How to prevent business break-ups—or end them amicably
enables companies to pool resources in a separate business entity, like the Nevada gold company. An alliance is looser; it allows firms to share production platforms, for instance, which lets them preserve more autonomy, as in the car industry. In an era of globalisation, blurred lines between industries and technological disruption, such ad hoc relationships become more important.
The Franco-Japanese fling started out well, with a clear, limited aim: Mr Ghosn was parachuted in by Renault to rescue Nissan. Then the focus turned to preserving each firm’s independence and sharing costs such as purchasing. Though there were cross-shareholdings, their main objective was not control.
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