ORGANIZATIONAL RELATIONSHIP

CHAPTER 4: RELATIONSHIPS BETWEEN ORGANIZATIONS Richard L. Daft: Understanding the Theory and Design of Organizations 10th edition
PREPARED BY: DR AZHAR KAZMI KFUPM DHAHRAN

INCREASING TREND OF ORGANIZATIONAL RELATIONSHIPS IS TO REDUCE A WIDESPREAD TREND

BOUNDARIES AND INCREASE COLLABORATION BETWEEN COMPANIES, SOMETIMES EVEN BETWEEN COMPETITORS BUSINESS ENVIRONMENT IS SO COMPLICATED IN MANY INDUSTRIES THAT ITS NOT POSSIBLE FOR A SINGLE COMPANY TO DEVELOP ALL THE EXPERTISE AND RESOURCES NEEDED TO STAY COMPETITIVE. GLOBALIZATION, RAPID ADVANCES IN TECHNOLOGY, COMMUNICATIONS AND TRANSPORTATION MEANS AID IN RELATIONSHIPS
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SAP AND MICROSOFT

SAP AND MICROSOFT ARE TOUGH COMPETITORS BUT JOINTLY DEVELOPED A SOFTWARE THAT ALLOWS MICROSOFT SPREADSHEET TO BRING IN DATA FROM AN SAP ACCOUNTING SOFTWARE SIMILARLY, GOOGLE, YAHOO AND MYSPACE CREATED AN ALLIANCE TO DEVELOP NEW TECHNOLOGIES BENEFITING ALL PARTNERS

STAR WARS MOVIE EXAMPLE

WHEN STAR WARS: THE CLONE WARS WAS LAUNCHED BY LUCASFILM: TOYSRUS MOUNTED DIGITAL CLOCKS COUNTING THE DAYS AND SELLING TOYS AND ACTION FIGURES BASED ON THE FILM TWO OF THE RETAILERS STORES HELD MIDNIGHT COSTUME PARTIES AND CONTESTS McDONALDS OFFERED A STAR WARS HAPPY MEAN PROMOTION WITH GIFT OF TOYS DEPICTING FIGURES FROM THE MOVIE SIMILARLY FOR MANY BLOCKBUSTER MOVIES COORDINATED ACTION AMONG COMPANIES CAN YIELD MILLIONS IN ADDITION TO BOX-OFFICE AND DVD SALES
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Some organizational relationships in KSA

In 2006, three major telecom companies in Saudi Arabia Etihad Etisalat (Mobily), Integrated Telecom Company and Bayanat Al-Oula came together to form a strategic partnership to to lay the country's fibre-optic network and operate it. The European property fund manager, Kenmore Property Group got into a strategic alliance with Watan Investment and Securities, KSAs investing banking firm in 2008 for exploiting emerging opportunities in the real estate sector. Faced with 70% imports of agricultural and food products KSA has got into several deals with companies abroad in Sub-Saharan Africa, South East Asia, and Central Asia to outsource farming that may yield food items back to KSA which is an innovative experiment to enable food security.