Alliances and Networks Flashcards
(18 cards)
What are the characteristics of a Virtual Network?
Low volatility, collaborative
What are the characteristics of a Flexible Network?
High volatility, collaborative.
Low volatility
a stable environment where changes happen slowly or predictably.
High volatility
a fast-changing, unpredictable environment with frequent disruptions or shifts.
What are the characteristics of a Value-Added Network?
Low volatility, transactional.
What are the characteristics of a Hollow Network?
High volatility, transactional.
What are Internal Market Networks (Achrol)?
Networks within a single organisation (e.g. Procter & Gamble linking R&D, marketing, and supply chain).
What are Vertical Market Networks (Achrol)?
Organisations at different levels of the value chain (e.g. Apple, car manufacturing supply chains).
What are Inter-Market Concentric Networks (Achrol)?
Connect related markets to create synergy (e.g. Google with hardware manufacturers).
What are Opportunity Networks (Achrol)?
Temporary collaborations to seize market opportunities (e.g. SpaceX + NASA).
What is a Merger?
A mutually agreed joint ownership between organisations.
What is an Acquisition?
One organisation takes ownership of another.
What are common motives for mergers and acquisitions?
Speed of entry, competitive pressure, consolidation, financial market access, capabilities, stakeholder expectations.
Key challenges in making acquisitions work?
Adding value, middle manager buy-in, synergy failures, cultural fit issues.
What is a Strategic Alliance?
Two or more organisations share resources and activities to pursue a strategy.
Motives for forming strategic alliances?
Achieving critical mass, co-specialisation, learning.
Key ingredients for a successful strategic alliance?
Clear strategic purpose, aligned expectations and benefits, effective relationship management.
What determines strategic alliance performance?
Strategic alignment, trust, communication, and shared goals.
