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Module 7 Strategic alliances. Evidence of alliances. In an effort to establish itself as a force in European and Japanese markets, the Nasdaq formed a joint venture with SSI Technologies of India to develop an internet-based trading and market system to launch Nasdaq Europe and Nasdaq Japan.
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Evidence of alliances • In an effort to establish itself as a force in European and Japanese markets, the Nasdaq formed a joint venture with SSI Technologies of India to develop an internet-based trading and market system to launch Nasdaq Europe and Nasdaq Japan.
In February 2001, the Coca-cola company and Procter & Gamble announced a $4.2 billion joint venture to use Coca-Cola’s huge distribution system to increase reach and reduce time to market for the P&G products Pringles and Sunny Delight.
Learning objectives • Understand the potential benefits and risks associated with strategic alliances • Learn the life cycle of strategic alliances • Review forms of strategic alliances • Learn the monitoring and evaluating process for strategic alliances • Analyze and deal with problems related to strategic alliances
Benefits of strategic alliances • Market • Resources • Technology • Management practices • New opportunities • Competitive advantages
Types and forms of alliances Strategic alliances: any formal arrangement between two or more organizations for purpose of mutual gain. • Ownership vs control • Number of members • Governance structure • Mandated vs voluntary participation
A life cycle of organization alliances in health care Stages Critical crossroads Emergence Transition Maturity Environment threat & uncertainty Put alliance Interest first Realize Benefits Attain objectives Member commitment Motivation to Achieve alliances Increase Dependence Activities Hire or form Management group Coordination & control Increased Dependence Or Withdrawal Future of alliance Share ideologies & dependencies Define purposes of Alliances Develop membership criteria
Risks of strategic alliances • Overly optimistic • Poor communication • Lack of shared benefits • Lack of commitment • Lack of a clear boundary • Lack of evaluation system • Slow results or payback • Culture mismatch
Monitor and evaluate strategic alliances Decide to monitor performance Decide the purpose Interpret data Collect data Design methodology Report and recommendations Evaluate the process
Analyze and deal with problems • Locate problems • Environmental problems • Strategy problems • Structure problems • Behavior problems • Identify the root of the problem • Parochial self-interest • Misunderstanding and a lack of trust • Different assessments • Low tolerance for ambiguity
Deal with problems • Education • Participation • Facilitation • Negotiation • Cooperation • Coercion
Information about the third case summary • Average: 7.89 Winner of The Best Quality: Shaen Ann Stesco Winners of The Excellent Summary: Maryellen Gleeson Mary Choi Jenna Allen