Ways for Performing a Logistics Function There are four basic ways for a firm to ensure that a logistics related business function is completed. ■Internal activities Resources and expertise available,core strengths ■Acquisitions Drawbacks:expensive,culture clashing,effectiveness losing,business losing,and so on Arm's-length transactions Short-term arrangement,for a particular business need Strategic alliances Arm's length transaction公平交易，正常交易
Ways for Performing a Logistics Function There are four basic ways for a firm to ensure that a logistics related business function is completed. Internal activities Resources and expertise available, core strengths Acquisitions Drawbacks: expensive, culture clashing, effectiveness losing, business losing, and so on Arm’s-length transactions Short-term arrangement, for a particular business need Strategic alliances Arm’s length transaction 公平交易，正常交易
What are Strategic Alliances Strategic alliances are typically multifaceted,goal-oriented,long-term partnerships between two companies in which both risks and rewards are shared. Strategic alliances typically lead to long- term strategic benefits for both partners Mutual goals lead to the commitment of much more resources The problems of outright acquisition can be avoided. Multifaceted:多方位的
What are Strategic Alliances Strategic alliances are typically multifaceted, goal-oriented, long-term partnerships between two companies in which both risks and rewards are shared. Strategic alliances typically lead to longterm strategic benefits for both partners Mutual goals lead to the commitment of much more resources Multifaceted：多方位的 The problems of outright acquisition can be avoided
Strategic Alliance Example The Ford Festiva New car design in America Engines from Japan Mazda Parts and assembly in Korea Sales all over the world Design Engines Parts and Assembling Sales
Strategic Alliance Example The Ford Festiva New car design in America Engines from Japan Mazda Parts and assembly in Korea Sales all over the world Design Engines Parts and Assembling Sales
Example 8-1 Take 2 min.to read example 8-1,consider the questions below. 7. What is the relationship between IBM, Intel and Microsoft 2. How IBM benefited and were hurt by the relationships 3. What are the possible drawbacks of strategic alliances
1. What is the relationship between IBM, Intel and Microsoft ? 2. How IBM benefited and were hurt by the relationships ? 3. What are the possible drawbacks of strategic alliances ? Example 8-1 Take 2 min. to read example 8-1， consider the questions below
Drawbacks of Strategic Alliances Strategic alliances have their downsides: Core strengths may be weakened A firm's core strengths make it different from its competitors. Key differences with competitors may be diminished
Strategic alliances have their downsides: Core strengths may be weakened Key differences with competitors may be diminished Drawbacks of Strategic Alliances A firm’s core strengths make it different from its competitors