Looks at
Resource review
Desired partner profile
Optimum partner size

We know what we want and what our limitations are. Let's take a look at what we have in order to achieve a tie-up that is both desirable and possible.

Resource Review

  • What does the resource map look like?
     - Money
    - Manpower
    - Technology
  • What can we give?
  • What can we get?
  • What can be developed together?
General Motors, Toyota, Ford and Mazda: Give and Take

In the General Motors-Toyota alliance, US markets were opened up for Toyota. General Motors also added new products to their range, plus techniques such as Total Quality Management. The Ford-Mazda alliance brought similar benefits to each party, as did the Nissan-Volkswagen tie-up.


Inland Steel - Nippon Steel: Take and Give

Inland Steel, USA, and Nippon Steel, Japan, are jointly constructing the world's most advanced continuous cold-steel mill in the USA. Inland can make use of Nippon's technology and Nippon gains entry to the US market, overcoming import quotas and supplying Japanese car plants in the USA.

Chrysler: Adaptation

Direct recruitment is often the most successful route as an alliance matures. This was the system followed by Chrysler in its Chinese joint venture, Beijing Jeep, where as the operation grew in sophistication, the venture designed its own hiring and training programme.

Combining all the information we have gathered and the analysis of our company, our industry and the country of our choice, we now have to link our resources to the opportunities available, which can run the gamut from a "wait and watch" scenario to one in which we can pull out all the stops.

A strategic alliance is often the route chosen, whereby there is no equity participation but rather a combining of resources, building on strengths and enhancing returns.

The Ideal Partner

  • What is our desired partner profile?
  • What is our optimum partner size?
    - "Big guys" - big downsides?
    - Small company with potential growth?
    - Small stake ?
    - Government company ?
    - Private ? Public ?
    - Family-run ? Professional ?

We have reviewed the complementary resources that each partner will bring to the table. The compatibility of the business value systems and styles, and mutual flexibility has also been discussed. It is noted that the choice of partner depends on the available and required resources and synergies. Only by taking these factors into account can we reach a good long-term partnership.