AMN Lessons
Contents
AMN Lessons ............................................................................................................................................ 1
Lecture 1 Introduction ......................................................................................................................... 2
Workgroup 1 ............................................................................................................................................ 3
Lecture 2 Alliances ............................................................................................................................... 4
Lecture 3 Alliances ............................................................................................................................... 6
Lecture 4 Mergers & Acquisitions ........................................................................................................ 9
Lecture 5 Mergers & Acquisitions ...................................................................................................... 11
Workgroup 2 (11-11) .............................................................................................................................. 13
Lecture 6 Networks ............................................................................................................................ 14
Lecture 7 Networks ............................................................................................................................ 16
Guest Lecture De Wild ....................................................................................................................... 18
Guest Lecture Burggraaf .................................................................................................................... 19
Lecture 8 Response and concluding remarks .................................................................................... 19
,Lecture 1 Introduction
Disney – Pixar
- Why an alliance?
o Disney has the resources and capabilities to distribute the new technology of Pixar
o Temporary
o Low termination costs for Disney
o Pixar keeps the rights over their technology
- Why not an acquisition?
o Too risky
o Alliance does not include the weaknesses (divisibilities)
o Alliance does not come with integration
- Disney needed to switch to computer animation, so they divested their initial KSF (hand-
made). This lead to a merger.
- Why a merger?
o Because Disney divested hand-made animation, they lacked resources
o Other companies could have merged with Pixar, huge risk for Disney to let the
knowledge go; elimination of competition
o Pixar would compete with its own movies, because Disney had the rights for
sequential movies (two Pixar movies could come on the market
o Pixar unlikely to keep producing hits due to increasing competition; supply increases,
costs go down
o Merger made sense for both sides
o Specific integration approach (slow) made it work
o Main reason for mergers to fail is that the (integration, etc.) costs are
underestimated. M&As can destroy value. Misfit between organizations could mean
bankruptcy
Airline industry
- Why doesn’t this industry go bankrupt
o Government involvement
Different governance modes (MBA, make, buy, ally decisions) should be taken into account in AMN
decisions.
Networks (Jobs & Lucas)
However, sticking too long in the same network decreases entrepreneurial proposals and innovation.
Negative effects will also transfer.
AMNs are not goals by themselves, it is an instrument to achieve a long term objective.
Know-what: concepts, why merger, why acquisition, why is it so difficult, etc. (solid theorizing,
lectures)
Know-how: how does it work in reality, how can I apply knowledge in real life settings
, Workgroup 1
Assignment II
- Academic knowledge vs experience. You should validate information with experience
- Pick an issue and narrow it down, focus on one topic
- Valorization is creating more value (universities should create more value for practice). Idea
about the movie is to create value for practice. Managers often do not understand academic
theories
- Important is creativity
Presentation 1
1. Specify topic (international vs domestic firms), narrow it down (specific industry)
2. Read literature (form a conceptual model), translate to interview questions
3. Approach a company, validate conceptual model
4. Iterative
Presentation 2
1. Topic: cross cultural issues in joint ventures in relation to longevity
2. Focus: e.g., how do cultures perceive each other
3. Literature: perception
4. Validate: practice
5. Produce movie or adjust conceptual model
a. Script or not if you’re creative
b. Filming
c. Editing
Presentation 3
Nothing is as practical as a good theory
Contents
AMN Lessons ............................................................................................................................................ 1
Lecture 1 Introduction ......................................................................................................................... 2
Workgroup 1 ............................................................................................................................................ 3
Lecture 2 Alliances ............................................................................................................................... 4
Lecture 3 Alliances ............................................................................................................................... 6
Lecture 4 Mergers & Acquisitions ........................................................................................................ 9
Lecture 5 Mergers & Acquisitions ...................................................................................................... 11
Workgroup 2 (11-11) .............................................................................................................................. 13
Lecture 6 Networks ............................................................................................................................ 14
Lecture 7 Networks ............................................................................................................................ 16
Guest Lecture De Wild ....................................................................................................................... 18
Guest Lecture Burggraaf .................................................................................................................... 19
Lecture 8 Response and concluding remarks .................................................................................... 19
,Lecture 1 Introduction
Disney – Pixar
- Why an alliance?
o Disney has the resources and capabilities to distribute the new technology of Pixar
o Temporary
o Low termination costs for Disney
o Pixar keeps the rights over their technology
- Why not an acquisition?
o Too risky
o Alliance does not include the weaknesses (divisibilities)
o Alliance does not come with integration
- Disney needed to switch to computer animation, so they divested their initial KSF (hand-
made). This lead to a merger.
- Why a merger?
o Because Disney divested hand-made animation, they lacked resources
o Other companies could have merged with Pixar, huge risk for Disney to let the
knowledge go; elimination of competition
o Pixar would compete with its own movies, because Disney had the rights for
sequential movies (two Pixar movies could come on the market
o Pixar unlikely to keep producing hits due to increasing competition; supply increases,
costs go down
o Merger made sense for both sides
o Specific integration approach (slow) made it work
o Main reason for mergers to fail is that the (integration, etc.) costs are
underestimated. M&As can destroy value. Misfit between organizations could mean
bankruptcy
Airline industry
- Why doesn’t this industry go bankrupt
o Government involvement
Different governance modes (MBA, make, buy, ally decisions) should be taken into account in AMN
decisions.
Networks (Jobs & Lucas)
However, sticking too long in the same network decreases entrepreneurial proposals and innovation.
Negative effects will also transfer.
AMNs are not goals by themselves, it is an instrument to achieve a long term objective.
Know-what: concepts, why merger, why acquisition, why is it so difficult, etc. (solid theorizing,
lectures)
Know-how: how does it work in reality, how can I apply knowledge in real life settings
, Workgroup 1
Assignment II
- Academic knowledge vs experience. You should validate information with experience
- Pick an issue and narrow it down, focus on one topic
- Valorization is creating more value (universities should create more value for practice). Idea
about the movie is to create value for practice. Managers often do not understand academic
theories
- Important is creativity
Presentation 1
1. Specify topic (international vs domestic firms), narrow it down (specific industry)
2. Read literature (form a conceptual model), translate to interview questions
3. Approach a company, validate conceptual model
4. Iterative
Presentation 2
1. Topic: cross cultural issues in joint ventures in relation to longevity
2. Focus: e.g., how do cultures perceive each other
3. Literature: perception
4. Validate: practice
5. Produce movie or adjust conceptual model
a. Script or not if you’re creative
b. Filming
c. Editing
Presentation 3
Nothing is as practical as a good theory
