Discussion Question: After watching each video, identify in 150 - 200 words your

Question

Discussion Question: After watching each video, identify in 150 - 200 words your reactions to the concepts you just learned. Provide a substantive response using a real - World example. Post each video response separately in the Discussion Board and label each video response with a title such as Video #1, Video #2.

Videos can be found on YouTube:

1.Title- Growth through strategic partnerships Duration: (6:52) User: hsbcbusinesstv - Added: 4/29/08

2.Title- Corporations 101: The ABCs of the International Economy Duration: (3:29) User: businessroundtable - Added: 9/23/10

Explanation / Answer

Video #1
As the video suggests, there are different ways to make strategic partnership and firms can opt for it, depending upon the risk and return expectations, contractual requirements and other compliance based requirements. The first strategic partnership is going for the joint ventures. This type of strategic partnership, involves two or more firms come together and work on a project or business domain. It happens when these partner firms complement each other in terms of technical capabilities, resources and market knowledge. Besides, regulatory compliances are also considered. For example, an insurance company AXA of France, goes into the joint venture with Bharti Enterprises to sell general insurance products. Here, AXA brings domain expertise and Bharti brings local market understanding with the distribution channel network. Besides, the legal compliances also demand AXA to partner with the local players. The second method is to go with the franchise model that involves parent company to make franchisee agreements and spread the network. For example, McDonald as a fast food chain, goes for the franchisee agreement to expand in the market and grow. It happens even if McDonalds has its own wholly owned outlets. The third method is to develop contractual partnerships as it is done by Coca Cola that has the networking relationship with the bottling units in different countries. It makes the company to expand into the different markets and grow.
Here, it is important to identify the suitable partner for the strategic partnership and it should be based not only upon the technical skills, market understanding and capabilities, but also there should be cultural similarities so that organizations can work together.

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