Deresky Chapter 6:
Formulating Strategy
Repetition
Figures only
Strategic Formulation Process
Strategic Decision-Making
Models
Strategic Choice
Strategic Choice
Repetition:
Chapter 7:
Global Alliances and
Strategy Implementation
PowerPoint by
Hettie A. Richardson
Louisiana State University
Strategic Alliances
 Partnerships between two or more firms that
combine financial, managerial, and
technological resources and their distinctive
competitive advantages to pursue mutual
goals
 Also referred to as cooperative strategies
Categories of Alliances
 Joint Ventures
 PSA Peugeot-Citroen Group and Toyota
 Equity strategic alliances
 TCL-Thompson Electronics
 Non-equity strategic alliances
 UPS and Nike
 Global strategic alliances
 Covisint
Motivations and Benefits of Global
and Cross-Border Alliances
 To avoid import barriers, licensing requirements,
and other protectionist legislation
 To share costs of research and development
Toshiba
 To gain access to markets that favor domestic
companies
 To reduce political risk
 To gain rapid entry into a new or consolidating
industry

Challenges in Implementing
Global Alliances
 Many alliances fail or end up in takeover
 Choosing the right form of governance
 The benefits of cooperation vs. the dangers
of new competition
Guidelines for Successful
Alliances
 Choose a partner with compatible strategic
goals and objectives
 Seek complementary skills, products, and
markets
 Work out how each partner will deal with
proprietary knowledge or competitively
sensitive information
 Recognize that most alliances only last a few
years
Knowledge Management in IJVs
Repetition:
Chapter 8:
Organization Structure and
Control Systems
PowerPoint by
Hettie A. Richardson
Louisiana State University
Organizational Structure
 Must evolve to accommodate
internationalization
 Must “fit” with strategy
 Should be contingency based
The Thinking of How to Change Structures
Differentiation
Dividing the main task into sub tasks
Integration
Differentiation takes place in the functions.
– The more you differentiate – The more
pressure you will se for integration
Coordinating the performance
of the sub tasks, to assure that
the goal af the main task will be
obtained
Typically a function for
managers / leaders
The Circle of Formalization
Differentiation
Integration
The Problem is to find
the balance, that will minimize
the complexity of the organization
”After the task has been divided into specialist subtasks, the problem is to
integrate the subtasks around the completion of the global task. This is the
problem of organization design.”
Jay Galbraith (1974), Organization Design – An Information Processing View
Choice of Organizational Form
Exhibit 8-7
Transnational
Strategy
Globalization
Strategy
International
Strategy
Multidomestic
Strategy