Chapter 9

Corporate Strategy: Strategic Alliances

and Mergers and Acquisitions
 The AFI Strategy Framework

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description

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 Chapter 9 Outline

9.1 How Firms Achieve Growth

– The Build-Borrow-Buy Framework
9.2 Strategic Alliances
– Why Do Firms Enter Strategic Alliances?
– Governing Strategic Alliances
– Alliance Management Capability
9.3 Mergers and Acquisitions
– Why Do Firms Merge with Competitors?
– Why Do Firms Acquire other Firms?
– M&A and Competitive Advantage
9.4 Implications for the Strategist
©McGraw-Hill Education.
 Learning Objectives (1 of 2)

LO 9-1 Apply the build-borrow-or-buy framework to guide corporate

strategy.
LO 9-2 Define strategic alliances, and explain why they are important
to implement corporate strategy and why firms enter into them.
LO 9-3 Describe three alliance governance mechanisms and evaluate
their pros and cons.
LO 9-4 Describe the three phases of alliance management and explain
how an alliance management capability can lead to a
competitive advantage.
LO 9-5 Differentiate between mergers and acquisitions, and explain
why firms would use either to execute corporate strategy.

©McGraw-Hill Education.
 Learning Objectives (2 of 2)

LO 9-6 Define horizontal integration and evaluate the advantages and

disadvantages of this option to execute corporate-level
strategy.
LO 9-7 Explain why firms engage in acquisitions.
LO 9-8 Evaluate whether mergers and acquisitions lead to competitive
advantage.

©McGraw-Hill Education.
 How Firms Achieve Growth

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 The Build-Borrow-or-Buy Framework

• Conceptual model
• Aids in determining whether firms should pursue:
– Internal development (build)
– Enter a contract / strategic alliance (borrow)
– Acquire new resources, capabilities, and competencies
(buy)

©McGraw-Hill Education.
 Exhibit 9.1 Guiding Corporate Strategy:
The Build-Borrow-or-Buy Framework

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 The Main Issues in the
Build-Borrow-or-Buy Framework

• Relevancy
– How relevant are existing internal resources to solving the resource
gap?
• Tradability
– How tradable are the targeted resources that may be available
externally?
• Closeness
– How close do you need to be to your external resource partner?
• Integration
– How well can you integrate the targeted firm should you determine
you need to acquire the resource partner?

©McGraw-Hill Education.
 Relevancy

• Are the firm’s internal resources high or low in

relevance?
– In relation to solving the resource gap
– If high, the firm should develop internally.
• Internal resources are relevant if:
– They are similar to those the firm needs to develop.
– They are superior to those of competitors in the targeted
area.
• Resources are relevant if they pass the VRIO
Framework (from Chapter 4).
©McGraw-Hill Education.
 Tradability

• The firm creates a contract.

– Allows for the transfer of ownership
– Allows for use of the resource
• Short-term and long-term contracts are a way to
borrow resources from another company.
– Ex. Licensing and franchising
• Example: biotech-pharma industry:
– Producers use licensing agreements to transfer knowledge
and technology.

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 Closeness

• Can be achieved through integrated alliances

– Equity alliances
– Joint ventures
• Also enables the borrowing of resources

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 Integration

• Mergers and acquisitions are:

– The most costly
– The most complex
– The most difficult to reverse strategic option
• Examples of post-integration failure:
– Daimler-Chrysler
– AOL and Time Warner
– HP and Autonomy
– Bank of America and Merrill Lynch

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 Strategic Alliances

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 What are Strategic Alliances?

• A voluntary arrangement between firms

• Involves the sharing of:
– Knowledge
– Resources
– Capabilities with the intent of developing:
• Processes
• Products
• Services

©McGraw-Hill Education.
 How Do Strategic Alliances Assist Firms?

• They may complement a firm’s value chain.

• They may focus on similar value chain activities.
• They enable:
– Firm’s to achieve their goals faster
– Lower cost
– Fewer legal repercussions
• An alliance qualifies as strategic if:
– It has the potential to affect a firm’s competitive
advantage

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 Why Do Firms Enter Strategic Alliances?

• Strengthen competitive position

• Enter new markets
• Hedge against uncertainty
• Access critical complementary assets
• Learn new capabilities

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 Strengthen Competitive Position

• Strategic alliances can help:

– Change industry structure to the firm’s favor
– Influence industry standards
• Example: IBM & Apple
– Entered a strategic alliance
– Desired to strengthen their competitive position
• In mobile computing and business productivity apps

– Put competitive pressure on rivals such as Microsoft

©McGraw-Hill Education.
 Strategy Highlight 9.1

IBM and Apple: From Big Brother to Alliance Partner

•IBM was a fierce competitor with Apple (‘80s).
•Then Apple dominated
•2014: Apple & IBM form a strategic partnership
– Both parties benefit.
– Apple sold mostly to consumers, IBM to businesses.
– They plan to collaborate on business apps.

©McGraw-Hill Education.
 Enter New Markets

• Product markets
• Service markets
• Geographical markets
– Governments such as Saudi Arabia or China may require
that foreign firms have a local joint venture partner before
doing business in their countries.

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 Hedge Against Uncertainty

• Real-options perspective:
– Approach to strategic decision making
– Breaks down a larger investment decision into a set of
smaller decisions
– Staged sequentially over time
– Allows firms to obtain information in stages

©McGraw-Hill Education.
 Access Critical Complementary Assets

• Complementary assets such as:

– Marketing
– Manufacturing
– After-sale service
• Helps complete the value chain:
– From upstream innovation to downstream
commercialization

©McGraw-Hill Education.
 Learn New Capabilities

• Firms are motivated by the desire to learn from their

partners.
• Co-opetition
– Cooperation by competitors to achieve a strategic
objective
• Learning can take place at different rates.
– The firm that learns more quickly is motivated to exit the
alliance / reduce knowledge sharing.
– Referred to as “learning races”

©McGraw-Hill Education.
 Governing Strategic Alliances

• Non-Equity Alliances
– Partnerships based on contracts
– Examples: supply agreements, distribution agreements,
and licensing agreements
• Equity Alliances
– One partner takes partial ownership in the other.
• Joint Ventures
– A standalone organization created and jointly owned by
two or more parent companies

©McGraw-Hill Education.
 Exhibit 9.2 Key Characteristics of Different Alliance Types

Alliance Governance Type of

Frequency Knowledge Pros Cons Examples
Type Mechanism
Exchanged
Non-equity Contract Most common Explicit • Flexible • Weak tie • Genentech–Lilly (exclusive)
(supply, • Fast • Lack of trust licensing agreement for
licensing, and • Easy to initiate and Humulin
distribution and terminate commitment • Microsoft–IBM (nonexclusive)
agreements) licensing agreement for MS-
DOS
Equity (purchase Equity Less common Explicit; • Stronger tie • Less flexible • Renault–Nissan alliance based
of an equity stake investment than non-equity exchange of • Trust and • Slower on cross equity holdings, with
or corporate alliances, but tacit knowledge commitment • Can entail Renault owning 44.4% in
venture capital, more common possible can emerge significant Nissan; and Nissan owning
CVC investment) than joint • Window into investments 15% in Renault
ventures new • Roche’s equity investment in
technology Genentech (prior to full
(option value) integration)
Joint venture (JV) Creation of new Least common Both tacit and • Strongest tie • Can entail long • Hulu, owned by NBC, Fox, and
entity by two or explicit • Trust and negotiations Disney-ABC
more parent firms knowledge commitment and significant • Dow Corning, owned by Dow
exchanged likely to investments Chemical and Corning
emerge • Long-term
• May be solution
required by • JV managers
institutional have double
setting reporting lines
(2 bosses)

©McGraw-Hill Education.
 Exhibit 9.3 Alliance Management Capability

• The three phases of Alliance Management:

1. Partner selection and alliance formation
2. Alliance design and governance
3. Post-formation alliance management
• Can lead to a competitive advantage

©McGraw-Hill Education.
 Partner Selection and Alliance Formation

• The benefits must exceed the costs.

• Five reasons for alliance formation:
– To strengthen competitive position
– To enter new markets
– To hedge against uncertainty
– To access critical complementary resources
– To learn new capabilities
• Partner compatibility & commitment are necessary.

©McGraw-Hill Education.
 Alliance Design and Governance

• Possible governance mechanisms:

– Non-equity contractual agreement
– Equity alliances
– Joint venture
• Joining specialized complementary assets increases
the likelihood that the alliance is governed
hierarchically.
• Inter-organization trust is critical.

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 Post-Formation Alliance Management

• To create VRIO resource combinations:

– Make relation-specific investments.
– Establish knowledge-sharing routines.
– Build interfirm trust.
• Build capability through repeated experiences over
time.
– Repeated alliance exposure improves learning.

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 Exhibit 9.4 How to Make Alliances Work

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 Mergers and Acquisitions

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 Mergers and Acquisitions

• Merger:
– The joining of two independent companies
– Forms a combined entity
• Acquisition:
– Purchase of one company by another
– Can be friendly or unfriendly.
– Hostile takeover:
• The target company does not wish to be acquired.

©McGraw-Hill Education.
 Why Do Firms Merge?

• Horizontal integration:
– The process of merging with competitors
– Leads to industry consolidation
• Three main benefits:
1. Reduction in competitive intensity
• Changes underlying industry structure in favor of surviving firms

2. Lower costs
• Economies of scale

3. Increased differentiation
• Fills product gaps
©McGraw-Hill Education.
 Exhibit 9.5 Sources of Value Creation and Costs in
Horizontal Integration

Corporate Strategy Sources of Value Sources of Costs (C)

Creation (V)

• Horizontal integration • Reduction in • Integration failure

through M&A competitive intensity • Reduced flexibility
• Lower costs • Increased potential for
• Increased legal repercussions
differentiation

©McGraw-Hill Education.
 Strategy Highlight 9.2

Food Fight: Kraft’s Hostile Takeover of Cadbury

•In 2012, Kraft bought Cadbury for $20B
– Cadbury was focused solely on candy & gum.
– Cadbury had a mature distribution system overseas.
•Kraft then restructured in 2012.
– Separated grocery foods from snack foods
•In 2015, Kraft merged with Heinz.
– Is now the 5th largest food competitor in the world

©McGraw-Hill Education.
 Why Do Firms Acquire Other Firms?

• To access new markets & distribution channels

– To overcome entry barriers
• To access new capabilities or competencies
• To preempt rivals
– Example: Facebook acquired:
• Instagram (photo & video sharing)
• WhatsApp (text messaging service)
• Oculus (virtual reality headsets)
– Example: Google acquired:
• YouTube (video sharing)
• Motorola (mobile technology)
• Waze (interactive mobile maps)
©McGraw-Hill Education.
 M&A and Competitive Advantage

• Benefits of mergers & acquisitions are often hard to

achieve.
– Anticipated synergies don’t materialize.
• Other reasons to merge:
– Principal-agent problems
– The desire to overcome competitive disadvantage
– Superior acquisition and integration capability

©McGraw-Hill Education.
 Principal – Agent Problems

• Managers may have incentives to acquire.

– Not for anticipated shareholder value appreciation
– To build a larger empire
– To receive more prestige, power, and pay
• Managerial hubris:
– A form of self-delusion
– Managers convince themselves of their superior skills
– Happens even if there’s clear evidence to the contrary

©McGraw-Hill Education.
 Implications for the Strategist

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 The Business Environment Is Constantly Changing

• New opportunities come and go quickly.

• Firms need to develop new resources, capabilities, or
competencies.
– Helps them take advantage of opportunities
• Examples:
– Traditional book publishers: offer online content
– Bank institutions: offer online banking services
– Food companies: offer organic and gluten free products

©McGraw-Hill Education.
 Firms Need to Grow To Survive & Prosper

• Corporate strategy is critical to pursuing growth.

• Firms must possess VRIO resources.
• Firms must leverage existing resources.
• Strategic alliances help execute corporate strategy.

©McGraw-Hill Education.
 Strategic Alliances and Acquisitions is
a Strategic Tool

• Should be managed at the corporate level

– Helps harness spillovers between the different corporate
development activities
– To coordinate the firm’s portfolio of alliances
– To leverage relationships
– To successfully engage in mergers and acquisitions
• Relational capability
– The successful management of both strategic alliances and
mergers and acquisitions

©McGraw-Hill Education.
 Chapter 9 Summary

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 Take Away Concepts (1 of 8)

LO 9-1 Apply the build-borrow-or-buy framework to guide corporate

strategy.
•The build-borrow-or-buy framework provides a conceptual model that aids
strategists in deciding whether to pursue internal development (build), enter
a contract arrangement or strategic alliance (borrow), or acquire new
resources, capabilities, and competencies (buy).
•Firms that are able to learn how to select the right pathways to obtain new
resources are more likely to gain and sustain a competitive advantage.

©McGraw-Hill Education.
 Take Away Concepts (2 of 8)

LO 9-2 Define strategic alliances, and explain why they are important to
implement corporate strategy and why firms enter into them.
•Strategic alliances have the goal of sharing knowledge, resources, and
capabilities to develop processes, products, or services.
•An alliance qualifies as strategic if it has the potential to affect a firm’s
competitive advantage by increasing value and/or lowering costs.
•The most common reasons why firms enter alliances are to (1) strengthen
competitive position, (2) enter new markets, (3) hedge against uncertainty,
(4) access critical complementary resources, and (5) learn new capabilities.

©McGraw-Hill Education.
 Take Away Concepts (3 of 8)

LO 9-3 Describe three alliance governance mechanisms and evaluate their

pros and cons.
•Alliances can be governed by the following mechanisms: contractual
agreements for non-equity alliances, equity alliances, and joint ventures.
•There are pros and cons of each alliance governance mechanism, shown in
detail in Exhibit 9.2; with highlights as follows:
– Non-equity alliance’s pros: flexible, fast, easy to get in and out; cons: weak ties, lack of
trust/commitment.
– Equity alliance’s pros: stronger ties, potential for trust/commitment, window into new
technology (option value); cons: less flexible, slower, can entail significant investment.
– Joint venture pros: strongest tie, trust/commitment most likely, may be required by
institutional setting; cons: potentially long negotiations and significant investments, long-term
solution, managers may have two reporting lines (two bosses).

©McGraw-Hill Education.
 Take Away Concepts (4 of 8)

LO 9-4 Describe the three phases of alliance management and explain how
an alliance management capability can lead to a competitive advantage.
•An alliance management capability consists of a firm’s ability to effectively
manage alliance-related tasks through three phases: (1) partner selection and
alliance formation, (2) alliance design and governance, and (3) post-formation
alliance management.
•An alliance management capability can be a source of competitive advantage
as better management of alliances leads to more likely superior performance.
•Firms build a superior alliance management capability through “learning -by
-doing” and by establishing a dedicated alliance function.

©McGraw-Hill Education.
 Take Away Concepts (5 of 8)

LO 9-5 Differentiate between mergers and acquisitions, and explain why

firms would use either to execute corporate strategy.
•A merger describes the joining of two independent companies to form a
combined entity.
•An acquisition describes the purchase or takeover of one company by
another. It can be friendly or hostile.
•Although there is a distinction between mergers and acquisitions, many
observers simply use the umbrella term “mergers and acquisitions,” or M&A.
•Firms can use M&A activity for competitive advantage when they possess a
superior relational capability, which is often built on superior alliance
management capability.

©McGraw-Hill Education.
 Take Away Concepts (6 of 8)

LO 9-6 Define horizontal integration and evaluate the advantages and

disadvantages of this option to execute corporate-level strategy.
• Horizontal integration is the process of merging with competitors, leading
to industry consolidation.
• As a corporate strategy, firms use horizontal integration to (1) reduce
competitive intensity, (2) lower costs, and (3) increase differentiation.

©McGraw-Hill Education.
 Take Away Concepts (7 of 8)

LO 9-7 Explain why firms engage in acquisitions.

• Firms engage in acquisitions to (1) access new markets and distributions

channels, (2) gain access to a new capability or competency, and (3)
preempt rivals.

©McGraw-Hill Education.
 Take Away Concepts (8 of 8)

LO 9-8 Evaluate whether mergers and acquisitions lead to competitive

advantage.
•Most mergers and acquisitions destroy shareholder value because
anticipated synergies never materialize.
•If there is any value creation in M&A, it generally accrues to the shareholders
of the firm that is taken over (the acquiree), because acquirers often pay a
premium when buying the target company.
•Mergers and acquisitions are a popular vehicle for corporate-level strategy
implementation for three reasons: (1) because of principal–agent problems,
(2) the desire to overcome competitive disadvantage, and (3) the quest for
superior acquisition and integration capability.

©McGraw-Hill Education.
 Key Terms
• Acquisition
• Alliance management capability
• Build-borrow-or-buy framework
• Co-opetition
• Corporate venture capital (CVC)
• Equity alliance
• Explicit knowledge
• Horizontal integration
• Hostile takeover
©McGraw-Hill Education.
• Learning races
• Managerial hubris
• Merger
• Non-equity alliance
• Real-options perspective
• Relational view of competitive
advantage
• Strategic alliance
• Tacit knowledge
 Chapter 9 Cases & Exercises

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 Chapter Case 9: Consider This… (1 of 2)

• Disney: creates billion-dollar franchises

– Frozen, Toy Story, Star Wars
• Why this is risky:
– Many obtained through acquisition (ex. Star Wars)
• Only so many can be acquired.

– This may reduce originality / increase boredom.

• Recipe for success becomes predictable.

– Half of Disney profits come from TV networks

• This industry is being disrupted.

©McGraw-Hill Education.
 Chapter Case 9: Consider This… (2 of 2)

• Is this a good strategy for Disney?

– Outline the pros & cons
• Should Disney seek alternatives to acquisition?
• Why was Disney successful with Pixar & Marvel while
others experience less success?
– Ex: Sony’s acquisition of Columbia Pictures or News Corp.’s
acquisition of MySpace
• Is Disney now a global consumer products company?

©McGraw-Hill Education.
 My Strategy Exercise:
What’s Your Career Network Strategy?

• Many people participate in social networking

– Do you have a network strategy?
– Social networks represent social capital.
• Potential advantages through connection

• List the top 12 people that you communicate with.

– Draw connections if these people know each other.
– Determine the degree of closure (see slide notes).
– How can you optimize your network structure?

©McGraw-Hill Education.
 Small Group Exercise #1

• Furniture manufacturers are acquiring others and the

industry is consolidating.
• Charter Capital Partners is an M&A adviser.
– They have hired you to conduct research.
– See slides notes for information about this client.
– Should the client upgrade, partner, or sell?
• Your task:
– Use the build-borrow-or-buy framework.
– Develop a set of questions to gather key information.
– What information can help them decide?

©McGraw-Hill Education.
 Small Group Exercise #2

• Many firms now participate in social media

– Twitter, Facebook, YouTube, and blogs
– Ensures effective communication with stakeholders
– They may have multiple accounts with these tools
• Research the social media presence of 3 firms
– More insights gleaned if they’re in the same industry
• Questions to answer:
– Do they do a good job managing their web identity?
– What differences do you find among them?
©McGraw-Hill Education.
 End of Chapter 9

©McGraw-Hill Education.
 Strategy Smart Videos

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 Strategy Smart Videos (1 of 6)

• The IBM Enterprise Conference

• Overview of the IBM / Apple Strategic Partnership as
outlined in Strategy Highlight 9.1
• Link:
– https://www.youtube.com/watch?v=xYcJTV5rEWg
• 15:55 Minutes

©McGraw-Hill Education.
 Strategy Smart Videos (2 of 6)

• Ratan Tata and Howard Schultz

• Good Business Brew: Starbucks & Tata Joint Venture
• Link:
– https://www.youtube.com/watch?v=ZY8gxJcKtjM
• 8:49 Minutes

©McGraw-Hill Education.
 Strategy Smart Videos (3 of 6)

• Recommendations for how to seek a strategic

alliance
• Focused on small businesses
• Link:
– https://www.youtube.com/watch?v=0fX2N4oFHYA
• 1:38 Minutes

©McGraw-Hill Education.
 Strategy Smart Videos (4 of 6)

• INSEAD Professor Laurence Capron

• Corporate Growing Pains: Build, Borrow or Buy?
• Link:
– https://www.youtube.com/watch?v=phG8cYYTbgA
• 9:27 Minutes

©McGraw-Hill Education.
 Strategy Smart Videos (5 of 6)

• Harvard Business Review / Laurence Capron

• Evaluate M&As the Right Way
• Link:
– https://www.youtube.com/watch?v=PKhGy1RD_u0
• 2:18 Minutes

©McGraw-Hill Education.
 Strategy Smart Videos (6 of 6)

• Google Acquires YouTube

• A (VERY informal) interview with YouTube founders
about this from 2006
– Link:
• https://www.youtube.com/watch?v=QCVxQ_3Ejkg

– 1:36 Minutes
• CBC news interview regarding these impacts
– Link:
• https://www.youtube.com/watch?v=_nOBa0z1BHk

– 5:02 Minutes
©McGraw-Hill Education.
 Chapter Case 9

©McGraw-Hill Education.
 Chapter Case 9: Disney (1 of 2)

• Disney is the world’s largest media company

– $50 billion in annual revenues
– Has grown through high-profile acquisitions
• Pixar (2006), Marvel (2009), and Lucasfilm (2012)
• How Pixar became an acquisition
– Originally produced graphic display systems, animated
movies demonstrated systems capabilities
– Steve Jobs bought it for $5 million
– Rolled out one blockbuster after another
• Toy Story, A Bug’s Life, Monsters, Inc.,
• Finding Nemo, The Incredibles, and Cars

©McGraw-Hill Education.
 Chapter Case 9: Disney (2 of 2)

• Disney acquisitions
– Pixar for $7.4 billion in 2006
– Marvel for $4 billion in 2009
– Lucasfilm for $4 billion in 2012
• Franchise model
– Get a big movie hit, then derive spin-offs
• TV shows, theme park rides, video games, toys, clothing
• Disney’s hit Frozen
– Most successful animated movie ever
– Grossed $1.5 billion since 2013

©McGraw-Hill Education.
 Appendix 1 The AFI Strategy Framework
The important inside circle is titled "Gaining and Sustaining a Competitive Advantage" that is at the very center of the image, with
five different circles on the outside of it. Arrows go back and forth from the center circle to each of the five outer circles. The
five outer circles are labeled: (1) Getting Started, (2) External and Internal Analysis, (3) Formulation: Business Strategy, (4)
Formulation, Corporate Strategy, and (5) Implementation.

Each of these outer five circles have a brief description beside them to explain what the circle means:

Under the first outer circle titled "Getting Started", it says: Part 1, Strategy Analysis, "What is Strategy (Chapter 1)" and "Strategic
Leadership: Managing the Strategy Process (Chapter 2)".

Under the second outer circle titled "External and Internal Analysis", it says: Part 1, Strategy Analysis, "External Analysis: Industry
Structure, Competitive Forces and Strategic Groups (Chapter 3)", "Internal Analysis: Resources, Capabilities and Core
Competencies (Chapter 4)", and "Competitive Advantage, Firm Performance, and Business Models (Chapter 5)".

Under the third outer circle titled "Formulation: Business Strategy", it says: Part 2, Strategy Formulation, "Business Strategy:
Differentiation, Cost Leadership and Integration (Chapter 6)" and "Business Strategy, Innovation and Entrepreneurship
(Chapter 7)".

Under the fourth outer circle titled "Formulation: Corporate Strategy", it says: Part 2, Strategy Formulation, "Corporate Strategy:
Vertical Integration and Diversification (Chapter 8)", "Corporate Strategy: Strategic Alliances, Mergers and Acquisitions
(Chapter 9)", and "Global Strategy: Competing Around the World (Chapter 10)".

Under the fifth outer circle titled "Implementation", it says: Part 3, Strategy Implementation, "Organizational Design: Structure,
Culture and Control (Chapter 11)", and "Corporate Governance and Business Ethics (Chapter 12)".

Return to slide

©McGraw-Hill Education.
 Appendix 2 Exhibit 9.1 Guiding Corporate Strategy:
The Build-Borrow-or-Buy Framework

In this approach, executives must determine the degree to which certain

conditions apply, either high or low, by responding to up to four questions
sequentially before finding the best course. The questions cover issues of
relevancy, tradability, closeness, and integration:
1. How relevant are internal resources? If high, conduct internal development
(BUILD), if low:
2. How tradable are the targeted resources? If high, determine the type of
strategic alliance (contract, licensing, equity alliance, joint venture aka
BORROW), if low:
3. How close to your resource partner? If high, determine the type of strategic
alliance, if low:
4. How well can you integrate the target firm? If high, acquire (BUY), if low,
revisit the build-borrow-buy options or reformulate strategy.

Return to slide

©McGraw-Hill Education.
 Appendix 3 Exhibit 9.4 How to Make Alliances Work

This image shows how alliance partnerships need to create

resource combinations that obey the VRIO criteria through
relation-specific investments, establish knowledge-sharing
routines, and build interfirm trust. Each of these three elements
are presented in individual boxes with arrows pointing to each
other, and are all contained within the same outer circle with the
words "effective alliance governance" placed inside the circle.

Return to slide

©McGraw-Hill Education.