European Business Forum articles from June 2004

European Business Forum archives from June 2004

Opportunities in a shifting space.(trends in privatization and public and private sector cooperation)
June 22, 2004... The theme of this issue--the respective roles of the public and private sectors--is extremely timely. Governments, business leaders and financiers across western Europe are re-assessing (and in some cases questioning) the merits of...

Public and private sectors: who's learning from whom?
June 22, 2004... Throughout the 1980s and 1990s conventional wisdom increasingly had it that the 'commanding heights' should be controlled by the private sector. Privatisation flourished almost everywhere--and where it didn't, 'market driven' solutions have...

Has privatisation been a success? Ideologues and investment bankers unequivocally say yes. But a more nuanced verdict is that it is a far less significant change than either supporters or detractors have claimed.(EBF Debate)
June 22, 2004... Twenty years ago, the British government sold a 51 per cent stake in British Telecommunications. It was the beginning of a process that would radically change economic policies around the world. In Britain itself, gas, electricity, water,...

Risks, rewards and reliability: the real problem is the denial by many state sector managers that much beyond cost of service is important.(EBF Debate)
June 22, 2004... Public sector entities devote a tremendous amount of time to avoiding risk, especially political risk. It feels far safer to spend a large number of small sums of money on ten different studies, rather than solve one problem for the same cost....

Brussels enters the fray.(European Commission's public assistance planning)
June 22, 2004... The Commission's recently published White Paper on 'services of general interest' represents a significant new contribution to the EU debate between those who believe in the free market and those who advocate a more protectionist approach to...

Water, water, everywhere: political fashion has driven the privatisation of public utilities in Sweden.
June 22, 2004... Should water utilities be under public or private sector management? The question has been hotly contested in Sweden and elsewhere in recent years--but as students of 19th Century English and Welsh industrial history will appreciate, it is not...

The 'P' tap dries up.(privatization)
June 22, 2004... It's a strange time for believers in privatisation. At the end of May, the Washington Post reported that federal civil servants had outperformed private contractors in 89 per cent of tenders organised under President Bush's initiative for...

Dawn of a two-way exchange: there are signs that good ideas and 'best practice' are flowing from the public to the private sector, as well as vice versa.(EBF Debate)
June 22, 2004... The trend towards modernisation and the introduction of best practice into the delivery of public services tends to leave an impresson that lessons flow in only one direction: from the private to the public sector. This is wrong. I have...

PPPs: a slow roll-out in Europe: increased use of PPPs is inevitable if the quantity and quality of public service provision is to be improved.(Public Private Partnerships)
June 22, 2004... Europe has made progress on many economic and political fronts--not least by becoming a market of 452m people this year. But there is a long way to go before a 'single market' or common approach will be developed for Public Private Partnerships...

PPPs: beneficial to whom? Under what circumstances are these projects viable for governments--and good opportunities for firms?(Public private practices)
June 22, 2004... At its peak in 1998, the wave of privatisations in the OECD countries represented a value of some $100bn. But at almost the same time, governments started to have to second thoughts about the vigour with which they had been selling off...

PPPs: torn between two lovers: like the star-crossed experiment in Utrecht in the 1990s discussed in this article, PPPs may be doomed to fail. They mix two value patterns and organisational principles that cannot easily be combined. New management strategies are required to cross the 'borders'.(Public private partnerships)
June 22, 2004... Public private partnerships (PPPs) are emerging internationally, as is well documented in this EBF debate. But growing co-operation between public and private parties is blurring the orderly distinction between what have, until recently, been...

EIB's learning curve: PPPs are most likely to succeed when structured to reflect the specific financial features of each project and relevant national legal and political frameworks.(The European Investment Bank, Public Private Partnerships)
June 22, 2004... The European Investment Bank (EIB), the European Union's long-term financing arm, has been involved in over a 100 projects in the last 15 years which could be labelled Public Private Partnerships (PPPs). These can take many forms, but the key...

Great expectations: the biggest area of mutual learning between public and private sectors has been in linking cost with quality of service.
June 22, 2004... Looking back over the last 30 years, it is easy to forget how much the commercial landscape has changed. We have seen the great state industries dismantled one by one, accompanied by steady erosion of the public sector monopoly over public...

Does humour travel?
June 22, 2004... AUSTRIA "No worries, I am down to just one cup a day!" OSWALD HUBER [ILLUSTRATION OMITTED] NETHERLANDS "YIPPEEE..." JOEP BERTRAMS [ILLUSTRATION OMITTED] ITALY "This forms part of our CSR programme"...

Adapting to post-communist uncertainties: foreign investors in Russia must learn to navigate the social and political complexities of business in the region.(Russia)
June 22, 2004... The decade after the collapse of Communism has shown that economic and political transition in Russia has been far more complex than neo-liberal reformers anticipated. There are several things that western investors should be aware of in this...

Towards a single European entrepreneurial space: how can Europe breed and grow more pan-European high potential ventures?(In Depth: Entrepreneurship)
June 22, 2004... European integration has made big strides and opened new opportunities in many areas of social, political, and economical life--but entrepreneurship has conspicuously lagged behind. This paper: [ILLUSTRATION OMITTED] * reviews the...

In his opinion ...(services of Cashbox in the installation and maintenence of Automated Teller Machines)
June 22, 2004... On the face of it Carl Thomas is precisely the sort of entrepreneur with the potential to build a substantial pan-European enterprise. As founder and chief executive of Cashbox, a company which installs and operates 'independently deployed'...

Uncovering your customer's hidden needs: companies must go beyond traditional market research techniques if they are to anticipate the future requirements of consumers.(Innovation)
June 22, 2004... Capturing the 'voice of the customer' is an essential stage of any new product development. However, the way companies 'listen' to their customers is changing as managers realise end users are often unable to articulate their needs and focus...

Five ways to kill a great idea.(pitfalls of business practices)
June 22, 2004... Not all the best movies make it to the big screen. Not all the best restaurants get discovered. Not all the best potential spouses get married. And not all the best marketing and new product ideas see the light of day. Why aren't there more new...

Avoiding the e-commerce trap: if companies are to reap the full benefits of electronic commerce, they must redesign their logistics systems so that physical distribution processes work more efficiently.(Logistics)
June 22, 2004... The great internet 'flop' is still gravely etched in the imagination, yet notwithstanding the stock market setbacks of a few years ago e-commerce has been making steady progress. According to Emarketer, average on line expenditure in the US...

Communicating with the marketplace: ground breaking research by MIT examines the relationship between information disclosure and a company's cost of capital.(Information Disclosure)
June 22, 2004... The issue of corporate information--its integrity, scope, distribution, and impact--has become a central business concern in recent years. But despite growing interest in the topic, the link between a company's strategy for communicating with...

In my opinion ...(Information Disclosure)
June 22, 2004... This research is very valuable to companies because it demonstrates, with empirical data, the links between information disclosure, share price volatility and a company's cost of capital. Most leading businesses already have a coherent and...

Which way is the 'auto' business headed? In the first of two forward looking articles on the world's largest industrial sector, Garel Rhys looks at likely patterns of demand and the prospects for future consolidation.(Industry Futures)
June 22, 2004... The global automotive industry is the world's largest industrial sector, with an annual income not far short of [pounds sterling]1,000bn, generated by the manufacture of cars, commercial vehicles and parts, components and systems not included...

Driving forces for change: environmental pollution and congestion targets, a weaker US dollar, the rise of India and China and consolidation among vehicle and component manufacturers are set to change the face of the automotive sector. In the second article in this section Philip Wylie makes some predictions.(In Depth: Industry Futures)
June 22, 2004... Contrary to conventional wisdom, the European automotive sector may not be 'mature'. Despite slow growth, followed by a mild slump, between 1999-2003, there is a scenario which could see EU light vehicle production increase by around 20 per...

Venture capital in China: strategy and decision making; New research shows how venture investment processes and practices in the West have been adopted and modified for the Chinese market. This article is an abridged version of a longer paper.(Chinese Venture Capital investments)
June 22, 2004... The shift from a centrally planned socialist economy to a market-driven economy initiated by the Chinese government in the 1970s marked the beginning of one of the most significant economic and socio-political transitions in modern history. One...

Enron unravelled.(bankruptcy case)
June 22, 2004... When Enron filed for bankruptcy protection on December 2, 2001, the financial world was shocked. How could this high profile leader in the world of energy trading have failed? Based in Houston, Texas, Enron was the seventh largest company by...

In my opinion ...(the influence of corporate accounting)
June 22, 2004... Following the collapse of Enron--and the other financial restatements which have followed in its wake--the transparency of corporate accounting has arguably become the number one global corporate governance issue. Huge changes have already been...

Managing reputations.(ResearchBriefs)
June 22, 2004... How important is corporate reputation? According to recent research by Professor Cies B.M. van Riel of Rotterdam School of Management and Charles Fombrun of the Stern Business School in New York, companies with a strong reputation perform...

Crossing east-west boundaries.(ResearchBriefs)
June 22, 2004... The relationship between knowledge and culture has been a subject of interest to business researchers for some time, but it is still an area where there is much to be learned. New work by Kristian Moller and Senja Svahn of the Helsinki School...

Creating knowledge.(Research Briefs)
June 22, 2004... We are used to hearing that knowledge is an essential component of modern management, and that the ability of firms to create knowledge plays a crucial role in achieving comparative advantage. It is easy to understand the importance of...

Leading smaller firms.(ResearchBriefs)
June 22, 2004... Small and medium-sized enterprises (SMEs) are of primary importance in almost every economy, contributing the majority share of both employment and GDP. Yet, for a variety of reasons, they are often less prominent when it comes to business and...

How do consumers perceive websites?(ResearchBriefs)(Brief Article)
June 22, 2004... How do consumers perceive corporate websites? This is an important question, given the amount of money spent on websites, yet they are often taken for granted as a 'good thing'. This assumption has been questioned by Mirjami Lehikoinen and...

Monks and multinationals--business models of the Middle Ages: the Benedictines and the Cistercians were much more than religious orders--they were powerful multinational organisations from which the modern manager can learn.
June 22, 2004... We are used to thinking of 'big business' as something that only flourishes in a capitalist, free-market economy. But business has a habit of adapting to whatever environment it finds itself in. In the Middle Ages, European business took on...

Ethics: the key to understanding business and society; Managers need to be taught the principles and practices of business ethics and sound, responsible corporate governance if businesses are to avoid corporate scandals.
June 22, 2004... The spectacular business frauds of Enron, WorldCom, Parmalat and the collapse of the dot-com and telecommunications companies have prompted a huge rethink on what should be taught at business schools. There is a growing consensus that business...

Why are we so hostile to sharing knowledge? New case studies in Denmark highlight the value which is lost when managers fail to tackle the human challenge of the corporate intranet.
June 22, 2004... Companies nowadays emphasise the strategic benefits of knowledge management and point to the introduction of expensive computer-based intranets and performance-oriented incentive structures to demonstrate their commitment. But in spite of such...

Risk-proofing your brand: global brands and manufacturers are facing new and growing forms of geopolitical risk. But such risks also present significant new opportunities.(Sounding Board)
June 22, 2004... CEOs of today's multinationals would do well to reflect on the work of the silent film actor Lon Chaney, 'the man of a thousand faces.' Profound changes in the global marketplace mean that companies-like Mr. Chaney in his day--have to become...

New languages of transformation: as the software that powered email, intranets and websites, HTML changed the face of business. Yet 'new generation' XML and XBRL promise an even greater revolution in information sharing and data access.(Sounding Board)
June 22, 2004... Hypertext Mark-up Language is a standard generalised mark-up language with document-type definition. In practical terms, it is a collection of platform-independent styles--denoted by mark-up tags--that define the presentation components of a...

Time for a critical empirical investigation of the MBTI: Case and Phillipson are right to highlight the pre-scientific roots of the MBTI, but they fail to separate the issue of the validity or usefulness of the MBTI from the issue of the validity of its origins.(Myers-Briggs Type Indicator)
June 22, 2004... In their article 'Astrology and alchemy--the occult roots of the MBTI', in the Spring 2004 edition of EBF, Peter Case and Garry Phillipson argued that Jung's 'four psychological functions' were modelled after the four elements in astrology and...

Painter on a global canvas: EBF talks to Ashwin Dani, of Asian Paints.(Interview)
June 22, 2004... EBF Asian Paints changed from being an Indian company to a global company almost overnight. What challenges has this rapid growth presented? [ILLUSTRATION OMITTED] Dani We always had the spark of ambition, and dreamed of growing...

The understated hotelier: EBF talks to Edouard Ettedgui, Chief Executive of Mandarin Oriental.(Interview)
June 22, 2004... Edouard Ettedgui joined Mandarin Oriental as Chief Executive in 1998, a time when the luxury hotel concern (a publicly-listed company and member of the Jardine Matheson group) was just embarking on a global growth strategy from its Asian...

Is China going the way of Brazil? China needs to address problems of inflation, poor corporate governance and better regulation if it is to achieve long-term economic growth.
June 22, 2004... Ever since the Mao jacket went the way of the ozone layer, China has been the world's darling economy. 'Bigness' and very high rates of growth have persuaded otherwise canny investors to overlook some rather significant risks. ...

Europe.(News from EBF Founders)(European Business Forum)(Brief Article)
June 22, 2004... Joining the dots--Tackling the Basel II and IFRS debate This new PwC study for the European Commission was published on 28 April 2004. It examines the impact of the new Basel II and EU capital adequacy proposals on the EU banks and...

Poland.(News from EBF Founders)(European Business Forum)(Brief Article)
June 22, 2004... The Challenge of Membership: Polish Financial Services in the Enlarged EU* [ILLUSTRATION OMITTED] A report from PwC Poland discusses a number of key developments in Poland's financial services sector associated with membership of the...

Global.(News from EBF Founders)(European Business Forum)(Brief Article)
June 22, 2004... Entertainment & Media Global Outlook--NEW EDITION The new edition of PwC's essential, market-leading entertainment and media industry forecast is available from the beginning of July. E & M Global Outlook 2004-2008 includes in-depth...

Europe.(News from EBF Founders)(European Economic Outlook )(Brief Article)
June 22, 2004... European Economic Outlook June 2004 [ILLUSTRATION OMITTED] The economic prospects for business in Europe are examined in the latest PricewaterhouseCoopers European Economic Outlook report. The report also includes a special article on...

Ready to meet the challenges of an enlarged Europe.(News from EBF Founders)
June 22, 2004... Since 1988, the CEMS alliance has been preparing for an enlarged Europe Europe recently celebrated the successful integration of ten new members into its international community. In anticipation of this event, the Community of European...