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Ii strategic alliances cooperative relationship

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e.ii. Strategic alliances (cooperative relationship between 2 or more firms (formal or informal)) and joint ventures (2 or more firms pool equity to form a new entity) e.ii.1. Share activities e.ii.2. Problems: if the partnership isn’t right it will fail, each must bring a unique capability, so the synergy isn’t easily replicated e.iii. Internal development e.iii.1. No sharing of the wealth e.iii.2. Can take longer than other methods to develop tech f. Many times CEOs grow for the sake of growing, hubris stops them from cutting losses, g. Antitakover tactics – g.i. Greenmail – top management buys back the stock at a higher price g.ii. Golden parachute – generous severance package agreed upon in case of hostile takeover g.iii. Poison pills – company gives shareholders certain rights in the case of a takeover 7. Lecture 6 – Formal organization: structure a. Structure balances specialization and integration (conflicting). Elements include: authority, hierarchy, centralization v decentralization, span of control, line manager (direct chain of command), staff managers (functional-area specialists b. Simple structure – oldest, most common. Staff is extensions of owner-manager (small) b.i. Advantages: highly centralized, little specialization of tasks, informal, few regulations and rules b.ii. Disadvantages: informality and lack of rules can lead to confusion and conflict with employees’ responsibilities. Employees may act in own self- interest, and there may be little opportunity for advancement. c. Functional structure – major functions are grouped internally, single or closely related product or service, high prod volume, and some vertical integration. This is for growing organizations that are still highly related. c.i. Advantages: Can enhance coordination and control with each area, more functional use of managerial talent, centralized decision making, career paths and development are available c.ii. Disadvantages: communication can be thwarted as functional areas increasingly view themselves as independent and sometimes with conflicting goals. Additionally each functional area may do what is best for each area and not what is best for the organization. It is difficult to establish uniform evaluation standards across the organization d. Divisional structure (multidivisional or M-form) – organized around products, projects, or markets. Operating divisions are relatively independent, have their own financial specialists. Rewards are based on income and revenue d.i. Advantages: separation of strategic (corporate) and operating (division). Each divisional manager can respond quickly to changes in environment. Minimize problem of sharing resources across functional departments bc
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each division has its own financial departments. Gen manager development is better. d.ii.
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ii Strategic alliances cooperative relationship between 2...

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