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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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MBA 713 - Chapter 13

Sep 14, 2014

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MBA 713 - Chapter 13
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Page 1: MBA 713 - Chapter 13

Chapter 13 - 1

Chapter 13

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

International Strategic Alliances

Page 2: MBA 713 - Chapter 13

Chapter 13 - 2

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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Chapter 13 - 4

Strategic Alliance

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Cooperation Mutual Benefit

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•Corporate Form•Joint Ownership

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What Is a Joint Venture?

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Managing a Joint Venture

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Firms Share Management

One Firm Takes Responsibility

Independent Managers Are Hired

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Joint Venture Traits

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Joint Ventures

Non-Joint Ventures

Strategic Alliance Forms

Purpose

Broader

Narrower

Scope

Broader

Narrower

Duration

Longer

Shorter

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Summary of Discussion

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Chapter 13 - 9

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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Chapter 13 - 11Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Shared Risk

New Products New Markets

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Shared Knowledge and Expertise

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Core Competency

Resources and Supplies

Industry RivalsNew Markets

Products and Services

Different Environments

Resources

Government Regulations

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• Market Entry

• Risk Sharing

• Learning Potential

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Synergy and Competitive Advantage

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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

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Functional Alliances

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Production Marketing

FinancialResearch andDevelopment

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Production Alliances

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Manufacture Products

Provide Services

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Marketing Alliances

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Functional Alliance

Market Services

Market Expertise

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Financial Alliances

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•Reduce Financial Risks

•Contribute Resources

•Provide Expertise

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•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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Chapter 13 - 25Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Forms of Ownership

Joint Ventures

Corporate Form

Limited Partnership

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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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Chapter 13 - 27Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Joint Management

Shared-Management

Assigned Arrangement

Delegated Arrangement

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Shared-Management

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Both Partners Actively Participate

Alliance

Partner1

Partner2

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Assigned Arrangement

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One Partner TakesPrimary Responsibility

Alliance

Partner1

Partner2

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Delegated Arrangement

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Both Partners DelegateManagement to the Joint

Venture’s Executives

Alliance

Partner1

Partner2

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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

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Summary of Discussion

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Chapter 13

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International Strategic Alliances

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Chapter 13 - 36Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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