Strategic Alliance Between Nokia and Microsoft

Business Administration knowledge assists the implementation of the strategical adherence in the midst of Nokia and Microsoft from several aspects. To begin with, decisions about leadership be one of the approximately disturbing problems in the strategic alliance stave leaders are appropriate solutions to the issue (Werther, 1998). slowdown leaders are those haired from a tertiary fellowship, not belonging to the alliance partners. Compared to selecting a leader from one of the partners, interim leaders consider their advantages.It eliminates the assumption from both the public and the employees that one party has the domination, which assists to build a neutral image of the alliance (Werther, 1998). Therefore, Nokia and Microsoft are in a fairly equivalent position in the alliance. Moreover, their focus is the advantage of the alliance rather than the benefits of one of the alliance parties (either Nokia or Microsoft). Compared to outside consultants, interim leaders als o father more merits.Werther (1998) suggests that interim leaders have operational or practical authority instead of advising authority have by consultants, and they are suitable in the start-up stage of the alliance. As the alliance among Nokia and Microsoft has just begun, interim leaders can be helpful. Interim leaders contribute to distinguishing between actual apprises that are in use from stated or espoused values that are merely touted for inner(a) or external consumption (Argyriset al, 1985 cited in Werther, 1998, p. 342). Thus, Nokia and Microsoft should select an interim leader from the third party rather from themselves.In addition, information flow management including mind property protection is crucial to the winner of the alliance. Microsoft is the leading software union in the world, and Nokia has been the leading phone manufacturer all over the world. Thus, the value of in tangible information can be even greater than tangible assets companies own. However, pa rtners are often in a dilemmatic situation where they want to residuum the outflow of information to successfully achieve the task and the protection of able asset (Osborn et al, 2001).The careful management of information is of great importance. Firstly, alliance managers shoot to have a clear understanding of partners tendency of learning and the extent to which partners are willing to learn from cooperators (Ireland et al, 2002). Then, suitable organisational control like integrating mechanisms and use of interest-aligning incentive plans (Geringer& deoxyadenosine monophosphate Herbert, 1989 Kumar & Seth, 1998 cited in Ireland et al, 2002, p. 437) can be used to manage information flow.When it comes to understanding property protection, both Microsoft and Nokia should think about the value of the companys intellectual asset and decide the key components that belong to inadvertent transfer. In this case, Microsoft may need to have a consideration of the safety of pump tec hniques involved in providing the operating system. Moreover, Gadieshet al (2002) emphasize the necessity to have an intellectual property audit internally before alliance, with companies whose central swell consist of intellectual property.Lastly, structure trust between partners also contributes to the success of strategic alliance. Trust means that the partners behaviours will fall in expectations, and it leads partners to bear risks and produces a positive effect on the alliance (Ireland et al, 2002). chronic to show the companys goals for strategic alliance while partners do the same and demonstrate patience are important actions in building trust (Cullen et al, 2000 cited in Ireland et al, 2002, p. 38). As the problems are usually clearer to middle managers and engineers who invite every day alliance activities (Osborn et al, 2001), thus, the trust and communication building between these people from Microsoft and Nokia cannot be ignored. All in all, experts and managers w ith sophisticated business organisation knowledge are required to implement these tasks. The successes of these aspects contribute to the success of the strategic alliance.