combinations separations recombinations · pdf filefor students in bus262a brandeis university...

For students in Bus262aBrandeis University

(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 1

Bus 262a:Alliance, Acquisition, and Divestment Strategy

Ben Gomes‐Casseresbgc@brandeis.eduwww.remixstrategy.comwww.strategygroove.com

M&APartnershipNetworkCollaborationJoint ventureStrategic allianceEcosystemOpen Innovation

CombinationsSeparations

Recombinations

BreakupsDivestmentsSpin‐offsAsset salesAsset swapsOutsourcingLicensingPlatforms



The goals and functional policies that shape the way a business uses internal and external resources to position itself in its environment and achieve superior performance.

Definition of the Topic

How to mix resources, assets, and capabilities of one organization with those of another to create value.

Business

Strategy

Rem

ix

Strategy



• Theory– Remix Strategy: The Three Laws of Business Combinations

• Practice– Speakers from industry and consulting

• Applied Learning– Case analysis and discussion (get HBS case book)– Current news: Pro Rata, DealBook, and Term Sheet– Focused projects – final paper and team projects in class– Course website: www.strategygroove.com– Syllabus (note course requirements and grading process)

Bus 262a: Course Content and Process



Merger blocked by US Justice Dept



Three relationship models: Trade, Ally, Merge

Remix Strategy Tool #8



1%

1% 27%

49%

25%

14%

13% 30%

(*) 1st half 2015 market share for Routers and Mobile, as reported in WSJ print edition, p. A11.

(*)

Merger

Allian

ceMerger vs Single Firm vs Alliance

North America

Europe

AsiaRest of the world

Global network

Star Alliance

UnitedContinental

Air Canada

Air ChinaANAAsianaSingaporeThai

LufthansaSwiss

AustrianBrit MidlandsLOT PolishTAP

EgyptairAir N ZealandSouth AfricanTurkish Air

DeltaNorthwest

Air FranceKLM

AeroflotAlitaliaCzech Airlines

Aeromexico China SouthernKorean Air

AmericanUS Airways

British AirwaysFinnAirIberia

LAN ChileQantasRoyal Jordanian

Cathay PacificJapan Airlines

SkyTeamAlliance

oneworld Alliance

Group vs group in airlines

From: Remix Strategy: The Three Laws of Business Combinations (Boston: Harvard Business Review Press, 2015).



1 + 1 = 3

1 + 1 = 11 + 1 = 1.4 + 1.6

The three laws of business combinations


The three laws of business combinations


The combination must have the potential to create more value than parties can alone

The combination must be designed and managed to

realize the joint value

The value earned by the parties must motivate them to

contribute to the collaboration

Identify potential joint value

Govern thecollaboration

Share the value created

2

1

3

Remix Strategy Tool #1



FUTURE OF PIXAR/DISNEY RELATIONSHIP

Noam Cotton – Ben Gomes-Casseres

Mergers and Acquisitions

WHERE WE LEFT OFF…

• Jan, 2006 – Pixar are in the works for Ratatouille, which will be released later this

year. Disney are honing on a deal before the release date.

• May, 2006 – Disney buy Pixar for $7.4 billion (in stock)

• Steve Jobs is majority share-holder, with 50.1% - later drops down from his position and

becomes member of Disney board of directors

• John Lasseter becomes Chief Creative Officer of both Pixar and Disney, and is Principal

Creative Advisor for Disney Imagineering (theme park design)



100% MERGER…?

• Not really…• Additional conditions made in the deal to ensure Pixar remaining a separate entity

• Lasseter and Catmull oversight over Disney and Pixar is limited

• Pixar maintains its name and studio location

• Branding changes to Disney-Pixar and not just Disney (starting with Cars)

• New GM of Pixar is Jim Morris, producer of WALL-E

…WHERE ARE WE NOW?

• Pre-Merger –

• Disney is suffering creative identity crisis. Needs a new spark of creativity after the

“Disney-renaissance” of the mid-90’s

• Post-Merger –

• 2008 – Lasseter’s main goal is to bring back hand-drawn animation films

• 2013 – Frozen is the all time highest-grossing animated film (

• 2014 – Catmull resigns. Jim Morris is new manager of Pixar

• 2016 – Disney’s Finding Dory and Zootopia are the second and third highest-grossing films

this year

combinations separations recombinations · pdf filefor students in bus262a brandeis university...

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