Global Strategic Alliance (GSA), Infrastructure and Control: Argentina YBF and Sunoco
Prepare a paper describing the structure, implementation, and impact of a global strategic alliance. Please answer the following problems:
Exposition a priori for the IP:
There are two multinational corporations: Sun Oil Corporation (SUNOCO,) based in New Jersey, USA, and YPF Sociedad Anomina, based in Argentina. Sunoco refines, finds, and exploits deposits of petroleum called heavy crude. They make petroleum into marine fuels, coke, and lubricants. YBF is an Argentinean company that specializes in the exploration and exploitation of crude oil, natural gas, and liquefied petroleum gas in inhospitable regions.
Recently, the Argentinean government lent out exploration rights of Isla de Los Estados (an island 20 km East of Tierra del Fuego) to bid. A cursory survey done in the early 1960's stated that there was a 75% likelihood of substantial store of liquefied petroleum gas cached under the permafrost of the island. Sunoco wants to go find out how much liquefied petroleum gas is there.
However, the Argentine government requires all foreign-based corporations 'take on' an Argentinean-based partner.
A. How will you structure the global strategic alliance (GSA?) Will it be a joint venture (which one,) R&D Consortium with additional partners, et al.?
1) What are the characteristics of the GSA structure that you chose?
2) What are the core competencies, strategic advantages, skills, etc. that Sunoco brings to the GSA? Describe three skills, core competencies, and/or strategic advantages that Sunoco has that will increase the likelihood that the GSA will survive?
3) What does each of the partners hope to gain from the GSA? Other than a successful exploration of Isla de los Estados, what does YBF want out of the partnership as opposed to Sunoco?
a. Describe the objectives of this GSA from the standpoint of either YBF or Sunoco.
b. How will YBF or Sunoco achieve these objectives?
B. One of the major challenges facing any GSA is the differences between the partners in strategic vision and objectives. If you were to be made the senior manager for the GSA, describe the controls that you would put in place or steps you would take to minimize those differences.
1) Choose three control mechanisms, and describe how you would implement them.
2) Determine to what extent these three management control mechanisms will actually control the GSA.
3) Forecast briefly any problems or issues that could arise from implementation of these three control mechanisms.