Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

A nonequity strategic alliance exists when

06/11/2020 Client: papadok01 Deadline: 3 days

BUS 499, Week 8: Cooperative Strategy

Slide #

Topic

Narration

1

Introduction

Welcome to Senior Seminar in Business Administration.

In this lesson we will discuss Cooperative Strategy.

Please go to the next slide.

2

Objectives

Upon completion of this lesson, you will be able to:

Identify various levels and types of strategy in a firm.

Please go to the next slide.

3

Supporting Topics

In order to achieve this objective, the following supporting topics will be covered:

Strategic alliances;

Cooperative strategies; and

Competitive risks.

Please go to the next slide.

4

Strategic Alliances

Recognized as a viable engine of firm growth, cooperative strategy is a strategy in which firms work together to achieve a shared objective. Thus, cooperating with other firms is another strategy firms use to create value for a customer that exceeds the cost of providing that value and to establish a favorable position relative to competition.

A strategic alliance is a cooperative strategy in which firms combine some of their resources and capabilities to create a competitive advantage. Thus, strategic alliances involve firms with some degree of exchange and sharing of resources and capabilities to co-develop, sell, and service goods or services. Strategic alliances allow firms to leverage their existing resources and capabilities while working with partners to develop additional resources and capabilities as the foundation for new competitive advantages. To be certain, the reality today is that strategic alliances have become a cornerstone of many firms’ competitive strategy.

Please go to the next slide.

5

Strategic Alliances, continued

The three major types of strategic alliances include joint venture, equity strategic alliance, and nonequity strategic alliance.

A joint venture is a strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities to develop a competitive advantage. Joint ventures, which are often formed to improve firms’ abilities to compete in uncertain competitive environments, are effective in establishing long-term relationships and in transferring tacit knowledge. Because it can’t be codified, tacit, or implied, knowledge is learned through experiences such as those taking place when people from partner firms work together in a joint venture.

An equity strategic alliance is an alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities to create a competitive advantage. Many foreign direct investments, such as those made by Japanese and U.S. companies in China, are completed through equity strategic alliances.

A nonequity strategic alliance is an alliance in which two or more firms develop a contractual relationship to share some of their unique resources and capabilities to create a competitive advantage. In this type of alliance, firms do not establish a separate independent company and therefore do not take equity positions. For this reason, nonequity strategic alliances are less formal and demand fewer partner commitments than do joint ventures and equity strategic alliances.

Please go to the next slide.

6

Check Your Understanding

7

Business-Level Cooperative Strategy

A firm uses a business-level cooperative strategy to grow and improve its performance in individual product markets. Business-level strategy details what the firm intends to do to gain a competitive advantage in specific product markets. Thus, the firm forms a business-level cooperative strategy when it believes that combining its resources and capabilities with those of one or more partners will create competitive advantages that it can’t create by itself and that will lead to success in a specific product market.

The four business-level cooperative strategies are:

Complementary strategic alliances;

Competition response strategy;

Uncertainty-reducing strategy; and

Competition-reducing strategy.

Please go to the next slide.

8

Business-Level Cooperative Strategy, continued

Complementary strategic alliances are business-level alliances in which firms share some of their resources and capabilities in complementary ways to develop competitive advantages. Vertical and horizontal are the two types of complementary strategic alliances. In a vertical complementary strategic alliance, firms share their resources and capabilities from different stages of the value chain to create a competitive advantage. A horizontal complementary strategic alliance is an alliance in which firms share some of their resources and capabilities from the same stage of the value chain to create a competitive advantage.

Competitors initiate competitive actions to attack rivals and launch competitive responses to their competitor’s actions. Strategic alliances can be used at the business level to respond to competitor’s attacks. Because they can be difficult to reverse and expensive to operate, strategic alliances are primarily formed to take strategic rather than tactical actions and to respond to competitors’ actions in a like manner.

Some firms use business-level strategic alliances to hedge against risk and uncertainty, especially in fast-cycle markets. Also, they are used where uncertainty exists, such as in entering new product markets or emerging economies. In other instances, firms form business-level strategic alliances to reduce the uncertainty associated with developing new products or establishing a technology standard.

Used to reduce competition, collusive strategies differ from strategic alliances in that collusive strategies are often an illegal type of cooperative strategy. Two types of collusive strategies are explicit collusion and tacit collusion. When two or more firms negotiate directly with the intention of jointly agreeing about the amount to produce and the price of the products that are produced, explicit collusion exists. Tacit collusion exists when several firms in an industry indirectly coordinate their production and pricing decisions by observing each other’s competitive actions and responses.

Please to the next slide.

9

Corporate-Level Cooperative Strategy

A firm uses a corporate-level cooperative strategy to help it diversify in terms of products offered or markets served, or both. Diversifying alliances, synergistic alliances, and franchising are the most commonly used corporate-level cooperative strategies.

A diversifying strategic alliance is a corporate-level cooperative strategy in which firms share some of their resources and capabilities to diversify into new product or market areas.

A synergistic strategic alliance is a corporate-level cooperative strategy in which firms share some of their resources and capabilities to create economies of scope. Similar to the business-level horizontal complementary strategic alliance, synergistic strategic alliances create synergy across multiple functions or multiple businesses between partner firms.

Franchising is a corporate-level cooperative strategy in which a firm uses a franchise as a contractual relationship to describe and control the sharing of its resources and capabilities with partners.

Please go to the next slide.

10

International Cooperative Strategy

A cross-border strategic alliance is an international cooperative strategy in which firms with headquarters in different nations decide to combine some of their resources and capabilities to create a competitive advantage. Taking place in virtually all industries, the number of cross-border alliances continues to increase. These alliances too are sometimes formed instead of mergers and acquisitions. Even though cross-border alliances can themselves be complex and hard to manage, they have the potential to help firms use their resources and capabilities to create value in locations outside their home market.

In general, cross-border alliances are more complex and risky than domestic strategic alliances. However, the fact that firms competing internationally tend to outperform domestic-only competitors suggests the importance of learning how to diversify into international markets.

Please go to the next slide.

11

Network Cooperative Strategy

Increasingly, firms use several cooperative strategies. In addition to forming their own alliances with individual companies, a growing number of firms are joining forces in multiple networks. A network cooperative strategy is a cooperative strategy wherein several firms agree to form multiple partnerships to achieve shared objectives.

A network cooperative strategy is particularly effective when it is formed by geographically clustered firms.

Please go to the next slide.

12

Competitive Risks

Stated simply, many cooperative strategies fail. In fact, evidence shows that two-thirds of cooperative strategies have serious problems in their first two years and that as many as seventy percent of them fail.

One cooperative strategy risk is that a partner may act opportunistically. Opportunistic behaviors surface either when formal contracts fail to prevent them or when an alliance is based on a false perception of partner trustworthiness.

Some cooperative strategies fail when it is discovered that a firm has misrepresented the competencies it can bring to the partnership. The risk of competence misrepresentation is more common when the partner’s contribution is grounded in some of its intangible assets.

Another risk is a firm failing to make available to its partners the resources and capabilities that it committed to the cooperative strategy. This risk surfaces most commonly when firms form an international cooperative strategy.

A final risk is that one firm may make investments that are specific to the alliance while its partner does not.

Please go to the next slide.

13

Summary

We have reached the end of this lesson. Let’s take a look at what we have covered.

First, we discussed strategic alliances. The three major types of strategic alliances include joint venture, equity strategic alliance, and nonequity strategic alliance.

Next, we went over cooperative strategies. These include business-level cooperative strategy, corporate-level cooperative strategy, international cooperative strategy, and network cooperative strategy.

We concluded the lesson with a discussion on competitive risks. These include opportunistic behaviors, competence misrepresentation, failing to make available resources and capabilities, and one firm making investments while its partner does not.

This completes this lesson.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Writer Writer Name Offer Chat

Writers are writing their proposals. Just wait here to get the offers for your project...

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

A specimen of aluminum having a rectangular - Honeywell estate agents clitheroe - Francis bacon art gallery nsw - HW - PAPER – SENSITIVITY ANALYSIS – CONSTRUCTION PROJECT MANAGEMENT - Vitamin a has a molar mass of 286.4 - Expressed arguments in the media - Archetypes and Dreams - Systems Operations and Maintenance Practices - Why did juror 3 change his vote - Where is the break even point on a graph - Acute apical periodontitis definition - Executive summary capstone project - Bus 475 week 5 final strategic plan - A roman introduction to private law - Prepare an income statement for delray mfg a manufacturer - Physical asset controls in maritime - Edible blood with corn syrup - Labor Unions - Letter of engagement template - Drdropbox - John tyler testing center - Our ladys prep school - Delta solivia 5.0 inverter price - Is 3 4 bigger than 5 6 - Philosophy of inclusion in special education - A doll's house marriage - Foldable saint andrew's cross plans - A mental framework for understanding or acting on the environment - Rank the following three stocks by their risk return relationship - Things to make and do in the fourth dimension epub - Spring test thoracic spine - Pftop - Common weaknesses in negotiation - Physiology and Pharmacology (Due 24 hours) - Essay about the food and grocery delivery - Daintree rainforest climate graph - Lux 1500 thermostat troubleshooting - The book thief images - Wpc dot gov in - Week 1 Discussion Board - Shoreline stadium case - Star delta starter function - Rotisserie burner won't stay lit - Discussion - Delinquent road hazards da unbeatables - Dynamic vibration absorber application - Waste management dividend growth rate - Best practices for lan domain compliance - CCIS - HIST Term Paper ( TWICE) - How many onto functions are possible - Psych - Chemical equilibrium and le chatelier's principle lab report answers - During market segmentation analysis the marketer identifies - Worksheet - Orange juice concentrate and gasoline - Project data sheet template - 8 page in enterprise Rick Management - Sentence level errors - Amoeba prokaryotic or eukaryotic - Health roster nhs cddft - Four Discussion Responses Needed 100 Words Each 200 Words Total - Hands on labs answers - What does guac mode verified mean chipotle - BUSN235 - The company man ellen goodman thesis statement - How to write an exegesis philosophy - Research paper - Unisa written assignment cover page - _____ is the questionnaire used in fiedler's model to determine leadership orientation. - 8/21 holbrook avenue kirribilli - Discussion 3 - Lsi self development guide online - Which nutrient supplies the most calories per gram - Citadel cerberus automated turret schematics - Cloud Computing-2 - Cuckoo loca vs tweety bird - What gas makes up 78 of the atmosphere - Is a painting a primary source - How to make dns reagent - Compiled a thousand and one arabian nights tea bag diffusion lab reportcompiled a thousand and one arabian nights tea bag diffusion lab report - Exchange rate shifts that cause the sing - What effect does creativity have on society and culture - Interview questions about marriage and family - Vbkd table in sap - Medical terminology quiz with answers pdf - Identify the cost categories in a traditional format income statement - Physical Security - 3/47 palomar parade freshwater - Action linking and helping verbs ppt - Working from heights swms - Roberts v. lanigan auto sales - Dmaic summary - Bpw transpec parts catalog - The pact three doctors full movie - Frozen food business plan sample - 3-5 Page Term Paper - Project manager strengths and weaknesses - Algebra Talk - Silicon valley of india