(8.1)--Chapter8StrategicManagement.pdf

Enterprise strategic manChapter IX promotion mode of enterprise strategySection 1 strategic allianceSection II merger and acquisitionSection enterprise restructuringCatalogAutomobile safety systemNingbo Junsheng Electronic Co.,Ltd(Stock Code:600699)Intelligent driving systemIndustrial automation and robotR&D and manufacturing of new energy vehicle power management system and high-end automobile functional parts assemblyFounded in 2004At first,it mainly produces automobile functionalparts,cooperates with automobile manufacturerthroughOEM,designsanddevelopssynchronously,and manages automobile engineintake pipe,washer,air conditioner outlet andother products.Junsheng ElectronicsFrom 2010The company began to cooperate with preh,an oldGerman component manufacturer,and establishedNingbo preh Junsheng Automotive Electronics Co.,Ltd.to start the process of international developmentof the enterprise.Since 2006Started to supply Volkswagen,general motorsand Ford,and gradually established its leadingposition in domestic auto parts.Junsheng ElectronicsJune 2011Junsheng electronics decided to invest 1.8 billion yuan toacquire 74.9%of the shares of Prius and the remaining25.1%ofthesharesin2012toachieve100%holding.The acquisition enabled Junsheng electronics toenter the domestic automotive electronic front loadingmarket,changing the situation that the market has beenoccupied by foreign enterprises.In 2011,the operatingrevenue of Junsheng Electronics was 2 billion yuan.Inthe year after the acquisition,the domestic operatingrevenue of Junsheng electronics reached 6.5 billion yuan,plus 462 million euros(PRI)of operating revenue outsideShanghai,totaling more than 10 billion yuan.Junsheng Electronics2014Junsheng electronics acquired QUIN GmbH ofGermany with more than 90 million euros,which isthe world leader in the market of high-end steeringwheelassemblyandinteriorfunctionalpartsassembly.In the same year,with the promotion ofintelligent domestic industrial manufacturing,thetrendofmachinereplacementindomesticmanufacturing industry is obvious,and the Chineserobotmarketpresentsunprecedentedopportunities.JunshengelectronicsalsoacquiredIMA,aGermanrobotcompany,inordertoeffectively implement the companys future industrialrobot development strategy.Junsheng Electronics2015Theoperatingrevenuerosesharplyagain,reaching 8.083 billion yuan in the domesticmarket and 557 million euros in the overseasmarket,equivalent to more than 14 billion yuan.Junsheng Electronics2016Junsheng electronics once again launched a bid toacquire KSS(key safety system holding Inc.)andTECHNISAT(TECHNISATdigitalGmbH)automobile business for us$1.1 billion.KSS has947 patents for automotive safety technology andfive global R&D centers(U.S.,Germany,China,SouthKoreaandJapan).TECHNISATmainlydevelops and produces innovative products andsoftwaresolutionsinthefieldofvehicleentertainment system,vehicle navigation system,vehiclenetworkingandinformationprocessing.These two mergers and acquisitionsenableJunshengelectronicstoachieveacomprehensiveleadingpositioninhigh-endautomobile human-computer interaction,driverless,active safety,Internet of vehicles and other aspects.Junsheng Electronics With the help of successful M&A,Junsheng electronics has rapidly realized technology innovation,management improvement,market resource integration and upstream and downstream industrychain integration,which has provided guarantee for the companys sustainable development strategy.As a result,Junsheng electronics has become a long-term partner of global automobilemanufacturers such as BMW,Mercedes Benz,Audi,Volkswagen,general motors and Ford,and haswonoutstandingautomobilemanufacturerssuchasPorsche,VolkswagenandgeneralmotorsSupplierAward.As a result,Junsheng electronics has become a leading enterprise in domestic and internationalautomotive electronics industry,occupying technical and market advantages,and laying a goodfoundation for further development in the future.It can be seen from the process of Junsheng electronic cross-border M&A In the process of promoting enterprise strategic management,enterprise strategic managers shouldnot only make choices in various growth direction strategies,but also make choices in variousstrategic promotion or realization methods.Choosing the right way of strategy promotion can not only make the strategy implementation gettwice the result with half the effort,but also help the enterprise overcome the shortage of resourceability and reduce the risk of strategy implementation.It can be seen from the process of Junsheng electronic cross-border M&ASection Strategic AllianceChapter VIII1.The concept of enterprise strategic allianceNo matter what kind of growth strategy an enterprise chooses and what type of strategic transformation it makes,the strategic managers of an enterprise need to choose whether or to what extent they need to build strategic alliances with other enterprises in the process of strategy implementation.It is a long-term and significant basic form of cooperation among enterprises.Through strategic cooperation with other companies,enterprises are likely to promote the implementation of corporate strategy with less investment,higher efficiency and lower risk.Strategic Alliance1.The concept of enterprise strategic allianceStrategic alliance can be defined asTwo or more enterprises or organizations,on the premise of maintaining their legal status,voluntarily form long-term partnership with each other in order to achieve coexistence and mutual benefit in one or more fields,but do not constitute a strategic behavior of price or output cooperative monopoly,such as market entry,access to technology,or technology exchange.1.The concept of enterprise strategic alliance First,the collusion strategy,which takes price and output as the main cooperation content,realizes the monopoly of participants in price and output to a certain extent,and brings extraordinary competitive advantages to the participating enterprises.However,this form of alliance strategy may be restricted or prohibited by law.The second is the strategic alliance with investment or business process as the content of cooperation.This kind of strategic alliance is generally not for the main purpose of seeking market,which is conducive to improving efficiency,innovation and reducing risk of enterprises.Therefore,it is supported by governments,laws and enterprises of all countries,so it becomes the mainstream form of cooperation between enterprises.Main contents of strategic alliance2.Three forms of enterprise strategic allianceIt is an enterprise established and managed by two enterprises with equal investment.GAC Honda and GAC Toyota are joint ventures established and jointly managed by GAC,Honda and Toyota with 50%to 50%investment ratio.In order to realize the respective interests of the joint venture,both parties of the joint venture realize that they can realize their respective interests only when they have advantages and disadvantages and cooperate with each other,so they decide to share the property rights,manage together,share the profits and share the risks.Joint venture2.Three forms of enterprise strategic allianceThe cross shareholding alliance is an enterprise which is established and managed by two or more enterprises with non equal investment.For example,GAC,Honda,Toyota and related Japanese enterprises have established and managed dozens of cross shareholding enterprises in the key auto parts industry by means of cross shareholding alliance.In the operation and management of these enterprises,each party of the cooperation will enjoy the shareholders rights and interests according to the proportion of capital contribution or prior agreement.Equity Strategic Alliance2.Three forms of enterprise strategic allianceJoint ventures and cross shareholdings belong to asset or property strategic alliance,while non property strategic alliance is also called contractual alliance or agreement alliance,especially the non equity participation and advantages formed by two or more enterprises through various agreements and contracts for market expectations,business objectives,business risks and common use of resources and other strategic considerationsIt is a loose cooperative organization mode with mutual advantages,shared risks and bidirectional or multi-directional flow of production factors.The main forms of non property strategic alliance include:Strategic outsourcing,franchising,cooperative development,etc.Non equity Strategic Alliance3.Non equity strategic alliance1Generally in the form of outsourcing,the company obtains valuable resources,products or services by signing purchase agreements with other enterprises,so that it can focus on the creation and establishment of core competence and core competitive advantage.Strategic Outsourcing3.Non equity strategic alliance2Two independent enterprises determine the cooperative relationship through the contract,and the authorized party allows the authorized party to sell the products of the former or use the trademark of the former for commercial activities.This situation mainly occurs in the process of internationalization implementation,such as McDonalds,KFC,Hilton Hotel,Disneyland,etc.with diversified market,the main purpose is to overcome the barriers to market entry,reduce investment and accelerate the speed of entry.Franchising3.Non equity strategic alliance3It refers to the joint development of market or technology by agreement between enterprises.For example,in the Internet browser market,Microsoft and 50 hardware and network service manufacturers in the United States form a strategic alliance focusing on sales channels.Motorola and Toshiba formed a technology exchange oriented strategic alliance in 1986.Cooperative development4.Motivation of strategic allianceMarket typeStatic MarketDynamic marketStandard marketStrategicAllianceReason1.Access to restricted markets2.Establish franchise in new market3.Maintain market stability,such as establishing market standards1.Speed up the development of new products or services2.Accelerate the speed of new products or services entering the market3.keep the market leading position4.Form industry technical specifications5.Share a large amount of investment in product research and development,such as the R&D of Iridium satellite phone6.Reduce market uncertainty1.Striving for market rights2.Complementary resources3.Scale economy4.Trade barriers5.Meet the challenges of other competitors6.Raise various resources for arge-scale investment projects7.Learn new operation technology5.Levels of strategic allianceCompany level strategyBusiness level strategyFunctional strategy(1)Company level strategic allianceCorporate level cooperative strategyIt is a strategic alliance established by the headquarters of diversified enterprises with other enterprises in order to implement the strategy of industry and market diversification.Diversified strategic alliance（diversifying strategic alliance）Synergy strategic alliance（synergistic strategic alliance）Franchise(1)Company level strategic allianceIt refers to the strategic alliance established by enterprises in the process of implementing diversification strategy in order to overcome the barriers of industry and market access.The barriers to entry of industries or markets mentioned here include not only physical barriers,such as government policy restrictions,but also intangible barriers,such as lack of channels,talents and understanding of local conditions.Diversifying strategic alliance1(1)Company level strategic alliance2It refers to an enterprise established or acquired by more than two diversified enterprises in order to obtain scale economy,scope economy and reduce transaction cost.Such cooperation may occur in e-commerce,research and development,sales channels,logistics,etc.Synergy strategic alliance(1)Company level strategic alliance3It is a strategic alliance of non property rights.If an enterprise enters another industry or another national market through franchising,for example,American blue belt beer grants its franchising right to China blue belt group,then such franchising belongs to the decision-making scope of international company level strategy.Franchise(2)Business level strategic allianceIt refers to the strategic alliance established by two single industry enterprises or business departments in order to improve the competitive advantage of enterprises in a specific product market.Business level strategic alliance or business unit level strategic allianceComplementary strategic allianceCompetitive response strategic allianceStrategic Alliance for risk reductionReduce competitive strategic alliances(2)Business level strategic allianceAn alliance in which complementary resources and capabilities are integrated to enhance the competitiveness of both partners because of certain competition needs.Depending on the relationship between the two enterprises,the complementary relationship may occur between vertical or horizontal enterprises,so this kind of strategic alliance can be divided into vertical complementary strategic alliance and horizontal complementary strategic alliance.Complementary strategic alliance(2)Business level strategic allianceIn the highly competitive market,enterprises often use alliances to respond to the actions of competitors.For example,China Telecom and Microsofts MSN cooperate to deal with the Feixin service provided by China Mobile.Competitive response strategic alliance(2)Business level strategic allianceWhen entering a new market or emerging country,enterprises may not be able to carry out business smoothly because they do not know the laws and regulations,customs,political environment,etc.of the country or region.Enterprises can achieve rapid adaptation to the new market and reduce the risk of failure by combining with local enterprises.Strategic alliance for risk reduction(2)Business level strategic allianceThe strategic alliance of reducing competition is also called collusion strategic alliance,which includes two kinds:overt and covert collusion strategic alliance.Overt collusion strategy is a strategy in which enterprises negotiate and reach an agreement on factors such as output or price to reduce competition among them.The implicit collusion strategy is realized by several companies indirect output or price decision-making through mutual observation and silent response among enterprises.Strategic alliance to reduce competition6.Risks of enterprise strategic allianceAlthough the strategic alliance is established on the premise that all parties to the cooperation fully understand the purpose of each other and the advantages and disadvantages of cooperation.But the stated purpose of some enterprises is not consistent with their actual purpose.Conflict of purpose ofcooperation6.Risks of enterprise strategic allianceAlthough at the beginning of the establishment of the strategic alliance,the cooperation parties have made as detailed a