Partners in the strategic quick-step
Article Abstract:
Strategic alliances are collaborative agreements between companies executed in the context of company long-term planning to enhance competitive positions. They include: joint ventures; franchises; and licensing. Financial executives can increase an alliance's chances of success by objectively evaluating, structuring, monitoring, and dissolving strategic alliances. The basis of evaluation are quantifiable terms that have been articulated before the alliance is created. Financial executives must evaluate the impact of a strategic alliance on existing business and monitor its performance in terms of its immediate financial rewards and impact on performance. Management must also identify and correct deviations from planned goals in order to ensure an alliance's success.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Diversification: worth a second look?
Article Abstract:
Peters and Waterman in their book 'In Search of Excellence' state that the key to successful diversification for firms lies in sticking close to their core businesses and establishing niches in the market. Companies that stick close to their core business are more successful with their diversification, and companies that expand into closely related fields also will experience success. Unspecialized diversification or diversification into unrelated fields can often lead to failure. The strategy for diversification must be integrated into an overall strategic management process, and the diversification strategy should produce greater returns than the cost of capital to create shareholder value.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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