Strategic Alliance

United Steelworkers - Strategic alliances 1 (July 2006) In July 2007, the USW inked yet another strategic alliance with the Canadian Region of the Communications Workers of America., USW, July 17,

Strategic alliance 1 A 'strategic alliance' is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This form of cooperation lies between Mergers Acquisition MA and organic growth.

Strategic alliance 1 Silverman, Strategic Alliances and Interfirm Knowledge Transfer (1996) Strategic Management Journal, Vol

Strategic alliance - Terminology 1 Various terms have been used to describe forms of strategic partnering. These include ‘international coalitions’ (Porter and Fuller, 1986), ‘strategic networks’ (Jarillo, 1988) and, most commonly, ‘strategic alliances’. Definitions are equally varied. An alliance may be seen as the ‘joining of forces and resources, for a specified or indefinite period, to achieve a common objective’.

Strategic alliance - Typology 1 One typology of strategic alliances conceptualizes them as horizontal, vertical or inter-sectoral:Besanko, D., Dranove, D., Shanley, M., Schaefer, S. (2013). Economics of Strategy. 6th edition, Hoboken, NJ: Wiley, p

Strategic alliance - Typology 1 * Horizontal strategic alliance: Strategic alliance characterized by the collaboration between two or more firms in the same industry, e.g. the partnership between Sina Corp and Yahoo in order to offer online auction services in China;

Strategic alliance - Typology 1 * Vertical strategic alliances: Strategic alliance characterized by the collaboration between two or more firms along the supply chain|vertical chain, e.g. Caterpillar's provision of manufacturing services to Land Rover;

Strategic alliance - Typology 1 * Intersectoral strategic alliances: Strategic alliance characterized by the collaboration between two or more firms neither in the same industry nor related through the vertical chain, e.g. the cooperation of Toys R Us with McDonald's in Japan resulting in Toys R Us stores with built-in McDonald's restaurants.

Strategic alliance - Typology 1 Another typology distinguishes between four forms of strategic alliances: joint venture, equity strategic alliance, non- equity strategic alliance, and global strategic alliances:

Strategic alliance - Typology 1 * 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.

Strategic alliance - Typology 1 * 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.

Strategic alliance - Typology 1 * Non-equity 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.

Strategic alliance - Typology 1 * Global Strategic Alliances working partnerships between companies (often more than two) across national boundaries and increasingly across industries, sometimes formed between company and a foreign government, or among companies and governments.

Strategic alliance - Advantages 1 The advantages of forming a strategic alliance include:

Strategic alliance - Disadvantages 1 * Agency costs: As the benefit of monitoring the alliance's activities effectively is not fully captured by any firm, a free rider problem arises (the free rider problem seems to be less pronounced in settings with multiple strategic alliances due to reputational effects).

Strategic alliance - Disadvantages 1 * Influence costs because of the absence of a formal hierarchy and administration within the strategic alliance.

Strategic alliance - Strategy Development 1 Features common to transactions that are natural candidates for strategic alliances are:

Chartered Institute of Management Accountants - Strategic alliances 1 CIMA members have access to a number of strategic alliances, including:

Chartered Institute of Management Accountants - Strategic alliances 1 * A strategic alliance with the Institute of Chartered Accountants of Australia[ com.au/A ICA-Australia alliance]

Chartered Institute of Management Accountants - Strategic alliances 1 * Strategic Alliance with the Institute of Cost and Management Accountants of Pakistan (ICMAP)

Third party logistics - Problem areas of the practical implementation of a strategic alliance 1 *Managers and employees have to understand the necessity of the change that goes hand in hand with the strategic alliance. Only with acceptance there will be encouragement and a successfully alliance

Third party logistics - Problem areas of the practical implementation of a strategic alliance 1 *Realistic expectations: a strategic alliance needs often half a year or more to work nearly like it should

Third party logistics - Problem areas of the practical implementation of a strategic alliance 1 *If possible, the implementation of a strategic alliance should be the main duty of a few people. By an implementation by the way the quality of the alliance suffersall problem areas compare:Arno Heck,Strategische Allianzen Erfolg durch professionelle Umsetzung, Springer Verlag Berlin/Heidelberg, 1999,pages:

Arrow Air - Arrow Cargo's strategic alliance 1 In March 2008, Arrow announced that it entered into a strategic alliance with the firm known as MatlinPatterson Global Opportunities, a private equity investment fund which formerly controlled the Brazilian company Varig Log along with the rebranded ATA Holdings (the parent company of ATA Airlines) which has now been renamed Global Aviation Holdings

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