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GM case study The action plan of GM should be to extensively evaluate all of their foreign alliances, and through analysis determine the overall benefits of each
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The action plan of GM should be to extensively evaluate all of their foreign alliances, and through analysis determine the overall benefits of each of their partnerships. GM should eliminate any alliances, which are not beneficial to the firm, or could be seen as not mutually beneficial between both GM and the partner alliance. Alliances, which are not mutually beneficial or more beneficial to one of the firms, are generally viewed as more advantageous and opportunistic rather than as beneficial partnership where the two firms help each other acting as partners. Alliances where one firm benefits more than the other usually do not last for long periods of time and can harm one or both of the firms in the long run. In such cases, the partnership should be either eliminated, or avoided in the future.
Goals
Short-term:
The short-term goals of GM should mostly be of an evaluative nature. GM needs to collect and gather data on each of their foreign partnerships. The financial, informational and opportunistic advantages of each alliance should be analyzed and evaluated to determine GM's overall need for and benefits from each particular alliance. Longevity should also be considered. Alliances taken on only for short term benefits could ending up costing GM more than they gained in lost information, technology or competitive supremacy over an allied firm. Firms should be evaluated only on the long-term benefits of the partnership. Long-term partnerships are the only true beneficial alliances on this case. The reason for the other firms desire and reason to partner with GM should also be analyzed to ensure that neither firm's corporate goals are of conflicting nature. Mutually beneficial alliances are much more successful in the long term and can lead to long lasting, highly profitable and beneficial arrangements.
Medium-term:
GM should begin to eliminate their lesser alliances, alliances, which are only...
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