CHAPTER 9 Cooperative Strategic ManagementManagement
STRATEGIC ACTIONS: STRATEGY FORMULATION
PowerPoint Presentation by Charlie Cook The University of West Alabama ? 2007 Thomson/South-Western. All rights reserved.
CHAPTER 9
Cooperative Strategic Management
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Seventh edition
Michael A. Hitt ?R. Duane Ireland ?Robert E. Hoskisson
KNOWLEDGE OBJECTIVES
Studying this chapter should provide you with the strategic management knowledge needed to: 1. Define cooperative strategies and explain why firms
use them.
2. Define and discuss three types of strategic alliances.
3. Name the business-level cooperative strategies and describe their use.
4. Discuss the use of corporate-level cooperative strategies in diversified firms.
5. Understand the importance of cross-border strategic alliances as an international cooperative strategy.
? 2007 Thomson/South-Western. All rights reserved.
9?2
KNOWLEDGE OBJECTIVES (cont'd)
Studying this chapter should provide you with the strategic management knowledge needed to: 6. Explain cooperative strategies'risks. 7. Describe two approaches used to manage cooperative
strategies.
? 2007 Thomson/South-Western. All rights reserved.
9?3
Cooperative Strategy
?Cooperative Strategy
A strategy in which firms work together to achieve a shared objective.
?Cooperating with other firms is a strategy that:
Creates value for a customer. Exceeds the cost of constructing customer value in
other ways. Establishes a favorable position relative to
competitors.
? 2007 Thomson/South-Western. All rights reserved.
9?4
Strategic Alliance
?A primary type of cooperative strategy in which firms combine some of their resources and capabilities to create a mutual competitive advantage.
Involves the exchange and sharing of resources and capabilities to co-develop or distribute goods and services.
Requires cooperative behavior from all partners.
? 2007 Thomson/South-Western. All rights reserved.
9?5
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