Question

A. Chapter 15/Business Alliances: Joint Ventures, Partnerships, Strategic Alliances, and Licensing.

One of the most often used strategy in this filed is that of business alliances or joint ventures. Companies will sometimes take a minority share in other companies to build on assets and customer base. This is one way of sharing the risk between companies. List and briefly discuss some motivations for companies to do business together and also provide an example, you may use your own company as a topic.

OR

            B. Chapter 16/Alternative Exit and Restructuring Strategies: Divestitures, Spin-Offs, Carve-Outs, Split-Offs, and Tracking Stocks.

Sometimes companies grow better when they spin off or get rid of certain parts of their company, just look at ATT a few years back. Select any company as an example and discuss how do one of these has helped or even hurt the company. You may use your own company as a topic.

Write at least 300 -350 words and gives examples of current situation of any company.

Answer 1

Busienss Alliances: The term Business alliances is very wide we may restrict out discussion in business alliances mainly on following two terms:

1) Buyouts/ Mergers

2) Joint Ventures.

Under Buyout/ Mergers, The company tend to buy the small players in the industry to capitalize on the total market share of the industry. For instance one of the leading optic fiber manufacturing company in India has taken over the smaller manufacturers in india and china to avoid splittling of market share and capitalize on the synergies.

Under Joint venture, two or more companies come together for a common benefit. The best example could be a recent deal between Reliance Jio and Facebook. The two giants have shaked hands to make a entry in Retail Groceries market and reap out the maxium benefits they can.