Chapter 07 Essay

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CHAPTER 7
Global ALLIANCES AND STRATEGY IMPLEMENTATION
LECTURE OUTLINE
General Outline
Opening Profile: From BP to Exxon: Beware the Alliance with the Bear!
Strategic Alliances
Joint Ventures
Equity Strategic Alliances
Global Strategic Alliances
Global and Cross-Border Alliances: Motivations and Benefits
Challenges in Implementing Global Alliances
Implementing Alliances Between SMEs and MNCs
Under the Lens: Dancing with Gorillas: How SMEs Can Internationalize Through Relationships with Foreign Multinationals
Guidelines for Successful Alliances
Comparative Management in Focus: Joint Ventures in the Russian Federation
Implementing Strategy
Implementing Strategies for SMEs
Under the Lens: Breaking Down Barriers for Small Business Exports
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Teaching Tip: Students may not be aware of how prevalent strategic alliances have become. Ask students to go to different search engines and to see how many citations they can find from the prior year on global or international strategic alliances.

B. Alliances may comprise full global partnerships—often joint ventures—in which two or more companies, while retaining their national identity, develop a common, long-term strategy aimed at world leadership. C. Global and cross-border alliances: motivations and benefits (see slides 7-10, 7-11)
1. To avoid import barriers, licensing requirements, and other protectionist legislation
2. To share the costs and risks of the research and development of new products and processes
3. To gain access to specific markets
4. To reduce political risk while making inroads into a new market
5. To gain rapid entry into a new or consolidating industry and to take advantage of synergies
D. Challenges in implementing global alliances (see slide 7-12)
1. In a highly competitive environment, alliances present a faster and less risky route to globalization. It is extremely complex to fashion such linkages, however, especially where many interconnecting systems are involved, forming intricate networks. Many alliances fail or end up in a takeover in which one partner swallows the other.
2. Often, the form of governance chosen for
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