With the growing complexity of product designs (requiring inputs from multiple technology sources) and international business, even large companies do not always have the internal capability to go-it-alone and hence seek partners for product and market development.
Recent survey by United Nations University found that “most companies expect the contribution of alliances to the value of the company to increase from the current rate of 19% to a rate of 47% in five years’ time.” Research has shown that 80% of Fortune 1000 CEOs stated that alliances constituted 18-26 % of their company research activities or revenues. There are hundreds of thousands of collaborations worldwide.
This programme will treat issues such as how to assess the benefits and costs of alliance agreements, managing across cultures, as well as risks from the perspective of each partner. Further, the essence of a collaboration is the sharing of proprietary capabilities and intellectual property. Executives would be exposed to the framework for calculating business value and other aspects of valuation would be discussed.
This programme is designed to familiarise executives with the strategic rationale for strategic alliances, how to negotiate with partner companies, and managing joint organisations where the personnel of the partner companies work together and have to make joint decisions. Executives will learn about the benefits and costs of collaborations, as well as risks from the perspective of each ally.
For Indian companies in particular, alliances and joint ventures are a common method for acquiring technology, reaching into foreign markets and gaining synergies from the complementary contributions of both companies. This is true for the Indian market when a foreign firm wishes to tie up with an Indian company. It is also the case when Indian companies seek to expand overseas and need a local partner to acquire foreign knowledge about technologies and markets.
Further, the valuation of intangible assets is a crucial task – not just for accountants, but for strategists and negotiators – so that each partner’s contribution to the alliance can be properly assessed, and compensation flows designed, or shareholding allotted, in case of a joint venture.
Rationale for Alliances
Negotiating the Agreement
Role of Risk and Trust in Managing Alliances
Learning in Alliances
Valuation of intangible assets
Leadership behaviour in Alliances
Role of Alliances in Disruptive Innovation
Learning will be through case studies, lectures, role play, group discussions, presentation and negotiation exercises.
This programme is for senior and middle management executives of large and small organisations that deal with alliance partners.