Organisational Cultures: Networks, Clusters, Alliances

Studienarbeit von Uwe Bußmann, Robert Marc Panz, Silvia Schweighofer

Abstract:

Problem Definition:

There are big problems coming towards single companies nowadays. The progress of information technology and the distribution of the Internet as well as the changing demand of customers, especially for no standardised products force them to react immediately.

Their problems are:

How can they reach the state of flexibility to meet the changing demand?

How can they compete within a market with increasing innovations of products and decreasing product life-cycles?

How can they acquire the necessary capital, technology and know-how to compete?

How is it possible to optimise their corporate structures and achieve synergetic effects?

Objectives:

The objectives of this assignment are to help the single companies out of their miserable situations and to present them interesting answers to the questions raised above. Of course these answers are already in use and approved by reality.

Methodology:

-Reference book research.

-Internet research.

Table of Contents:

	Executive Summary	I
	List of Abbreviations	VIII
	List of Figures	IX
	List of Tables	X
1	Problem Definition	11
2	Objectives	12
3	Methodology	13
4	Networks	14
4.1.	What is an Organisation Network?	14
4.2.	Reasons for Organisation Networks	16
4.2.1.	External Reasons	16
4.2.2.	Internal Reasons	18
4.3.	Types of Organisation Networks	20
4.3.1.	Intra-Organisation Networks	20
4.3.2.	Inter-Organisation Networks	26
5	Clusters	31
5.1.	What is a Cluster?	31
5.1.1.	Cluster – The Term	31
5.1.2.	Dissociation from the Term Network	32
5.2.	Strategic Business Clusters	33
5.2.1.	Formation and Types of Business Clusters	33
5.2.2.	More than an Accumulation of Alike Companies	34
5.2.3.	Cluster Membership as Strategic Advantage	36
5.2.4.	International Business Clusters?	37
5.3.	Examples for Business Clusters	38
5.3.1.	Cluster EnergieForschung.NRW	38
5.3.2.	ACstyria Autocluster GmbH	39
6	Alliances	40
6.1.	What is an Alliance?	40
6.2.	Difference between Alliances	41
6.2.1.	Primary Differentiation	41
6.2.2.	Pyramid of Alliances	41
6.3.	Integration of Alliances in Companies Strategies	43
6.4.	Preparation of a Business Alliance	44
6.5.	Examples for Strategic Alliances	47
6.5.1.	Automobile Industry	47
6.5.2.	Airlines	48
6.6.	Future of Alliances	50
7	Results	52
8	Conclusion	53
9	Integral Total Management (ITM) Checklist	54
9.1.	General Economics	54
9.2.	Strategic Management	54
9.3.	Financial Management	54
9.4.	Human Resources Management	54
9.5.	Business Law	55
9.6.	Research Methods / Management Decision Making	55
9.7.	Soft Skills / Leadership	55
10	Bibliography	56

Text Sample:

Chapter 5.2.3, Cluster Membership as Strategic Advantage:

The object of investigation in this chapter of the assignment is the success of cluster members. Are business cluster members more successful than companies out of the cluster? Is a business cluster membership a strategic advantage?

Even the interaction between local competitors, their customers and suppliers as well as the supporting infrastructure in the cluster makes the success of such a areal cumulation.

Schiele wrote that the structure of a cluster itself is a factor for more successful members in the cluster.

A business cluster consists of following members:

several competitors, important customers, their suppliers and supporting infrastructure.

Often there are the toughest rivals in the cluster. This pushes the competitors to be innovative to be more innovative than the rival and therefore being more successful and competitive than companies outside the cluster. Companies outside the cluster often realise the demand for innovation too late because they do not feel in such an early stage the force to develop their products and services than the cluster members do.

Demanding customers in a business cluster are, let’s call them trendsetters. They anticipate international trends. This strengthens the competing companies in the cluster. The customers in the cluster are challenging the companies. The companies have to react on the ambitious demand that creates an innovative spirit in the business cluster.

Competitive suppliers will complete the value-added chain in the business cluster. Successful companies want to work with competitive suppliers therefore the suppliers have to be also innovative.

Supporting infrastructure is offered by the cluster itself to the members. Examples for this are research and development cooperation with universities, marketing platforms, specialists consulting the members and do not forget the importance of knowing each other. A cluster is also a great platform for communication and information exchange.

There is no miracle it is such simple as written in this few paragraphs. Challenging members can be member of this spiral of success.

For supporting all these theoretical items chapter 5.3. displays two successful clusters.

5.2.4, International Business Clusters?

The question is: Is it possible to form an international business cluster? Every time you read and hear about local clusters. Being local, in a geographical proximity in also an important facts for the definition of the term cluster.

Schiele found no really existing international clusters. He pointed out that geographical proximity has also a cultural dimension. Therefore international clusters are not formed.

Browsing the actual literature you will not find an example for an international cluster. You find a lot of information about the actual trend to set up an internationalisation strategy for clusters. Internationalisation means for clusters to cooperate with foreign clusters or foreign networks.

Roman Noetzel (2008) talked about the internationalisation of clusters at the German cluster-conference in October 2008. He pointed out that the globalisation demands that business clusters should support the internationalisation of their members. Target of this is the enhancement of the competitiveness of the members. The Enterprise Europe Network is one European network that supports this idea.

Now let’s have a look at existing business clusters. What is their target? How are they performing. Are they acting international?