenges that can arise in the strategic relationships among Yum!, McDonald's, and Sinopec. Recommend three (3) actions that these companies can take in order to either prevent or mitigate these potential problems. Provide a rationale for your response.

Potential Challenges:

1. Cross-cultural clashes: McDonald's and Sinopec are companies formed in two completely separate countries. One of the possible reasons that McDonald's was being outperformed by KFC and Pizza Hut may have been attributed, at least in part, to an incomplete understanding or appreciation of the Chinese culture and/or business environment. The relationship from Sinopec could strengthen McDonald's acceptance into and understanding of Chinese culture and business. It could also suffer if McDonald's American leadership is too rigid and inflexible in these areas in the area of cultural assimilation.

- Cross-cultural activities that help Chinese employees & leadership understand American culture better and that help American employees understand Chinese culture better

- Open communication and encouraged communications across all lines of business at all levels of the business

- Understanding and embracing differences

2. Inability to unify behind a single macro message: A fast food restaurant and a gas station do have some fundamental characteristics in common.

However, they are also completely different types of businesses that customers ultimately expect different experiences from interactions from fast food joints than they do from gas stations. Forming one vision from two separate entities (both with long successful histories of doing business) may prove to be a challenge and without a unified message there is no common goal to work towards.

- Figure out if customers are expected to view this relationship
- Explain to customer the benefit of the having a gas station and a restaurant in one place
- Create separateness inside the business so that even though customers are eating their meal at a gas stations there is a real separation of dining space and gas station

3. Unrealistic expectations: There needs to be a clearly defined expectation before this strategic relationship occurs or each company may be working towards objectives and goals that don't fit into the other company's business model.

- How much do both companies expect to grow from this relationship?
- How much does each company expect to grow from this relationship?
- Make sure that the flow from one space (restaurant) the other (gas station) is seamless.