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Exhibit 8.3: The Mixture of Value-Chain Links

Exhibit 8.3: The Mixture of Value-Chain Links

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Choosing a Partner: The Most

Important Choice?

•• Key

Key criteria

criteria for

for picking

picking an

an appropriate

appropriate alliance

alliance partner

partner

•• Seek

Seek strategic

strategic complementarity

complementarity

•• Understand

Understand objectives

objectives and

and seek

seek complementarity

complementarity

•• Pick

Pick aa partner

partner with

with complementary

complementary skills

skills

•• One

One that

that enhances

enhances but

but does

does not

not necessarily

necessarily

duplicate

duplicate an

an alliance

alliance partner’s

partner’s skills

skills



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Criteria for Choosing Partners

•• Seek

Seek out

out companies

companies with

with compatible

compatible management

management

styles

styles

•• Seek

Seek aa partner

partner that

that will

will provide

provide the

the “right”

“right” level

level ofof

mutual

mutual dependency

dependency

•• Avoid

Avoid the

the “anchor”

“anchor” partner

partner

•• Anchor

Anchor partner:

partner: aa partner

partner that

that holds

holds back

back the

the

strategic

strategic alliance

alliance because

because itit cannot

cannot or

or will

will not

not

provide

provide its

its share

share ofof the

the funding

funding

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Criteria for Choosing Partners

(cont.)

•• Be

Be cautious

cautious ofof the

the “elephant-and-ant”

“elephant-and-ant” complex

complex

•• Occurs

Occurs when

when two

two companies

companies are

are greatly

greatly unequal

unequal inin

size

size

•• Assess

Assess operating-policy

operating-policy differences

differences with

with potential

potential

partners

partners

•• Assess

Assess the

the difficulty

difficulty ofof cross-cultural

cross-cultural communication

communication

with

with aa likely

likely partner

partner

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 8.4: International

Strategic Alliances for Small

Multinational Companies



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 8.4: International

Strategic Alliances for Small

Multinational Companies



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 8.3: The Mixture of Value-Chain Links

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