Joint Ventures, Strategic Alliances and Mergers & Acquisitions

Partnering with a competitor is becoming more and more common in today 's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:

As a result of global competition and the constantly growing demand for new technologies, strategic alliances are becoming more crucial as its objective is to support the competitiveness of the activities concerned. This is achieved through the pooling of each other’s core competencies and specialization.

The company has been undertaking partnerships with others in a way to advance new technologies

* For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

Lennar Corporation was named one of the nation’s largest providers of financial services and homebuilders in 2009 (Pearce and Robinson, 2016). They had started as a single-family homebuilder in Florida and makes attached and detached homes in communities that were directed to move-up, first-time, and adult homebuyers that are active. Aside from building homes, they also had a financial services business that provided closing services, mortgage financing, title insurance, and other ancillary services for buyers and sellers (Pearce and Robinson, 2016).

Joint venture can help Saudi Group in diversifying its business activities. Milton R. Stewart; Ryan D. Maughn (2011) pointed out “Efficient and cost effective ways to enter foreign markets that allow companies to share risks and exploit synergies with partner companies continue to drive businesses toward international joint ventures, it can provide access to unique business opportunities and new geographic markets that may not otherwise be available, especially to smaller and medium sized businesses”. Business diversification can avoid Saudi Group depends on profit contribution from local business activities only, profit from international entry can help in expanding the local business activities. Joint venture is able to resolve both long and short-term problem and effectively deal with the weaknesses and thread of Saudi

3. Collaboration with similar companies in search and development of new products and thereby decreasing the competition for resources within the company.

efficiently than if either firm attempted to do so on its own. The role of strategic alliances in shaping the

Strategic alliance “combine key resources, cost, risk, technology and people” (Williams, 2010). One of the common denominators of strategic alliance is having a joint venture. This is “when two existing companies collaborate to form a third company. The two founding companies remain intact and unchanged except that together they now own the newly created joint venture” (Williams, 2010). Having a joint venture there are many benefits and risk with global marketing. “For a global model to work, global teams need to develop an understanding of local markets and establish a close relationship with local marketing teams” (Griffith, 2012). There are recommendations that should be followed in order to complete strategic planning and commit to the company perspective and

Top glove could use the opportunity to minimize the internal weakness which is using the joint venture and the diversification component. First, though the joint venture with others firm. The resources, technology, management and culture is share in between the organization to achieve the same goals. For example, Top Glove management could learn and adapt the Japanese business culture since Top Glove and Fimatec had joint venture. Both company management able to exchange the culture and practice that improve both management performance. So the weakness of management problem could be minimize since the management is improving through the venture. Besides that, opportunity for joint venture in between the international company could to gain the business model and image of company. These action could be attracting for those professional who seeking the job applicants. Lastly is the problem of heavily invest in R&D. The cost for Top Glove spend in R&D function is very high in each year. So, Top Glove need to conduct diversification in different market to gain profit. R&D function could help to invent new product or service, but still Top Glove need to fit in different market to increase the profit. So the diversify in different market could help Top Glove to increase profit to cover the heavy cost in R&D

General Electric (GE) formerly entered a foreign market by either acquiring an established firm or establishing a greenfield subsidiary (which is a wholly owned from ground up turnkey project). Joint ventures with a local company were almost never considered. The prevailing philosophy was that without full control, the company didn’t do the deal. However, times have changed. Since the early 2000s joint ventures have become one of the most powerful strategic tools in GE’s arsenal. To enter the South Korean market, for example, GE Money, the retail lending arm of GE’s financial services business, formed joint ventures with Hyundai to offer auto loans, mortgages, and credit cards. GE has a 43 percent stake

It is because through the joint venture, the company is more familiar with the situation of the company there. The negative outcome is that the management system different between the company. So it is hard to make a decision making. It is because there is different opinion of each person.

* To structure deal as joint venture, which would be an economical approach to entering the market with the access to the technology, cross-marketing and profits. May bring, however, the lack of control to achieving "Anywhere, Anytime" vision.

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

Joint ventures have further benefits. Joint ventures are based on sharing individual ability and resources for the purpose of achieving a mutually beneficial objective. Sony gains access to Ericsson’s market share and their network of infrastructure and handset technology. Ericsson can acquire Sony's experience on consumer electronics, fashionable designs and production processes. Hence, the joint venture overcomes Sony's low market share and strengthens Ericsson's ability of research and product development. Thus joint ventures resolve the opportunism issue with OEM, licensing and franchising.