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(strategic alliances, Divestitures) - Coggle Diagram

- - - - contractual terms
      - credible commitments
      - ways to manage the risk, opportunism and conflict
        
        contractual safeguards
        
        seeking credible commitments
        
        walling off key technology
        
        agreements and governance
    - - Good alliance structure helps to some degree, as long as the alliance is operating under conditions that we have foreseen, but that rarely lasts
      - set up good relational governance. Relational governance includes informal mutual trust, reciprocity, joint actions, and convergent expectations supported by reputations and repeated interaction.
      - easier if you have the right partner and a good structure in place
    - - good partnerships help all participants advance their strategic goals
      - good partners have complementary assets ；seek different benefits
      - good partners contribute valuable assets to the alliance
      - good partners accept a fair distribution of benefits
- - - - the business unit is separated completely from the parent company and its shares are distributed to the parent shareholders
      - similar to split-off
        
        but the parent shareholders are given the option to exchange their shares for that of the unit
    - - parent sells part of its ownership in a unit for cash
      - parent typically retains control
    - - business unit is simply sold to another firm, usually for a cash compensation
      - due to small-sized and high-speed, unit sales are by far the most common divestiture mode used
      - why divest a business unit
        
        raise cash for parent
        
        get rid of low profitability units so that they can focus their attention in corporate resources
        
        reduce the risk or liability associated with the businesses being divested
        
        a lack of strategic fit with the company's other businesses（low synergies）
        
        free up and redeploy their resources and capabilities elsewhere
        
        free up the entrepreneurial or innovative potential within a unit