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Pakkanun W. 4880364 Tatchaya C. 4980459 Sarocha C. 5080018 Phrin R. 5080292

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Selecting the Partner Supplier Customer Professional &Trade association Newspaper & Trade magazine Seminars & Convention Internet Finding a Partner

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Selecting the Partner Find a partner that: Share your values & vision Can bring skills & experience Offer resources & credibility Financially & functionally stable Good business ethics Business Partner Selection

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Selecting the Partner Trust Tolerance Cooperation Commitment Mutuality Qualities in a Partner

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The Alliance Framework Step6 Negotiating an Agreement Step5 Selecting the Partner Step4 Conducting Resource Fit Assessment Step3 Approaching Potential Partners: Strategic Fit Assessment Step2 Achieving internal Consensus Step1 Appointing the Planning and Negotiating team Step5 Selecting the Partner

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The Alliance Framework Step5 Selecting the Partner Which potential partner presents the least trouble some disagreements in Strategic Assessment Elements (SAEs), to be resolved in step 6 Final negotiations? Which potential partner provides the best match of required resources? Which potential partner has self-selected itself into the deal?

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Step6 Negotiating an Agreement Step5 Selecting the Partner Step4 Conducting Resource Fit Assessment Step3 Approaching Potential Partners: Strategic Fit Assessment Step2 Achieving internal Consensus Step1 Appointing the Planning and Negotiating team The Alliance Framework

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The strategic Fit Reconciliation Map 3 possibilities in dealing with SAE disagreements 1. Agree with the partners position 2. Convince the partner to agree to your position 3. Develop a compromise between the two positions

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Strategic Fit Reconciliation Map Strategic Assessment Element (SAE) Our Firms Position Partner 1Partner 2Partner 3 Our Objectives Their Objectives Our Roles Their Roles Our Overall Resources Their Overall Resources Boundaries Market Model Strategic Exclusivity Intersections Note: Symbol meaning OK = The partner accepts our position on the SAE. ? = We have a disagreement and are unsure of the resolution. The strategic Fit Reconciliation Map

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Pet Food Company Alliance to incorporate novel nutrition ingredients into its pet foods Trying to find the best selected partners between company A and Company B The goal: to jointly develop a series of new products with a biotechnology firm Adding the biotechnology firms nutritional ingredients to the pet food companys existing product lines and distribute the improved products through its distribution

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Following Step 3: Strategic Fit Assessment Objectives: The pet food firm will establish and maintain its reputation for innovation through sole branding of any jointly developed product. Market Model: The customers will see the pet food company brand, not the biotechnology companys brand, on the product. Market Model: Any jointly developed product will be cobranded. The Pet Food CompanyCompany A

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The pet food company Strategic Exclusivity Element: The pet food firm will have global, perpetual, and sole rights to use the partners novel nutrients in pet food. Company B Strategic Exclusivity Element: Company B will give the pet food firm a one- year exclusive right to use the nutrient, after which company B will be free to provide licenses to others. Following Step 3: Strategic Fit Assessment The Pet Food CompanyCompany B

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Strategic Fit Reconciliation Map for Pet Food Alliance after Step 3 SAEPet Food Company Position Company A Company B Our ObjectivesSole brand? (cobranded) OK Market ModelSole brand? (cobranded) OK Strategic Exclusivity Exclusive rights OK? (one-year head start) OK = The partner accepts our position on the SAE. ? = We have a disagreement and unsure of the resolution. Strategic Fit Reconciliation Map for Pet Food Alliance after Step 3

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Resolving the Disagreements Looping back to the our objectives statements of step2 and other relevant elements. Challenged the original thinking with the new information. For example, Is sole branding necessary? Can the pet food company label the products as jointly developed with company A and still achieve its marketplace objective? Will a one-year head start allow the pet food firm to establish a strong enough foothold in the marketplace to fend off the competition? Step6 Negotiating an Agreement Step5 Selecting the Partner Step4 Conducting Resource Fit Assessment Step3 Approaching Potential Partners: Strategic Fit Assessment Step2 Achieving internal Consensus Step1 Appointing the Planning and Negotiating team

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Strategic fit Reconciliation Map for Pet Food Alliance after loop-back through step 2 SAEPet Food Company Position Company ACompany B Our ObjectivesSole brandOK Market ModelSole brandOK Strategic ExclusivityExclusive rightsOKX OK = The partner accepts our position on the SAE. = We have a disagreement, but the partners position is acceptable to us. X = We have a disagreement and cannot accept the partners position.

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Resource Fit Reconciliation Map Key ResourceCompany A Company B Ability to contribute to joint development of products based on preexisting nutrients OKOK+ Ability to provide technical support for jointly developed products OK Ability to develop future nutrients OK+ OK+ = The partners resources are outstanding and complementary to ours. OK = The partners resources are satisfactory and complementary to ours.

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Selecting the Partner When a firms people self selected themselves into the deal, the energy comes from self-motivation is tangible and translates into positive alliance results. Self-motivation is critical to success. How did you assess the self-motivation of the partner in your last alliance Self selection: Intangible factor in partner selection

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Selecting the Partner The Multiple Partner Option Sometimes, there are more choices qualified for alliance framework Step 2,3 and 4 negotiation can create multiple relationships with many companies. As the result Batelles MicroCats Alliance

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Selecting the Partner Use strategic fit reconciliation map and resource fit reconciliation map to compare result of step 3 and 4 among potential partners Include motivation assessment as a partner selection area Loop back to step 2 to reassess your position in light of new information Select the best partner or moving ahead to step 6 Look back to step 3 and 4 for possible interpartner conflicts before step up to step 6 Tip for completing step 5 in alliance framework Step6 Negotiating an Agreement Step5 Selecting the Partner Step4 Conducting Resource Fit Assessment Step3 Approaching Potential Partners: Strategic Fit Assessment Step2 Achieving internal Consensus Step1 Appointing the Planning and Negotiating team