MGSC01H3 Chapter 9: Chapter 9 Notes
30 Dec 2011
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Chapter 9 understanding alliances and cooperative strategies notes. Joint ventures and other equity alliances y y y. Typically, the hardest part of drawing up good alliance contracts is negotiating rights, particularly those pertaining to termination prior to the intended maturity date: misrepresentation of resources and capabilities. This issue arises when a partner misrepresents, intentionally or unintentionally, the quality or quantity of a resource or capability that its partners deem critical to the success of the venture: misappropriation of resources and capabilities. Misappropriation occurs when one partner takes something of value, whether to the partner itself, to the alliance, or to both. Sometimes misappropriation is so endemic that would-be partners garner reputations for misappropriation: failure to make complementary resources available. Related to the risk of misappropriation is the risk that a partner may fail to make available a promised complementary resource. y y. Risks arising from alliances y: being held hostage through specific investments.
