Combinations Separations Recombinations · PDF fileFor students in Bus262a Brandeis University...
Transcript of 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
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 2
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
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 3
• 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
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 4
Merger blocked by US Justice Dept
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 5
Three relationship models: Trade, Ally, Merge
Remix Strategy Tool #8
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 6
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).
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 7
1 + 1 = 3
1 + 1 = 11 + 1 = 1.4 + 1.6
The three laws of business combinations
From: Remix Strategy: The Three Laws of Business Combinations (Boston: Harvard Business Review Press, 2015).
The three laws of business combinations
From: Remix Strategy: The Three Laws of Business Combinations (Boston: Harvard Business Review Press, 2015).
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
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 8
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 9
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)
For students in Bus262aBrandeis University
(c) B. Gomes‐Casseres 2017. Please do not distribute without permission. 10
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