...1. A strategic alliance is not only confined by raw materials and components but it also deal with technology and management approach. For example, company “A” manufactures a product in Bangladesh and desire to sell their products in the United States. And company “B” has worldwide distribution channel and want to expand the same product that the company “A” made. That means companies “A” and “B” establish together a strategic alliance to expand their production. Strategic alliance known as two and more companies join the work force, resources, and core competences to achieve a common objective. Firms set up a common insight, collaboration among the firms such as complementary technologies, risk sharing, cost reduction, and market development through a strategic alliance to produce better outcomes. 2. As stated by this article only 50% is the rate of success of joint ventures. Moreover, authors mentioned that “according to a recent study by McKinsey & Company, which found that only half of all joint ventures yield returns to each partner above the cost of capital.” The explanation of collapse of alliance is mention as follow. First, the most significant explanation is that the alliance manager are “traditionally organized and managed.” Diverse business structure and culture trigger alteration in manager approach among the company leader. Second, if the operational performance benchmarks turn out to be outdated that will have an effect on top manager’s resolution. For instance...
Words: 812 - Pages: 4
...What are some of the challenges associated with managing alliances? How do host governments affect these? One of the biggest challenges in managing alliances is the cultural dimension. Differences in culture can cause huge issues in alliances, and also in working with foreign partners. Cultural differences can cause misinterpretation, lack of valuable communication and also confusion in the partnership. Differences in the cultural dimension have plagued alliances for years, and should be looked at carefully before a MNC ventures into one. One partner may have high uncertainty avoidance while another may have low uncertainty avoidance. This definitely impacts the way management deals with certain situations, and can become a tug-of-war. Host governments have a substantial role in how and when alliances are formed and also terminated. Many host governments require alliance, and can even affect dissolution of the alliance by making it difficult for the partner to sell their share. They can also block repatriation of the foreign partner’s investments in the alliance. This is why it is so important for MNC’s to do extensive research, and understand the risk level before joining into an alliance. Cultural differences can be a huge deal breaker. Like you said, it can cause misinterpretation. Misinterpretation can change situations quickly and make other countries think differently of the company. It can simply be a logo or slogan than is interpreted differently in the host country...
Words: 596 - Pages: 3
...for forging strategic alliance Despite the inherent risks, it is often necessary for firms, because of their lack of necessary resources, to forge strategic alliances with other firms for acquiring complementary skills. Before establishing a formal relationship with other enterprises, an enterprise must realize its motivations and priorities. four motivations with different orientations: 1. Strategy-oriented. Enterprises forge alliance for strategic objectives such as maximizing the profit and possible cooperation. Tactic practices are increasing the market share, stepping up the pace of employee exchange, shortening the time for technological development and new products to enter market, and preventing vicious competition from competitors. 2. Cost-oriented. Another motivation behind forging an alliance is to reduce cost. To share the cost for developing a technology and avoid duplicating investment, to reduce the cost for searching the necessary information, to reduce the risk of R&D, and to cooperate with governmental organizations for tax policy are the common considerations for this motivation. 3. Resource-oriented. The availability of critical resources is the third motivation for establishing an alliance. To exchange the critical equipment and technologies with the alliance partner for reducing the risk of R&D, and to make use of the marketing channels of the partner will bring benefits to the participants of the alliance. 4. Learning-oriented...
Words: 1107 - Pages: 5
...Toyota Organizational Structure In Toyota, the importance decisions have to come from Toyota Motor Corporation in Japan. From Chart-1 we can see that TMC has a three-tier executive system with executive vice president, chief officer (senior managing director) and managing officers responsible for group of affair(2) It's a design that put key decision making in the hands of executive in Japan and ultimately impaired its ability to prevent the now-burgeoning safety problems before they reached the crisis state(3) We can explain Toyota Organization as follow; 1) Centralization is a degree to which decision makings take place at upper levels of the organization. In Toyota, the executives at the top of the hierarchy retain the authority to make importance decision 2) Departmentalization Toyota uses many kind of departmentalization to group the job tasks. There are - Functional Departmentalization Grouping activities by functions performed such as in the TMC Structure, there are accounting, purchasing, corporate planning and quality department, etc. - Product Departmentalization Focuses attention on major product areas in the corporation. In TMC Structure, there are the Motor Sports Department, Lexus and Scion. - Geographic Departmentalization Grouping activities on the basis of geography or territory. Such as Japan Sales department and overseas department in Toyota. - Cross-functional teams are the team made up of various departments and that cross traditional department...
Words: 708 - Pages: 3
...services Founded 1996 Headquarters New York City, United States Key people Euan Rellie, Senior Managing Director Charles Maynard, Senior Managing Director Products Investment Banking Employees 70 (2012) Website www.bdallc.com Business Development Asia LLC, or BDA, is an investment banking firm that advises on cross-border M&A (mergers and acquisitions), distressed situations, private placements, capital raising, valuations and financial restructurings. The company provides advisory services on crossborder transactions involving Asia, including the Middle East, typically with transaction values between $20 million and $1 billion. The company is headquartered in New York with offices in Tokyo, Seoul, Shanghai, Beijing, Hong Kong, Mumbai, Bahrain, and London. BDA has seven partners and 70 full-time professional staff across its nine offices, supplemented by a team of senior advisors around the world. BDA advertises itself as the "leading independent pan-Asian M&A advisory firm". Contents [hide] 1 History 2 Awards and Recognition 3 Sector experience 4 References [edit]History BDA was founded by Euan Rellie and Charles Maynard in 1996. Andrew Huntley joined BDA as its third partner in 1998. The three of them still run the firm. BDA is headquartered in New York City, with eight further offices in Hong Kong, London, Mumbai, Seoul, Beijing, Shanghai, Tokyo and Bahrain. Managing Directors include Paul DiGiacomo, Jeffrey Wang, Mark Webster, and Jeff Acton. Each of these bankers...
Words: 739 - Pages: 3
...Lec 6: Ch 10 (the role of company directors and other officers and the means by which they are appointed and removed); main focus is on the directors * ‘officer’ and ‘director’ definition- s9, p200 (Morley v ASIC). * ‘director’- a) appointed director regardless of the name given to their position; b) not validly appointed director but acts in position or; c) not validly appointed but the directors of the company are accustomed to act in accordance with the person’s instructions and wishes; person in a) OR b) is de facto director, within c) is a shadow director * Statutory duties, including the duty to act with reasonable care and diligence and the duty to act in the best interests of the company * Statutory requirement for all companies to have at least one director; PTY company must have at least one, with one ordinarily residing in Australia (s201A(1)); public companies must have at least 3, with at least 2 in Aus (s201A(2)) * Directors’ role: manage or supervise the management; for companies that rely on the replaceable rules as their internal governance rules, s198A provides that “the business of a company is to be managed by or under the direction of the directors’” * Company secretary: public companies must have at least one company secretary (s204A(2)) be 18yo and have at least one residing in Aus; PTY company may have one but is not required to appoint one (s204A(1)); secretary is appointed by directors; responsibilities include record-keeping...
Words: 6745 - Pages: 27
...[pic] MGMT 436 Strategic Management Activity 2.4 – Assignment: Analyze Board of Directors NUR ANISAH AFIQAH BTE ABDUL AZIZ #2401198 |Board of Directors | | |Executive Chairman |Mr Lim Hock Eng | |Chief Executive Officer |Mr Lim Hock Chee | |Managing Director |Mr Lim Hock Leng | |Executive Director |Mr Tan Ling San | |Lead Independent Director |Mr Goh Yeow Tin | |Independent Director |Mr Jong Voon Hoo | |Independent Director |Mr Francis Lee Fook Wah | |Non-Executive Director |Mr Lee Teck Leng, Robson | [pic] Sheng Siong Group Limited Board of Directors [pic] |Background |Employed...
Words: 758 - Pages: 4
...Lufthansa: Going global, but how to manage Complexity? Lufthansa is the leading, probably pivotal, member of the largest alliance, the Star Alliance. If globalisation means complexity, alliances are even more complex to manage than individual companies because they lack the hierarchical conflict resolution mechanisms that individual companies can employ. Important questions to Lufthansa: * Is the current strategy sufficient to maintain Lufthansa’s position as one of the few profitable airline companies, given the uncertainties and dynamics in the highly competitive but cyclical market? * Has Lufthansa done enough to reduce complexity in the right places and survive the competition, especially against the background of customer satisfaction and high value added? * Are all the employees in the corporation embraced culturally? * Is Lufthansa prepared for the sustainability challenges – in particular global warming – which create new uncertainties? Surviving the changes in the airline industry In 1992, due to the first war in Iraq, Lufthansa was close to bankruptcy just like other airlines as international air traffic has been reduced. Therefore Lufthansa has offered point-to-point connections on high traffic density routes. Also they targeted the business class passengers with new offerings such as Virgin Airlines. From the early 1990’s a minimum of 3% reduction in cost was needed every year and likely to continue. The economic and political events had a negative...
Words: 379 - Pages: 2
...Business, Kabarak University Department of Mathematics and Business Studies, Laikipia University College *Corresponding author address: P.O. Box 20157 Kabarak University Nakuru, Kenya. e-mail: mabudho@gmail.com, Tel: 0724690140 Abstract The increased interconnectivity within the global airline markets has marked the airline with dynamism from both its external environment and internal operations. This paper reviews how the highly sensitive industry is faced by the challenge of product innovation by suppliers, fragile reputation powerful customers, intense competition from strategic alliances & bankruptcy protection and increased costs of labour, fuel and security measures. The review further identifies the Key Success Factors (KSFs) in the global airline industry in relation to the challenges that carriers face. These strategic factors include structure, culture, strategic alliances, planning and forecasting, technology, marketing and branding and outsourcing. 1. Introduction The global airline industry operates in service industry complexities within a highly turbulent environment. Keynes (2009) states how the sector has gone through a drastic change on both the supply and the demand side. Unlike other industry airlines are subject to rapid change from customer expectations, competitor moves, supplier developments, government regulations and employee dynamics. Bissessur and Alamdari (1998) state that with increased liberalization in major airline transport...
Words: 3707 - Pages: 15
...Boss Magazine, September 14, 2001, p. 52. The strategic alliance is redefining competition in the new networked economy. But to make the most of collaboration, you need to pay attention to age-old issues like trust. It took Siebel Systems six years to rise from start-up to star. By 2000 the software company was raking in $US1.8 billion annual revenues and ranked third on Fortune's 100 fastest growing companies list. This status came from forging alliances where it made sense and where it could. Siebel, founded in 1993, was early to market with e-business software, but being first wasn't enough. Siebel needed to fight off rival start-ups by developing critical mass fast; and that demanded the support of seasoned partners to help break into international corporate accounts. Today the company refers to its web of alliances with hardware companies, software companies, consulting firms and service providers as a "partner ecosystem". Siebel's is not an entirely benign ecosystem, though; it is inhabited by some of the most dangerous corporate predators in the IT sector - companies such as Microsoft, Cisco, Compaq and IBM. These are companies that compete and yet collaborate, and even while they collaborate they compete. Siebel's ecosystem is the tense model with which millennial management will have to come to grips. Dean Blomson, vice-president of consulting firm Cap Gemini Ernst & Young, says mergers and alliances in the networked economy are "the structural response to...
Words: 2251 - Pages: 10
...company had been looking for a partner that would contribute cash and marketing expertise in exchange for a share of profits in a joint venture. Genzyme had revenues of $518 million in 1996, and had grown rapidly through the innovative use of joint ventures and alliances. In addition to the benefit of increasing earnings through the sale of RenaGel, the joint venture would represent an excellent fit for Genzyme’s specialty therapeutics and allow the firm to tap new markets. Also, building a strong partnership with GelTex might enable Genzyme to strike the same kind of deal for GelTex’s second product, CholestaGel, which was targeting a much larger segment, the multibillion-dollar market of anticholesterol drugs. Overall, the joint venture was very attractive for Genzyme which would lead the firm in capturing a larger market share and capitalizing on the synergies associated with this venture. A joint venture is a partnership between two or more companies which is usually for strategic reasons or to combine capabilities which is beyond the realm of each individual company. On the other hand, an acquisition involves one company buying a controlling interest in the securities of another company and therefore managing both companies with one management team. An acquisition/merger is useful when two firms wish to become fully integrated when they have enough commonality that they can perform most of their business/operations together. A joint venture concentrates on a specific...
Words: 741 - Pages: 3
...NON EXECUTIVE DIRECTORS A member of a company's board of directors who is not part of the executive team. A non-executive director (NED) typically does not engage in the day-to-day management of the organization, but is involved in policy making and planning exercises. In addition, non-executive directors' responsibilities include the monitoring of the executive directors, and to act in the interest of any stakeholders. Also called external director, independent director and outside director. ROLE OF NON EXECUTIVE DIRECTORS * Provide objective and independent advice to the Board to enable it to make better decisions in the interest of all shareholders * Bring a genuine independent perspective to enhance decision making * Provide value added input to strategy and strategic development * Act in the best interests of the company as a whole rather than any one particular group of shareholders * Assist in carrying out the duties of the Board, such as: * reviewing, approving and on-going monitoring of the strategic plan * reviewing organizational capability in relation to stated objectives * reviewing financial performance against targets * raising capital * reviewing any major changes in the company, such as financial and organization structure * providing advice on major investments/divestments to be made * monitoring legal, ethical, risk and environmental compliance where appropriate * Act as a catalyst for change...
Words: 727 - Pages: 3
...hours of rework. It would have a difficult and time consuming task for the people who volunteer for. Rodderick Cage: my workload had doubled since Lou Chan went on paternity leave. Rebecca Spalding: my workload was now the heaviest since the system changed. Phil Bosevic(missed out the recent promotion): I was understaffed and could not take on any new work. Wasim Shan: I had only on the job for weeks and will be transferred in net fortnight. Merilyn Hue: I was going on special leave next week that had been approved. After everyone replied. Chris spoke to Phil pleasantly: I’d appreciate it if you would complete the data for the project and………… Phil suddenly ran out of the room. Scene 2 Managing director’s office Chris rushed down the hall into managing director’s office, slammed the door and glared at Dr Cora Harvey. Chris: none of them would help me! Can you believe it? Chris : I had to direct Phil to do it!. Cora: If I were you Chris…….. Phone rung! Cora signaled to Chris to leave the room, but as Chris walked out, he started to shout: Sort it out chris and get that damn project finished. I do not care how you do it! Just do it! Why do you think we pay you your hefty salary? Chris: if I have to, I will do it myself and the there...
Words: 359 - Pages: 2
...| IOICORP | KLK | a. The no. of board of directors in the company | 9 directors | 8 Directors | b. How many are independent, executive and non-executive directors | * 4 Executive directors * 5 Independent Non-executive directors | * 2 Executive directors * 5IndependentNon-executive directors * 1Non-Independent Non-Executive director | c. The gender of the board member –male of female | All board members are male | All board members are male | d. The qualification of the board member | Tan Sri Dato’ Lee Shin Cheng(Executive Chairman) * Tan Sri was conferred the Honorary Doctorate Degree in Agriculture by University Putra Malaysia. * Tan Sri was conferred the Fellowship of the Incorporated Society of Planters by Malaysia’s ISP. * Tan Sri was conferred Honorary Fellowship of the Malaysian Oil Scientists’ and Technologists’ Association. * Tan Sri is currently a Council Member of the East Coast Economic Region Development Council.Dato’ Lee Yeow Chor(Executive Director) * Holds a LLB (Honours) from King’s College London * Postgraduate Diploma in Finance and Accounting from London School of Economics.Lee Cheng Leang( Executive Director) * First appointed to the Board on 21 July 1981. * He has considerable experience in the hardware, chemical and industrial gas industry.Lee Yeow Seng(Executive Director) * First appointed to be on the board on 3 June 2008. * Holds a LLB( Honours0 from King’s College London.Datuk Hj. Mohd Khalil Bin Dato’...
Words: 1422 - Pages: 6
...CSP HOLDING BHD 9426-T MINUTES OF BOARD OF DIRECTORS’ MEETING Minutes of the CSP Holding Bhd meeting held at Bilik Seminar Bunga Raya, Level 10, Office Tower, No.3,Jalan Nagasari (Off Jalan Raja Chulan), 50200 Kuala Lumpur on Monday, 5th May 2014 at 9.00 a.m. Present : Y. Bhg. Tan Sri Wahid Jalil (Chairman) Y. Bhg. Dato’ Zahir Ahmad (Managing Director) Mr. Yeoh Wai Siaw (Non-independent Executive Director) Y. Bhg. Tan Sri Dato’ William Lim (Independent Non-Executive Director) Y. Bhg. Dato’ Hardi Yusof (Independent Non-Executive Director) Mr Heah Sieu Low (Independent Non-Executive Director) Dato Aisyah Syed (General Manager of CSP Fasteners’) Mr Azim Rahmat (General Manager of Maya CSP Sdn Bhd) Wong Kar Chun (Auditor) Ms Loh Ai Lin (Secretary) Apologies : Mr George Siong Chee Sook (Independent Non-Executive Director) CHAIRMAN FOR THE MEETING Tan Sri Wahid Jalil took his place and declares the meeting duly convened once the requisite quorum was present. DIRECTORS REPORT, AUDIT REPORT AND CONSIDERATION OF ANNUAL REPORT That the Audited report of the Company for the year ended 31 December 2013 together with the Reports of the Directors and Auditors thereon be hereby received and noted. DECLERATION OF DIVIDEND That there is no final dividend for year 2013 as recommended by the director is hereby approved. ELECTION OF DIRECTORS IN PLACE OF THOSE RETIRING It was resolved...
Words: 426 - Pages: 2
