Student Name: Jamil Khatib

Student No.: 1025347

Assignment No.1

1- What are the advantages of business alliances for small companies like Twin Computer Training?

Business alliances are very helpful for small companies because they enable them to:

- Focus on their work to get the best of their field of expertise and do not branch or expand beyond their expertise.

- Be able to provide full system solutions or complete set of products family without the need to produce all parts of the product.

- Compete big companies by combining the forces of all small alliances together to produce products or services that can be better or the same as the products of the big companies. So they will be able to increase their market share and market fields without the need to curry many expenses.

- Replace the search for talented employees with making alliances with companies that are best in their field so they reduce the cost of managing human resources. In other words they will be able to increase their work capacity without increasing the overhead.

- All small companies can reach all the above without the need for sacrificing a lot, instead they can share the expenses with others.

2- Why are companies that offer complementary services more likely to join together than those with competing services? Do you think it’s smart for potential competitors to join on a project basis?

Since the services are complementary they usually go to the same customer. So the alliance can provide a single complete solution for the customer that no single company can offer. This single solution has the best from each company. Moreover, the companies will not be afraid of losing any customer or market share to the other companies.

When competitors join on a project basis they can gain part of the experience from each other and get know how they think and deal with issues. Anyhow, this exchange of information can act on opposite side since the competitor can use this information to gain extra market share or clients.

3- Why is specialization so important in today’s economy, and how do alliances help companies maintain their focus?

Specialization makes companies focus on specific products or services and enable them to produce the best in their fields. This increase the overall productivity and quality of the company which in turn can increase its market share and better support for the clients at lower prices.

Alliances enable companies to exchange knowledge in different fields and allow each company to keep their spare time to enhance their expertise in their area and do not care about other issues.

4- If you were a small-business owner, would you accept a loose arrangement (i.e., a handshake) to finalize the terms of the alliance, or would you be likely to seal the deal with signature on legal contracts?

Generally I would like to seal the deal with a contract specially if the new alliance is large, otherwise I may lose it. Large firms could be busy managing several issues or business with small firms is not their major concern. Contracts are the best use for long term alliance between small and large companies for that reason.

Loose arrangement can be used when the other side seems to be considering the alliance so important or do not like to have full commitment for long term alliance.

5- Why do you think it’s smart for Twin Computer Training to present a unified front to its clients?

Keeping a unified front for clients will simplify the whole process for the clients. This means better support and service for them.  Clients do not need to care about the underlying activities or the internal deals with the alliance, only care about the service and the payments from and to single company.

Another advantage for unified front is that the company can change its alliance for better or the same service without the need to bother its clients as long as they deal with the same interface.

Moreover, such interface can be better for the company since the client will always deal with them because clients do not have direct interaction with the other companies in the alliance.

6- Why is the Greenpoint Manufacturing and Design Center a breeding ground for small-business alliances?

It gathers all small companies in the same location so interaction can be much easier, besides that they can develop common culture and knowledge about the specialization of each one and how to make the advantage for the whole business.