Alliance Management at Forbes Marshall Group 7

Group Members-
Himanshu Mittal(020)
Shruti Mandal(050)
Raghu Vamsi(035)
Priyanka Chauhan(032)

Why did Forbes Marshall engage in alliances as compared to acquisitions? Does Forbes
Marshall have an alliance management capability?

An alliance is an approach which allows two companies to pool their resources together to form a
combined force in the marketplace. By engaging in alliances FM was able to retain their individual
entity but compete against competitors as a larger, unified business force with the alliance. An
acquisition would see FM absorbing the other company. Alliances are less risky than acquisitions as
they are negotiable, co-operative and easier to walk away from. They bringing two firms together
with mutual interests but different strengths to work on projects to benefit both.
Reasons:
1.Gain immediate market penetration
2.Gain access to best in-class technologies
3.Learn operating principles and philosophies
4.New product development
5.Gain synergies by cooperation
Synergies across Alliance :

Alliance Management Capabilities:
1.Patner selection & Alliance formation.
2.Alliance design and governance.
3.Post-formation Alliance management.
4.Dedicated Alliance functions.
Alliance Management at Forbes Marshall Group 7

FMs strengths lie in their interpersonal relationships. Due to FMs value-focused approach to
building their ability to managing alliances and consistency, they have seen success in their
alliances.
For example:
THE SPIRAL -MARSHALL Alliance:
Oldest alliance over 60 years in FM groups portfolio
Strategic Fit: Strong desire to cooperate in order to enter different markets
Capabilities Fit: Provide better customized solutions as they have sales driven groups
Cultural Fit: Corporate value to provide excellent product knowledge to customers
Organizational Fit: High degree of operational freedom based on trust and informality