MGCR 382 Chapter Notes - Chapter 13: Transfer Pricing, Investment, Joint Venture

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Nicholas Matziorinis

Document Summary

Strategic alliances business arrangements whereby two or more firms choose to cooperate for their mutual benefit. Cross-licensing of proprietary technology, sharing of production facilities, cofounding of research projects, and marketing of each other"s products. Joint venture a special type of strategic alliance in which two or more firms join together to create a new business entity that is legally separate and distinct from its parents. Joint ventures are normally established as corporations and are owned by the founding parents in whatever proportions they negotiate. The founding firms may jointly share management, with each appointing key personnel who report back to officers of the parent. An independent team of managers may be hired to run it (often preferred, because independent managers focus on what is best for the jv) A formal management organization allows a joint venture to be broader in purpose, scope, and duration than other types of strategic alliances.