Trade Offs in International Business Revised

Trade-Offs in International Business
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Trade-Offs in International Business
Various factors are considered when an organization decides to go in a co-branding arrangement with another company. In a co-branding arrangement, the new organization is formed as a result of the combination of the competencies and resources of two companies. The factors to be considered enable any business to thrive in its new business environment. In addition to that, there must be trade-offs that any organization should consider before venturing into a co-branding arrangement. In the attempt to analyze any tradeoff that a company faces, factors must be put into consideration; the sensitivity as well as the importance of the trade-offs (Silveira, 2001). Analyzing these two factors will enable Stanford Medical Center to effectively set up an affiliated facility in Saigon, Vietnam.
Given that Stanford Medical Center has its main operations in the United States, setting up an affiliation with the major national hospital in Saigon could not be possible before some trade-offs are made. Among the trade-offs is the fact that the reputation of the national hospital in Saigon will diminish. Given that the co-branding will lead to a new name for the facility, customers will be more focused on the new organization rather than the old national hospital. The move will seem to benefit the new facility as new and better professionals and practices will be introduced in Saigon. In addition to that, Stanford Medical Facility is set to penetrate into the Asian market at the expense of the national hospital.

As much as the move is set to improve the facilities and practices at the national hospital in Saigon, Stanford medical facility stands to benefit more from the move.
In summary, for any organization considering a co-branding arrangement certain trade-off must be considered. The trade-offs can be viewed either as having some degree of importance or sensitivity to the overall outcome. Moving forward Stanford Medical Center should consider the factors as it enters into a co-branding arrangement that will see a new facility in Vietnam.
References
Da Silveira, G., & Slack, N. (2001). Exploring the trade-off concept. International Journal of Operations & Production Management, 21(7), 949-964.