Collaboration Case

Question#4

When recommending how firms should choose a partner, a collaboration mode, and a governance structure we believe that the firm should do a SWOT to determine its internal and external strengths and weakens in order to find a firm that compliments it to ether improve on its strengths or diminish its weakness. Both parties must have similar goals and add value to what is existing; the type of collaboration mode that will be chosen should look at what both parties want to get out of it and how much they are willing to put in. When looking at the governance structure the firm should look at what stage of a relationship they are in with the collaborating party if it is a new one or an old one.

When looking at choosing a partner there is never a perfect formula. We can see this with relationships in our everyday life between human beings. Some partnerships make perfect sense, you can see why they work so well but others you can stare at for hours on end and never figure out what makes them work, also how well they work or how long they will last can never be determined from the start. The same principle goes for companies or firms. However we figure that there are some factors that can help improve the chances of success when looking for an appropriate partner. We have narrowed these factors down to three that we believe to be the most important. Here are the three in the order we believe you should evaluate them; how similar or well the strategic goals, company culture and resources fit with one another. When choosing a partner it is best to know yourself first and what you would like to do, once you have established this cheek to see if your strategic goals align with potential partners keep only the partners who have the same or similar strategic goals. We believe that if your goals do not match then it will be very difficult to have a successful relationship because there will be a lot of head butting. Each party is going to want something different out of the relationship and it's going to make collaboration difficult. The second most important point to follow or look at once you have determine that both companies have the same goals is the company cultures; do both companies have the same or similar culture. Meaning is it a corporate structured world or is it a lose more individual free for all structure. Do both companies have the same morals, values, beliefs and work ethics? We believe these are vital points to choosing a successful partner. The final point that we believe should be evaluated is the resources of the two companies. Is there a fit between both resources, can the resources of the two companies be combined in order to create value for both parties? if this two main criteria's match then we think that the firms are on a good start for having a strong partnership. When all 3 of these criteria's are met then we think that it can create a healthy and long lasting relationship.

The next thing that we need to look at once the partner has been chosen is the collaboration mode. There are many types of collaboration modes such as: Strategic Alliances, Joint Ventures, Licensing In, Licensing out, Outsourcing, and collective research