Embed Size (px)
Citation preview
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Program : MBASemester : IVSubject Code : MB0052Subject Name : Strategic Management and Business PolicyUnit Number : 11Unit Title : Strategic AlliancesLecture Number : 11Lecture Title : Strategic Alliances
HOME NEXT
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Objectives
The objective of this lecture is to discuss:• Needs and benefits of strategic alliances.• Stages and types of strategic alliances.• Problems involved in strategic alliances.
NEXT PREVIOUS HOME
Objectives
C o n f i d e n t i a l
Unit-11 Strategic Alliances
• Introduction• Strategic Alliances• Benefits of Strategic Alliances• Stages of Strategic Alliances• Types of Strategic Alliances and Business Decisions• Problems involved in Strategic Alliances• Summary• Check Your Learning• Activity
NEXT PREVIOUS HOME
Lecture Outline
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Strategic alliances is a mutual agreement obtained by the co-operation between organisations to achieve a common goal.
The characteristics of strategic alliances are:•The organisations involving in agreement with similar idea aim to achieve objectives of common interest.•The organisations share the advantages and establish the alliance till the end date of agreement.•The organisations contribute their own resources like technology, production, R&D to increase the performance.
NEXT PREVIOUS HOME
Introduction
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Strategic alliance provides a relationship between organisations and and contribute in the successful implementation of the strategic plan.
The need for a strategic alliance between organisations is to:•Increase productivity ratio•Increase desire for global operations•Geographic expansion•Add and balance resources
NEXT PREVIOUS HOME
Strategic Alliances
C o n f i d e n t i a l
Unit-11 Strategic Alliances
The benefits of strategic alliances are:•Gaining resources and capabilities•Ease of market entry•Shared risks•Shared knowledge and expertise•Easier access to target markets•Winning political obstacle•Achieving synergy and competitive advantage
NEXT PREVIOUS HOME
Benefits of Strategic Alliances
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Stages of Strategic Alliances
The five stages of strategic alliances are:
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Types of Strategic Alliances and Business Decisions
The mutual agreements between organisations can occur in various forms with the increase in desire to achieve a common goal.
The types of strategic alliances are:•Joint venture•Mergers and acquisitions
Horizontal and vertical merger Market and product extension merger Conglomerate merger
•Collaborations and co-branding•Technological partnering•Contractual agreements
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Types of Strategic Alliances and Business Decisions contd…
The other types of a strategic alliance are:•Outsourcing•Other methods:
Affiliate marketing Technology and product licensing Franchising Sharing R&D Distributors
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Problems involved in StrategicAlliances
Few of the problems faced by organisations with strategic alliances are:
•The organisations suffer certain benefits due to incoherent goals.•The conflicts arising between organisation due to internal issues creates problems to the strategic alliances.•The lack of trust between organisation declines the performance level.•The lack of commitment leads to termination of alliance contract.
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Summary
•Strategic alliance is the process of mutual agreement between organisations to achieve common goal.•The fast growing organisations adopt strategic alliances to expand productivity and foreign collaborations.•Strategic alliances include various stages and forms various types to meet the common objective.•Strategic alliance faces many problems during the period of contract.
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Check Your Learning
1. What are the characteristics of strategic alliances?ANS. The organisations involving in agreement with similar idea aim to
achieve objectives of common interest, share advantages and establish alliance till the end of agreement and contribute own resources.
2. What are the stages of strategic alliance?ANS. Strategy development Partner assessment Contract negotiation Alliance operation Alliance termination3. What is technological partnering?ANS. It deals with associating technologies of two different companies to
achieve common objectives.
NEXT PREVIOUS HOME
C o n f i d e n t i a l
Unit-11 Strategic Alliances
Activity
Refer http://www.scribd.com/doc/26988589/Adidas-Reebok-Merger-Case-Study and identify the need for Adidas to merge with Reebok and also analyse the factors, issues and performance levels of both the organisations.
PREVIOUS HOME
