week 9 Flashcards
(11 cards)
What are the four types of networks described by Cravens & Piercy (1994)?
- Virtual Network – Low volatility, collaborative (e.g., Star Alliance)
2. Flexible Network – High volatility, collaborative (e.g., AWS + startups) 3. Value-Added Network – Low volatility, transactional (e.g., Toyota suppliers) 4. Hollow Network – High volatility, transactional (e.g., Nike outsourcing)
What are Achrol’s four types of networks?
- Internal Market – Within one organisation (e.g., P&G departments)
2. Vertical Market – Across the supply chain (e.g., Apple + Foxconn) 3. Inter-Market (Concentric) – Across related industries (e.g., Google + Samsung) 4. Opportunity Networks – Temporary, goal-specific (e.g., SpaceX + NASA)
What is the difference between a merger and an acquisition?
- Merger: Mutual agreement to combine ownership
* Acquisition: One firm takes control of another
What are six motives for mergers and acquisitions?
- Speed of market entry
2. Response to competition 3. Market consolidation 4. Financial strategy 5. Gaining capabilities 6. Meeting stakeholder expectations
What are the challenges in making acquisitions work?
- Cultural integration issues
* Failure to realise synergies * Lack of middle management buy-in * Poor strategic fit
What is a strategic alliance?
A partnership where firms share resources and activities to pursue strategic goals without full ownership.
What are key motives for forming strategic alliances?
- Gaining critical mass
* Achieving co-specialisation * Promoting organisational learning
What are six types of strategic alliances and examples of each?
- Joint Venture – Sony Ericsson
2. Consortium – Airbus 3. Network – Starbucks supply chain 4. Franchising – McDonald’s 5. Licensing – Disney merchandise 6. Sub-contracting – Apple + Foxconn
Why do strategic alliances often fail?
- Misaligned goals
* Cultural mismatches * Poor communication * Ineffective governance * A study found less than 50% of MNCs were satisfied with their alliances
What are three ingredients of successful alliances?
- Clear strategic purpose
2. Defined expectations and benefits 3. Strong relationship management
How can firms measure strategic alliance performance?
- Using the Balanced Scorecard (Kaplan & Norton, 1992)
* Includes financial and non-financial metrics * Helps align performance with strategic objectives