How does strategic alliance help in forming strategy for joint ventures mergers and acquisitions?

Citation

Bolland, E.J. (2017), "Acquisitions, Joint Ventures, Partnerships, Alliances", Comprehensive Strategic Management, Emerald Publishing Limited, Bingley, pp. 291-318. https://doi.org/10.1108/978-1-78714-225-120171010

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Emerald Publishing Limited

Strategic Alliances: Collaborations, Mergers and Acquisitions and Joint Ventures

One of the most powerful means to strengthen an organization’s impact and sustainability
is by engaging in a strategic alliance or combining with other organizations.
There are a variety of ways this can be structured. Organizations face pressure
from funders and investors to efficient collaborate with other organizations.
Mergers and acquisitions are a very prominent strategy, especially among large
businesses. This topic briefly explains collaborations, mergers and acquisitions
and joint ventures.

In their book, Forming Alliances: Working Together to Achieve Mutual Goals,
Hoskins and Angelica define an alliance as a relationship between partners that
is strategically formed to accomplish goals that benefit the community while
strengthening the partners. The authors depict a continuum of alliances that
continues from a very loose relationship to a complete merger.

  1. Cooperation – Shorter-term informal relationships that exist without
    any clearly defined mission, structure, or planning effort.
  2. Coordination – Longer-term, more formal relationships that rely on
    understanding of missions and focus on a specific effort or programs
  3. Collaboration – Most durable and pervasive relationships where participants
    bring separate organizations into a new structure with full commitment and
    common mission. (from Winer and Ray’s Collaboration Handbook: Creating,
    Sustaining, and Enjoying the Journey)
  4. Merger – A partnership in which two or more corporations decide to
    become one (from LaPiana’s The Nonprofit Mergers Workbook)

NOTE: LaPiana adds more detail to options for partnering and organizes them
into three categories: collaborations, strategic alliances (administrative consolidation
and joint programming, and corporate integration (management service organization,
joint ventures, parent-subsidiaries and mergers).

Bibliography

  • Collaboration Handbook: Creating, Sustaining, and Enjoying the Journey
    by Michael Winer and Karen Ray. St Paul, MN: Fieldstone Alliance, 1994.
  • Forming Alliances: Working Together to Achieve Mutual Goals
    by Linda Hoskins and Emil Angelica. St Paul, MN: Fieldstone Alliance, 2005.
  • The Nonprofit Mergers Workbook
    by David LaPiana. St Paul, MN: Fieldstone Alliance, 2000.

Sections of This Topic Include

Collaborations
Mergers and Acquisitions
Boards and Mergers and Acquisitions
Joint Ventures
Additional Information for Nonprofits

Additional Perspectives on Organizational Alliances

Also consider
Related Library Topics and Recommended Books

In addition to the articles on this current page, also see the following blogs
that have posts related to Organizational Alliances. Scan down the blog’s page
to see various posts. Also see the section “Recent Blog Posts” in
the sidebar of the blog or click on “next” near the bottom of a post
in the blog. The blog also links to numerous free related resources.

Library’s
Consulting and Organizational Development Blog
Library’s
Strategic Planning Blog


Collaboration

Resources
Collaboration,
Knowledge Representation and Automatability
For Successful Collaboration, Think Outside the
Box
From Conflict to Collaboration
5
Reasons It Might Be Time to Find a New Business Partner
Partnerships:
Frameworks for Working Together

Mergers and Acquisitions

Basics of Mergers and Acquisitions
Mergers
and Acquisitions — Wikipedias
Merges
and Acquisitions Primer
Merger and Acquisition
5 Tips for Executing a Successful Acquisition
Litigation in Mergers and Acquisitions
The tools – Mergers and Acquisitions
Business Acquisitions and Financing
Does Takeover Activity Cause Managerial Discipline?
Evidence from International M&A Laws

Course 7: Mergers & Acquisitions (Part 1)
Course 7: Mergers & Acquisitions (Part 2)

Mergers and Acquisitions: Understanding the Essentials
of Strategy and Execution in the M&A Ecosystem: Part 1 of
4
Mergers and Acquisitions: Understanding the Essentials
of Strategy and Execution in the M&A Ecosystem: Part 2 of
4
Mergers and Acquisitions: Understanding the Essentials
of Strategy and Execution in the M&A Ecosystem: Part 3 of
4
Mergers and Acquisitions: Understanding the Essentials
of Strategy and Execution in the M&A Ecosystem: Part 4 of
4

Boards and Mergers and Acquisitions

Strategic M&A, Spin-Offs, Hostile Transactions and Private Equity
Litigation in Mergers and Acquisitions
Corporate Governance Structure and Mergers
M&A Litigation: A Potential Partial Solution to a Big Problem
Nonprofit Organization Mergers: What to Do
Modernizing the board’s role in M&A

Joint Ventures

Joint Venture: An Overview
Joint
Ventures (Wikipedia)
Why Joint Ventures?
How to Evaluate a Joint Venture

Nonprofit Information

Nonprofit Mergers and Acquisitions: More Than
a Tool for Tough Times
Partners and Competitors in the Nonprofit Sector
Nonprofit Collaborations: 2.0
Model Guidelines for Nonprofits: Evaluating Proposed Relationships with Other Organizations

Additional Perspectives on Organizational Alliances

15 Steps for Successful Strategic Alliances (and
Marriages)
The tools – Strategic Alliances


For the Category of Organizational Alliances:

To round out your knowledge of this Library topic, you may
want to review some related topics, available from the link below.
Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been
selected for their relevance and highly practical nature.

Related
Library Topics

Recommended Books

What are the benefits of alliance and joint venture strategies?

Partners in a strategic alliance can benefit from many aspects of a cooperative relationship: access to unfamiliar or untapped markets, risk sharing, economies of scale, shared technology, and decreased costs.

Why would a firm use an alliance a joint venture and a merger acquisition?

One of the main reasons to engage in an alliance (as opposed to M&A) is to share risk and limit the resources a company must commit to the venture in question. Risk can take many different forms.

What is the relationship between a joint venture and a strategic alliance?

In a joint venture, parties operate as one. They combine their resources to make a separate legal entity. Conversely, in a strategic alliance, parties work together but operates separately and independently.

What is the advantage of a strategic alliance over a merger or acquisition?

-Advantages of an alliance over an acquisition include: sharing costs, learning skills, more easily reversed. Alliances are generally easier to manage and are generally more successful than acquisitions.