Alliance Strategy: Linking Motives with Benefits

There are many types of alliance. But the key distinction is between so-called exogamic partnerships – where two companies come together from different industrial backgrounds – and the endogamic variety which involves two organisations pooling similar types of assets.

Managing Acquisitions to Change and Survive

Conventional wisdom is correct in recognising that poorly implemented M&As are risky, but the strategic value of successful acquisitions is underestimated. This article outlines elements of successful acquisitions by analysing the five preacquisition strategies and six post-acquisition strategies.

Global sourcing: solution in search of a problem?

A recent study of firms in the Netherlands shows that regional differences still influence the sourcing strategies of European-based firms. The results also turn the tables on the ‘globalisation pundits’ who link international sourcing with higher profits.

Jerry Wind / Vijay Mahajan / Robert Gunther

If you build a better mousetrap, the world will only beat a path to your door if people are interested in catching mice.

Clarifying the roles of the different players

EBF’s fascinating Debate on Corporate Governance illustrated the variety of challenges facing those who want to promote good Corporate Governance principles. It explored the term’s different meanings across Europe and how approaches differ when applied to specific organisations, such as NGOs or financial institutions. This diversity may nevertheless confuse some Board members, notably in Small and Medium Sized Enterprises (SMEs) where:

– Shareholders … [ Read more ]

Does executive education really improve business performance?

“Our line-up of essayists is, we believe, as distinguished as ever. It starts with two eminent deans – John Quelch (formerly of London Business School, now back at Harvard) and Xavier Gilbert and Peter Lorange of IMD. Both naturally promote the virtues of management education – Quelch praising the achievements of the MBA, notably in the United States, Lorange and Gilbert explaining how to make … [ Read more ]

Board performance, not just board conformance

EBF’s Spring 2001 Forum asked contributors to consider whether Corporate Governance is delivering value for company stakeholders. A range of articles traced the origins of the main ideas, debated whether there is a distinct and emerging European governance model,and highlighted flaws in current systems. The article here—a reaction to the Forum—is a timely reminder that corporate governance is something much more dynamic than a set … [ Read more ]

Are cultural differences in Europe on the decline?

Don’t let the title fool you – this is an excellent article for those who are not even especially interested in Europe. That is because it offers a good overview of the work of Professor Geert Hofstede, who between 1967 and 1973 surveyed over 100,000 IBM employees in 49 different countries about their preferences in terms of work-related values. The result was a … [ Read more ]

Value-Based Management and the Corporate Profit Centre

Value-based management (VBM) has been defined as a means of making explicit the link between a company’s strategic and operating decisions and their effect on shareholder returns. As such it should be the natural framework for aligning executive incentives with the interests of stock market investors (Ittner and Larcker, 2000).

While many firms have embraced the VBM phenomenon in recent years, at least in their … [ Read more ]

Ways of Assessing Talent

Application form, reference and interview. These are some of the traditional techniques still used by employers, but what other tools are available and what national differences can be discerned?

Not Badly Paid But Paid Badly

The following essay was the winning entry in the PricewaterhouseCoopers Second Annual European Shareholder Value Award held in partnership with EBF and Financial News. Written by Paul Lee, a corporate governance analyst with Hermes Investment Management, the trenchant analysis of the limitations of the current system for remunerating senior managers was unanimously declared the winner.

“Executive managers are not, in general, badly paid, but many of … [ Read more ]

Is There a Driver On Your Supply Train?

With top supply chain performers working twice as efficiently as the average, the potential for progress is considerable. Here are ten warning signs that all is not well.

The Triple Bottom Line Is Here To Stay

A look at Novo Nordisk’s experience with the triple bottom line…

“What is the Triple Bottom Line?
Put simply, it recognises the need to maximise value from forms of capital involved in producing goods and services beyond the purely financial, particularly in relation to environmental (or natural) and social (or human) resources. Instead of setting financial targets as the exclusive driver in the business, the Triple … [ Read more ]

Does strategy really matter anymore?

Has the recent dot-com episode, and have the terrible events of September 11th, somehow changed the rules of the game? Is the idea of strategy founded on an illusion of rationality and the possibilities of control? Is there a geographical context to strategy making that somehow informs those who do business in Europe? Are ‘visions’ and ‘missions’ now more appropriate ways of thinking about corporate … [ Read more ]

Customising Prices in Online Markets

Werner Reinartz describes how the online world has increased the opportunities to pursue customised pricing strategies. But there are also risks. Also includes ‘In my opinion…’ where Orestis Terzidis of SAP, Germany, says technology is no limitation to dynamic pricing, while Carl-Erik Schelleman of KLM describes the airline’s new approach.

Note: you can read the article on the web page, but for a bigger font and … [ Read more ]

In Search of the Urge to Merge

EBF’s Winter 2000/2001 Forum explored the mergers and acquisitions process, highlighting reasons why transactions fall apart and integration fails. It inspired this article which analyses the forces driving takeovers — and the implications for managers.

Editor’s Note: Good high-level look

Seven Lessons to Help Shape E-Commerce Strategy

The internet hype has seen many herald the future of business-to-business e-commerce as the cure-all to CEOs’ prayers; massive cost savings,shorter sales channels and increased efficiencies to name a few. The reality is that these benefits are more likely to be achieved by improved processes within the organisation than by anything else. The facts point to the true direction of the internet as a medium … [ Read more ]

Corporate Governance Audited

The audit function has often been neglected in the corporate governance discussion—it is time to give it new attention!

The Competitive Edge of e-Privacy Policy

The absence of universally integrated privacy policy means consumers at the moment cannot feel confident that their personal details will remain confidential if they choose to do business online. The demand for greater protection must lead to companies and governments developing privacy policies on a global scale if e-commerce is ever to reach its potential.