Chapter7 Discussion Questions 1

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Chapter Discussion Questions
1. Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances?
The text notes five motives for cross border alliances: 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; and, 5) to gain rapid entry into a new or consolidating industry, and to take advantage of synergies. Each firm is faced with its own environmental conditions and this may prompt a strategic alliance for other reasons. The GM-Toyota
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Innovation move is certain in partnership relationship. A cooperation accomplice can rapidly realize everything it needs to think around engineering from its accomplice. When that happens, it probably won't needs its accomplice so as to direct business. Generally, the first of the accomplices to completely take in the other's innovation or business hones obsoletes the wander. The content calls this the "race to learn." so as to lessen this danger; firms now and then "rope-off" certain touchy regions from their accomplices. A vital partnership is a troublesome idea in a few ways – collaborating with a contender – and this may obliges specific activity to abstain from reinforcing the position of the contender. Toward the end of part case on Lenovo, IBM will need to verify that the affiliation they keep up with this Chinese organization does not bargain restrictive information which is IBM's preferred
4. What are the common sources of incompatibility in cross-border alliances? What can be done in order to minimize them?
Differences in culture can cause differences in objectives, leadership style, strategy, governance, control and compensation among other issues. There can also be regulatory differences in the host country that preclude operating the business in the traditional style. Minimizing these difficult areas requires attention paid up front to the

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