Renewing the Fujitsu-AMD Joint Venture (A)

The (A) case presents a set of alternatives open to the CEO of a new JV who discovers that his outstanding success in bringing together complex manufacturing entities across a major cultural divide has hidden simmering tensions. These now come to the fore around strategic and product policy choices, selling in China, pricing policies, and employment and investment commitments in a highly cyclical, highly innovative industry.

In the context of relationship restructuring choices, to provide an integrative case to review major strategic alliance issues and learning points, from broad strategic compatibility issues to the specifics of individual emotions in a change situation. Various levels of change are proposed - from terminating the alliance by floating off the JV to a fine tuning of the relationship, issue by issue.