mahindra
Managing Alliances & Joint Ventures
Forging Cross borders Mergers & Acquisitions
Definitions:
Strategic Alliance & International Joint Ventures:
A strategic alliance is a relationship between two or more entities that agree to share resources to achieve a mutually beneficial objective.
International joint ventures (IJVs) are an increasingly popular form of voluntary cooperation between organizations of different sizes, sectors and geographical locations to satisfy strategic purposes and manage increasingly complex business environments. However, international joint ventures may fail, and HRM plays an important role in their success or failure.
Reasons for Alliances & Joint Ventures:
To gain technical and administrative knowledge, to learn, and to transfer that knowledge Host government insistence
To gain rapid market entry and catch more customers
To capture increased economies of scale
To gain local knowledge and local market image and channel access
To obtain vital raw materials or technology
To spread the risks
To improve competitive advantage in the face of increasing global competition
To support company strategies for internationalization.
Mergers & Acquisition:
A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Reasons for Merging & Acquisition:
To Promote Growth;
To Manage Technology;
As a Response to Government policy;
To Take Advantage of Exchange Rates;
As a Response to Political and Economic Conditions;
Reduce Labor Costs and/or Increase Productivity;
To follow clients;
To Diversify and Manage Risk;
To Achieve Greater Vertical Integration;
As a response to shareholder and/or analyst pressure for growth, innovation, internationalization, etc.
The Role of Global HRM in managing Alliances & Joint Ventures:
Human resource management (HRM)
Forging Cross borders Mergers & Acquisitions
Definitions:
Strategic Alliance & International Joint Ventures:
A strategic alliance is a relationship between two or more entities that agree to share resources to achieve a mutually beneficial objective.
International joint ventures (IJVs) are an increasingly popular form of voluntary cooperation between organizations of different sizes, sectors and geographical locations to satisfy strategic purposes and manage increasingly complex business environments. However, international joint ventures may fail, and HRM plays an important role in their success or failure.
Reasons for Alliances & Joint Ventures:
To gain technical and administrative knowledge, to learn, and to transfer that knowledge Host government insistence
To gain rapid market entry and catch more customers
To capture increased economies of scale
To gain local knowledge and local market image and channel access
To obtain vital raw materials or technology
To spread the risks
To improve competitive advantage in the face of increasing global competition
To support company strategies for internationalization.
Mergers & Acquisition:
A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed. Reasons for Merging & Acquisition:
To Promote Growth;
To Manage Technology;
As a Response to Government policy;
To Take Advantage of Exchange Rates;
As a Response to Political and Economic Conditions;
Reduce Labor Costs and/or Increase Productivity;
To follow clients;
To Diversify and Manage Risk;
To Achieve Greater Vertical Integration;
As a response to shareholder and/or analyst pressure for growth, innovation, internationalization, etc.
The Role of Global HRM in managing Alliances & Joint Ventures:
Human resource management (HRM)
References: 1. http://www.academia.edu/170757/International_joint_ventures_HRM_and_viable_ knowledge_migration 2. file:///C:/Users/%D8%A7%D9%84%D8%B9%D8%A7%D9%84%D9%85%D9%8A%D9% 87/Downloads/IJVComplexity_%20SchulerTarique%20-Ingmar.pdf 3. https://business.illinois.edu/aguilera/pdf/IJHRM_Aguilera_Dencker_2004.pdf 4. https://www.google.com.eg/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rj a&uact=8&ved=0CCMQFjAB&url=http%3A%2F%2Fsmlr.rutgers.edu%2Fjacksonmanaging-hr-in-crossborder&ei=Qy8cVICuNOjnywPqgoGwDQ&usg=AFQjCNFUlxWEmSLXczTstjZWXZv0l5 Ge9A&sig2=N7xerCbnYapZpFt1557gnA&bvm=bv.75774317,d.bGQ 5. http://www.investopedia.com/terms/m/mergersandacquisitions.asp 6. The Textbook