EMBA IIBMS CASE STUDY SOLUTIONS – What advice would you give Hershey and Sherman What are the pros and cons of strategic alliances in this situation
EMBA IIBMS CASE STUDY SOLUTIONS – What advice would you give Hershey and Sherman What are the pros and cons of strategic alliances in this situation
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General Management
MANAGEMENT PROBLEM 11
Hershey and Sherman is a medium-sized consulting firm that specializes in helping clients install “enterprise software,” the kind of applications packages that automate all aspects of a company’s operations. The company has always stayed at a high level, and according to Sheila Hershey, “We deal with management to prepare a change program. We are not programmers.” However, the tremendous success of several enterprise software packages, most notably SAP’s R/3 and a series of applications from Oracle and PeopleSoft, have created a problem for Hershey and Sherman.
Clients are asking for recommendations from the firm on whether to purchase one of these packages, and then they want help implementing it. Sheila is confronted with several choices for responding. “We can try to hire more technical people, but everything we read and hear says that it is very difficult to find consultants with expertise in these systems. The demand is very high, and all of the big consulting firms have practices devoted to installing SAP. Hiring specialists would also change the character of our firm.
“Another option is to form an alliance with a firm that does have technical capabilities. We can continue to do our high-level management consulting and then bring in a firm appropriate to the client’s needs. The problem here is that we may be helping provide our competitors with business—one day we are partners, the next day we are after the same client.”
What advice would you give Hershey and Sherman? What are the pros and cons of strategic alliances in this situation?
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strategic alliances in this situation
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