CHAPTER 4

Assessing Individual and Joint Values

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Before moving to the next stage of negotiations, management executives need to be convinced with respect to the individual and joint values anticipated from the alliance. An alliance will create value for the partners and be considered to be successful if both partners are able to achieve their strategic objectives and are able to earn a return that is equal to or greater than the cost of capital over the life of the alliance.

The value or success of any strategy, including alliances, is in terms of its impact on profitability of the organization, with profitability getting impacted by three possible ...

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