Repetition: Chapter 7: Global Alliances and Strategy Implementation
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Transcript Repetition: Chapter 7: Global Alliances and Strategy Implementation
Deresky Chapter 6:
Formulating Strategy
Repetition
Figures only
Strategic Formulation Process
Strategic Decision-Making
Models
Strategic Choice
Strategic Choice
Repetition:
Chapter 7:
Global Alliances and
Strategy Implementation
PowerPoint by
Hettie A. Richardson
Louisiana State University
Strategic Alliances
Partnerships between two or more firms that
combine financial, managerial, and
technological resources and their distinctive
competitive advantages to pursue mutual
goals
Also referred to as cooperative strategies
Categories of Alliances
Joint Ventures
PSA Peugeot-Citroen Group and Toyota
Equity strategic alliances
TCL-Thompson Electronics
Non-equity strategic alliances
UPS and Nike
Global strategic alliances
Covisint
Motivations and Benefits of Global
and Cross-Border Alliances
To avoid import barriers, licensing requirements,
and other protectionist legislation
To share costs of research and development
Toshiba
To gain access to markets that favor domestic
companies
To reduce political risk
To gain rapid entry into a new or consolidating
industry
Challenges in Implementing
Global Alliances
Many alliances fail or end up in takeover
Choosing the right form of governance
The benefits of cooperation vs. the dangers
of new competition
Guidelines for Successful
Alliances
Choose a partner with compatible strategic
goals and objectives
Seek complementary skills, products, and
markets
Work out how each partner will deal with
proprietary knowledge or competitively
sensitive information
Recognize that most alliances only last a few
years
Knowledge Management in IJVs
Repetition:
Chapter 8:
Organization Structure and
Control Systems
PowerPoint by
Hettie A. Richardson
Louisiana State University
Organizational Structure
Must evolve to accommodate
internationalization
Must “fit” with strategy
Should be contingency based
The Thinking of How to Change Structures
Differentiation
Dividing the main task into sub tasks
Integration
Differentiation takes place in the functions.
– The more you differentiate – The more
pressure you will se for integration
Coordinating the performance
of the sub tasks, to assure that
the goal af the main task will be
obtained
Typically a function for
managers / leaders
The Circle of Formalization
Differentiation
Integration
The Problem is to find
the balance, that will minimize
the complexity of the organization
”After the task has been divided into specialist subtasks, the problem is to
integrate the subtasks around the completion of the global task. This is the
problem of organization design.”
Jay Galbraith (1974), Organization Design – An Information Processing View
Choice of Organizational Form
Exhibit 8-7
Transnational
Strategy
Globalization
Strategy
International
Strategy
Multidomestic
Strategy