alliances

alliances - Joint Ventures and Strategic Alliances 2 are...

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Unformatted text preview: Joint Ventures and Strategic Alliances 2 are more and more corporations getting involved in strategic alliances and joint ventures? Why 3 Growing a Company Theres only four ways a company can grow and/or increase in scale, scope or capacity: Organic Growth (growth from within) Strategic Alliance Joint Venture Merger/Acquisition 4 Strategic Alliances and Joint Ventures Strategic alliances and/or joint ventures facilitate increasing a companys scale, scope, and capabilities, while minimizing the risk involved in a merger/acquisition. Increased numbers of strategic alliances and joint ventures are being driven by suppliers responding to corporate requirements tied to strategic sourcing, contracts getting larger and larger due to industry consolidations, and global competition. Basic Components of a Strategic Alliance 6 What is a Strategic Alliance? The mutual coordination of strategic planning and management that enable two or more organizations to align their long term goals to the benefit of each organization generally, the organizations remain independent. Bottom line, strategic alliances are partnerships that stress mutual problem solving. Each party in the alliance maintains autonomy. 7 Basic Components of a Strategic Alliance Confidentiality agreement Mission, vision, values statements Long-term goals and objectives Plan for implementation of activities Plan for managing the process and measuring success Exit strategy 8 Other Characteristics of a Strategic Alliance May or may not be a contractual arrangement, but this is always recommended. Long Term Relationship Open Book High Level of Trust Win/Win (Mutual Advantage) Top Management Interchange Continuous Exchange of Ideas Business Process Re- engineering Focus on Significant Value- Added Mutual Dependency Strategic Framework in Place High Level of Commitment Increased Capabilities/Capacities Enhanced Business Opportunities Improving Shareowner Value 9 Examples of a Strategic Alliance Cooperative agreement McDonalds and HAVI - sourcing, transportation, distribution Banking ATM Machines - service, maintenance, collecting $ Outsourced arrangement Licensed arrangement Amoco and Halliburton - Coring tools Examples of Best Practices for Strategic Alliances 11 STRATEGIC ALLIANCE Mutual Dependency Strategic Framework in Place High Level of Commitment Increased Capabilities/Capacities Enhanced Business Opportunities Improving Shareowner Value ALLIANCE Long Term Relationship Open Book High Level of Trust Win/Win (Mutual Advantage) Top Management Interchange Continuous Exchange of Ideas Business Process Re- engineering Focus on Significant Value- Added PREFERRED SUPPLIER Longer Term Relationship Trust Earned Some Differentiation in Products/Services Quality Programs Implemented...
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This note was uploaded on 12/18/2009 for the course MOR 492 at USC.

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alliances - Joint Ventures and Strategic Alliances 2 are...

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