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Partnering for Success

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Submitted By mukelme
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Assignment # 3
Partnering For Success 1. Most of the businesses today operate in very competitive environment. For smaller businesses, there are lots of limitations such as financial constraints, lack of expertise and low production capability to compete with similar businesses. Big businesses have capital and market share. Small businesses are often more agile and innovative. That’s why partnerships are so essential for survival — and success(Neves,2013). The following factors are essential that encourage firms to partner to compete: a. Efficient Management b. Cost control c. Expertise and skills d. Understanding marketing mix
Effective partnering can help a start-up in many ways (pg 125) as some factors given above. The large companies give them numerous opportunities and benefits to work with. It’s the golden opportunity to access large companies. 2. Small firms start with few resources that may not be enough to continue business successfully. Their financial constraints and other resources – manpower ,will drive them to partner with bigger companies. Even their product is of high quality , they have to stay under the large company’s rules and regulations. They might face high centralized organizational structure while dealing with such large companies. They have to live in controlled environment.

Large companies stay alert when such offer of partnership comes on their way. They fear about the inability of smaller firms to meet certain requirement which range from financial support to providing manpower and skills. On the other hand, company’s ethical standards should be met while doing business together. They have to establish trust with smaller companies. Smaller companies may not be able to satisfy the reporting standards of larger companies.

3. The three ways the small firms can partner with large firms to

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