UK: Governance (Engl.)

Transcription

1 UK: Governance (Engl.) Economics of Business Cooperations Eric Meyer Winter 2014 /

2 Agenda 1 Introduction Organisation Motivation 2

3 Agenda 1 Introduction Organisation Motivation 3

4 Two english modules offered at the IfG Module content Organisation Key questions 1 UK: Governance (Engl.) Economics of Business Cooperations Develops the main economic fundamentals and factors of influence on business cooperation along a typical cooperation process. Offered every winter exam offered every term 2 hrs lecture weekly Add. 2 hrs exercises and case studies to deepen and supplement lecture material Why do cooperations exist? How can theory explain the evolution of cooperation and cooperative behavour? 2 UK: Management (Engl.) Management of Business Cooperations Develops the main requirements on an effective and efficient cooperation management and their supplemental methods and tools. Offered every summer exam offered every term 2 hrs lecture weekly Add. 2 hrs exercises and case studies to deepen and supplement lecture material Which methods and tools can be used to manage cooperations? Which special requirements have to be considered? 4

5 Both english modules may be selected as 6 credit point modules PO 2010 UK: Governance 6 CPS UK: Management 6 CPS UK: Seminar 6 CPS Content Economic analysis of business cooperation arrangements consequences Management of business cooperation processes tools instruments Case studies on current cooperation examples in practice Language German and English module German only Term Winter Summer Winter and summer Exam Written exam 120 min. (each semester) Written exam 120 min. (each semester) Paper, presentation, discussion, reflection Enrollment VWL electives for VWLer and BWLer BWL electives for VWLer and BWLer 5

6 UK: Governance (engl.) Schedule Winter 2014/15 Lecture, exercises & case studies Events Lecture: Thursday, pm c.t., J498 Exercises: Thursday, pm c.t., J498 Dates will be annouced in the lecture and by Additional block: November 28th/29th, Dr. Kersten Lange (Volkswagen AG) 26th January 2015, 4-8 pm Conference on Cooperative Banks (in German) Palace of the University Voluntary participation, Registration required Guest lectures in the German course Exam Lecturer To be announced by the examination office Eric Meyer, Phone:

7 Services Institut für Genossenschaftswesen Institute Homepage Events 0 8 / 1 5 Bachelor/master theses Seminars Internships Study Abroad Lecture material Exam database Discussion forum Coop-Watching Cooperation glossary Alumni Guest lectures CAWM-Kolloquium Wissenschaft und Praxis im Gespräch 7

8 Teaching standards Institut für Genossenschaftswesen Lectures Theses Exams Practice-oriented Exam-oriented (supplementary exercises and case studies) Up-to-date examples and case studies Early information on exam requirements Seminars in small groups Wide range of current and relevant problems and topics Introduction to scientific working are a regularly presented lecture Requirements on master, bachelor theses and seminars are offered as videos Quick correction of theses Quick correction Exams offered every term Exam database Preparation in the exercises Videos Videos of German lecture Information Student newsletter Lecture newsletter 8

9 Registration necessary to access materials

10 Registration at myifg Registration at myifg 10

11 Make sure to register for the newsletter All relevant information will always be sent via 11

12 Optional Reading Material Contractor, F. J. (Ed.) (2002): Cooperative strategies and alliances, Amsterdam, Pergamnon, pp Chen, H. et al. (2003): Governance structures in strategic alliances: transaction cost versus resource based perspective, in: Journal of World Business, No. 38, pp Gulati, R. (1998): Alliances and networks, in: Strategic Management Journal, No. 19, pp Ménard, C. (2004): The Economics of Hybrid Organizations, Journal of Institutional and Theoretical Economics (JITE), Vol. 160, pp and pp Oxley, J./Silverman, B. (2008): Inter-firm Alliances: A New Institutional Economics Approach, in: Brousseau, E./Glachant, J.-M. (Ed.): New Institutional Economics: A Guidebook. Theurl, T. (Ed.) (2005): Economics of Interfirm Networks, Tübingen. 12

13 Interesting websites Collaboration. The one essential key to success. SMEs and cooperation tory_2003_report5_en.pdf Meshbox Marketing cooperations Directorate General for Competition European Commission COOP-Watching Interesting websites will be posted at - Send us your links! 13

14 Kennenlernabend at the IfG you are invited to join! Informal get-together for all current and prospective IfG-students When: 23rd October 2014, 7.00 pm Where: CAWM, 2 nd floor Please use registration lists and sign in! 14

15 Business cooperations have many different characteristics and facets Why study cooperations? empirically verified theoretically well-founded Design Management multidisciplinary Causes Dynamics international Regulation Effects related to practice multifaceted 15

16 Various perspectives for students of business cooperations Why study cooperations? Organisation In companies: Project teams Corporate functions Management Conception, Management Consulting In consulting firms and investment banks: Mergers & aquisitions Post-merger-integration Network-specialists Conception, Implementation Regulation In competition authorities: EU commission Federal cartel office Federal network agency Effects, Regulation 16

17 Agenda 1 Introduction Organisation Motivation 17

18 Cooperations matter in every industry! What are reasons for firms to cooperate? 18

19 Reasoning of cooperation Cost advantages Time advantages Access to markets Access to resources, know-how and technologies Distribution of risks Takeover protection Image transfer Usually more than one reason accountable for cooperations Source: Fontanari, M.: Kooperationsgestaltungsprozesse in Theorie und Praxis, Berlin,

20 Globalfoundries Outsourcing of AMD chip production to a joint venture with ATIC (Abu Dhabi): Challenge: Scarce capital and high fixed investment costs cooperation 1: joint venture GlobalFoundries cooperation 2: (Contractual agreement on) production for other customers to improve capacity utilisation cooperation 3: Licensing alliance: subsequent problems in with Intel 20

21 Globalfoundries Challenges Competences Solution Tasks Decreasing sales of CPUs Weak market position, Intel strong competitor Development towards a commodity market Financial weakness in combination with high fixed costs Competences: Designing CPUs Producing clean air Separate production from design Separate high fixed costs Find the appropriate legal form Define the interfaces between production and clients Quality processes 21

22 ViiV Healthcare Foundation of a joint venture for HIV drugs in % GlaxoSmithKline, 15 % Pfizer 10 drugs, (7 in development) 19 % world market share, about 1,8 billion turnover Innovative: shares in JV according to milestones Andrew Witty (CEO Glaxo): We are not interested in large mergers, we are seeking more creative ways of collaboration 22

23 ViiV Healthcare Challenges Competences Solution Tasks GSK: Expiring patents Pfizer: Lacking access to distribution networks GSK: Large company, experience in producing and selling drugs; here especially HIV pharmaceuticals Pfizer: New HIV drugs Form a JV, that combines both companies strenghts (In 2012: Shionogi joins the JV forming the ViiV-Shionogi JV) Identify the drugs (incl. drugs in development) that are included in the JV Identify the drugs life-time values Develop the partners duties in the cooperation Develop mechanisms to enforce these duties changing equity shares 23

24 Consolidation in the pharmaceuticals industry vaccines (w/o influenza) 7 bill. $ Joint venture GlaxoSmithKline 63,5 % 36,5 % Novartis OTC drugs 16 bill. $ oncology 5.4 bill. $ veterinarian products Eli Lilly Source: Börsenzeitung, 23th April

25 Android Open Handset Alliance 25

26 Android Open Handset Alliance Challenges Competences Solution Tasks Develop, implement and sell a handset operation system Market is dominated by Apple ios and Symbian Google s competence is the developing of search engines and selling customized advertisements Google lacked other competences Form a network (with different sub-groups), that contains the required competences Define the characteristics of the new OS Define different sub-groups with different competences (what competences?) Find the appropriate partners (What is appropriate?) Identify the interfaces beteewn the work of these subgroups 26

27 Example: Star Alliance 27

28 Example: Airline alliances Current state Source: CWT ViewPoint: Airline joint ventures, alliances becoming more commonplace,

29 Example: Airline alliances New developments Star Alliance Sky Team One World Alliances Joint Ventures Lufthansa ANA ANA United Airlines Delta Air France Alitalia Singapore Airlines SAS Acquisitions Lufthansa Austrian Lufthansa SwissAir Air France KLM (Etihad Air Berlin) Emirates Etihad Bilateral relations 29

30 Online payment systems Target: Establishing a convenient online payment system (like Paypal) Divesture Ebay - Paypal Cooperation DKB - Paypal Cooperation Private banks, cooperative banks, saving banks Stand-alone solution Saving banks Ebay intends to sell ist subsidiary Paypal Increasing value by loosening relation to the ebay platform DKB customers can use Paypal for their online purchases by a single login Attempt to create an online payment system Advantage: Very large number of customers Challenge: Different IT structures Saving banks decided to create their own payment system Large number of customers, single IT system 30

31 Lecture is structured along a typical 5-step cooperation process Strategic Positioning Internal Preparation Institutionalisation Operative cooperation management Success Control Decision for or against cooperation Choice of cooperation mode Choice of cooperation partner Conclusion of cooperation contract Creation of infrastructure Reach agreed targets Decision on adaption or termination or further measures Chapter 2 Chapter 3 Chapter 4 Chapter 5 Focus on economic perspective on cooperations management perspective is content of lecture "UK: Management (Engl.) 31

32 Agenda in detail (1/2) UK: Governance (Engl.) 1. Introduction 1.1 Organisation 1.2 Motivation 2. Strategic Positioning 2.1 Economic Reasoning 2.2 Industrial Economics 2.3 New Insitutional Economics: Transaction costs 2.4 Resource-based view 3. Internal Preparation 3.1 Efficiency criteria 3.2 Constitutive characteristics 3.3 Choice of cooperation mode Project cooperations Public private partnerships 32

33 Agenda in detail (2/2) UK: Governance (Engl.) 3. Internal Preparation (ctd) Strategic alliances Value chain cooperations Enterprise networks Virtual cooperations Franchising Cooperative society Genossenschaft Cooperations in partnership Joint venture 4. Institutionalisation 4.1 Property Rights 5. Operative Cooperation Management 5.1 Principal-agent-theory 5.2 Game theory 33