b1850091 Write Up

Strategic Management
By Charles Malunga
B1850091 Bacc
Differentiate a strategic alliance from joint venture
A Joint venture is a form of business organization, A strategic alliance implies an agreement between
set up by two or more business organizations for the two or more entities to work jointly with one
Joint Venture
purpose of carrying out a particular task or business
activity.
A joint venture needs a contract agreement between
Strategic Alliance
another to increase the performance of both parties.
Strategic Alliance may or may not be need a contract
agreement between two or more parties.
two or more parties with all the descriptions about a
share of profit and loss etc The two more companies come together in a
The independent entities come together in a joint strategic alliance, continue to operate as separate
venture. Do not operate as independent companies. and independent companies.
In a joint venture, there is and limited risk to parties In a strategic alliance, there are chances for higher
involved in the agreement. risk due to the trust relationship between two
Joint venture duration is of the short term only parties, because there is may or may not contract.
maybe 1 year to 5 years.
In joint venture management is bilateral. Strategic alliance duration can be long term or short
In a joint venture a risk is limited. term depends upon the need of time.
In joint venture resources include massive leverage, In a strategic alliance, management is delegated.
lower risk, and optimum utilization of resources. In a strategic alliance, the reward is maximized.
Strategic alliance In strategic alliance resources include product,
A joint venture is a separate legal entity knowledge, expertise, goodwill, capital, etc.
The joint venture is a complicated part of a strategic Collaboration or corporate partnering
alliance.
A strategic alliance is not a separate legal entity
A strategic alliance is itself an alliance of two
different businesses.
Explain any five advantages of conducting
gap analysis in strategic management
Gap Analysis
 Is either a tool or a process to identify where gaps are and

what difference exist between an organization`s current
situation and what ought to be in place.
Advantages
 A gap analysis is going to assist you in finding any

shortcomings to overcome. It can be easier to quantify or
identify them and in the long term, and is going to assist in
making improvements.

 Doing a gap analysis will improve the efficiency of your
business. It will pinpoint anything unusual that is going on.
Once done, you will be able to focus more on your resources
and energy on what needs to be changed.

Advantages
 Using gap analysis tools can also help you have an overview of the
entire company or at least particular functions. This helps managers
see if the organization has enough resources to meet its mission.

 You can also use gap analysis as a means to compare performance
with potential. Knowing details that show how much a certain
product or person has gone off down the line is essential.
 Gap analysis process means that you will have more data on how to
improve. For example, when it is used in manufacturing it can help
manage resources. What we mean by resources is money, material,
or human resources.
Advantages
 A gap analysis allows managers and directors to speak a
common language. It facilitates a dialogue about how
assessments and curriculum can best meet organizational
needs.
 It helps identify when new types of assessments are

needed, for example to measure worker`s critical thinking
in authentic performance tasks
References
 . Exploring Corporate Strategy, Gerry Johnson, Kevan Scholes, Richard

Whittington,
 2009, Pearson Ed Ltd, United Kingdom, 2nd Ed.
 2 Crafting and Executing Strategy Arthur A Thompson Jr, Strickland A.J., John
E.
 Gamble and Arun K. Jain, McGraw Hill Education Private Limited, New Delhi.
 . Strategic Management Michael Hitt, Ireland, Hoskission, 2010, Cengage
Learning,
 New Delhi.
 .Strategic Management – Concepts and Cases, Fred R. David, 2010, PHI
Learning,
 New Delhi.
Thank You
….End…

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Strategic Management

 Is either a tool or a process to identify where gaps are and

 A gap analysis is going to assist you in finding any

 It helps identify when new types of assessments are

 . Exploring Corporate Strategy, Gerry Johnson, Kevan Scholes, Richard

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