5. It’s been pointed out that 60% of strategic alliances fail. What are the reas
ID: 399067 • Letter: 5
Question
5. It’s been pointed out that 60% of strategic alliances fail. What are the reasons for this?
15. How can supplier development and relationships help in avoiding scandals?
19. The Margo Manufacturing Company
The Margo Manufacturing Company is performing an annual evaluation of one of its suppliers, the Mimi Company. Bo, purchasing manager of the Margo Manufacturing Company, has collected the following information:
Perfect Criteria
Score
Weight
Technology
85
0.10
Quality
95
0.25
Responsive
90
0.15
Delivery
80
0.15
Cost
90
0.20
Environment
75
0.05
Business
95
0.10
Total Score
1.00
A score based on a scale of 0 (unsatisfactory) to 100 (excellent) has been assigned for each performance category considered critical in assessing the supplier. Different weights are assigned to each of the performance criteria based on its relative importance.
1.How would you evaluate Mimi Company’s performance as a supplier?
Perfect Criteria
Score
Weight
Technology
85
0.10
Quality
95
0.25
Responsive
90
0.15
Delivery
80
0.15
Cost
90
0.20
Environment
75
0.05
Business
95
0.10
Total Score
1.00
Explanation / Answer
5. Many strategic alliances fail because fo following reasons.
(a) Too much reliance on the other party leads to magnification of impact of uncertain events.
(b) Communication gaps between the strategic partners.
(c) Lack of Transparency between partners on financial and strategic matters leads to differences and subsequent fallout.
(d) Lack of strategic support to the partners feels them alienated.
(e) Unequal treatment and biases between partners.
15. Supplier development involves periodic evaluation of supplier's competence and provision of technical as well as general support to bridge the gaps and bring them up to the desired level. It also involves sharing of updates and growth prospects within company and help to prepare it to take the future challenges as a valued partner with the company. Supplier development leads to long term relationships based on the trust and leads to actions that result mutual benefits. This long developed trust and transparency often eliminates any differences between the partners and there is nothing to hide between them, This scenario does not allow the disintegrative forces to fluorish and prevents any scandal to take place.
19. Mimi can be an excellent supplier because the most desired attributes, quality and cost ( which have the highest weightage) are the highest in score ( 95 and 90) which makes the overall score of 89.
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