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Corporate Strategy > Part II: Cooperation and alliances > Flashcards

Part II: Cooperation and alliances Flashcards

1
Q

What are the possible networks types, relative to its topology?

A

Isolation:
Network clusters without intermediaries cannot access
common resources.

Networking:
Network clusters with intermediaries establish
interconnections to gain additional resources.

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2
Q

What are the advantages of collaboration and good networks?

A

A good network adds value. An understanding of the structure and dynamics of networks is a competitive advantage.

Companies should cooperate in one level of the value chain (R&D) but compete in another (sells).

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3
Q

What are motivations for cooperation?

A
  • Cost sharing
  • Risk sharing
  • Advantages of timing
  • Market entry
  • Reputation
  • Resource access
  • Access to Text knowledge and learning
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4
Q

What are the types of cooperation?

A
  • Franchising
  • Supply contract
  • Subcontracting
  • Consortia
  • Management contract
  • Joint venture
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5
Q

Describe Franchising and give examples

A
  • Special (strict) form of Licensing
  • Cooperation in sales and distribution
  • Asymmetric power distribution
  • Long lasting relationships

Ex:

  • Mc Donalds
  • Schülerhilffe
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6
Q

Describe supply contract and give examples

A
  • Uni-directional, interorganizational contracts
  • Long-term procurement agreements
  • Mutual coordination of logistics (e.g. JIT)
  • Conjoint development processes
  • Risky for supplier

Ex:

  • Toyota
  • Bosh
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7
Q

Describe Subcontracting and give examples

A
  • Outsourcing of activities
  • For areas with low strategic relevance
  • Concentration on core-activities
  • Generally long-term contracts

Ex:

  • IBM
  • LSG Sky Chefs
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8
Q

Describe Consortia and give examples

A
  • Development of major projects
  • Limited duration, scale and content
  • Risk reduction for the partners
  • Regulated through contracts

Ex:
Airbus

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9
Q

Describe Management contract and give examples

A
  • Consulting and management services
  • Project oriented
  • Limited in time and scope
  • Principal-Agent problems

Ex:

  • McKinsey
  • Roland Berger
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10
Q

Describe Joint Venture and give examples

A
  • Separate legal entity
  • Controlled by one or more of the partners
  • Individual strategic orientation
  • Organizational linkage of the partners

Ex:

  • Merial
  • B/S/H/
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11
Q

What are the two types of designs modes in an Alliance. Describe them briefly.

A
  • Equity Based:
    Joint ventures result in the formation of a new legal entity.
  • Non-equity Based:
    Contractual agreement for cooperation which does not require setting up a new legal entity.
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12
Q

What types of Equity modes exist?

A
  • Minority Joint Ventures
  • 50/50 Joint Ventures
    Majority Joint Venture
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13
Q

What types of Non-equity modes exist?

A
  • Informal cooperative alliances

- Formal cooperative alliances

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14
Q

What Alliance design mode has become one of the dominant cooperative?

A

Non-equity

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15
Q

On what different levels does Cooperation takes place in Industry? Whats the simplest form?

A
  • Strategic alliance (The simplest)
  • Alliance portfolio (More advanced)
  • Strategic network
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16
Q

Specify Strategic alliance.

A
  • Formalized, voluntary long-term relationships between two organizations
  • Focused cooperation in key areas of the partners
  • Contract based with defined scope
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17
Q

Focus of strategic alliance?

A

Dyad

18
Q

Goals of strategic alliance?

A
  • Compensate weaknesses through strengths of the partner
  • Secure and improve competitive positioning
  • Risk and cost reduction
19
Q

Types of strategic alliance?

A
  • Horizontal:
    Between potential competitors
  • Horizontal:
    Alliance with supplier
20
Q

Define Alliance portfolio

A

The egocentric network of all active (and past) cooperative relationships of a single company

21
Q

Focus of Alliance portfolio

A

Portfolio on firm level

22
Q

Strategic issue of Alliance portfolio

A

Configuration of the portfolio, realization of synergies between the different partners

23
Q

Formation of alliance portfolios:

Why do organizations build alliance portfolios?

A
  • Manage risk and uncertainty
  • Organizationallearning
  • Access to knowledge and other resources from different partners
  • Structural and relational embeddedness
  • Coevolution with environment
24
Q

Configuration of alliance portfolios:

How do firms configure their portfolio?

A
  • Portfolio size
  • Relational and structural factors
  • Partner characteristics

Changes in configuration through formation of new ties and termination of existing ones is important

25
Q

Management of alliance portfolios:

How do firms manage their portfolios?

A
  • Build alliance portfolio capability (ability to identify partners, to initiate alliances and to manage them).

Research also focuses on the effectiveness of alliance portfolio management tools

26
Q

Define strategic network

A

The network of strategic alliances from an industry perspective

27
Q

Focus of strategic network?

A

(Industry-)network

28
Q

Specifics of a strategic network?

A
  • Actors (nodes) are connected through direct or indirect relations (ties)
  • Number of nodes determines network size, Position of nodes and ties determines the network structure
29
Q

Management of cooperation:

What are the phases of the alliance life cycle?

A
  • Alliance formation and partner selection
  • Alliance governance and design
  • Alliance management (post-formation)
30
Q

Challanges of Alliance formation and partner selection

A
  • Partner complementarities
  • Partner compatibility
  • Partner commitment
31
Q

Key factors of Alliance formation and partner selection

A

Screening and partner selection:

  • Common objectives
  • Compatible values and behaviors (culture)
32
Q

Challenges of Alliance governance and design

A
  • Equity sharing or ownership
  • Contractual details
  • Relational governance
33
Q

Key factors of Alliance governance and design

A

Negotiation and alliance designing:

  • Decentralized structure
  • Process and interface optimization
34
Q

Challenges of Alliance management (post-formation)

A
  • Use of coordination mechanisms
  • Development of trust and relational capital
  • Conflict resolution and escalation
35
Q

Key factors of Alliance management (post-formation)

A

Commitment and trust:

  • Creating a common identity through collaboration
  • Communication and information transfer
36
Q

Management of networks:

Dimensions of a network strategy?

A 
Objectives
Strategic Analysis
Configuration
Implementation
Stabilization
37
Q

Objectives of a network strategy

A

Definitions of objectives and harmonization of individual objectives as premises for a cooperation’s success

  • Transformation of individual to common objectives
  • Defining network objectives for coordinating network activities
  • Specification of key figures for a network controlling
38
Q

Strategic analysis of a network strategy

A

1) Analysis of the overall network structure:
- Size
- Density
- Stability
- Groups
- Centrality

2) Identification of structural and interactional dimensions:
- Intencity
- Reciprocity
- Multiplexity

3) Identification of key roles:
- Bridge
- Gatekeeper

39
Q

Configuration of a network strategy

A

1) Typology of networks:
- Ties among legally autonomous companies
- Regional networks
- (Global) strategic networks

2) Consequences of embeddedness:
- Identification of structure and dynamics
- Differences in the degree of connectedness lead to different consequences of success

3) Planning of positions
- Prominence of actors
- Focal actors

40
Q

Implementation of a network strategy

A
  • Determination of the network strategy

- Business model integration

41
Q

Stabilization of a network strategy

A
  • Securing the network structure

- Institutionalizing network management

42
Q

Management practices of a network stabilization

A

Its a cycle of:

1) Selection
        - Selection of network partners
        - Definition of partners’ input
        - Selection of "Boundary Spanner“ (network managers)

2) Allocation
        - Distribution of tasks, resources and responsibilities according to the capabilities of network members
        - Distribution follows the negotiation processes

3) Evaluation
        - Evaluation at the dyadic level and at the network level
        - In addition to economic criteria, procedural and distributive justice also play a decisive role

4) Regulation
        - Development and enforcement of formal and informal rules
        - Development of incentive systems
        - Search for win-win situations

5) Go to "1) Selection"

Corporate Strategy (6 decks)

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