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International Strategic Alliances

2019/2020
Учебный год
ENG
Обучение ведется на английском языке
4
Кредиты
Кто читает:
Кафедра общего и стратегического менеджмента
Статус:
Курс по выбору
Когда читается:
2-й курс, 3 модуль

Преподаватели


Орлов Александр Михайлович

Course Syllabus

Abstract

This course is designed to provide magistrate-level students with practice-oriented, nuanced, in-depth knowledge of the aspects of the corporate strategy related to Mergers and Acquisitions, Post merger integration, Strategic Alliances and Divestitures. The overarching question the course is designed to answer is 'What businesses should the company pursue in order to maximize the shareholders’ value?' Modern managers can use several powerful tools to shape the corporate strategy of their companies, such as acquisitions and alliances. While those tools have been widely used for decades, many corporate decisions, including those concerning Mergers and Acquisitions and Strategic Alliances, continue to lead the firms to spectacularly destructive results. Typically, there are two fundamental reasons for such poor performance: the managers’ lack of understanding of how the value is created in their multi- business companies, and the managers’ failure to successfully navigate the complexities of managing Mergers and Acquisitions and Strategic Alliances. To help students develop robust yet practically relevant knowledge of corporate strategy, the class is structured in a linear, transparent way. First, students will improve their understanding of what makes a portfolio of businesses under a single corporate umbrella more or less valuable. While the course design assumes that students are already familiar with the most popular frameworks that address such issues – like resource based view and transaction cost economics – they will be able to review the basic concepts and tools to make sure everyone is on the same page. Second, the course will help students to develop and hone the decision-making tools for properly structuring Mergers and Acquisitions and Strategic Alliances. The key focus here is to set up clear understanding of both Mergers and Acquisitions and Strategic Alliances antecedents, moderators and outcomes. Third, the class will cover practical issues related to proper execution of mergers and Strategic alliances.
Learning Objectives

Learning Objectives

  • To create awareness of key concepts and frameworks related to strategic value creation in Mergers, Acquisitions and Strategic Alliances
  • To provide students an understanding of Mergers, Acquisitions and Strategic Alliances antecedents, moderators and outcomes, as well as failure and success factors
  • To develop practical knowledge of decision making frameworks and tools necessary to define efficient Mergers, Acquisitions and Strategic Alliances structures relevant to a firm's strategic goals as well as resources and capabilities profile
  • To help students get on the front foot with Mergers, Acquisitions and Strategic Alliances processes and execution approaches necessary to enable expected value extraction
Expected Learning Outcomes

Expected Learning Outcomes

  • Analyse current corporate equity market trends using public data sources
  • Analyse and Interpret value creation drivers in Mergers, Acquisitions and Alliances using key strategic frameworks - resource based view, transaction costs theory, dynamic capabilities model.
  • Analyse a firm as a portfolio of businesses, Identify synergies, asses value creation opportunities in diversification and vertical integration
  • Analyse factors that influence a decision regarding a choice between buying or allying a firm
  • Identify factors that trigger Mergers and Acquisitions and influence Mergers and Acquisitions performance. Measure Mergers and Acquisitions outcomes.
  • Use strategic fit and operational fit concept to analyse value creation options and constraints in M&A. Create long term value creation strategy using multiple Mergers and Acquisitions.
  • Plan Mergers and Acquisitions execution using Traditional or Accelerated approach. Create Mergers and Acquisitions roadmap. Use strategic due diligence to capture synergies and avoid major losses
  • Structure key Post Merger Integration (PMI) organizational decisions Creation, Elimination, Merger, Split-UP. Plan PMI roadmap. Analyse PMI as a strategic capability with PMI maturity levels concept. Create strategic communications plan for PMI.
  • Create Mergers and Acquisitions scorecards and management structures
  • Analyse market context referring strategic alliances using open sources. Define strategic alliances value creation opportunities.
  • Create an infrastructure for Strategic alliances. Define Strategic alliances scorecard. Analyse Strategic alliances execution success factors. Prepare and execute a decision regarding termination of a Strategic alliance.
  • Analyse value creation opportunities in Ecosystems. Define relevant ecosystems types. Design Ecosystem management structure.
Course Contents

Course Contents

  • Current business context of Mergers, Acquisitions and Strategic Alliances
    Global and local trends at corporate equity markets. Mergers, Acquisitions and Strategic Alliances success and failure rates.
  • Strategic foundations of Mergers, Acquisitions and Alliances
    Key strategic frameworks that explain value creation in Mergers, Acquisitions and Alliances, including Transaction Costs Theory, Resource based View of a firm, Dynamic Capabilities model
  • Scope of the firm: diversification and vertical integration
    The corporate strategy level and corporate advantage concept, number of businesses in a corporation, competition at a corporate equity market. Scope of the firm concept and determinants. The idea of Synergy. Basic modes of diversification and diversification test. Understanding vertical integration.
  • Merger or Alliance tradeoff
    Strategic decision making framework that facilitates Merger or Alliance tradeoff
  • Mergers and Acquisitions antecedents, moderators and outcomes
    Understanding factors that trigger Mergers and Acquisitions and influence Mergers and Acquisitions performance. Basic approaches in measuring Mergers and Acquisitions outcomes.
  • Value creation in M&A
    Strategic fit and operational fit concepts, long term value creation strategy in multiple Mergers and Acquisitions
  • Typical Mergers and Acquisitions roadmap and key steps
    Traditional vs Accelerated approach to execute Mergers and Acquisitions. Mergers and Acquisitions roadmap, using strategic due diligence to capture synergies and avoid major losses
  • Post merger integration framework
    Unlocking the full potential of acquisitions: the role of organizational restructuring. Key PMI organizational decisions Creation, Elimination, Merger, Split-UP. PMI as a strategic capability – PMI maturity levels. Strategic communications in M&A.
  • Managing Mergers and Acquisitions
    Typical Mergers and Acquisitions scorecard and management structure
  • Value creation in strategic alliances
    Market context: strategic alliances success rates. Strategic alliances key benefits and challenges, resource based view
  • Managing strategic alliances.
    Infrastructure for Strategic alliances. Strategic alliances typical scorecard. Strategic alliances execution success factors. Breaking up Strategic alliances.
  • Ecosystems
    Value creation in Ecosystems. Types of ecosystems. Managing Ecosystems.
Assessment Elements

Assessment Elements

  • blocking Multiple choice test
    50% of final grade. 10 points maximum. 20 questions, each question = 0,5 points.
  • non-blocking Class Presentation
    Team class presentation of selected project topic
  • non-blocking Team project presentation
    Team project presentation on M&A or Strategic Alliance
  • non-blocking Home assignment
    Personal home assignment
Interim Assessment

Interim Assessment

  • Interim assessment (3 module)
    0.05 * Class Presentation + 0.2 * Home assignment + 0.5 * Multiple choice test + 0.25 * Team project presentation
Bibliography

Bibliography

Recommended Core Bibliography

  • Burch, C. (2014). Strategic Alliances : 39 Success Secrets, 39 Most Asked Questions On Strategic Alliances, What You Need To Know. [S.l.]: Emereo Publishing. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=691651
  • David, F. R., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases, Global Edition. [Place of publication not identified]: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1422985
  • DePamphilis, D. M. (2012). Mergers, Acquisitions, and Other Restructuring Activities : An Integrated Approach to Process, Tools, Cases, and Solutions (Vol. 6th ed). San Diego, CA: Academic Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=387257
  • Feld, B. (2012). Startup Communities : Building an Entrepreneurial Ecosystem in Your City. Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=481821
  • Gaughan, P. A. (2017). Mergers, Acquisitions, and Corporate Restructurings (Vol. Seventh edition). Hoboken: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1640634
  • Hill, C. W. L., & Jones, G. R. (2012). Strategic management : #an #integrated approach. Slovenia, Europe: Houghton Mifflin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.9B3B70BF
  • Kannan, V. R. (2013). Strategic Management in the 21st Century [3 Volumes]. Santa Barbara, Calif: Praeger. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=658612
  • Marshall, J. (2001). Harvard Business Review on Mergers and Acquisitions. Financial Executive, 17(6), 16. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=11861208
  • Pierre Dussauge, & Bernard Garrette. (1999). Cooperative Strategy - Competing Successfully through Strategic Alliances. Post-Print. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hal.journl.hal.00706251
  • Reuer, J. J., & Shenkar, O. (2006). Handbook of Strategic Alliances. Thousand Oaks: SAGE Publications, Inc. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=474445
  • Understanding mergers and acquisitions in the 21st century: A multidisciplinary approach. (2012). Palgrave MacMillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.pure.rug.nl.publications.59fa58cd.2a0f.4df7.955b.9bbbf5da2625

Recommended Additional Bibliography

  • Sutton, D. C. (2001). Making strategy: the journey of strategic management. International Journal of Market Research, 43(2), 242–244. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=4773211