[Name of the Writer]
[Name of the Institution]
Strategic Partnership is defined as a relationship between two different commercial enterprises by formulating different business contracts. Initially, the essence of strategic partnership falls short of legal partnership entity, corporate or agency with whom a company is affiliated. There are different frames of strategic partners such as contractual cooperation, as well as hand agreements that can incorporate equity in alliance and the formation of a cross-holding between the two companies. Usually, strategic partnership is established between the companies who are having one of more business assets or they have the expertise that can help to enhance business. It is more like the ideology that the aim of one business to support other business where both would be having some shared expertise. In accordance with Levinthal and Cohen, Strategic Partnership is defined in terms of significant associations dealing with products and services that allow two different companies to come up with a mutual relationship (Lengnick-Hall, et, al,2019). There are both, advantages and disadvantages associated with a strategic partnership. Some major advantages are, avenues of opportunities of business, incorporation of better resources and a comparative and statistical approach to business that can empower globalization. There are certain controversial subtopics to address under a strategic partnership, such as co-inventorship, transfer of technology, having access to business opportunities, ownership of intellectual property and the creation of rights to the business. Moreover, some prominent disadvantages are the conflict or distribution of authority between the key suppliers and manufacturers (Lengnick-Hall, et, al,2019). Moreover, different developmental plans are also termed as a major fact to break the strategic partnership. Usually, complex relationships result in lack of negotiation.
History of Human Resource
Personal administration emerged as a distinct field in the early 19 century, its meaning refers to the technical aspects of evaluating, compensating employees and hiring them so as to proceed with the organizational functions. It is important to note that the offhand resource management was not initially concerned with the relationship of disparate employment practices on the conclusive organization performance or on the systematic relationships among such practices. In a simplified form, HRM developed as a response to the substantial increase in the competitive pressure that began in American organizations due to certain factors such as deregulation, globalization, and other technological changes. This competition and struggles paved the way for increased or enhanced concerns in the firms so as to incorporate strategies that can anticipate future changes in the environmental conditions along with the alignment of various components of the organization (Keegan, et, al,2018). However, the overall aim of strategic planning was to promote organizational effectiveness. Another name for human resource management is Personal Management that consist of activities to ensure the effective utilization of the employees towards the achievement of individual, group and then organizational goals.
The initial form of Human Resource Management was Industrial Welfare according to which factories act was formulated stating that there should be male inspectors of factor. Trade Unions were formed during this time in order to start collective bargaining. Recruitment and Selection is another aspect of Human Resource managing that originated during WWI because of increased personal development as a result of an initiative that encouraged the use of people for services. Acquisition of other personal activities was the extension of prior aspect that originated during two world wars with its prime focus om the selections, recruitment of the employees and training system through training session so as to improve organizational framework, teach morals, ethics, wage policies, and incorporate health and safety. The industrial relationship was the result of consultation between workforce spread and management in a way that was meant to deal with the industrial framework (Keegan, et, al,2018). This concept was originated in 1970s, where negotiations between different departments of works were encouraged so as to empower the industries. Flexibility and diversity were the term of 19 century that were used to decipher human resource taking into account that during 1990, there was an increasing trend of increased flexible arrangement in employees and invention of distance working. In a nutshell, it can be asserted that the role of HR changed with its name, with the passage of time and the impact of different social spectrums (Keegan, et, al,2018).
Taking into account the changing role of HR with the passage of time, it is found that today there are different function of HR that are necessary for the growth of any organization. One of these roles is termed as Strategic partnership role that refers to the support for the people, implication of different regulations and the management of policies. In the business partner role, HR helps to implement business model where different strategies are formulated in coordination with executive management. It is one of the innovative responsibilities of HR where HR managers see themselves at the executive stage that can help them to play a role in the decision making of the strategic partnership (Keegan, et, al,2018). The function of HR is to connect human capital with the strategy framework in order to identify organizational design, features and talents that can makes strategic differences. In order to be a strategic partner, HR has to develop talent through rotation that uses teams in synchronization with specific expertise. In accordance with rotation, a leader has to locate more leaders in different areas of the organization and involve them in decision making with line management. The analysis of the metrics and analytics reveal that HR should be able to measure and analyze the impact of HR programs and processes (Thoman, et, al,2018). It is contradictory to the typical approach of strategic development that is used to demonstrate business knowledge with the help of Line Leaders.
Significance of strategic partnership
In accordance with the framework of organizational conduct, it can be found that there are two fundamental of human resource management, either employee can fulfill comparative and assigned administrative role by facilitating the paperwork that is involved in the tasks such as handling compensation for different worker or the hiring of new employees. It is important to note that Human resource personal are benefited by the work and attributes of the senior management team. Taking into account the encouragement of employees, addressing employment needs and the strategic use of HR activities, a strategic partner is one of the leading head of success. It is much important for HR management to transform its process from administrative process to strategic function because globalization is increasing with every year and it requires all the companies to be global as well that requires initiation of businesses in different parts of the globe (Thoman, et, al,2018). There are different aspects that have become part of the business world such as liberalization, computerization, and privatization. Moreover, the functional areas of the organization are segregated still, integration is required to fulfill the overall objectives of the organization. Moreover, there are no specific methods or techniques that can enforce integration, in fact, it is the product of organizational goals that can make the entire department to assimilate activities by working in consonance.
An example of a strategic partnership is Starbucks that has modified its conduct form being primality administrative to become a strategic partner so that customer experience can be improved. Starbucks and Alibaba Groups have formed a strategic partnership so as to achieve millstone for two companies. Starbucks has planned to collaborate with Alibaba ecosystem inclusion Hema, Alipay, Taobao, and Ele.me so as to elevate the experience of Chinese Customers. The roots of this fact can be found in the analysis of the fact that both the companies are iconic and global that are built on the distinct retails. As a result of strategic partnership, Starbucks is meant to unify its actions seamlessly by leveraging retail infrastructure (Investopedia, 2019). The ultimate benefit of this strategic partnership can be seen by the analysis of the growth of Starbucks in China where it is growing in a more fast and innovative way as compared to the other regions of the world. According to the Chief Executive Officer of Starbuck, “Our transformational partnership with Alibaba has reshaped the modern retailer and represented a significant milestone in the efforts that have exceeded the expectation of Chinese customers. Moreover, Starbucks china is meant to analyze heights of success because the upcoming strategies would be bringing innovation and progress” (Investopedia, 2019). However, the Chief Executive Officer of Alibaba Groups said, “Starbucks is more than an estimation for premium coffee that has shared the same vision of becoming a pioneer to new coffee culture and lifestyle accompanied by technology and innovation. Alibaba is much positive and passionate to expand the partnership with Starbucks mitigating the cutting edges and adhering to New Retail infrastructure along with digital power that can help to support unprecedented experience for the consumers (Investopedia, 2019).
Adhering to research following are the opinions and ideas that are formulated in terms of integration and strategic partnership of Starbucks.
Innovation and modification in the retail industry
Under the impact of the strategic partnership between Alibaba and Starbucks, a single platform of customer service has been turned into centralized online management hub that has the unique ability to deliver and integrate the commitments and experiences in terms of multiple digital platforms. As a result of digital collaboration, there is a collective experience of companies adhering to the digital platform that is leading to profit (Thoman, et, al,2018). Moreover, innovation has transcended the limitation of a single-app visit by the provision of producers at an elevated level. As a result of this innovation, there is a revolutionization in old traditions from offline models to online models that is providing better and improved service to the customers and as well as it is bringing a change in the daily lifestyle of the Chinese consumers, leaving behind the factors of time and place.
As a result of becoming Strategic partners Starbucks would be benefited with improved values that can help to impart the element of trust between the partners (Thoman, et, al,2018). Moreover, there would be shared framework of different financial and economic paradigms where both the organization would be equally benefited in future as well. The shared values are resulting in the empowerment of both retailers in the present time also.
Integration of core principles
The strategic partnership is resulting in an integration of some principles, under which the two companies share their principles relevant to different departments. Here, Starbucks is sharing its rewards from Starbucks Membership platform to a centralized system that is helping to improve the provision of services and establish a strong foundation of digital experiences in China (Olson, et, al,2018).
Revitalization of the traffic of Starbucks is one of the significant benefits taking into account that Starbucks products are increased adhering to mutual interest by which better products are supplied and there is more traffic because of a centralized system. In a nutshell, it can be found that revitalizing traffic has resulted in an increased approach towards resource management and it will facilitate the consumer ratio of the retailer in future as well (Banfield, et, al,2018).
Empowerment of resources
It is evident that the sharing of platforms and services in Starbucks and Alibaba would result in the mutual sharing of resources that would be much better than the individual resources. Moreover, there would be more available resources in future as well. As observed that the unification of two iconic retailers (Starbucks and Alibaba) is resulting in a framework that is guided by a more productive and practical approach. The weak sides of one of retailer are covered by the other retailer (Thoman, et, al,2018).
Sharing of values and the integration of resources would automatically increase economic progression. As a result of a strategic partnership, would be equally beneficial for the two retailers and it will increase the avenue of protection as well as competition. It is treated as one of the apparent phenomena because sharing resources would automatically affect the retailers, states in which retailers are operating as well as the general public because there would be an increased rate of employment (Olson, et, al,2018).
Sharing of grounded information
Although there are a number of enlisting that are associated with the strategic partnership between Starbucks and Alibaba. It is asserted that the sharing of business secrets and grounded information is one of the controversial topics although there is no such report of conflict between Starbucks and Alibaba still it is assumed that any such conduct would occur in future (Keegan, et, al,2018).
Choice of partners
It is clear that there are numerous reasons behind the partnership of enterprises, where choice of partners is one of the fundamental aspects. Usually, a partner may bring in different offers that would ultimately or sometime imbalance the prior partnership. Taking an example of Starbucks, there are no such cases to be found but it assumed that in the near future many of the companies will also approach and the choice of an official partner may cause complications in a business relationship (Banfield, et, al,2018).
Achievement of goals is one of the major strategies that serve as an underlying strategy to be achieved after a retail partnership. It can be further said that the achievement of goals is one of the major strategy to be addressed because gaps in achieving the set landmarks would result in complications that may distort retail partnership between the two organizations. In terms of Starbucks, it can be found that in future any gap in the achievement of goals would result in the breakage of this relationship (Keegan, et, al,2018).
Communication is one of the major topics to address because as soon as the communication and connective sides are confined to a single robotization or different departments of a single organization, there are fewer complications. Problems arise, when there is sharing of information between two different retails and companies taking into account that lack of communication, unclear information or gaps in the processing of information may result in economic and political setbacks that would ultimately lead to a mutual loss (Keegan, et, al,2018).
After analyzing the current status of retail partnership between Starbucks and Alibaba, it can be analyzed that retail partnership is one of the major aspects that can help to empower business relationships and open avenues that would lead to productive result. It is further accompanied by an economic empowerment and the progression of the resources that will help the companies to accomplish goals and be successful. In a nutshell, it can be asserted that the partnership between Starbucks and Alibaba is one of the frameworks that had laid the foundation of the empowered economic system by shared resources. Although there are some disadvantages that are proposed by researches they have not been yet reported so apparent. Exegetically, the retail partnership is one of the trends and a one-time that can lead to the success of both companies along with strengthening human resource management.
Banfield, P., Kay, R., & Roles, D. (2018). Introduction to human resource management. Oxford University Press.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.
Thoman, D., & Lloyd, R. (2018). A Review of the Literature on Human Resource Development: Leveraging HR as Strategic Partner in the High Performance Organization. Journal of International & Interdisciplinary Business Research, 5(1), 147-160.
Keegan, A., Bitterling, I., Sylva, H., & Hoeksema, L. (2018). Organizing the HRM function: Responses to paradoxes, variety, and dynamism. Human Resource Management, 57(5), 1111-1126.
Lengnick-Hall, M. L., Lengnick-Hall, C. A., & McIver, D. (2019). 2 Strategic management approach to technology-enabled HRM. e-HRM: Digital Approaches, Directions & Applications.
How Starbucks Can Profit From Alibaba Alliance. (2019). Investopedia. Retrieved 25 July 2019, from https://www.investopedia.com/news/how-starbucks-can-profit-alibaba-alliance/
Useful LinksFree Essays About Blog
If you have any queries please write to us
Join our mailing list
@ All Rights Reserved 2023 email@example.com