Discussion Forum 2

Discussion Forum 2 - Strategic Alliance - A relationship...

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Strategic Alliance - A relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. Each partner hopes that the combining of resources will produce better results than they would have gotten on their own. Pros: - Sharing risks - Sharing resources - Expansion into new markets Cons: - Differing company objectives - Sometimes difficult to build trust with the other parties - Depending too heavily on the expertise of another party Example of a strategic alliance: General Mills and Nestle formed a strategic alliance in 1989 to combine the cereal expertise and technology of General Mills with the local marketing expertise and sales distribution systems of Nestle. Mergers and acquisitions - A merger happens when two agree to go forward as a single new company rather than remain separately owned and operated. When one company takes over another and establishes itself as the new owner, the purchase is called an acquisition. Pros:
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This note was uploaded on 07/13/2011 for the course BUS 421 taught by Professor Ness during the Spring '11 term at Edison State College.

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Discussion Forum 2 - Strategic Alliance - A relationship...

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