Deresky Chapter 6:Formulating Strategy

Repetition

Figures only

Strategic Formulation Process

Strategic Decision-Making Models

Strategic Choice

Strategic Choice

Repetition:Chapter 7:Global Alliances and Strategy Implementation

PowerPoint by

Hettie A. Richardson

Louisiana State University

Strategic Alliances

Partnerships between two or more firms that combine financial, managerial, and technological resources and their distinctive competitive advantages to pursue mutual goals

Also referred to as cooperative strategies

Categories of Alliances

Joint Ventures PSA Peugeot-Citroen Group and Toyota

Equity strategic alliances TCL-Thompson Electronics

Non-equity strategic alliances UPS and Nike

Global strategic alliances Covisint

Motivations and Benefits of Global and Cross-Border Alliances

To avoid import barriers, licensing requirements, and other protectionist legislation

To share costs of research and development Toshiba

To gain access to markets that favor domestic companies

To reduce political risk To gain rapid entry into a new or consolidating

industry

Challenges in Implementing Global Alliances

Many alliances fail or end up in takeover

Choosing the right form of governance

The benefits of cooperation vs. the dangers of new competition

Guidelines for Successful Alliances

Choose a partner with compatible strategic goals and objectives

Seek complementary skills, products, and markets

Work out how each partner will deal with proprietary knowledge or competitively sensitive information

Recognize that most alliances only last a few years

Knowledge Management in IJVs

Repetition:Chapter 8:Organization Structure and Control Systems

PowerPoint by

Hettie A. Richardson

Louisiana State University

Organizational Structure

Must evolve to accommodate internationalization

Must “fit” with strategy

Should be contingency based

The Thinking of How to Change Structures

DifferentiationDividing the main task into sub tasks

IntegrationCoordinating the performance of the sub tasks, to assure that the goal af the main task will be obtained

Differentiation takes place in the functions. – The more you differentiate – The more

pressure you will se for integration

Typically a function for managers / leaders

”After the task has been divided into specialist subtasks, the problem is to integrate the subtasks around the completion of the global task. This is the problem of organization design.”

Jay Galbraith (1974), Organization Design – An Information Processing View

Differentiation

Integration

The Circle of Formalization

The Problem is to find the balance, that will minimize

the complexity of the organization

Choice of Organizational Form

Multidomestic Strategy

International Strategy

Globalization Strategy

Transnational Strategy

Exhibit 8-7