Options in Alliances: Valuing Flexibility in Inter-Firm Collaborations (SpringerBriefs in Business Book 0)

The real options-based conceptual framework for alliance-making presented here responds to the challenge of developing a new metrics for managing strategic partnerships in the face of uncertainty. Such a framework involves: mapping (and selecting one of) the various staged paths envisioned for the start-up and development of the alliance in terms of strategic options exercisable over the lifetime of the cooperative venture; assessing the incremental, synergistic value of those options (if exercised on the net, tangible and intangible, assets of the venture); anticipating the potential impact of risks on the success/failure of the venture and associated synergistic value erosion; defining the optimal option map for implementing the strategic alliance via potential, successive adjustments to the initial strategy (information loop is closed). Front Matter....Pages i-vi Front Matter....Pages 1-1 Introduction....Pages 3-19 Managing Strategic Alliances in Good and Bad Times....Pages 21-34 Classifying Synergistic Growth Options Embedded in Strategic Alliances....Pages 35-41 A Real Options-Based Conceptual Framework for Alliance-Making....Pages 43-49 A Portfolio Approach to Actively Managing Alliances: The SGO Matrix....Pages 51-59 Conclusions....Pages 61-64 Front Matter....Pages 65-65 Assessing Strategic Alliances in Bad Times: The Case of General Motors—Fiat....Pages 67-71 Bidding for a Strategic Alliance in Good Times: The Case of Chevron—Petroleos de Venezuela S.A.....Pages 73-79