International Strategic Alliances and Cross-Border Mergers & Acquisitions

Table of Contents

List of Abbreviations

List of Figures

1 Overview
1.1 Introduction
1.2 Why Strategic Alliances Occur
1.3 The Rationale for Mergers & Acquisitions and their Development

2 International Strategic Alliances: Characteristics and Assessment Criteria
2.1 Typology of Alliances
2.2 Advantages and Disadvantages of Alliances
2.3 Ways to Make Alliances Work
2.4 Four Steps of Analysing Strategic Alliances
2.4.1 Framework
2.4.2 Strategic Context and Value Potential
2.4.3 Partner Analysis
2.4.4 Negotiation and Design
2.4.5 Implementation
2.5 Case Study: Idea and Key Success Factors of the Renault- Nissan Alliance

3 Cross-Border Mergers & Acquisitions (M&As) - Key Elements and Risk Factors
3.1 The Difference between Mergers and Acquisitions
3.2 Pros & Cons of M&As
3.3 The Stages of the M&A Process
3.3.1 Framework for Establishing and Implementing a M&A Strategy
3.3.2 Pre-Acquisition Phase – The Decision-Making Process
3.3.3 Post-Acquisition Phase – The Integration Process
3.4 Why M&A Deals do Often Fail
3.5 How Leadership can Make a Difference in the M&A Process
3.6 Case Study: Banking Across Borders - How Santander Wants to Benefit from Acquiring Abbey
3.6.1 About Santander: Company Profile and Development
3.6.2 About Abbey – Santander’s Latest Acquisition Target
3.6.3 Assumed Financial Benefits of Santander’s Acquisition of Abbey
3.6.4 Transaction Terms of Santander’s Acquisition of Abbey

4 Conclusion

Appendix 1 Characteristics of Global Strategic Alliances

Appendix 2 Important Managerial Flexibility of Skills

Appendix 3 Worldwide Sales of Renault and Nissan,

Appendix 4 Nissan Revival Plan VII

Appendix 5 Integral Total Management (ITM) ChecklistBibliography Declaration In Lieu of Oath

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

List of Figures

Figure 1: Trends in Cross-Border M&As, 1990-1999 ($billion)

Figure 2: Cross-Border Megamergers, 1990-

Figure 3: Worldwide M&A Transactions Between 1985 and

Figure 4: Four Basic Types of International Alliances

Figure 5: Alliance Constellations

Figure 6: Framework for the Analysis of Strategic Alliances

Figure 7: Possible Constellations of the Alliance Importance for Partners

Figure 8: Possible Constellations of the Need for an Alliance of Partners

Figure 9: Possible Constellations of the Partners’ Strategic Agendas

Figure 10: Method of Assessing Capabilities Fit

Figure 11: Organisational Designs in Alliances

Figure 12: Communication Flows in Alliances

Figure 13: Capabilities Fit of the Renault-Nissan Alliance

Figure 14: Structure of Renault-Nissan BV

Figure 15: Organisation of Cross Functional Teams

Figure 16: Management Structure and Governance

Figure 17: Pre-Acquisition and Post-Acquisition Processes in Global M&As

Figure 18: Value Creation in M&As

Figure 19: Cash Flow-Based Valuation of M&As

Figure 20: Pricing, Synergy, and Value Creation in M&As

Figure 21: Example of a Linear Framework for the Integration Process of M&As (extract)

Figure 22: Contingent Integration Framework for M&A

Figure 23: Reasons for M&A Failures

Figure 24: Failures in the Integration Process of M&As

Figure 25: The Vicious Circle of M&As

Figure 26: Characteristics of Global Strategic Alliances

Figure 27: Alliance Stages and Alliance Manager’s Skills

Figure 28: Worldwide Sales of Renault and Nissan, 2007

Figure 29: Nissan Revival Plan VII

1 Overview

1.1 Introduction

Over the past 30 years, there were two main vehicles through which compa- nies have globalised: international strategic alliances and cross-border Merg- ers & Acquisitions (M&As).¹ Both, international strategic alliances and cross- border M&As are instruments used by companies to increase their global reach and competitiveness. In the new economy, alliances and M&As seem to be the normal way of doing business. Although strategic alliances and M&As are not a recent phenomena, their pace of growth and the variety of their forms has been increasing.²

When dealing with strategic alliances and M&As, four main questions arise: What are the drivers of strategic alliances and M&As? Which sources of suc- cess and failure offer these two growth vehicles? Are there specific determi- nants that are decisive in the process of establishing a strategic alliance or doing a merger or acquisition? And why do so many M&A fail? To answer these questions chapter 1 deals with the rationale for strategic alliances and M&As by outlining key points of the past development. Chapter two clarifies the different types of international alliances and their advantages and disadvantages. It also describes success criteria being important for forming strategic alliances by clarifying the major steps in analysing strategic alliances. To combine theory and praxis, chapter three ends with a short case study about the Renault-Nissan Alliance stating the key success factors. The chapter three is about cross-border M&As by focussing on their the two phases – the pre-acquisition phase and the post-acquisition phase. It de- scribes how companies should decide, give value and negotiate the deal and underlines important managerial processes involved in the integration of the merged company. By analysing the reasons for M&A failures, this chapter underlines the importance of integration for the M&A deal. A short case study of an important acquisition in the banking sector completes chapter 3. Finally chapter 4 summarises the main results.

1.2 Why Strategic Alliances Occur

Since 1980 there has been a dramatic increase of international strategic alli- ances and M&A.3One of the fastest growing trends for business today is the increasing number of strategic alliances. According to Booz-Allen & Hamilton, strategic alliances are sweeping through nearly every industry and are be- coming an essential driver of superior growth.4More than two thousand stra- tegic alliances are launched worldwide each year, and these partnerships are growing at 15% annually.⁵

Simply, an alliance is a business-to-business collaboration or partnership. In general, the following developments have motivated the increase in alli- ances:⁶

-Increasing intensity of competition
-Growing need to operate on a global scale
-Fast changing marketplace
-Industry convergence in many markets

The overall goal of alliances is to minimise risk while maximising the leverage and profit without losing a company’s individuality. Thus, it is wrong that alli- ances are often confused with mergers and acquisitions. Although there are similarities in the circumstances in which a business might consider on these solutions mergers and acquisitions are really different from alliances as they mean permanent, structural changes in how the company exists.⁷

Companies use strategic alliances for several reasons, mainly for cost reduc- tion or growth reasons. For this reasons, it is not surprising that strategic alli- ances are becoming a more and more common tool for expanding the reach of a company without needing expensive internal expansions beyond its core business.

1.3 The Rationale for Mergers & Acquisitions and their Development

Since 1990s, M&A’s have grown at an accelerated pace mainly driven by the globalisation of markets and competition:⁸

Abbildung in dieser Leseprobe nicht enthalten

Figure 1: Trends in Cross-Border M&As, 1990-1999 ($billion) Source: Lasserre (2003), p. 136.

Between 1990 and 2000, there was the emergence of so called ‘megamerg- ers’, especially in the oil and gas, telecommunication, pharmaceutical and banking industries:

Abbildung in dieser Leseprobe nicht enthalten

Figure 2: Cross-Border Megamergers, 1990-2000

Source: Lasserre (2003), p. 136.

Abbildung in dieser Leseprobe nicht enthalten

Three particular events were responsible for the fast growth of M&As and the emergence of megamergers:⁹

- The Single European Market, followed by the advent of the Euro
- The Asian crisis in 1997
- The use of the shareholder value model of corporate governance

According to Philippe Lasserre “The Single European Market and the Euro created the economic conditions for consolidation of European companies, the Asian crisis gave an opportunity to Western corporations to buy Asian assets and finally the shareholder value model forces companies to de- diversity but also to concentrate on core activities.”¹⁰

At its peak in 2000, the worldwide value of announced M&A transactions was more than 3,700 billion USD.¹¹ But only two years later, the value hit barely the 1,300 billion USD mark.¹²

Abbildung in dieser Leseprobe nicht enthalten

Figure 3: Worldwide M&A Transactions Between 1985 and 2004 Source: Vantrappen et al. (2005), p. 38.

Figure 3 illustrates that takeovers have gained considerable importance in recent decades. In 1985, announced M&A transactions accounted for a worldwide transaction value of hardly 200 billion USD. In 2000, the value stood at more than 3,700 billion USD. Between 1985 and 2000, the number of transactions rose from 2,500 to 30,000.¹³

The spectacularly collapse of M&A activities after 2000 was based on an economic downturn, scarcity of cheap money to finance M&A transactions and the risk-aversion of shareholders resulting from a series of sensational corporate scandals.¹⁴ The year 2004 saw a clear rebound, which has contin- ued even more strongly in 2005. In 2004 the worldwide value of announced transactions was at more than 2,000 billion USD.¹⁵ At this time, world econ- omy grew as its fastest pace for three decades and real interest rates were at a historically low level.¹⁶ In 2006, M&A volumes reached roughly US$4 trillion with the United States being the most targeted country for acquisitions (40% of global M&A activity).¹⁷. In December 2006, the value of European M&A deals was USD 1.4 trillion, with the U.K. the most targeted country. According to analysts we are now at the beginning rather than the end of the wave.¹⁸.

Economists see five reasons why companies engage in M&As, whereas the first two are the most important ones:¹⁹

- Increasing efficiency through economies of scale or other “synergies”

- Gaining market power, (e.g. to increase market share, to protect mar- kets by weakening or eliminating rivals, to gain footholds in other coun- tries or continents or to achieve critical mass or competitive size)

- Removing incompetent management in the target company
- Satisfying the self-serving expansion desire of the acquiring company’s management
- Taking advantage of opportunities for diversification

2 International Strategic Alliances: Characteris- tics and Assessment Criteria

2.1 Typology of Alliances

In the past and today, alliances are possible strategic tools for companies to build or reinforce their competitive capabilities.²⁰ Charles W.L. Hill outlines alliances as:

“[…] cooperative agreements between potential or actual competitors.”²¹ Philippe Lasserre specifies alliances more in detail as:

“[…] the sharing of capabilities between two or more firms with the view of enhancing their competitive advantages and/or creating new business without losing their respective strategic autonomy.”²²

Alliances are strategic vehicles that are long-term commitments of resources of both partners, comprise sharing of capabilities and influence the compa- nies’ long-term competitiveness.²³ The range of strategic alliances reaches from formal joint ventures (companies have equity stakes from each other) to short-term contractual agreements (cooperation for a certain task e.g. devel- oping a new product).²⁴ Thus, strategic alliances are described as a govern- ance structure involving an incomplete contract between separate companies with limited control. Here incomplete is used to explain the not fully clarified contract specifications about what each party has to contribute under which conceivable condition. An important characteristic is the necessary trust in the open-end relationship. Partners take part in the decision-making-process to allocate resources and to distribute the outcome in regard to prevailed busi- ness conditions.²⁵

Because of recent globalisation trends and the entailed pressure on compa- nies, the international or global alliance is one of the most important types. It is used to generate a global market presence – i.e. a global reach alliance – or to improve the worldwide competitive capabilities – i.e. a global leverage alliance. Four basic types of alliances can be differentiated by scope (area of expansion) and object (market access or improvement of capabilities):

Abbildung in dieser Leseprobe nicht enthalten

Figure 4: Four Basic Types of International Alliances Source: Lasserre (2007), p. 101.

Global alliances are of more comprehend economic and strategic scope than local alliances. Fife types are identified by Doz and Hamel in 1998 that corre- spond to different strategic contexts and needs.²⁶ Appendix 1 gives a holistic overview about characteristics of the alliance types.

- Coalitions or Co-option: Companies of the same industry align their capabilities in order to develop their market reach by co-ordinating their geographical assets, reduce costs or enhance competitiveness by pool- ing their capabilities or establishing a common standard to increase market acceptance. The essence of such an alliance is ‘size’ to “create a bigger and stronger competitive player”²⁷.
- Co-specialisation: Companies join their respective unique but comple- mentary capabilities to create a business, new technologies or new products. By unifying capabilities, the needed extent of resources is cre-
ated for business development. Each company concentrates on what it is good at and contributes a service or a product with the best concen- tration of resources and skills.
- Learning alliances: Transfer of knowledge between companies is the primary purpose. A mechanism ensures the symmetric exchange of technological knowledge. It allows co-learning but also the conjoint de- velopment of new competencies.

The third dimension of alliance typology is the number of involved companies. In reality, global companies are often engaged in diversity of alliances. IBM or Motorola have several hundred strategic partnerships for the whole organisa- tion. Such cooperation are ‘constellations’ in which business partners ally in one business segment but possibly compete in another. Figure 55 illustrates three types of alliance constellation that each has its own managerial chal- lenge:²⁸

Abbildung in dieser Leseprobe nicht enthalten

Figure 5: Alliance Constellations Source: See Lasserre (2007), p. 126.

Partners of an alliance network strive to increase reach, adopt common stan- dards or promote a new technology. “It is a ‘one alliance, multiple partners’ design.”²⁹ Well known examples are the VISA³⁰ credit card, the SWIFT³¹ banking code or the STAR Alliance of several airlines. The challenge is to

create and mobilise – i.e. convincing potential and compatible partners by demonstrating benefits of the alliance that have to be identified in advance. The second challenge after establishing the alliance is the alliance govern- ance and maintenance. An alliance network should have a network manager or a centre to supervise partnerships to keep with commonly shared rules. Such managers are also the interface for information exchange and clearing house of mutual transactions.³²

The alliance portfolio is a ‘one partner, several alliances’ constellation. The core company deals with its partners as a portfolio or on a one-to-one basis which allows diversification of products, technologies and markets. Thus, partner selection and attraction as well as partnership leverage and relation- ships are managerial challenges. The prime objective is to improve global competitive capabilities by selecting partners having the necessary comple- mentary capabilities but which do not aim to take advantage for their own competitive capabilities. The core company manages the partner leverage by ensuring that relevant capabilities obtained by the alliance will contribute posi- tively and significantly to the partner’s expectations. Furthermore, as relation- ships are on a one-to-one basis, capabilities of the partners’ converge but they are not shared by the whole constellation.³³

In an alliance web, partners contribute and benefit independently. The design is shaped by ‘several partners, several alliances’. Relationships of alliance networks or portfolio can be included featuring more equal and independent relationships between partners. ‘Airbus’ itself function as a global web and ‘Aerospatiale’ plays and central role in it. In an alliance web, the core com- pany has to manage the challenge of building an independent set of mutual relationships between partners. Each member contributes and simultaneously obtains from others - e.g. reciprocal patent licensing. Potential members have to demonstrate their commitment by open up important business sections to the other partners.³⁴

2.2 Advantages and Disadvantages of Alliances

Alliances are used for various strategic purposes as such partnerships pro- vide various advantages. An alliance with a local company might facilitate the entry into a foreign market because the local partner understands domestic business conditions and has connections. If foreign companies are not al- lowed to business in a certain country, it could be the only way of market en- try. A partnership reduces necessary fixed costs for each counterpart that equal the reduced risk of the investment. In some cases important skills and assets are difficult to develop by only a single company, or it need more time to develop them. Joining complementary capabilities of two companies helps to create these skills and assets and might lead to a competitive advantage. Equal to that, alliances can contain vertical or horizontal connected compa- nies and thus allows exploiting benefits of shared and common standards.³⁵

Strategic alliances allow companies to work together towards a common goal while not losing their individuality which is favourable when brand reputation is high.³⁶ Consequently, major advantages of alliances are the possibility to share costs and/or risk and to learn new ways of doing business by the other party that improves competitiveness and leverages growth beyond the com- pany’s core business.³⁷

Whereas, alliances also path the way for competitors for a low-cost route to new technology and markets. Companies of such an alliance, thereby, often aim to gain profits only in short-term and in the long-run leave ‘hollowed out’ companies without any competitive advantage. In addition, the main risks of alliances are derivates of their success factors. A company might give away more than it receives or selects the wrong partner which finally could lead to alliance failures. The complexity of how to make an alliance work is high and if partners are not able to simplify their integrated tasks and organisational structures, the alliance can loose their potential benefits. Particularly, interna- tional alliances often demand high sensitiveness for cultural differences and respect for the other party.³⁸ Soft skills of managers play an important role as employees found it one of the most important factors that can destroy the alli- ance functionality.

Alliances involve the risk of high costs for breaking the relationship as often the task to go on alone implies high investment cost to cover the partner’s efforts and costs in terms of the lost competitive advantage.³⁹

2.3 Ways to Make Alliances Work

An increased occurrence of global alliances might lead to a logical assump- tion of an increased number of successful alliances. But in contrast, about two-thirds fail to realise their expected outcome. One-third is finally rated as failure as the alliances get stuck into serious managerial and financial trou- ble.⁴⁰ The success of an alliance seems to be a function of various issues adequately to the amount of success factors of a merger or acquisition.

Hill stresses three main success factors of partner selection, alliance structure and the selected management of the alliance. Partner selection is the first important step to found a basis for the alliance. A good partner that suits can be characterised by his willingness to support the achievement of the other company’s strategic goals, he should have capabilities of value that lack in the other company, he should share the same vision and purpose of the alli- ance, he has to have the willingness to open up for a two-way transfer be- tween the companies and to exploit the inherent opportunity by playing fair and without the intent of competition in that point. In favour of selecting a partner with the mentioned characteristics, comprehensive research on the potential alliance member is important. Public available data, references and particular face-to-face meetings of management ensures the partners fit. The alliance structure should enable the two-way transfer by concurrently limiting the risk of giving too much to an acceptable level. Sensitive issues like core competencies that do not belong to the alliance purpose should be prevented against transfer and against the single opportunism⁴¹ for one party. Contrac- tual safeguards guard against the risk by a written agreement. Cross- licensing are an agreement how parties can agree in advance to change skills or technology that the other requests. Significant credible commitment is also possible in advance to reduce the risk of opportunism. Hill and Lasserre em- phasises the managing of the alliance as international business deals are sensitive to cultural differences concerning differences in management style and peoples’ culture. To maximise the benefits, trust building between the organisations and learning from each other are to the major determinants. It requires interpersonal relationships between the companies’ managers of the top as well as the middle hierarchy level. For example, the framework of meetings to discuss matters regarding the alliance should allow time for get- ting to know each other. The resulting relationships help to create trust and facilitate harmonious relationships of informal management which builds the first basis for formal contexts. A further success factor is the ability of a com- pany to gain knowledge through the alliance. A fife-year study of Gary Hamel, Yves Doz and C.K. Prahalad focused on 15 multinational alliances revealed that in every case one alliance party had a greater effort to learn also emerged stronger than the other party. However, to maximise the benefits of learning, the company should be able to spread and implement the new knowledge into its organisation. Thus, soft skills and leadership qualities are important to make employees understanding why acquiring the alliance part- ner’s skills will bolster the company’s performance.⁴²

2.4 Four Steps of Analysing Strategic Alliances

2.4.1 Framework

In favour of analysing and describing alliances in a comprehend way, four main steps have to be regarded:

Abbildung in dieser Leseprobe nicht enthalten

Figure 6: Framework for the Analysis of Strategic Alliances Source: Lasserre (2007), p. 103.

2.4.2 Strategic Context and Value Potential

According to Lasserre, the starting point for an alliance analysis is the strate- gic context. It contains a deep understanding of industry drivers and competi- tive forces determining the prevailing position of partners and the challenges they confront. The strategic context and its fit depend on the partners’ objec- tives for the alliance and can be defined as an alliance type of coalition, co- specialisation or learning alliance. Identifying the strategic value potential of an alliance seems to be more complicated. It uncovers the potential benefits the alliance provides. Theoretically, it can be calculated in two steps:⁴³

Step 1: Value created by the alliance is driven because of revenues through volume of sales, revenues out of the alliance ability to achieve a highly differentiated price, future revenues or cost benefits because of joint Research and Development (R&D), joint processes and economies of scale and scope.

Step 2: Value captured by partners is predicated on distribution of alliance profits when the alliance is structured as an autonomous economic entity, profit of intermediary products or services to the alliance, prof- its generated by products or processes that are developed by the al- liance – i.e. increased revenues or reduced cost obtained by a higher market reach or economies of scale or scope and profits from other products which are positively influenced by the alliance.

The alliance value potential has a high relevance with regard to measuring its success or failure. However, calculating the value implicates problems of ac- curacy and measurability as follows:⁴⁴

- Non-traded assets, resources or competencies are hard to value
- Relative contribution cannot be assessed accurately
- Much value emerges outside of the alliance
- The relative value to each partner shift over time
- Not fully defined declaration of partners about which exact value they seek

2.4.3 Partner Analysis

The next step is the partner analysis that consists of four assessments of strategic, capabilities, organisational and cultural fit. It determines whether the relationship with the partner is valuable and viable.

Strategic Fit⁴⁵

The partner fit strategically, if the degree of compatibility is high according to their explicit or implicit⁴⁶ strategic objectives. Criticality of the alliance for the partner is described by the partners’ commitment to the alliance that can be expected. It can be clarified when answering the questions: ‘How important is the alliance for the partner?’ and ‘Do they need an alliance to achieve their objective?’ A contextual analysis uncovers the alliance importance for the partners that shows different constellations:

Abbildung in dieser Leseprobe nicht enthalten

Figure 7: Possible Constellations of the Alliance Importance for Partners Source: Lasserre (2007), p. 110.

This parameter points to a favourable fit if both partners have a strong strate- gic stake in the business (square 1). A low expected degree of commitment is also a fit but not favourable (square 2). It is a ‘forward option’ according to the theory of real options that still involves the question ‘What will happen when the option has to called or forfeited. Is there an unbalanced importance, the fit is questionable as it represents divergence in the partners’ commitment (square 3).

Whether a partner needs an alliance to achieve desired objectives depend on his available resources and capabilities.

Abbildung in dieser Leseprobe nicht enthalten

Figure 8: Possible Constellations of the Need for an Alliance of Partners Source: Lasserre (2007), p. 110.

If both companies have a high need for a partner (square 1) then their com- mitment to the alliance is high that constitutes a favourable constellation. Square 3 presents the mismatch of partners as one company could exploit any situation of predominance alone. Both partners would not commit to an alliance when they can do it alone because of sufficient resources. Neverthe- less, a high degree of time pressure can force them to share tasks in order to accelerate their business.

The next important parameter is the partners’ relative competitive position. Doz and Hamel define three competitive positions of leaders, challengers and laggards and postulated a mutual degree of fit which depends on the alliance type. Alliances of leaders fail more often than alliances of challengers or lag- gards as every company which is not a leader lags certain capabilities and would benefit from a partner.

The third parameter describes the fit between the companies’ strategic agen- das. Four types can be distinguished:

Venturing agendas are collaborations to create a business. The prime aim of the alliance is to grow and to continue a successful partnership.

Extractive agendas are of limited time and paraphrase the partners’ objective to learn and to acquire capabilities from the other partner. Thus, if the learning or acquisition cycle is achieved, the alliances looses it strategic value.

Sharing agendas have the objective to maximise efficiency in certain ele- ments of the value chain by economies of scale and scope.

Option agendas include the desire to gain benefits of the alliance without committing many resources. The alliance is a time limited experimental plat- form for monitoring business. At the end partners has to decide whether to break the alliance or to continue and expand it.

[...]

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¹ See Lasserre (2003), p. 97.

² Ibid.

³ See Lasserre (2003), p. 97.

⁴ See www.smallbusinessnotes.com, 07.11.2008.

⁵ See Steinhilber (2008), p. 1.

⁶ See www.smallbusinessnotes.com, 07.11.2008.

⁷ Ibid.

⁸ See Lasserre (2003), p. 134.

⁹ See Lasserre (2003), p. 135.

¹⁰ Lasserre (2003), p. 135.

¹¹ See Vantrappen et al. (2005), p. 35.

¹² Ibid.

¹³ See Vantrappen et al. (2005), p. 38.

¹⁴ Ibid., p. 35f.

¹⁵ Ibid., p. 36.

¹⁶ Ibid., p. 36.

¹⁷ See Able (2007), p. 2.

¹⁸ Ibid.

¹⁹ See Vantrappen et al. (2005), p. 37.

²⁰ See Lasserre (2007), p. 100.

²¹ Hill (2007), p. 506.

²² Lasserre (2007), p. 99.

²³ See Lasserre (2007), p. 100.

²⁴ See Hill (2007), p. 506.

²⁵ See Lasserre (2007), pp. 100-101.

²⁶ See Lasserre (2007), pp. 102 and 107.

²⁷ Lasserre (2007), pp. 107-108.

²⁸ See Lasserre (2007), p. 127.

²⁹ Lasserre (2007), p. 127.

³⁰ V isa I nternational S ervice A ssociation established the rules and standards for operation of the Visa payments.; see www.investing.businessweek.com, 08.11.2008.

³¹ The S ociety for W orldwide I nterbank F inancial T elecommunication operates a data transmission net- work with a common standard. Connected banks are able to exchange financial information.; see www.wirtschaftslexikon24.net, 08.11.2008.

³² See Lasserre (2007), p. 127.

³³ Ibid.

³⁴ Ibid.

³⁵ See Hill (2007), pp. 508-510.

³⁶ See www.smallbusinessnotes.com, 13.11.2008.

³⁷ See Hill (2007), p. 510.

³⁸ See Lasserre (2007), p. 127.

³⁹ See Lasserre (2007), p. 112.

⁴⁰ See Hill (2007), p. 508.

⁴¹ Opportunism is the illegal acquisition of technology or markets.; see Hill (2007), p. 509.

⁴² See Hill (2007), p. 510.

⁴³ See Lasserre (2007), p. 109.

⁴⁴ See Lasserre (2007), p. 109.

⁴⁵ Ibid., pp. 110-112.

⁴⁶ Implicit objectives or the hidden agenda should be revealed in an in-dept study of the partner’s strate- gic context to unravel the real expectations.; see Lasserre (2007), p. 110.