What Are the Differences Between a Turnkey Project and a Strategic

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The Answer is When one company designs,constructs,and tests a production facility for a client,the agreement is called a turnkey (build-operate-transfer)project.The term turnkey project is derived from the understanding that the client,who normally pays a flat fee for the project,is expected to do nothing more than simply 'turn a key' to get the facility operating.The company awarded a turnkey project completely prepares the facility for its client.
Similar to management contracts,turnkey projects tend to be large-scale and often involve government agencies.But unlike management contracts,turnkey projects transfer special process technologies or production-facility designs to the client.They typically involve the construction of power plants,airports,seaports,telecommunication systems,and petrochemical facilities that are then turned over to the client.Under a management contract,the supplier of a service retains the asset-the managerial expertise.
With turnkey projects,one company hires another to complete a specified scope of work.Strategic alliances,on the other hand,involve a level of cooperation between companies that choose to partner to achieve joint objectives.
A relationship whereby two or more entities cooperate (but do not form a separate company)to achieve the strategic goals of each is called a strategic alliance.Similar to joint ventures,strategic alliances can be formed for relatively short periods or for many years,depending on the goals of the participants.Strategic alliances can be established between a company and its suppliers,its buyers,and even its competitors.In forming such alliances,sometimes each partner purchases a portion of the other's stock.In this way,each company has a direct stake in its partner's future performance.This decreases the likelihood that one partner will try to take advantage of the other.

What Are the Differences Between a Turnkey Project and a Strategic

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