MULTINATIONAL ENTERPRISES & GOVERNMENT POLICY
STRATEGIC ALLIANCES

Goal

The goal of this module is to educate students in how multinational enterprises define international business strategies, particularly with regard to the use of alliances and cooperative efforts. These approaches although employed primarily in the private sector, are also evident in a number of government sectors. Strategies involving the extensive use of joint efforts and organizations, is especially prevalent in the global marketplace where foreign, domestic, and third country businesses may cooperate in virtually every operational function.

Topics: The topics covered in this module, in order of discussion, will include but not be limited to the following:

1. International business strategy; firm as a value chain; core competencies; location economies, experience curve economics; the differences between global, international, multinational and transnational strategies.

2. Export/Import strategy: identifying export opportunities; financing; export assistance; countertrade.

3. Strategic Alliances I: licensing; franchising; turn key; management contracts; advantages and disadvantages of non‑direct investment alliances and cooperatives.

4. Strategic Alliances II: joint ventures, consortia, other types; shared risk, knowledge, expertise; comprehensive alliances; selection of partners; form of ownership; pitfalls of alliances.

5. Government business alliances and cooperative efforts; research and development alliances; public/private commercial alliances; administrative guidance and associations.

6. The transnational corporation; strategic concepts; key success factors; cost pressures; local responsiveness.

7. Competitive activity of nations and MNEs; Porter's Diamond; Modified Diamond; Cluster Theory; national cluster cases.

8. International Global Strategy: relationship of the firm, industry, home country, host country; integration of business strategy at the corporate level.

Key Books/Articles: One or more, in part or in total of the following texts will be used:

Czinkota, M.R. and I.K. Ronkainen, Global Business (Fort Worth, TX: Harcourt Brace, 1995).

Daniels, J.D. and L.H. Rachbaugh, International Business (Reading, MA: Addison-Wesley, 1995).

Grant, R.M., Contemporary Strategic Analysis: Concepts, Techniques, Applications (Cambridge, MA: Blackwell, 1995).

Griffin, R. and M.W. Pustay, International Business: A Managerial Perspective (Reading, MA: Addison Wesley, 1996).

Hill, C.W.L., International Business: Competing in the Global Marketplace (Chicago: Irwin, 1995).

Rugman, A. and R. Hodgetts, International Business: A Strategic Management Approach (New York: McGraw-Hill, 1995).

Case Materials

Cases will be drawn from the texts listed. In addition, cases may be drawn from several sources including the Harvard Case Studies or the Darden School Case Studies (University of Virginia).

Criteria for evaluating teaching and student performance:

Students must be able to analyze the strategies and alliances of multinational enterprises by utilizing public and corporate information. An analysis of the strategic alliances employed by major MNEs must be within the capability of a successful student.