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    Business Alliance Review

    Weeks 1-6

    February 2010

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    Implementing a Strategic-Alliance Strategy

    NO

    No Yes

    Yes

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    4 Broad Multinational Strategies:

    All offer solutions to the global-localresponsiveness dilemma

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    5-4

    The Five Competitive Forces That Determine

    Industry Profitability

    Five-Forces Model

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    5-5

    The Value of the Five Forces Model(2 of 4)

    Determining the Attractiveness of an Industry Using the Five Forces Model

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    5-6

    Completing a Competitive Analysis Grid

    Competitive Analysis useful for possibilities ofpartner selection for competitive alliance

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    Alliance Creation Framework

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    Week 2: Readings and Highlights

    CH 1. The Alliance Framework (The Strongest Link

    Slowinski)

    Introduction /Chapter 1(Smart Alliances Harbison,

    Pekar) What is Alliance Strategy? Introduction (Pages 1-15)

    Chapter 1 (Pages 19-29)(Mastering Alliance Strategy

    Bamford, Casseres, Robinson)

    CH 5 Putting Strategy Before Structure (MasteringAlliance StrategyBamford, Casseres)

    CH 1 Whats in it for Me?, (Developing Strategic

    Alliances, Rigbee)

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    CH 1. The Alliance Framework (The

    Strongest Link Slowinski)

    What is an alliance? Define success and 3 requirements

    important for internal alliances success

    (including path dependence) Basic understanding of the alliance

    framework process and match to our

    alliance framework. This sets the structure

    for our approach to alliance creation

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    Introduction /Chapter 1(Smart Alliances

    Harbison, Pekar)

    Rational for alliances and growth capabilities Definition Strategic Alliance

    Types of general alliances:

    Transactional alliances

    Strategic alliances

    Strategic Alliance Objectives

    Risk sharing -Handling funding constraints

    Economies of scale Skills leverage Market segment access - Value added barriers

    Technology access

    Geographic access

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    What is Alliance Strategy?

    Introduction (Pages 1-15)

    Alliance Definition

    Alliance Strategy

    Alliance Design Alliance Management

    Alliance Constellation

    Alliance Capacity

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    Chapter 1 (Pages 19-29)(Mastering Alliance

    StrategyBamford, Casseres, Robinson)

    How alliances capture value:

    Building new businesses,Accessing new

    markets,Acquiring skills,Gaining

    scale,Improving supply chain,Creating

    networks

    Seven deadly alliance sins:

    Unclear objectives, lack of deatiled business

    plan, decision gridlock, aligning with weal orcompetitive partner, unmanaged culture

    clash, failure to learn orprotect core

    capabilities, failure to plan for alliance

    evolution

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    CH 5 Putting Strategy Before Structure

    (Mastering Alliance StrategyBamford, Casseres)

    Top ten key success factors that influencethe success of an alliance

    Three main elements to form an alliance: Strategy

    Partner selection

    Deal structure

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    CH 1 Whats in it for Me?, (Developing Strategic

    Alliances, Rigbee)

    WHY: Reasons for developing an alliance:

    General areas that profit from developing

    alliances: Technology, Training

    Market share, Customer service improvement

    Innovation, Cost savings

    Financial stability, buying parity improvements

    Supply chain improvement, productivity

    increase

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    Week 3: Readings and Highlights

    Ch. 2 Types of Strategic Alliances

    (Developing Strategic Alliances, Rigbee)

    What is an Alliance? (Building, Leadingand Managing Strategic Alliances, Kuglin

    and Hook)

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    Ch. 2 Types of Strategic Alliances (Developing

    Strategic Alliances, Rigbee)

    Typ

    e of alliances(strategic and transactional)

    Cross promotion

    Strategic alliances for cobranding

    Strategic alliances to serve national interest

    Community based alliances

    Alliances with competition Alliances with competitors to open new markets

    Strategic alliances for buying parity

    Alliances with competitors to build an industry

    Strategic alliances to beat competition

    Strategic alliances to block new competitors

    Strategic alliances forproduct development

    Strategic alliances for research

    plus

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    What is an Alliance? (Building, Leading and Managing

    Strategic Alliances, Kuglin and Hook)

    Definition of alliance Types of Alliances: Function Based

    Sales Alliance

    Solution specific alliance Geographic specific alliance

    Investment alliance

    Joint Venture alliance

    Framework to determine need for alliance

    Match with class framework

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    Week 4: Readings and Highlights

    Ch 4 Corporate Self Analysis (IntelligentBusiness Analysis Segil)

    Ch. 3 How to Find and Select AlliancePartners (Developing StrategicAlliances, Rigbee)

    DOCSA Analysis

    Ch. 6 Selecting the Partner(The

    Strongest Link Slowinski) Ch. 5 Preparing for the Alliance

    (Intelligent Business Analysis Segil)

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    Ch 4 Corporate Self Analysis (Intelligent

    Business Analysis Segil)

    Cor porate Self analysis- 6 step self examination task The Culture cluster DOCSA, checklist

    The financial picture esp. for divisions

    involved

    Business definition and SWOT update given

    current realities

    Possible strategic direction- across divisions

    Senior executive input- input and supportessential

    Selection of alliance strategy- mission

    statement and objectives

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    Ch. 3 How to Find and Select Alliance Partners

    (Developing Strategic Alliances, Rigbee)

    Finding an alliance partner- where to look?

    Selecting an alliance partner- core values

    Trust, tolerance, cooperation, commitment,

    mutuality.

    10 critical qualities for alliance partner

    Credentials of your future alliance partner

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    Cultural Analysis Technique

    Diagnosing Organizational Culture for

    Strategic Application (DOCSA)

    Hofstede identifies dimensions of

    organizational culture (www.docsa.com)

    When applied to different subsidiaries of an

    MNC different corporate cultures can be

    identified and proactive solutions developedto ensure compatibility between all

    subsidiaries

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    Ch. 6 Selecting the Partner(The Strongest Link

    Slowinski)

    Strategic Fit Reconciliation Map Visual summary of strategic fit and potential

    problems

    Resource Fit Reconciliation Map

    Ensure potential partner has sufficient

    resources to bring to alliance

    Intangible Factor in Partner Selection

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    Ch. 5 Preparing for the Alliance (Intelligent

    Business Analysis Segil)

    Step 1: Criteria for Partner- Quantitative and Qualitative based on

    corporate self analysis and goals created

    Step 2: Develop list ofpotential partners

    Step 3 Strategic fit analysis fit criteria

    Step4 Rank Candidates: acceptable resource and strategic

    reconciliation maps

    Step5 Meeting and evaluating candidates

    Step 6 identify and know corporate champion

    Step 7 Potential problems: 80/20 rule, internal sabotage

    Step 8 Obtain internal approval

    Step 9 implementation plan Step 10 Pre-deal evaluation

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    Week 5: Readings and Highlights

    Ch. 6 Collaborating With Competitors

    (Mastering Alliance StrategyBamford,

    Casseres, Robinson)

    -Ch7 Trust, The Glue That Binds the

    Extended Enterprise(Te Extended

    Enterprise, Davis)

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    . o a ora ng ompe ors

    (Mastering Alliance StrategyBamford, Casseres,

    Robinson)

    Explain why alliance with competitors is avaluable option

    Reasons: Expand product lines, Reduce

    costs, gaining market share, creating newskills

    Risks: technology leakage, telegraphing

    strategic intentions, customer defection,slow decision making, business or asset

    fire sale

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    -Ch7 Trust, The Glue That Binds the ExtendedEnterprise(Te Extended Enterprise, Davis)

    Alliance like thinking (value creation,

    balance legal logic with common sense)vs. contractual thinking (risk mitigation,

    emphasis on legal correctness)

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    Week 6: Readings and Highlights

    Ch.7 Crafting the Agreement?

    (Mastering Alliance StrategyBamford,

    Casseres, Robinson)

    MOU

    NDNC

    LegalD

    ocuments Important Boilerplate articles

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    Ch.7 Crafting the Agreement? (Mastering

    Alliance StrategyBamford, Casseres, Robinson)

    Identify different perspectives between

    executives and lawyers (potential

    disagreements)

    Ownership (decision rights) 50/50

    Conflict resolution mechanisms

    Scope: Where alliance begins and ends

    Valuation: valuing contribution

    Exit: Preparing for end identify events that

    trigger a right to exist

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    Legal documents

    NDNC- describe and identify uses

    MOU describe and identify uses

    Boilerplate articles IP

    Term

    Laws Dispute resolution