Strategic Anlysis

Alison Schell

Strategic Alliance Case

Purchasing Management

February 18, 2015

Strategic Alliance-–Whirlpool Corporation and Inland Steel

1. Discuss what the following statement means: ‘It can take years for a buyer/seller partnership to begin delivering results.’

This statement means that it may take a long amount of time and a lot of communication in order to create a relationship with the supplier before the company can see benefits. Effort and trust also has to be seen by both sides to create a long-term relationship and in order for it to be strong, both companies have to work with one another to demonstrate processes.

2. Discuss the advantages of having point-to-point contact (Exhibit 1) between functional groups at different companies. Are there any disadvantages to this approach?

One of the advantages of having point-to-point contact between functional groups at different companies is anyone can have direct contact with the company instead of having them go through many people for simple questions. Information between companies can have an easier flow and it is more efficient for communication. Point-to-point can be a benefit for both companies because everyone knows the current updates and there is no “behind-the-back” communication going on. One of the disadvantages might be that one function of the organization might not agree with the practices of another and can cause tension.

3. What role does trust play in the relationship between Whirlpool Corporation and Inland Steel? Provide examples from the case that illustrate trust within this relationship.

Trust is a huge role played in the relationship between Whirlpool Corporation and Inland Steel because each side needs to be dedicated to their functions in the organization and in order to have an efficient and flowing strategy there has to be trust. One of the examples provided in the case was Inland Steel expressing concern about having a single sourcing policy and risks with...