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    Strategic Management & Policy

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    Brian Boyd
    The document discusses strategic alliances, including their objectives, benefits, stages, types, and problems. Strategic alliances involve mutual agreements between organizations to achieve common goals and share resources. They provide benefits like gaining new capabilities and markets. Stages include strategy development, partner assessment, contract negotiation, alliance operations, and termination. Types include joint ventures, mergers, collaborations, and outsourcing. Problems can include misaligned goals, internal conflicts, lack of trust or commitment between partners.

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    Strategic Management & Policy

    Uploaded by

    Brian Boyd
    31 views13 pages
    The document discusses strategic alliances, including their objectives, benefits, stages, types, and problems. Strategic alliances involve mutual agreements between organizations to achieve common goals and share resources. They provide benefits like gaining new capabilities and markets. Stages include strategy development, partner assessment, contract negotiation, alliance operations, and termination. Types include joint ventures, mergers, collaborations, and outsourcing. Problems can include misaligned goals, internal conflicts, lack of trust or commitment between partners.

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    strategic management & policy

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    The document discusses strategic alliances, including their objectives, benefits, stages, types, and problems. Strategic alliances involve mutual agreements between organizations to achieve common goals and share resources. They provide benefits like gaining new capabilities and markets. Stages include strategy development, partner assessment, contract negotiation, alliance operations, and termination. Types include joint ventures, mergers, collaborations, and outsourcing. Problems can include misaligned goals, internal conflicts, lack of trust or commitment between partners.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    31 views13 pages

    Strategic Management & Policy

    Uploaded by

    Brian Boyd
    The document discusses strategic alliances, including their objectives, benefits, stages, types, and problems. Strategic alliances involve mutual agreements between organizations to achieve common goals and share resources. They provide benefits like gaining new capabilities and markets. Stages include strategy development, partner assessment, contract negotiation, alliance operations, and termination. Types include joint ventures, mergers, collaborations, and outsourcing. Problems can include misaligned goals, internal conflicts, lack of trust or commitment between partners.

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    Unit-11 Strategic Alliances

    Program Semester Subject Code Subject Name Unit Number Unit Title Lecture Title

    : MBA : IV : MB0052 : Strategic Management and Business Policy : 11 : Strategic Alliances : Strategic Alliances

    Lecture Number : 11

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    Unit-11 Strategic Alliances

    Objectives

    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.

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    Unit-11 Strategic Alliances

    Lecture Outline

    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

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    Unit-11 Strategic Alliances

    Introduction

    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.

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    Unit-11 Strategic Alliances

    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

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    Unit-11 Strategic Alliances

    Benefits of 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

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    Unit-11 Strategic Alliances

    Stages of Strategic Alliances


    The five stages of strategic alliances are:

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    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

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    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

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    Unit-11 Strategic Alliances

    Problems involved in Strategic Alliances


    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.

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    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.

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    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 termination 3. What is technological partnering? ANS. It deals with associating technologies of two different companies to achieve common objectives.

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    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.

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