Overview
The wall street journal has over the years been a trusted center for business news and events, and this is a fact that cannot be brushed aside. A number of interesting business events are ever reported by the journal to the extent that insights and future developments are derived. In 2014, WSJ reported about a conflict between the farming industry in the United States and China (Bunge, 1). The gist of the matter was that China had refused the entry of GMO products into their market, stating that it would be injurious to their businesses and by the extent of their economy. While this is an incident that has never been reported before, China’s stand not to allow genetically modified seeds was rather unprecedented. In all fairness, China is one of the biggest US markets in Asia and perhaps in the world. The refusal by the Chinese to alter the entry of the grain only sought to injure the agribusiness in the world’s biggest democracy (Bunge, 1). The extent to which the American agribusiness has been affected by the ban on the seed genetics cannot be over emphasized. It will be interesting to see how the two industries come up with working methods to ensure there is an amicable solution to the crisis (Bunge, 1).
Discussion
The event as reported by WSJ brings into focus the significance of business strategic management (Bunge, 1). Strategic business management is a critical tool that can aid in dealing with some issues in any business field. Case in point is that the areas where mutual business relationships have to be fostered, business strategic management becomes of the essence. The crisis as reported by the WSJ portends a great challenge specifically to the United States industry. The United States farms should have come up with strategic means and ways of dealing with the various issues that surround the genetically modified seeds. Cooperative strategy is one of the strategies that, American farms can use to deal with the problem. In this case, the Chinese farms and those in America come together to form an alliance.
The basis of an alliance is to allow for healthy and cooperation in the various undertakings, in the market. When there is an alliance, some of the problems cannot ensue since there is no fear of mutual suspicion whatsoever. Under the various strategic alliance programs, a number of incentives can be established. One is that the two industries can have a joint venture where they institute a working relationship for the agribusiness. On the other hand, there can be licensing process as part of the strategic alliance to ensure that there is an element of legality in the dealings (Wheelen & Hunger, 15).
There are a number of reasons why the two industries should get into an alliance. When there is a strategic alliance, there is free access to the market without any restriction (Bunge, 1). In the event reported by the WSJ, a problem of such magnitude would not be experienced if there were a strategic alliance between the two industries. Secondly, is that the alliance enhance market stability (Wheelen & Hunger, 52). By refusing imports from China, America’s agribusiness has been affected to a larger extent. It has to some extent affected the stability of the agribusiness in the United States. It is, therefore, critical to note that business strategic management is important for businesses, both for the medium and higher levels.
Works Cited
Bunge, Jacob. China's Limits on GMO Corn Drive Rift in U.S. Farm Industry: Cargill, ADM Split with Seed Makers over Stalled Shipments of Genetically Modified Grain. April 11, 2014. Wall street Journal.
Wheelen, T. L., & Hunger, J. D. (2004). Strategic management and business policy. Upper Saddle River, NJ: Pearson Prentice Hall.
