Deck 7: Implementing Strategy: Strategic Alliances, Small Businesses, Emerging Economy Firms

Question 1

Why are there an increasing number of mergers with companies in different industries Give some examples. What industry do you think will be the next for global consolidation

Answer 1

Introduction:
Merger is a strategy used in business that forms a new company by combining two or more companies.
Determine the reason for the rising the number of mergers with the firms in various countries:
The reason for the rising number of mergers with the firms in various countries is that many firms believe that they could benefit from merging to develop as bigger companies. The firms with various industry could share the resources in ways, which creates operating synergies.
Example: Person X can have an insurance company and a bank merge with one another as they focus on same type of people.
Determine the industry that would be the next for global consolidation:
The financial services, and insurance companies would be the next for global consolidation.
Conclusion:
There are situations in which the merger between the companies can make the feel that they could assist one another as their businesses are complementary.

Question 2

Discuss the problems inherent in developing a cooperative alliance to enhance competitive advantage, which also incurs the risk of developing a new competitor.

Answer 2

Introduction:
Strategic alliances are a contract between two or more firms to pursue their common goals by merging their resources.
Determine the problems in developing a cooperative alliance:
• Hard to develop new technologies.
• Uncertainty.
• Difficult to introduce new product line in the market.
• Firm partners might act opportunistically.
• The partners of the firm may also misrepresent ability and skills available to the partnership.
• Partner may or may not make an investment which is more specific to the alliance.
Conclusion:
The strategic alliance is a hard concept in few ways like cooperating with the competitor. This might require specific action to avoid strengthening the competitor position.

Question 3

What are the common sources of incompatibility in cross-border alliances What can be done to minimize them

Answer 3

Introduction:
Cross-border strategic alliances are a strategy used to extend the business model internationally.
Determine the common sources of incompatibility in cross-border alliances:
The following are the common sources of incompatibility in cross-border alliances:
• Conflicting strategic goals and objectives
• Cultural clashes
• Disputes over management and control systems
Determine the ways to minimize the sources:
• Better communication
• Creating unity among employees through internal activities
Conclusion :
It is better to forecast the incompatibility sources in prior in order to resolve it in an easier and less costly manner.

Question 4

Explain what is necessary for companies to successfully implement a global sourcing strategy.

Question 5

Discuss the political and economic situation in the Russian Federation with your class. What has changed since this writing What are the implications for foreign companies to start a joint venture there now

Question 6

What is involved in strategic implementation What is meant by creating a " system of fits " with the strategic plan

Question 7

Explain how the host government may affect strategic implementation-in an alliance or another form of entry strategy.

Question 8

How might the variable of national culture affect strategic implementation Use the Mittal Steel example to highlight some of these factors.

Question 9

Discuss the importance of knowledge management in IJVs and what can be done to enhance the effectiveness of that process.

Question 10

Research some recent joint ventures with foreign companies situated in Russia or China. How are they doing Bring your information to class for discussion. What is the climate for foreign investors in Russia/China at the time of your reading this chapter

Question 11

What factors do you think are behind these events Do some research to find out whether there have been more such problems since this writing. Is it just American companies that are being targeted

Question 12

What can firms currently operating in China, or considerating investment there, do to lessen the likelihood of these problems for their managers

Question 13

Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances What are the driving forces for firms in emerging economies to embark on strategic alliances How can SMEs expand abroad through relationships with MNCs