Examine the web sites of the following strategic alliances, Ask an Expert

Management Studies

Examine the Web sites of the following strategic alliances and determine which of the sources of value presented in Table 9.1 are present:

(a) Dow-Corning (an alliance between Dow Chemical and Corning)

(b) CFM (an alliance between General Electric and SNECMA)

(d) Visa (an alliance among banks in the United States)

(e) The alliance among United, Delta, Singapore Airlines, AeroMexico, Alitalia, and Korean Air

Firgure 9.1

Strategic Alliances:

1) Nonequity Alliance - Cooperation between firms is managed directly through contracts, without cross-equity holdings or an independent firm being created.

2) Equity Alliance - Cooperative contracts are supplemented by equity investments by one partner in the other partner. Sometimes these investments are reciprocated.

3) Joint Venture - Cooperating firms form an independent firm in which they invest. Profits from this independent firm compensate partners for this investment.

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Operation Management, Management Studies

Category:- Operation Management
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