1 / 20

Chapter 7: Global Alliances and Strategy Implementation

Chapter 7: Global Alliances and Strategy Implementation. PowerPoint by Hettie A. Richardson Louisiana State University. Strategic Alliances.

teenie
Télécharger la présentation

Chapter 7: Global Alliances and Strategy Implementation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 7:Global Alliances and Strategy Implementation PowerPoint by Hettie A. Richardson Louisiana State University

  2. Strategic Alliances • Partnerships between two or more firms that combine financial, managerial, and technological resources and their distinctive competitive advantages to pursue mutual goals • Also referred to as cooperative strategies

  3. Categories of Alliances • Joint Ventures • PSA Peugeot-Citroen Group and Toyota • Equity strategic alliances • TCL-Thompson Electronics • Non-equity strategic alliances • UPS and Nike • Global strategic alliances • Covisint

  4. Motivations and Benefits of Global and Cross-Border Alliances • To avoid import barriers, licensing requirements, and other protectionist legislation • To share costs of research and development • Toshiba • To gain access to markets that favor domestic companies • To reduce political risk • To gain rapid entry into a new or consolidating industry

  5. Challenges in Implementing Global Alliances • Many alliances fail or end up in takeover • Choosing the right form of governance • The benefits of cooperation vs. the dangers of new competition

  6. Guidelines for Successful Alliances • Choose a partner with compatible strategic goals and objectives • Seek complementary skills, products, and markets • Work out how each partner will deal with proprietary knowledge or competitively sensitive information • Recognize that most alliances only last a few years

  7. Assignment • Compare the ”guidelines” above with • Strategic Choice fig 6.6 and 6.10 (chapter 6) • Which • Motivators • Challenges • Guidelines • Consider for each of the entry modes mentioned in fig 6.10?

  8. Comparative Management in Focus: JVs in the Russian Federation

  9. Comparative Management in Focus: JVs in the Russian Federation • Investigate whether a joint venture is the best strategy—acquiring a Russian business may be better • Set up meeting with appropriate authorities well in advance • Be above board in paying taxes • Set up stricter controls and accountability systems • Make it clear your firm does not pay bribes • Assign the firm’s best managers and given them enough authority • Take advantage of local knowledge by hiring Russian managers • Designate considerable funds for promotion and advertising to establish an image

  10. Strategic Implementation • Involves putting decisions about global alliances and entry strategies into action • Successful implementation requires creating a “system of fits” • Resources must be allocated • Leadership is key

  11. Implementing a Global Sourcing Strategy • Examine your reasons for outsourcing • Evaluate the best outsourcing model • Gain the cooperation of management and staff • Consult your alliance partners • Invest in the alliance

  12. Managing Performance in IJVs • IJV control: Ensures that the way a joint venture is managed conforms to the parent company’s interests • Choice of partner • Suzuki and TVS Motor in India • Organizational design and strategic freedom

  13. Managing Performance in IJVs • Three complementary dimensions of IJV control: • The scope of activities over which parents have control • The extent or degree of control • The mechanisms of control

  14. Knowledge Management in IJVs

  15. Assignment • Give a realistik proposal for how to build a Knowledge Transfer Policy – Choose one of the entry modes in fig 6.10 as startingpoints

  16. Government Influences on Strategic Implementation • Unpredictable changes in governmental regulations • China’s new restrictions on foreign investors • Caterpillar and tax breaks • Ousting of Indonesian President Suharto in 1998

  17. Cultural Influences on Strategic Implementation

  18. Cultural Influences on Strategic Implementation • Six dimensions of national and corporate culture that affect alliances: • Organizational formality • Participation in decision-making • Attitudes toward risk • Systemization of decision-making • Managerial self-reliance • Attitudes toward funding

  19. Cultural Influences on Strategic Implementation • The American need for autonomy and independence can cause problems with head office Europeans • Mercedes in Tuscaloosa, Alabama

  20. E-commerce Impact on Strategy Implementation • E-commerce enablers • NextLinx

More Related