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Chapter 13 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 13 - 1 International Strategic Alliances
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Griffin ib7 inppt_13
Transcript of Griffin ib7 inppt_13
Chapter 13
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 13 - 1
International Strategic Alliances
Learning Objectives
• Compare joint ventures with other forms
of strategic alliances
• Define the benefits of strategic alliances
• Describe the scope of strategic alliances
• Review management forms in strategic
alliances
• Identify limitations of strategic alliances
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International Corporate Cooperation
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Strategic Alliance
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Cooperation Mutual Benefit
•Corporate Form
•Joint Ownership
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What Is a Joint Venture?
Managing a Joint Venture
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Firms Share Management
One Firm Takes Responsibility
Independent Managers Are Hired
Joint Venture Traits
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Joint Ventures
Non-Joint Ventures
Strategic Alliance
FormsPurpose
Broader
Narrower
Scope
Broader
Narrower
Duration
Longer
Shorter
Summary of Discussion
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Benefits of Strategic Alliances
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Ease of Market Entry
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Overcome Entrenched Competition
Deal with Government Regulations
Get Economies of Scale and Scope
Manage Costs of Doing Business
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Shared Risk
New Products New Markets
Shared Knowledge and Expertise
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Core
Competency
Resources
and Supplies
Industry RivalsNew Markets
Products and
Services
Different
Environments
Resources
Government
Regulations
• Market Entry
• Risk Sharing
• Learning Potential
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Synergy and Competitive Advantage
Summary of Discussion
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Scope of Strategic Alliances
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Comprehensive Alliances
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Mesh Firms’ Relative Strengths
Maximize Operating Procedures
Achieve Greater Synergy
Functional Alliances
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Production Marketing
FinancialResearch and
Development
Production Alliances
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Manufacture Products
Provide Services
Marketing Alliances
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Functional Alliance
Market
Services
Market
Expertise
Financial Alliances
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•Reduce Financial Risks
•Contribute Resources
•Provide Expertise
•Alliance
•Consortium
R&D Collaboration
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Summary of Discussion
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Implementation of Strategic Alliances
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Selection of Partners
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•Compatibility Between Partners
•Nature of Products and Services
•Relative Safeness of the Alliance
•Learning Potential of the Alliance
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Forms of Ownership
Joint Ventures
Corporate
Form
Limited
Partnership
Public-Private Venture
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Opportunities Challenges
New Market
Government Support
Reduced Competition
Investment Lost
Assets Seized
Operation Closed
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Joint Management
Shared-Management
Assigned Arrangement
Delegated Arrangement
Shared-Management
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Both Partners
Actively Participate
Alliance
Partner
1
Partner
2
Assigned Arrangement
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One Partner Takes
Primary Responsibility
Alliance
Partner
1
Partner
2
Delegated Arrangement
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Both Partners Delegate
Management to the Joint
Venture’s Executives
Alliance
Partner
1
Partner
2
Summary of Discussion
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Pitfalls of Strategic Alliances
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Strategic Alliances
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Incompatibility
of Partners
Access to
Information
Distribution
of Earnings
Loss of
Autonomy
Changing
Circumstances
Common Pitfalls
Summary of Discussion
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Chapter 13
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International Strategic Alliances
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