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A Ten-step Functional Framework for building
Ventures and  Alliances among Seaplant Enterprises
SEAPlant.net Monograph no. HB2C 1108 V1 VA , by Iain C. Neish
 

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Why alliances are essential to small-medium enterprises
 
Enterprises fail if they are not built on a sound “functional framework”. Building a functional framework should be a first step in the development of any enterprise.
 
With a supply that is globally dispersed and a demand that is globally diffuse there are compelling reasons for the formation of business alliances among seaplant value chain enterprises. Most are small-medium enterprises (SME) or micro-enterprises (ME). Strategic alliances are trusting relationships that are often the only feasible option for SME/ME building long-term competitive advantage while retaining independence.
 
Strategic business alliances result when two or more enterprises combine core values and unique resources in order to seek competitive advantage in specified value networks.
 
Tactical business alliances result when two or more enterprises combine firm resources (including relational capital) in order to optimize process capacity.
 
Seaplant SME and ME tend to be owned and operated by close associates and family members who build long-term business relationships. Thus bonds of personal trust, once established, can be smoothly transferred through managerial generations.
 
The formation of trust in alliances is a function of person-to-person relationships. “Trust” as such cannot exist between organizations; it exists by virtue of relationships among people. Forming trust relationships can entail the expenditure of a great deal of time, effort and expense during periods of trial and error. Since time and effort are among the most limited and valuable assets of SME managers the cost of forming trust relationships can be a major SME investment.
 
Although the formation of trusting relationships can be costly and risky for SME such relationships, once formed, can become important unique resources for SME.
 
The purpose of this document is to aid in the rapid, methodical development of functional frameworks that reduce the time, effort, expense and risk of alliance formation for seaplant-based SME.
 
There are many reasons why seaplant-based enterprises remain as SME  rather than being assimilated into large enterprises.
 
Effectively networked SME can be more efficient than large companies because personal agendas of SME owner-operators tend to be aligned with enterprise goals and long-term trust-based alliances are possible. Large-company employees tend to be “short-timers” with personal agendas that divert actions and focus away from enterprise goals. Long-term trust-based alliances are not possible.
 
Current technologies & functional frameworks can put small enterprises on a level playing field with “the big guys”.
 
 
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SEAPlant.net SEAPlant.net Monograph No. HB2D 1108 V1 GTZ.
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