PakkanunW.
Tatchaya C.
Sarocha C.
Phrin R.
4880364
4980459
5080018
5080292
Selecting the Partner
Finding a Partner
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Supplier
Customer
Professional &Trade association
Newspaper & Trade magazine
Seminars & Convention
Internet
Selecting the Partner
Business Partner Selection
 Find a partner that:
 Share your values & vision
 Can bring skills & experience
 Offer resources & credibility
 Financially & functionally stable
 Good business ethics
Selecting the Partner
Qualities in a Partner
 Trust
 Tolerance
 Cooperation
 Commitment
 Mutuality
The Alliance Framework
Step1
Appointing the Planning and Negotiating team
Step2
Achieving internal Consensus
Step3
Approaching Potential Partners: Strategic Fit Assessment
Step4
Conducting Resource Fit Assessment
Step5
Step5
Selecting the
the Partner
Selecting
Partner
Step6
Negotiating an Agreement
The Alliance Framework
Step5
Selecting the Partner
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Which potential partner presents the least trouble some
disagreements in Strategic Assessment Elements (SAEs), to be
resolved in step 6 Final negotiations?
Which potential partner provides the best match of required
resources?
Which potential partner has self-selected itself
into the deal?
The Alliance Framework
Step1
Appointing the Planning and Negotiating team
Step2
Achieving internal Consensus
Step3
Approaching Potential Partners: Strategic Fit Assessment
Step4
Conducting Resource Fit Assessment
Step5
Selecting the Partner
Step6
Negotiating an Agreement
The strategic Fit Reconciliation Map
3 possibilities in dealing with SAE disagreements
1. Agree with the partner’s position
2. Convince the partner to agree to your position
3. Develop a compromise between the two positions
Strategic
Assessment
Element (SAE)
Our Firm’s
Position
Partner 1
Partner 2
Partner 3
Our Objectives
Their Objectives
Our Roles
Strategic Fit Reconciliation Map
Their Roles
Our Overall Resources
Their Overall Resources
Boundaries
Market Model
Strategic Exclusivity
Intersections
Note: Symbol meaning
OK = The partner accepts our position on the SAE.
? = We have a disagreement and are unsure of the resolution.
Pet Food Company
 Alliance to incorporate novel nutrition
ingredients into its pet foods
 Trying to find the best selected partners
between company A and Company B
 The goal: to jointly develop a series of new
products with a biotechnology firm
 Adding the biotechnology firm’s nutritional
ingredients to the pet food company’s existing
product lines and distribute the improved
products through its distribution
Following Step 3: Strategic Fit Assessment
The Pet Food Company
• Objectives: “The pet food
firm will establish and
maintain its reputation for
innovation through sole
branding of any jointly
developed product.”
• Market Model: “The
customers will see the pet
food company brand, not
the biotechnology
company’s brand, on the
product.”
Company A
• Market Model:
“Any jointly developed product
will be cobranded.”
Following Step 3: Strategic Fit Assessment
The Pet
pet Food
food company
The
Company
• Strategic Exclusivity
Element: “The pet food
firm will have global,
perpetual, and sole rights to
use the partner’s novel
nutrients in pet food.”
Company
B B
Company
• Strategic Exclusivity
Element: “Company B will
give the pet food firm a oneyear exclusive right to use
the nutrient, after which
company B will be free to
provide licenses to others.”
Strategic Fit Reconciliation Map
for Pet Food Alliance after Step 3
SAE
Pet Food
Company
Position
Our Objectives Sole brand
Company
A
Market Model
Sole brand
Strategic
Exclusivity
Exclusive
rights
?
(cobranded)
OK
Company
B
Strategic Fit Reconciliation Map
?
OK
(cobranded)
for Pet Food Alliance
after Step 3
OK = The partner accepts our position on the SAE.
? = We have a disagreement and unsure of the resolution.
OK
? (one-year
head start)
Resolving the Disagreements
Looping back to the our objectives
statements of step2 and other relevant
elements.
Challenged the original thinking with
the new information.
For example, Is sole branding
necessary?
Can the pet food company label the
products as “jointly developed with
company A” and still achieve its
marketplace objective?
Will a one-year head start allow the
pet food firm to establish a strong
enough foothold in the marketplace to
fend off the competition?
Step1
Appointing the Planning and Negotiating team
Step2
Achieving internal Consensus
Step3
Approaching Potential Partners: Strategic Fit Assessment
Step4
Conducting Resource Fit Assessment
Step5
Selecting the Partner
Step6
Negotiating an Agreement
Strategic fit Reconciliation Map for Pet Food
Alliance after loop-back through step 2
SAE
Pet Food
Company
Position
Company A
Company B
Our Objectives
Sole brand
•
OK
Market Model
Sole brand
•
OK
OK
X
Strategic Exclusivity Exclusive rights
OK = The partner accepts our position on the SAE.
• = We have a disagreement, but the partner’s position is acceptable to us.
X = We have a disagreement and cannot accept the partner’s position.
Resource Fit Reconciliation Map
Key Resource
Company
A
Company
B
Ability to contribute
to joint development
of products based on
preexisting nutrients
OK
OK+
Ability to provide
technical support for
jointly developed
products
OK
OK
Ability to develop
future nutrients
OK+
OK+
OK+ = The partner’s resources are outstanding and complementary to ours.
OK = The partner’s resources are satisfactory and complementary to ours.
Self selection:
Selecting
the Partner
Intangible factor in partner selection
 When a firm’s people self selected themselves into the deal,
the energy comes from self-motivation is tangible and
translates into positive alliance results.
 “Self-motivation is critical to success. How did you assess
the self-motivation of the partner in your last alliance”
Selecting the Partner
The Multiple Partner Option
 Sometimes, there are more choices
qualified for alliance framework
 Step 2,3 and 4 negotiation can create
multiple relationships with many
companies.
 As the result Batelle’s MicroCats
Alliance
Tip
for completing
Selecting
the Partner
step 5 in alliance framework
Step1
Appointing the Planning and Negotiating team
 Use strategic fit reconciliation map
Step2
Achieving internal Consensus
Step3
Approaching Potential Partners: Strategic Fit Assessment
Step4
Conducting Resource Fit Assessment
Step5
Selecting the Partner
Step6
Negotiating an Agreement

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

and resource fit reconciliation map
to compare result of step 3 and 4
among potential partners
Include motivation assessment as a
partner selection area
Loop back to step 2 to reassess your
position in light of new information
Select the best partner or moving
ahead to step 6
Look back to step 3 and 4 for
possible interpartner conflicts before
step up to step 6