What we have learned from chapters
• Chapter 4
What were the different ways we discussed?
Hints:
If finding potential collaboration partners is like the HR recruitment phase,
Then ensuring the right strategic fit is like which phase of the HR hiring process?
Selection phase
Partners need to actually discuss and write out a Purpose & Fit Statement
Interests
Values
Mission
Markets
Interests
Values
Mission
Markets
Purpose and Fit
Mission Mesh The extent to which the missions of each
partner overlap ◦ The equitable significance of the alliance to each
partner
◦ The degree to which partners’ needs and capabilities can be integrated.
AHA
Reduce
pet
euthanasia
Purina
Increase
pet
population
Strategic Centrality: How important or central the potential
alliance is to achieving each partner’s mission / strategy / values?
Strategic Centrality
I.e. All 4 of Timberland’s core values can be addressed through the alliance with City Year – indicating significant strategic centrality.
Accountability
KnowledgeIntegrity
Innovation
Matching Needs & Capabilities How well the potential alliance can provide
capabilities to meet each partner’s needs
I.e. Bayer Corp needs well trained lab-technicians
Need for well-trained lab techs
Matching Needs & Capabilities
I.e. Bayer Corp’s need can be filled through Bidwell Training Center’s capability to provide training / and scholarships to underprivileged groups / recruits
Well
trained
lab
techs
Overlapping Values Certain values are very compatible
Reebok
Allowing people to
make personal
statements through
their clothing
Amnesty Intl.
World Music
tour
Encouraging spirit
of youth
Human Rights
Overlapping Values Certain values are incommensurate or
incompatible
Tobacco Liquor
NGO’s mission and values:
NGO’s assets & capabilities invested in this alliance:
NGO’s objectives for this alliance
Contributions of the alliance to the NGO’s strategy
Business’s mission and values:
Business’s assets & capabilities invested in this alliance
Business’s objectives for this alliance
Contributions of the alliance to the Business’s strategy
Small Beginnings Strategic Alliances start out small but deepen
over time.
Provide Good coffee
Provide good service
End global poverty
Awareness about
Fair Trade
Small Beginnings & Bolder Ventures
Provide quality coffee
Embrace diversity
Make human connection
Support humanity
Be good neighbors
Save lives Defeat poverty Achieve social justice
Well-being of people in coffee growing countries
Future Fit The partners’ collective capacity to envision
greater future opportunities creates a multiplier effect
Partners should brainstorm:
◦ What new terrain can we cover?
◦ What new combinations of competencies or capabilities can we attempt?
Requires an understanding of the motivations and sought benefits of the partners:
What altruistic motivations exist? ◦ For the NGO
What utilitarian benefits are possible? ◦ For the corporation
The altruistic motivations of the NGO & the utilitarian benefits sought by the corporation can be compatible.
The Partnering Motivation Spectrum examines the intersection between: the motivation of the NGO sector is typically
humanitarian or ecological improvement
the benefit of the business sector is typically economic survival
Create a Competitive Advantage by
maximizing CSR
Manage Risk of exposure to negative press through CSR
U ti
li ta
ri a n M
o ti
v e
In te
rn a l
E x te
rn a l
Do the “right thing” by promoting positive cultural change and
social good
Do the “right thing” By maximizing the
potential for funding
Altruistic Motive Self-interests Well-being of Society
Minimize risk and promote positive cultural change and
social good
Minimize risk and maximize the
potential for funding
Altruistic Motive Self-interests Well-being of Society
Create competitive advantage and maximize the
potential for funding
U ti
li ta
ri a n M
o ti
v e
In te
rn a l
E x te
rn a l
Create competitive advantage
and promote positive cultural change and
social good
Minimize risk and promote positive cultural change and
social good
Minimize risk and maximize the
potential for funding
Altruistic Motive Self-interests Well-being of Society
Create competitive advantage and maximize the
potential for funding
U ti
li ta
ri a n M
o ti
v e
In te
rn a l
E x te
rn a l
Create competitive advantage
and promote positive cultural change and
social good
Open Systems Perspective To be successful, organizations much interact with their external environment
Even “Strategic Misfits” like Georgia Pacific (GP) and The Nature Conservatory (TNC) can end up collaborating due to political, ecological, and social environmental shifts
Environmental shifts may render current strategies obsolete
Open Systems Perspective
Ecological and political changes in the environment precipitated the need for TNC and GP to reformulate their strategies
Then: GP was defensive
TNC wanted buy back ALL land from COs
Now: GP is proactive
TNC wants to save whatever land that it can
Open Systems Perspective To be successful, organizations much interact with their external environment
Environmental shifts may also render current strategies obsolete….
Strategic Obsolescence
Changes in the external environment may mean that current strategies are no longer useful or are obsolete.
“Yesterday’s misfits, can become tomorrow’s collaborations in today’s alliance marketplace” (Austin, 2000, p. 86)
Protect and conserve the To unleash the power of the environment and to promote internet to deliver the best peace solutions to Canadians at
home, in the workplace, and ` on the move
Describe how these two organizations could use “strategic obsolescence” to collaborate
From week 1 to Week 4 you have learned of the strategies, alliance, partnerships, mergers and acquisition to building strategic relationship for corporations and companies.
From your learning, share with us how building strategic partnership can help you achieve your goal as a future business person. What part of the 4 weeks of intensive learning impacts you the most and why? Also illustrated to us how you will use this knowledge to benefit your future cause and what strategy will you use best for your success.
Due date : Week 5 Tuesday at 9:00am
Word limit : 1,000
Format : APA style and all academic peripherals as recommended in the syllabus.
Ensure that you use proper referencing
Ensure that the work you submit is your personal work and not of others.
Marks will be awarded for proper labeling of the paper and submission as detailed in the syllabus. Not meeting the stipulated directive will result in deduction of marks.