Strategic alliance and cooperative partnerships provide one way to gain some of the benefits…

Strategic alliance and cooperative partnerships provide one way to gain some of the benefits

offered by vertical integration, outsourcing and horizontal mergers and acquisitions while

minimizing the associated problems, it is a formal agreement between two or more separate

companies in which they agree to work collaboratively towards some strategically relevant

objectives. E.g.

? The Delta Airlines/Northwest Airlines merger

? Shell oil company and Pemex (Mexico’s state-owned petroleum company)

? Renault-Nissan-Mitsubishi Alliance

1. Determine how to capture the benefits and minimize the drawbacks of strategic

alliances and partnership to extend the scope of operations via international expansion

and diversification strategies.

2. Discuss the role of centralized and decentralized decision making in striking the right

balance between rewards and punishment in an ethical and unethical strategic alliance?

3. Identify the key features of a company’s corporate culture that can influence the

merger and acquisition?

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