Strategic AlliancesStrategic Alliances

Emad Abo El-EninEmad Abo El-Enin

May-2010May-2010

ContentContent

1.1. DefinitionDefinition

2.2. MotivesMotives

3.3. Success factorsSuccess factors

4.4. Mistakes that could lead to failuresMistakes that could lead to failures

5.5. Types of classificationTypes of classification

6.6. ExamplesExamples

Total business conducted through alliancesTotal business conducted through alliancesSource: Economist Intelligence Unit Global SurveySource: Economist Intelligence Unit Global Survey

1990 : 3-5%1990 : 3-5%2000: 20%2000: 20%2005: 30%2005: 30%2010: 40%2010: 40%

““The greatest challenge in corporate culture and the wayThe greatest challenge in corporate culture and the waybusiness is being conducted, may be the accelerating growthbusiness is being conducted, may be the accelerating growth

of relationships based on partnership, not ownership”of relationships based on partnership, not ownership”

(Peter Drucker)(Peter Drucker)

In Average, each fast-growing company is engaged in 5 different In Average, each fast-growing company is engaged in 5 different types of strategic alliancetypes of strategic alliance

Strategic AllianceStrategic Alliance

In a strategic alliance both parties contribute to their joint In a strategic alliance both parties contribute to their joint venture their respective resources and capabilityventure their respective resources and capability

Aim is to add greater value to their respective positionsAim is to add greater value to their respective positions By doing so, to By doing so, to

Increase their financial returnIncrease their financial return To access the capability of their partner which they themselves lackTo access the capability of their partner which they themselves lack To acquire skills that they themselves may lackTo acquire skills that they themselves may lack

Strategic PartnerStrategic Partner

Strategic Alliances DefinitionStrategic Alliances Definition

““Two or more bodies working together to achieveTwo or more bodies working together to achievesomething that one cannot do, or chooses not to do something that one cannot do, or chooses not to do

alone,alone,that has a significant and often long term impact, on thethat has a significant and often long term impact, on theorganization.”organization.”

Source: AlliantistSource: Alliantist

““A co-operative arrangement between two or moreA co-operative arrangement between two or moreparties who combine their strengths to achieveparties who combine their strengths to achievecompatible objectives whilst retaining their individualcompatible objectives whilst retaining their individualidentities and share the risks and rewards.”identities and share the risks and rewards.”

To be ‘strategicTo be ‘strategic’’

Must be aligned with organizational strategyMust be aligned with organizational strategy For associations, need to focus on member For associations, need to focus on member

value, not making €value, not making € Key Question… Key Question… ‘ ‘Can we deliver on our mission statement more Can we deliver on our mission statement more

effectively by working with partners or by effectively by working with partners or by working alone?’working alone?’

ReviewReview Are there any projects on hold or rejectedAre there any projects on hold or rejected because of lack of resources?because of lack of resources?

Why Strategic AlliancesWhy Strategic Alliances?? To gain access to specific marketsTo gain access to specific markets Ex – Chrysler and Benz – to gain access to EUEx – Chrysler and Benz – to gain access to EU where regulations favor local companieswhere regulations favor local companies To increase market shareTo increase market share To avoid import barriers, licensing, To avoid import barriers, licensing,

requirements, and other protectionistrequirements, and other protectionist legislationlegislation – – GM-Toyota venture GM-Toyota venture to avoid import quotasto avoid import quotas

Why Strategic AllianceWhy Strategic Alliance??

Adding value to products/servicesAdding value to products/services Improving market accessImproving market access Strengthening operationsStrengthening operations Adding technological strengthAdding technological strength Enhancing strategic growthEnhancing strategic growth Building financial strengthBuilding financial strength

MotivesMotives

Businesses use strategic alliances toBusinesses use strategic alliances to:: ِِ��ِِ��Achieve advantages of scale, scope and speedAchieve advantages of scale, scope and speed Increase market penetrationIncrease market penetration Enhance competitiveness in domestic andEnhance competitiveness in domestic and//or global marketsor global markets Enhance product developmentEnhance product development Develop new business opportunities through new products and Develop new business opportunities through new products and

servicesservices Expand market developmentExpand market development Increase exportsIncrease exports DiversifyDiversify Create new businessesCreate new businesses Reduce costsReduce costs. . Strategic alliances are becoming a more and more common tool for Strategic alliances are becoming a more and more common tool for

expanding the reach of your company without committing yourself to expanding the reach of your company without committing yourself to expensive internal expansions beyond your core businessexpensive internal expansions beyond your core business..

Critical success factors to SACritical success factors to SA

TrustTrust

CooperationCooperation

CommunicationCommunication

Success factors Success factors contcont..Essential 1. Partner selection (70%) Essential 1. Partner selection (70%) 2. Senior management commitment (68%)2. Senior management commitment (68%) 3. Clearly understood roles (49%)3. Clearly understood roles (49%) 4. Clearly defined objectives (47%)4. Clearly defined objectives (47%) 5. Good communication between partners (40%)5. Good communication between partners (40%) 6. Relationship building (35%)6. Relationship building (35%) 7. Thorough planning (31%)7. Thorough planning (31%)

Important 8. Close senior management ties (30%)Important 8. Close senior management ties (30%) 9. Frequent performance feedback (20%)9. Frequent performance feedback (20%) 10. Day-to-day attention (18%)10. Day-to-day attention (18%) 11. Fair sharing of risks, resources & reward (13%)11. Fair sharing of risks, resources & reward (13%) 12. Clear payback timelines (11%)12. Clear payback timelines (11%) 13. Alignment of culture 13. Alignment of culture

(10%)(10%) 14. Previous alliance experience (9%)14. Previous alliance experience (9%)

Worthwhile 15. Integration of information system (5%)Worthwhile 15. Integration of information system (5%)

Source: Technical & Alliance Survey of 455 CEO’s

Experts addExperts add…… 16. High level of trust is the most accurate predictor of success 16. High level of trust is the most accurate predictor of success 17. Creation of best value in members eyes17. Creation of best value in members eyes 18. High level of commitment to win-win18. High level of commitment to win-win 19. High levels of interdependence19. High levels of interdependence - You need each other- You need each other 20. Strategically important to both partners20. Strategically important to both partners - Equal commitment & priority- Equal commitment & priority -The one for whom priority is highest does most of the work-The one for whom priority is highest does most of the work 21. Personal chemistry21. Personal chemistry 22. Integrity22. Integrity 23. Sharp focus & a strong vision of what can be achieved23. Sharp focus & a strong vision of what can be achieved 24. Confidence in partner24. Confidence in partner 25. Good strategic fit i.e. strategic synergy25. Good strategic fit i.e. strategic synergy 26. Complementary critical driving forces26. Complementary critical driving forces 27. Compatible style of management27. Compatible style of management 28. Effective mechanisms for resolving disputes28. Effective mechanisms for resolving disputes - An exit strategy- An exit strategy 29. Individual excellence29. Individual excellence 30. Recognition this is going to take effort30. Recognition this is going to take effort 31. Delivery as stated31. Delivery as stated - Removes the performance risk- Removes the performance risk -Otherwise leads to anger & mistrust-Otherwise leads to anger & mistrust 32. Realistic performance indicators32. Realistic performance indicators - Appropriate measurement & metrics- Appropriate measurement & metrics

Mistakes that could lead to Mistakes that could lead to failuresfailures

More failures than successesMore failures than successes -In early 90’s, 61% failed (McKinsey)-In early 90’s, 61% failed (McKinsey) -By 2004, 52% failed-By 2004, 52% failed -Highest with international alliance -Highest with international alliance 50% fail due to poor planning & 50% due to poor 50% fail due to poor planning & 50% due to poor

managementmanagement Can be very dangerous –IBM & MicrosoftCan be very dangerous –IBM & Microsoft The good news? 70% improvement if follow bestThe good news? 70% improvement if follow best practicepractice So proceed with caution!!So proceed with caution!!

1. Follow a structured process 1. Follow a structured process 2. Not enough preparation time2. Not enough preparation time - On average takes 8-12 months- On average takes 8-12 months - Impatience- Impatience 3. Poor strategy & goals e.g.3. Poor strategy & goals e.g. - Increase revenue to fix a drop in member retention- Increase revenue to fix a drop in member retention - Underdeveloped membership benefit offer- Underdeveloped membership benefit offer 4. Hidden agenda leading to distrust 4. Hidden agenda leading to distrust 5. They are introduced as an objective5. They are introduced as an objective 6. You create a future competitor6. You create a future competitor 7. Do not share strategy & goals7. Do not share strategy & goals 8. Wrong emphasis early on e.g.8. Wrong emphasis early on e.g. - Getting 51% (control)- Getting 51% (control) 9. Lack of understanding of what is involved9. Lack of understanding of what is involved - Unrealistic expectations- Unrealistic expectations 10. Fails the ‘public perception test’ & damages your reputations10. Fails the ‘public perception test’ & damages your reputations 11. Complex to manage11. Complex to manage 12. Reactive, not prepared & proactive12. Reactive, not prepared & proactive 13. Some uncomfortable with loss of control13. Some uncomfortable with loss of control 14. Exclusive arrangements upset people14. Exclusive arrangements upset people 15. Overdependence15. Overdependence 16. Lack of commitment from the top16. Lack of commitment from the top 18. Reduced donations18. Reduced donations 19. Legal problems19. Legal problems

Types of AllianceTypes of Alliance

Opportunistic allianceOpportunistic alliance

Complementary allianceComplementary alliance

Types of classificationTypes of classification

Alliances come in many shapes and sizes.Alliances come in many shapes and sizes.

Terms commonly used are Terms commonly used are

joint ventures, collaborations , formal and joint ventures, collaborations , formal and informal, equity and non equity ,partnering, informal, equity and non equity ,partnering, and partnerships. and partnerships.

You may also have heard the termsYou may also have heard the terms

merger, acquisition, and outsourcing. Some merger, acquisition, and outsourcing. Some feel that these are not true “strategic feel that these are not true “strategic alliances”alliances”

Acquisition/Merger

Joint Venture

R&D collaborations/Tech Transfer

Licensing/Private Label

Joint selling and Distributions

Joint Marketing

Vendor

Suppliers

Pyramid Of AlliancesPyramid Of Alliances

Types of Strategic AlliancesTypes of Strategic Alliances

Joint VenturesJoint Ventures OutsourcingOutsourcing Affiliate MarketingAffiliate Marketing Technology LicensingTechnology Licensing Product LicensingProduct Licensing FranchisingFranchising R&DR&D   DistributorsDistributors

Joint VenturesJoint VenturesA joint venture is an agreement by two or more A joint venture is an agreement by two or more

parties to form a single entity to undertake a parties to form a single entity to undertake a certain project. Each of the businesses has an certain project. Each of the businesses has an equity stake in the individual business and share equity stake in the individual business and share revenues, expenses and profits.revenues, expenses and profits.

Joint Ventures are agreements between parties or firms Joint Ventures are agreements between parties or firms for a particular purpose or venturefor a particular purpose or venture. . Their formation may Their formation may be very informal, such as a handshake and an be very informal, such as a handshake and an agreement for two firms to share a booth at a trade agreement for two firms to share a booth at a trade showshow. . Other arrangements can be extremely complex, Other arrangements can be extremely complex, such as the consortium of major Usuch as the consortium of major U..SS. . electronics firms to electronics firms to develop new microchips,develop new microchips,

Charles PCharles P. . Lickson in A Legal Guide for Small Lickson in A Legal Guide for Small BusinessBusiness. .

OutsourcingOutsourcing

The 1980s was the decade where outsourcing really rose to The 1980s was the decade where outsourcing really rose to prominence, and this trend continued throughout the 1990s to prominence, and this trend continued throughout the 1990s to today, although to a slightly lesser extenttoday, although to a slightly lesser extent. .

““Outsourcing and globalization of manufacturing allows Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creationunemployment, and increases productivity and job creation.”.”

Affiliate MarketingAffiliate MarketingAffiliate marketing has exploded over recent years, with the most Affiliate marketing has exploded over recent years, with the most

successful online retailers using it to great effect. The nature of successful online retailers using it to great effect. The nature of the internet means that referrals can be accurately tracked right the internet means that referrals can be accurately tracked right through the order process. through the order process.

ExampleExampleAmazon was the pioneer of affiliate marketing, and now has tens of Amazon was the pioneer of affiliate marketing, and now has tens of

thousands of websites promoting its products on a performance-thousands of websites promoting its products on a performance-based basis.based basis.

Technology LicensingTechnology Licensing This is a contractual arrangement whereby trade marks, This is a contractual arrangement whereby trade marks,

intellectual property and trade secrets are licensed to an intellectual property and trade secrets are licensed to an external firm. It’s used mainly as a low cost way to enter external firm. It’s used mainly as a low cost way to enter foreign markets. The main downside of licensing is the foreign markets. The main downside of licensing is the loss of control over the technology – as soon as it enters loss of control over the technology – as soon as it enters other hands the possibility of exploitation arisesother hands the possibility of exploitation arises

Product LicensingProduct Licensing This is similar to technology licensing except that the license This is similar to technology licensing except that the license

provided is only to manufacture and sell a certain productprovided is only to manufacture and sell a certain product. . Usually each licensee will be given an exclusive geographic Usually each licensee will be given an exclusive geographic area to which they can sell toarea to which they can sell to. . It’s a lowerIt’s a lower--risk way of expanding risk way of expanding the reach of your product compared to building your the reach of your product compared to building your manufacturing base and distribution reachmanufacturing base and distribution reach

FranchisingFranchising Franchising is an excellent way of quickly rolling out a Franchising is an excellent way of quickly rolling out a

successful concept nationwide. Franchisees pay a set-up fee successful concept nationwide. Franchisees pay a set-up fee and agree to ongoing payments so the process is financially and agree to ongoing payments so the process is financially risk-free for the company. However, downsides do exist, risk-free for the company. However, downsides do exist, particularly with the loss of control over how franchisees run particularly with the loss of control over how franchisees run their franchise.their franchise.

R&DR&D Strategic alliances based around R&D tend to fall into Strategic alliances based around R&D tend to fall into

the joint venture category, where two or more the joint venture category, where two or more businesses decide to embark on a research venture businesses decide to embark on a research venture through forming a new entitythrough forming a new entity..

   Host CountryPharmaceutical

Firm

Home CountryPharmaceutical

Firm

R&D R&D

R&DJoint Venture

DistributorsDistributorsIf you have a product one of the best ways to market it is to recruit If you have a product one of the best ways to market it is to recruit

distributors, where each one has its own geographical area or distributors, where each one has its own geographical area or type of producttype of product. . This ensures that each distributor’s success This ensures that each distributor’s success can be easily measured against other distributorscan be easily measured against other distributors..

Distribution RelationshipsDistribution Relationships This is perhaps This is perhaps the mostthe most common form of alliancecommon form of alliance. . Strategic Strategic

alliances are usually formed because the businesses involved alliances are usually formed because the businesses involved want more customerswant more customers. . The result is that crossThe result is that cross--promotion promotion agreements are establishedagreements are established. .

Consider the case of a bankConsider the case of a bank. . They send out bank statements They send out bank statements every monthevery month. . A home insurance company may approach the A home insurance company may approach the bank and offer to make an exclusive available to their bank and offer to make an exclusive available to their customers if they can include it along with the next bank customers if they can include it along with the next bank statement that is sent outstatement that is sent out. .

It’s a winIt’s a win--win agreement – the bank gains through offering a win agreement – the bank gains through offering a great deal to their customers, the insurance company benefits great deal to their customers, the insurance company benefits through increased customer numbers, and customers gain through increased customer numbers, and customers gain through receiving an exclusive offerthrough receiving an exclusive offer..

Another Types of strategic alliances Another Types of strategic alliances classificationclassification

Vertical Alliances:Vertical Alliances:

Vertical alliances are relationships between organizations inVertical alliances are relationships between organizations indifferent industries. This is a type of alliance most commonly found in different industries. This is a type of alliance most commonly found in

the service sector where collaboration of expertise can be the service sector where collaboration of expertise can be coordinated to offer complete solutions to clients.coordinated to offer complete solutions to clients.

Example:Example:

Individuals from a civil engineering, project management, Individuals from a civil engineering, project management, construction, landscaping and interior design firms all have different construction, landscaping and interior design firms all have different areas of expertise, yet together can deliver a complete building areas of expertise, yet together can deliver a complete building solution. None of the firms could bid on a job of this magnitude solution. None of the firms could bid on a job of this magnitude independently, but as a team they can combine their expertise for independently, but as a team they can combine their expertise for as long as necessary.as long as necessary.

Horizontal Alliance:Horizontal Alliance: Horizontal alliances include firms from the same industry.Horizontal alliances include firms from the same industry. Alliances are usually used to achieve scale, to adjust for Alliances are usually used to achieve scale, to adjust for

seasonal changes or handle niche areas of expertise.seasonal changes or handle niche areas of expertise.

ExampleExample::

A A communications consulting firm submits a proposal to create acommunications consulting firm submits a proposal to create a

communications plan for an organization that handles politically communications plan for an organization that handles politically sensitive issues. The consulting firm decides to include a sensitive issues. The consulting firm decides to include a political advisor in its proposalpolitical advisor in its proposal..

Administrative AllianceAdministrative Alliance : :Generally involves one organization entering into anGenerally involves one organization entering into anagreement with another for the provision of administrative agreement with another for the provision of administrative services, space or products. The main purpose is to share services, space or products. The main purpose is to share functions, increase operational efficiency and to reduce costsfunctions, increase operational efficiency and to reduce costs

ExampleExample::

sharing office space and a receptionistsharing office space and a receptionist

Joint Programming or Business Network Joint Programming or Business Network AllianceAlliance::

Two or more organizationsTwo or more organizations

form an alliance/joint venture for the purpose of form an alliance/joint venture for the purpose of delivering a joint program. The two business entities delivering a joint program. The two business entities are taking advantage of their different skills and are taking advantage of their different skills and abilities in an effective mannerabilities in an effective manner..ExampleExample::

A group of independent consultants come together to develop aA group of independent consultants come together to develop amanagement-training program. This may include individuals with management-training program. This may include individuals with expertise indifferent areas such as human resources, expertise indifferent areas such as human resources, leadership and communications skills, and conflict resolution. leadership and communications skills, and conflict resolution. These consultants will utilize their different skills to develop theThese consultants will utilize their different skills to develop theprogram and may then market it by using their respective program and may then market it by using their respective client/contacts listclient/contacts list..

Merger:Merger: This involves the amalgamation or joining together of This involves the amalgamation or joining together of

two or more organizations, which typically share two or more organizations, which typically share similar objects, goals, principals and/or similar objects, goals, principals and/or services/products. This collaboration typically services/products. This collaboration typically results in the dissolution of one or both of the initial results in the dissolution of one or both of the initial organizationorganization

Examples:Examples:

Two large organizations such as a financial institution or an Two large organizations such as a financial institution or an insuranceinsurance

company may merge, which effectively eliminates a primary company may merge, which effectively eliminates a primary competitor. Or on a smaller scale, a group of consultants with competitor. Or on a smaller scale, a group of consultants with different expertise merge to form one company. The individual different expertise merge to form one company. The individual companies are dissolved.companies are dissolved.

Another Types of AllianceAnother Types of Alliance

Third-party logistics (3PL)Third-party logistics (3PL) Fourth-party logistics (4PL)Fourth-party logistics (4PL) Retailer-supplier partnerships (RSP)Retailer-supplier partnerships (RSP) Distributor integration (DI)Distributor integration (DI)

Examples of SA Successes and Examples of SA Successes and FailuresFailures

Women.com Partners with Procter & Women.com Partners with Procter & GambleGamble

August 29, 2000August 29, 2000

Women.com, which provides women with advice, Women.com, which provides women with advice, community and shopping on the Web, will community and shopping on the Web, will incorporate Procter & Gamble's incorporate Procter & Gamble's ParentTime.comParentTime.com property into its Web network. property into its Web network.

Parentime.com is an interactive resource designed Parentime.com is an interactive resource designed to provide comprehensive, personalized to provide comprehensive, personalized information on child rearing. information on child rearing.

Additionally, Women.com will work to develop Additionally, Women.com will work to develop unique marketing programs for P&G's beauty care unique marketing programs for P&G's beauty care and home care business segments, according to and home care business segments, according to Lillian Gilden, vice president, strategic alliances, Lillian Gilden, vice president, strategic alliances, Women.com. Women.com.

Alibaba Group forms strategic alliance with Alibaba Group forms strategic alliance with Bank of China on online paymentBank of China on online payment

Published: 23 Jul 2009Published: 23 Jul 2009 Alibaba GroupAlibaba Group and and Bank of China formedBank of China formed a long-term a long-term

strategic alliance to collaborate on several strategic alliance to collaborate on several e-commerce e-commerce initiatives including online payment, international initiatives including online payment, international businessbusiness cooperation, small business cooperation, small business financing financing and and joint marketing.joint marketing.

Under the terms of their alliance, Alibaba Group and Under the terms of their alliance, Alibaba Group and Bank of China will jointly develop the Bank of China will jointly develop the AlipayAlipay Card (a Card (a smart card to be issued by Alibaba Group's subsidiary smart card to be issued by Alibaba Group's subsidiary Alipay, Alipay, Asia’Asia’s largest online payment platform) and a s largest online payment platform) and a trust rating system. They will also roll out a small trust rating system. They will also roll out a small enterprise loan-assistance scheme and pursue credit enterprise loan-assistance scheme and pursue credit card card innovationinnovation and other innovations related to and other innovations related to importimport--exportexport and small businesses. and small businesses.

Giorgio Armani and SAMSUNG announce new Giorgio Armani and SAMSUNG announce new strategic alliance for the creation of innovative strategic alliance for the creation of innovative

portable and home consumer electronics portable and home consumer electronics productsproducts

on May 03, 2008

SAMSUNG Electronics, a market leader in consumer electronics, and Giorgio Armani, one of the world’s leading fashion and lifestyle design companies, have announced a groundbreaking strategic alliance for the development of innovative portable and home consumer electronics products, founded on the combination of Giorgio Armani’s iconic design aesthetic and SAMSUNG’s cutting edge technology. Giorgio Armani will create the design aesthetic and SAMSUNG will provide technology and function,

The Walt Disney Company and Coca-Cola The Walt Disney Company and Coca-Cola Expand Multi-Year Strategic Alliance; DASANI Expand Multi-Year Strategic Alliance; DASANI Bottled Water to Be Featured Water at Disney's Bottled Water to Be Featured Water at Disney's

U.S. Parks and ResortsU.S. Parks and Resorts..

Alliance Includes Promotional and Sponsorship Opportunities, Alliance Includes Promotional and Sponsorship Opportunities, Including Advertising Buys on ABC Television Network Including Advertising Buys on ABC Television Network

The Walt Disney Company and The Coca-Cola Company The Walt Disney Company and The Coca-Cola Company have expanded their multi-year agreement by which DASANI have expanded their multi-year agreement by which DASANI Water will be the featured bottled water at Disney's U.S. Parks Water will be the featured bottled water at Disney's U.S. Parks and Resortsand Resorts

The water also will be served on the Disney Cruise Line. The The water also will be served on the Disney Cruise Line. The alliance includes sponsorship and promotional opportunities, alliance includes sponsorship and promotional opportunities, including advertising buys across Disney's media properties including advertising buys across Disney's media properties through ABC Unlimited. through ABC Unlimited.

Renault-Volvo Renault-Volvo alliancealliance

In 1990 Volvo and Renault agreed to establish a In 1990 Volvo and Renault agreed to establish a strategic alliance. They knew each other wellstrategic alliance. They knew each other well

through 20 years of industrial co-operation. The through 20 years of industrial co-operation. The motives for the alliance were to exploit sizablemotives for the alliance were to exploit sizable

potential synergies in joint product development, potential synergies in joint product development, purchasing and manufacturing and to createpurchasing and manufacturing and to create

complementary firms to compete in the global complementary firms to compete in the global marketplace. marketplace.

Chrysler-Fiat Sign GlobalChrysler-Fiat Sign Global

January 20, 2009January 20, 2009• Chrysler had signed a deal with Italy's Fiat to Chrysler had signed a deal with Italy's Fiat to

establish what it called a global strategic alliance.establish what it called a global strategic alliance.The alliance would allow Fiat and Chrysler to take The alliance would allow Fiat and Chrysler to take

advantage of each other's distribution networks and advantage of each other's distribution networks and "optimize fully their respective manufacturing "optimize fully their respective manufacturing footprint and global supplier base." footprint and global supplier base."

• Under the terms of deal, Fiat takes an initial 35 Under the terms of deal, Fiat takes an initial 35 percent equity interest in Chrysler for which it will not percent equity interest in Chrysler for which it will not pay cash nor commit to future funding for Chrysler.pay cash nor commit to future funding for Chrysler.

technology sharing, including fuel-efficient and technology sharing, including fuel-efficient and environmentally friendly powertrain technologies, environmentally friendly powertrain technologies,

access to additional markets, including distribution access to additional markets, including distribution

for Chrysler vehicles in markets outside of North for Chrysler vehicles in markets outside of North America.America.

the Chrysler-Fiat alliance also gives Fiat access to the Chrysler-Fiat alliance also gives Fiat access to the American market, from which it has long been the American market, from which it has long been absent. Fiat had plans to begin selling its Alfa-absent. Fiat had plans to begin selling its Alfa-Romeo line in the U.S., plans that were postponed Romeo line in the U.S., plans that were postponed or derailed by the current economic crisis.or derailed by the current economic crisis.

15 June 2009,15 June 2009, GlaxoSmithKline plc (GSK) announced an GlaxoSmithKline plc (GSK) announced an

agreement with Dr. Reddy’s Laboratories Ltd (Dr. agreement with Dr. Reddy’s Laboratories Ltd (Dr. Reddy’s) to develop and market selected products Reddy’s) to develop and market selected products across an extensive number of emerging markets, across an extensive number of emerging markets,

GSK announces a strategic alliance with GSK announces a strategic alliance with Dr. Reddy’s to further accelerate sales Dr. Reddy’s to further accelerate sales

growth in emerging marketsgrowth in emerging markets

About Dr. Reddy’sAbout Dr. Reddy’s Dr. Reddy’s Laboratories is an emerging global Dr. Reddy’s Laboratories is an emerging global

pharmaceutical company that fulfills its purpose pharmaceutical company that fulfills its purpose of providing affordable and innovative medicines of providing affordable and innovative medicines through three core businesses:through three core businesses:

1-Pharmaceutical Services and Active 1-Pharmaceutical Services and Active Ingredients Ingredients

2-Global Generics 2-Global Generics 3-Proprietary Products. 3-Proprietary Products. Their products are marketed globally, with a focus Their products are marketed globally, with a focus

on India, US, UK, Germany and Russia. on India, US, UK, Germany and Russia.

WARNER BROS. INTERNATIONAL THEATRES WARNER BROS. INTERNATIONAL THEATRES AND PEPSI FORM STRATEGIC ALLIANCEAND PEPSI FORM STRATEGIC ALLIANCE

Warner Bros. International Theatres and Pepsi-Cola Warner Bros. International Theatres and Pepsi-Cola Company announced a multi-year strategic alliance to quench Company announced a multi-year strategic alliance to quench the rapidly growing thirst of young audiences for the ultimate the rapidly growing thirst of young audiences for the ultimate movie experience.movie experience.

Under terms of the deal, International Pepsi-Cola Company Under terms of the deal, International Pepsi-Cola Company brands such as Pepsi, Mirinda and 7Up -- as well as other brands such as Pepsi, Mirinda and 7Up -- as well as other regional brands -- will have exclusive pouring rights at all regional brands -- will have exclusive pouring rights at all existing and projected Warner Bros. International Theatres existing and projected Warner Bros. International Theatres under Warner Bros. management. The agreement will cover under Warner Bros. management. The agreement will cover 358 movie screens at 43 theatres in six countries, including: 358 movie screens at 43 theatres in six countries, including: Great Britain, Spain, Germany, Portugal, Italy and Japan.Great Britain, Spain, Germany, Portugal, Italy and Japan.

Pepsi will be one of the sponsors for the United Kingdom Pepsi will be one of the sponsors for the United Kingdom and Spain's premieres of "Batman & Robin," the highly and Spain's premieres of "Batman & Robin," the highly anticipated fourth adventure in the blockbuster Batman anticipated fourth adventure in the blockbuster Batman series, with a major promotional campaign at Warner Bros. series, with a major promotional campaign at Warner Bros. International Theatres.International Theatres.

Pepsi and Warner Bros. plan to launch a broad range of Pepsi and Warner Bros. plan to launch a broad range of innovative marketing efforts, including: promotional tie-ins innovative marketing efforts, including: promotional tie-ins with major movies, lobby merchandising campaigns and with major movies, lobby merchandising campaigns and specially designed fountain equipment featuring the specially designed fountain equipment featuring the Looney Tunes cartoon characters.Looney Tunes cartoon characters.

Honda and Hong Kong Disneyland Form Honda and Hong Kong Disneyland Form Strategic AllianceStrategic Alliance..

As part of the alliance, Honda will be the official As part of the alliance, Honda will be the official sponsor of the Park's new and immersive Autopia sponsor of the Park's new and immersive Autopia attraction, which allows guests of all ages to drive attraction, which allows guests of all ages to drive to the future aboard shiny electric cars.to the future aboard shiny electric cars.

Honda will also support the Park's "Wild About Honda will also support the Park's "Wild About Safety Campaign" - a campaign dedicated to Safety Campaign" - a campaign dedicated to promoting guest safety and comfort while enjoying promoting guest safety and comfort while enjoying the Park. In addition, Honda has obtained exclusive the Park. In addition, Honda has obtained exclusive rights in featuring the park's images to promote rights in featuring the park's images to promote their automobiles, motorcycle and selected power their automobiles, motorcycle and selected power equipment products in Hong Kong and mainland equipment products in Hong Kong and mainland China.China.

Prince Alwaleed's Rotana in Prince Alwaleed's Rotana in strategic alliance with Disneystrategic alliance with Disney

December 15, 2009December 15, 2009

Rotana Media Group, one of the largest media groups in the region Rotana Media Group, one of the largest media groups in the region and Fox International Channels (FIC), the international television and Fox International Channels (FIC), the international television channels arm of Rupert Murdoch’s News Corporation , today channels arm of Rupert Murdoch’s News Corporation , today announced that viewers in the Middle East and North Africa region announced that viewers in the Middle East and North Africa region will have access to more of the world’s best family entertainment will have access to more of the world’s best family entertainment after signing a multi-year output deal with The Walt Disney after signing a multi-year output deal with The Walt Disney Company. Company. 

This collaboration will provide a compelling proposition to Rotana’s This collaboration will provide a compelling proposition to Rotana’s

bouquet of offerings to viewers and the trade community across the bouquet of offerings to viewers and the trade community across the Middle East region.Middle East region.

The deal,, will bring Disney and ABC’s much-loved television series The deal,, will bring Disney and ABC’s much-loved television series and movies to the region’s viewers free-to-air on Fox Movies and and movies to the region’s viewers free-to-air on Fox Movies and Fox Series channels, including content from the Academy Award®-Fox Series channels, including content from the Academy Award®-winning animation studio, Disney/Pixar. winning animation studio, Disney/Pixar.                    

ConclusionConclusion

Like a good marriage –takes effort, Like a good marriage –takes effort, commitment &enthusiasm, not control commitment &enthusiasm, not control &ownership&ownership

Thank YouThank You