【正文】 not involved in developing the venture ? Benefits the pany not the customers ? Not supported equally by both partners ? May begin to pete with one of the partners Why Joint Ventures Fail 69 Copyright 2023 Prentice Hall Joint Ventures Guidelines ?Synergies between private and publicly held ?Domestic with foreign firm, local management can reduce risk ?Complementary distinctive petencies ?Resources risks where project is highly profitable (. Alaska Pipeline) ?Two or more smaller firms peting w/larger firm ?Need to introduce new technology quickly 70 Copyright 2023 Prentice Hall Reasons why Mergers and Acquisitions Fail ? Too much diversification ? Managers overly focused on acquisition ? Too large an acquisition ? Difficult to integrate different anizational cultures ? Reduced employee moral due to layoffs and relocations 71 Copyright 2023 Prentice Hall Means for Achieving Strategies ? Provide improved capacity utilization ? Better use of existing sales force ? Reduce managerial staff ? Gain economies of scale ? Smooth out seasonal trends in sales ? Gain new technology ? Access to new suppliers, distributors, customers, products, creditors Mergers Acquisitions 72 Copyright 2023 Prentice Hall Recent Mergers Acquiring Firm Acquired Firm IBM Ascential Software Philip Morris PT Hanjaya Mandala Samp . Steel National Steel Corp Oracle PeopleSoft OSIM International Ltd Brookstone Adobe Systems Macromedia US Airways American West United Parcel Service Overnight Corp. 73 Copyright 2023 Prentice Hall First Mover Advantages ? Benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms 74 Copyright 2023 Prentice Hall First Mover Advantages ? Securing access to rare resources ? Gaining new knowledge of key factors issues ? Carving out market share ? Easy to defend position costly for rival firms to overtake Potential Advantages 75 Copyright 2023 Prentice Hall Outsourcing ? Companies taking over the functional operations of other firms Businessprocess outsourcing (BPO) 76 Copyright 2023 Prentice Hall Outsourcing ? Less expensive ? Allows firm to focus on core business ? Enables firm to provide better services Benefits 77 Copyright 2023 Prentice Hall Key Terms Concepts For Review (Chapter 5) Acquisition Concentric Diversification Backward Integration Conglomerate Diversification Bankruptcy Cooperative Arrangements Combination Strategy Cost Leadership 78 Copyright 2023 Prentice Hall Key Terms Concepts For Review (Chapter 5) Differentiation Focus Diversification Strategies Forward Integration Divestiture Franchising First Mover Advantages Generic Strategies 79 Copyright 2023 Prentice Hall Key Terms Concepts For Review (Chapter 5) Horizontal Diversification Intensive Strategies Horizontal Integration Joint Venture Hostile Takeover Leveraged Buyout Integration Strategies Liquidation 80 Copyright 2023 Prentice Hall Key Terms Concepts For Review (Chapter 5) LongTerm Objectives Outsourcing Market Development Product Development Market Peration Retrenchment Merger Vertical Integration 81 Copyright 2023 Prentice Hall 。 has distinctive petencies ?Firm is one of weaker petitors ?Inefficiency, low profitability, poor employee morale, pressure for stockholders ?Strategic managers have failed ?Rapid growth in size。 of petitors is large ?High growth in industry sector ?Firm has both capital HR to manage new business ?Stable prices are important ?Current suppliers have high profit margins 25