#NAME?
Cooperative Strategy
independentfirm iscreated
Joint venture
partners ownstakes ineach other
equity alliance
supply anddistributionagreements
nonequity alliance
•Illegal unless sanctioned by government policies.•Reduced by increasing globalization
collusive strategies
•A cooperative strategy through which firms tacitly cooperate to reduce industry output below the potential competitive output level, thereby raising prices above the competitive level.
tacit collusion
also called mutual forbearance
tacit collusion
Horizontal alliance is between _________
buyers
Vertical alliance is between ___________
suppliers
-Used for several reasons, including the performance superiority of firms competing in markets outside their domestic market and governmental restrictions on growth through mergers and acquisitions.-Are riskier than their domestic counterparts, particularly when partners aren't fully aware of each other's purpose for participating in the partnership.
cross-border alliance
providing inputsof lesser valuethan promised
moral hazard
misrepresentingthe value of inputs
adverse selection
exploiting the transaction-specific investment of partners
holdup
Initial conditions, Negotiation process, Reciprocal experiences, Outside behavior
factors affecting trust
•the set of mechanisms used-to manage the relationship among stakeholders and-to determine strategic direction and-control the performance of organizations.
corporate governance
Three internal governance mechanisms
ownership concentration, board of directors, executive compensation
•The ___________________ is the single external governance mechanism influencing managers' decisions and the outcomes resulting from them.
market for corporate control
Modern corporations are characterized by an __________________ that is created when one party (the firm's owners) hires and pays another party (top-level managers) to use its decision-making skills.
agency relationship
______________________ is based on the number of large block shareholders and the percentage of shares they own.
ownership concentration
_________________ are an increasingly powerful force in corporate America and actively use their positions of concentrated ownership to force managers and boards of directors to make decisions that maximize a firm's value.
institutional investors
The percentage of outside directors on many boards now ________ the percentage of inside directors
exceeds
•including salary, bonuses, and long-term incentives - is a highly visible and often criticized governance mechanism.
executive compensation
•While shareholders and boards of directors may have become more vigilant in their control of managerial decisions, they are ____________ to govern managerial behavior in many large companies.
insuffcient
The right to choose the members of the board of directorsof a company andto control all major decisions madeby a company
corporate control
•Internationally, systems in various countries are becoming increasingly _________
similar
•Effective governance mechanisms ensure that the interests of ___ stakeholders are served.
all
•Effective governance produces ___________behavior in forming and implementing strategies.
ethical
The ability to anticipate events, envision possibilities, maintain flexibility, and empower others to create strategic change
strategic leadership
Two Attributes of Level 5 Leaders
professional will and professional modesty
#NAME?
entrepreneurship
#NAME?
corporate entrepreneurship
#NAME?
invention
#NAME?
innovation