ALLIANCES Alliance: Agreement between two or more companies to work together

1. Advantages of alliances 2. Types of alliances 1. Advantages of alliances: - companies can share resources - create additional advantages and - lead to increased market share and greater competitiveness - increate shareholder value. 2. Types of alliances: - Corporate partnerships -Merger -Acquisition

1. When two or more companies co-operate on one particular project or mission CORPORATE PARTNERSHIPS 2. When two or more companies join together to create a single large company MERGER When one company buys another company or parts of another company ACQUISITION 4. What stocks in a public company are worth SHAREHOLDER VALUE 5. The ability to compete COMPETITIVENESS # COMPETITION 6. An offer to buy something BID

The largest media & entertainment company The leading resource of high – quality cars The famous producer of coffee, beverages and fresh food The globally leading producer of premium passenger cars The world leader in convenient snacks, foods and beverages The independent film producer and distributor

Pre-listening: F…………(4) the problem: deal with a problem G……..(3) off to a bad start: start doing something in a difficult way Corporate c……………..(7): the attitudes or beliefs that are shared by a particular organization 1st listening: Listen for the alliances of the companies and identify which alliances succeeded and which alliances failed. 2nd listening: listen and answer the three questions *1. Starbucks wanted to get into bottled drinks and Pepsico wanted to create an innovative product

* Chrysler and Daimler both felt they couldn’t face the competition alone * Miramax needed money and Disney liked the serious image of Miramax. 2. Starbucks –Pepsico succeeded because the merger gave both of them what they wanted. Daimler- Chrysler succeeded in the end, despite their different corporate cultures because they worked hard to sort out differences and problems. 3. Disney-Miramax failed as they were very different and couldn’t find anything in common. * Post-listening: Discuss key factors to enable a successful merger.

Key Factors for Successful Mergers 1. ………………..of the new strategic objectives of the new vision of mergers. 2. Implementation of a new shared culture and ……………………….culture. 3. Development of a new management structure for the new, larger organization, especially overcoming leadership…………………..in very large units. 4. Overcoming language…………………..and country specific cultural differences. Communication management problems barriers

Key Factors for Successful Mergers 5. Filling of management …………………….. 6. Allocation of ……………………….. 7. Knowledge…………………..among units that are to be integrated 8. Maintenance of customer………………………during the integration phase. positions responsibilities transfer relationship

Bears and bats usually hibernate during the winter , therefore you cannot see them. Mothers have animal spirits to protect their children when they are attacked. I’ll do my best to find a good job after graduation – that’s my target. Companies are on the prowl for cheap labor costs to save as much money as they can. It is imperative that the manager talks to him about his repeated lateness to work. You should keep away from tigers, lions, or crocodiles as they are predators. The Walt Disney company is the largest and entertainment conglomerate

Listening 2: Listen and decide if the following statements are true (T) or false (F): 1. The company made a lot of profit in 2002. 2. The company saw an opportunity of an alliance when Wireless Ltd approached them with the acquisition deal. 3. The company had problems of integration with Wireless because of different cultures. 4. The company did their best and overcame all the problems to cooperate with Wireless successfully. 5. By the end of 2004 they managed to borrow money from a bank 6. They started to operate independently. 7. The speaker was happy to receive the company award.

1. The company made a lot of profit in 2002. False – lose a lot of money 2. The company saw an opportunity of an alliance when Wireless Ltd approached them with the acquisition deal. True 3. The company had problems of integration with Wireless because of different cultures. True 4. The company did their best and overcame all the problems to cooperate with Wireless successfully. It was a difficult time so they decided they didn’t want an alliance any more 5. By the end of 2004 they managed to borrow money from a bank True 6. They started to operate independently. True 7. The speaker was happy to receive the company award. True

1. a way of doing something A A P P H C O R APPROACH 2. something that is made to be sold P T R O C U D PRODUCT 3. the act of giving information between people C C M M I I O O N N U T A COMMUNICATION 4. when a group of people work together T G N I K R O W M E A TEAMWORKING 5. the way two people or groups feel and behave to each other R I I E A L T O N S H P RELATIONSHIP

4 REASONS WHY THE MERGER FAILED Different approaches to sales and marketing Very different products Different methods of team working Didn’t manage to build a relationship