Transcript Repetition: Chapter 7: Global Alliances and Strategy
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