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Lecture Strategic management: Competitiveness and globalization, concepts and cases (4/e): Chapter 9 - Michael A. Hitt, R. Duane Ireland, Robert E. Hoskisson

Chapter 9 - Cooperative strategy. The learning objectives for this chapter include: Define cooperative strategies and explain why firms use them, define and discuss three types of strategic alliances, name the business-level cooperative strategies and describe their use, discuss the use of corporate-level cooperative strategies in diversified firms,. | Chapter 9 Cooperative Strategy Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 Competitiveness Chapter 3 Internal Environment Chapter 2 External Environment The Strategic Management Process Strategic Intent Strategic Mission Strategic Competitiveness Above Average Returns Feedback Strategy Formulation Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 6 Corporate-Level Strategy Chapter 8 International Strategy Chapter 9 Cooperative Strategies Chapter 7 Acquisitions & Restructuring Strategy Implementation Chapter 10 Corporate Governance Chapter 11 Structure & Control Chapter 12 Strategic Leadership Chapter 13 Entrepreneurship & Innovation Strategic Inputs Strategic Actions Strategic Outcomes 2 Partnerships between firms are combined to pursue mutual interests to Develop Manufacture Distribute Goods Services Firm A Firm B where their Core Competencies Capabilities Resources Strategic Alliances 5 Example: Dow Corning . | Chapter 9 Cooperative Strategy Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing 1 Competitiveness Chapter 3 Internal Environment Chapter 2 External Environment The Strategic Management Process Strategic Intent Strategic Mission Strategic Competitiveness Above Average Returns Feedback Strategy Formulation Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 6 Corporate-Level Strategy Chapter 8 International Strategy Chapter 9 Cooperative Strategies Chapter 7 Acquisitions & Restructuring Strategy Implementation Chapter 10 Corporate Governance Chapter 11 Structure & Control Chapter 12 Strategic Leadership Chapter 13 Entrepreneurship & Innovation Strategic Inputs Strategic Actions Strategic Outcomes 2 Partnerships between firms are combined to pursue mutual interests to Develop Manufacture Distribute Goods Services Firm A Firm B where their Core Competencies Capabilities Resources Strategic Alliances 5 Example: Dow Corning from Dow Chemical and Corning Inc. Example: Chrysler and Mitsubishi Automotive Example: Chrysler’s supplier network Types of Strategic Alliances Independent firm is created by the joining assets from two other firms where each contributes 50% of the total Joint Venture Partnership where the two partners do not own equal shares Equity Strategic Alliance Contract is given to supply, produce or distribute a firm’s goods or services (without equity sharing) Non-Equity Strategic Alliance 8 Reasons for Alliances by Market Type Slow Cycle Market Gain access to a restricted market Establish franchise in a new market Maintain market stability Standard Cycle Market Gain market power Gain access to complementary resources Overcome trade barriers Meet competitive challenge Pool resources for large projects Learn new business techniques Fast Cycle Market Maintain market leadership Form an industry technology standard Share risky R&D expenses Overcome uncertainty Increase speed of product, service or .