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Explain the different forms of alliances
Describe the key issues in establishing an alliance
Describe the key issues in managing an alliance Strategic Alliance
A Strategy that organizations are discovering and implementing in a variety of ways Key characteristic that differentiates strategic alliances from other cooperative strategies There needs to be an Alliance Manager to guarantee that operations run smoothly Joint Ventures
Collaborations Consortia Business agreement Two companies working together to reach the same goal An association or combination of businesses Three Levels Systemic Lerning Strategic Learning Technical Learning Emphasizes an organization's acquisition of new and more efficient ways, techniques, or procedures in relation to management or production Ex: Disney might form an alliance with a top retail chain to learn how to distribute its clothing line better Focuses on how an organization "reeducates" itself to find new ways to integrate its various activities Ex: Disney partners with media and entertainment organizations in or to handle its movie production component Purely about the "reeducating" process. Emphasizes changes in management mind set. Ex. Disney forms an alliance with the IOC to promote the "goodness" of playing sports. Two possible learning situations: Collaborative
Nonlearning Different forms of learning within alliances TRUST Organizational trust is key of a successful strategic alliance TRUST Calculative Trust Bonding Three Stages Mutual Understanding Establishing Strategic Alliance There must be motives for establishing a strategic alliance Cost or risk reduction
Improve strategic position
Opportunity for organizational learning Two Basic Qualities Strategic Fit Cultural Fit Strategic Alliance EX: NBC and a Chinese media organization entering into an agreement to broadcast in Asia EX: Ski federations sharing coaching techniques EX: Disney Three Demensions Scope Legal Form Number of Alliance Partners focus or complex objectives Creation of a legally separate organization, or the collaboration with the organization Networks In some cases a network may be more appropriate to use. Networks are purely skill-based and must involve more than two partners. Negotiating Alliances Seven main steps
Assessment from all potential partners
Agenda setting on all issues that must be negotiated
Proposal presentations from each potential partner
Formal deal closure Must be a "win-win" situation for both parties Alliance manager Decision Maker Internal Integrator External Integrator Information Manager It must be known in the alliance who controls what. Having more control does not necessarily mean more success Alliance Control Three dimensions