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

1. Modernismens strukturtænkning Differentiering Dele hovedopgaven op i underopgaver Integrering Koordinere udførelsen af disse underopgaver, så de tilsammen løser hovedopgaven

Differentiering sker i funktionerne, og jo større differentiering, jo større integrationspres Typisk en ledelsesfunktion

Formaliseringens cirkelbevægelse Differentiering Problemet er at finde Integrering organisation skal drukne i kompleksitet

”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