lecture8Strategic Alliances and VMl(Chapter8)王长琼武汉理工大学
lecture 8 Strategic Alliances and VMI (Chapter 8) 王长琼 武汉理工大学 1
8.1 IntroductionIncreasingcomplexityinbusinessenvironmentsResourcesarebecomingincreasinglyscarceManyfunctionsneedtobeoutsourcedFirms need to ensure that functionsareperformedbytheotherfirms
8.1 Introduction Increasing complexity in business environments Resources are becoming increasingly scarce 2 Many functions need to be outsourced Firms need to ensure that functions are performed by the other firms
FourBasicWaystoEnsureTasksAreCompletedInternalactivities* Activities that are core strengths may be the best way toperform the activityAcquisitions* Gives the acquiring firm full control over the way theparticular business function is performed* Can be difficult and expensive. (Culture/Competitors)*Arm's-lengthtransactions* Most business transactions are of this type.* Short-term arrangement that fulfills a particular businessneed but doesn't lead to long-term strategic advantages.Strategicalliances*Multifaceted,goal-oriented,long-term partnerships*Risksarepooledandrewardsareshared.* Typically lead to long-term strategic benefits for partners.3
Four Basic Ways to Ensure Tasks Are Completed Internal activities Activities that are core strengths may be the best way to perform the activity. Acquisitions Gives the acquiring firm full control over the way the particular business function is performed Can be difficult and expensive. (Culture/Competitors) Arm’s-length transactions Most business transactions are of this type. Short-term arrangement that fulfills a particular business need but doesn’t lead to long-term strategic advantages. Strategic alliances Multifaceted, goal-oriented, long-term partnerships Risks are pooled and rewards are shared. Typically lead to long-term strategic benefits for partners. 3
Three Typesof Strategic AlliancesThird Party Logistics (3PL)Retailer-SupplierPartnerships(RSP)Distributor Integration (Dl)
Three Types of Strategic Alliances Third Party Logistics (3PL) Retailer–Supplier Partnerships (RSP) Distributor Integration (DI) 4
8.3 Third Party Logistics (3PL)* Use of 3PL providers to take over acompany's logistics functions* Almost a $85billion industry by 2004* 8% of all logistics costs attributed to 3PL
8.3 Third Party Logistics (3PL) Use of 3PL providers to take over a company’s logistics functions Almost a $85billion industry by 2004 8% of all logistics costs attributed to 3PL 5