The Dunlop-Pirelli Union

Published 01 Jan 1989
Reference 1988
Topic Strategy
Industry Automotive
Region Global
Summary

The Dunlop-Pirelli union is one of the few strategic alliances among large multinational companies for which the full history of the marriage, from courtship to divorce, is available. The case describes the situations facing both firms prior to the union, their strategic goals for forming the union, the financial management structures created for implementing those goals, and the experiences of both companies over the 10-year period when the union was in operation.

Teaching objectives

To understand the on-going processes involved in joint operations between two companies, and the ways in which those processes affect both intended and unintended outcomes of strategic position and performance of each partner; to explore how their organisational structures and processes change their perceptions of the purpose and value of the partnership; and, hence, to discern what the partnership can and cannot achieve.

Keywords
  • AR1988