This paper examines the effect on the market valuation of large Dutch firms following the announcement of forming international strategic alliances (ISAs). These stock market effects are distinguished by type of alliance and country of origin of the partnering firms during the period 1985-1992. While ISAs are generally found to have a positive effect on firms' market value, strategically and culturally distant foreign partners generate a strong negative effect on a firm's market value. The results underscore the importance of conducting a strategic, operational and cultural audit of the partnering firms and the envisaged partnership. The audit needs to be taken as a starting point in developing the essential co-operation skills to make the alliance work and should become integrated within a comprehensive performance scorecard.

After 10 years of doing business in the Polish commercial real estate market, Liebrecht & wooD contemplates the changes in the competitive environment during the last few years. The market has evolved from a high-risk emerging market to a maturing market with increasingly fierce competition that has signicantly reduced Liebrecht & wooD's return on investment. Amid these changes, Liebrecht & wooD faces several challenges: (1) what strategies should the company adopt to respond to growing competition and a maturing commercial real estate market in Poland?, and (2) can Liebrecht & wooD continue to offer high return / high risk projects to its core investors? The case asks participants to think about the dynamics of a maturing market and the different options a company has to maintain a competitive position in such a maturing market. It also provides important insight into the opportunities and risks of doing business in Central Europe. The case is well suited for courses dealing with international business and internationalisation strategy. The case encompasses a number of strategic methods and issues including: (1) industry analysis, (2) strategic positioning, (3) product and geographic scope, and (4) organisational structure. The case can be used with students at any level, including those in general management, MBA, and executive programmes.