Presentation on Strategic Alliances

Description
A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives need while remaining independent organizations. This form of cooperation lies between M&A and organic growth.

STRATEGIC ALLIANCES

Related terms.
Mergers and acquisitions permanent, structural changes in how the company exists. Outsourcing is simply a way of purchasing a functional service for the company. Alliances-business-to-business collaboration

Strategic Alliances.
It is a formal relationship formed between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. cooperation or collaboration which aims for a synergy Technology transfer, economic specialization, shared expenses and shared risk.

Why S.A.
A growing need to operate on a global scale, scope & speed increase market penetration enhance product development, competitiveness increase exports, diversify create new businesses reduce costs A fast changing marketplace and Industry convergence in many markets

Stages of Strategic Alliances
Strategy Development: feasibility, objectives and rationale, resource for production, technology, and people Partner Assessment: strengths and weaknesses Contract Negotiation:realistic objectives, high calibre negotiating teams,terms. Alliance Operation:measuring, assessing and rewarding alliance performance. Alliance Termination.

Rethinking the business Strategic reassessment Role of alliances. Creating an alliance strategy Deintegrating the value chain Reconfiguring the value chain Leveraging in-house & partner resources Creating fallback positions Maintaining strategic options

Structuring an alliance
Importance of structures Framework for structures Key considerations Role of bargaining Evaluating alliances Assessing alliances Learning about alliances Rethinking the alliance strategy

Advantages of S.A.
concentrate on activities that best match their capabilities learning & developing competences that may be more widely exploited elsewhere Adequency & suitability of the resources & competencies of an organization for survival. Increasing intensity of competition. Max leverage & profits - risk & expense

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