In today’s world, it is important to understand when an alliance is an appropriate investment vehicle and when it is not; it is equally important to understand how to form an alliance properly.The “why and when” of alliance formation depends on recognition of the differences among a corporation’s businesses and the appropriate investment strategies for them.
Core businesses come in two varieties: first, what we call “foundation” businesses, and second, businesses that are vigorous but not vital to the overall success or sustainability of the company.Wholly owned, direct investments – rather than alliances – are typically best for foundation businesses while alliances typically work well for vigorous but nonvital businesses.
Content: Article
Authors: James A. Finnegan, John L. Forbis
Source: Prism (Arthur D. Little)
Subjects: Management, Strategy
Authors: James A. Finnegan, John L. Forbis
Source: Prism (Arthur D. Little)
Subjects: Management, Strategy
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