BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Mergers and Acquisitions soru detayı:
SORU:
What are the variations of business alliances besides M&As?
CEVAP: Variations of Business Alliances besides M&As:
Joint Venture: A cooperative business relationship formed by two or more separate parties to achieve common strategic objectives. Joint ventures are generally established for a limited time. The parties joining venture maintain their separate existence (DePamphilis, 2003).
Strategic Alliance: A kind of alliance where there is no new and separate legal entity. It can be an agreement between two or more firms to sell each others’ products to each others’ customers, or to codevelop a technology, product, or process. Such an agreement might be informal (DePamphilis, 2003).
Minority Investment: An investment of a company to another, which managers of the investing company may be in passive manner. It may mean that there is a little need for commitment from the management of the investing company (DePamphilis, 2003).
Equity partnership: A company’s purchase of stock (resulting in a less than controlling interest) in another company or a two-way exchange of stock by the two companies. An equity interest in a partnership is generally accounted for by each partner in the same manner as an equity investment in a corporation, provided that recourse for partnership liabilities is limited to partnership assets (Finnerty, 2007).
Licensing Agreement: An arrangement formalized by a written agreement or contract, by which a local ‘licensee’ acquires the right to manufacture and market goods using patents, processes, designs and sometimes even the trademark of the licensor (Wallace, 2002)
Franchising Alliance: A kind of alliance where a privilege given to a dealer by a manufacturer or franchise service organization to sell the franchiser’s products or services in a given area, with or without exclusivity. Such an alliance can be formed by using a franchise agreement, which may include franchisers’ consultation, assistance, and financing. Franchise is a kind of licensing agreement, which is specialized in selling another firm’s products or services (DePamphilis, 2003).
Network: A firm’s set of relationships, both horizontal and vertical, with other organizations – be they suppliers, customers, competitors, or other entities – including relationships across industries and countries. These networks are composed of interorganizational ties that are enduring, are of strategic significance for the firms entering them and include strategic alliances, joint ventures, long term buyer-supplier partnerships and a host of similar ties (Koleva, 2002).
Outsourcing: The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost. (http:// www.businessdictionary.com/definition/outsourcing.html)
Offshoring: The moving of various operations of a company to another country for reasons such as lower labor costs or more favorable economic conditions in that other country. (http://www.businessdictionary. com/definition/offshoring.html)
Variations of Business Alliances besides M&As:
Joint Venture: A cooperative business relationship formed by two or more separate parties to achieve common strategic objectives. Joint ventures are generally established for a limited time. The parties joining venture maintain their separate existence (DePamphilis, 2003).
Strategic Alliance: A kind of alliance where there is no new and separate legal entity. It can be an agreement between two or more firms to sell each others’ products to each others’ customers, or to codevelop a technology, product, or process. Such an agreement might be informal (DePamphilis, 2003).
Minority Investment: An investment of a company to another, which managers of the investing company may be in passive manner. It may mean that there is a little need for commitment from the management of the investing company (DePamphilis, 2003).
Equity partnership: A company’s purchase of stock (resulting in a less than controlling interest) in another company or a two-way exchange of stock by the two companies. An equity interest in a partnership is generally accounted for by each partner in the same manner as an equity investment in a corporation, provided that recourse for partnership liabilities is limited to partnership assets (Finnerty, 2007).
Licensing Agreement: An arrangement formalized by a written agreement or contract, by which a local ‘licensee’ acquires the right to manufacture and market goods using patents, processes, designs and sometimes even the trademark of the licensor (Wallace, 2002)
Franchising Alliance: A kind of alliance where a privilege given to a dealer by a manufacturer or franchise service organization to sell the franchiser’s products or services in a given area, with or without exclusivity. Such an alliance can be formed by using a franchise agreement, which may include franchisers’ consultation, assistance, and financing. Franchise is a kind of licensing agreement, which is specialized in selling another firm’s products or services (DePamphilis, 2003).
Network: A firm’s set of relationships, both horizontal and vertical, with other organizations – be they suppliers, customers, competitors, or other entities – including relationships across industries and countries. These networks are composed of interorganizational ties that are enduring, are of strategic significance for the firms entering them and include strategic alliances, joint ventures, long term buyer-supplier partnerships and a host of similar ties (Koleva, 2002).
Outsourcing: The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost. (http:// www.businessdictionary.com/definition/outsourcing.html)
Offshoring: The moving of various operations of a company to another country for reasons such as lower labor costs or more favorable economic conditions in that other country. (http://www.businessdictionary. com/definition/offshoring.html)