European Business Forum articles from September 2006

European Business Forum archives from September 2006

Letter from the editor.(Editorial)
September 22, 2006... The unwelcome reception given to India's Mittal Steel earlier this year when it announced its takeover bid for Luxembourg-based Arcelor provides a sharp business dimension to our EBF debate: "Partner or protectionist? India's view of Europe."...

EBF and the European perspective on global management issues.
September 22, 2006... EBF A CEMS INITIATIVE European Business Forum (EBF) represents an original departure from the traditional positioning of business publications. It is neither an academic journal nor a business news magazine. EBF draws on the contributions of...

CEMS: an authority in management education.
September 22, 2006... The Community of European Management Schools and International Companies (CEMS) is an alliance of leaders in business and higher education. Founded in 1988, the network has grown steadily, largely due to the success and popularity of the CEMS...

The rise of Asian economies such as India and China is a real opportunity for Europe to expand the reach of its markets and strengthen its economy. But it must first abandon its inward-looking, protectionist national policies. Narayana Murthy, Infosys.(Partner or protectionist? India's view of Europe)
September 22, 2006... Europe is a strong, vibrant player in the global market. It is the largest trading partner in the world economy and possesses significant economic strengths, including a well-educated work force, an efficient public infrastructure and strong...

When expanding beyond their domestic shores, Indian firms have typically focused on the Anglo Saxon markets of the UK and the US. Business in continental Europe has been stifled by rigid labour laws and strict visa conditions.(Partner or protectionist? India's view of Europe)
September 22, 2006... Last year I invited a European minister for inward investment to lunch at the Taj Mahal Hotel in Bombay. Over dessert we discussed a recent episode in which a state-owned company in her country had terminated a contract - in our view without...

If Europe relaxes its restrictions on labour movement and signs a free trade agreement, India could be the magic bullet that will solve the economy's shrinking labour pool and welfare state problems.(Partner or protectionist? India's view of Europe)
September 22, 2006... Europe is not merely a political entity or a business and investment partner. I believe, in a larger sense, the "idea" of Europe transcends nations. And that can be best expressed in the words of Jean Monnet, the man who championed an...

Western Europe has long been an important source of finance into India. Investment is now starting to flow in the opposite direction, as Indian firms acquire manufacturing and service-sector assets in Europe.(Partner or protectionist? India's view of Europe)
September 22, 2006... There are more dimensions to life than mundane economics, however loathe some economists may be to acknowledge it. For India, Europe matters not only for good reasons of economics but also in terms of strategic interest and for reasons of...

The relationship between India and the EU reached new heights in 2004 with the signing of a Strategic Partnership Agreement. India should now focus on the opportunities brought by the EU's eastward expansion.(Partner or protectionist? India's view of Europe)
September 22, 2006... India's relationship with the EU dates back to the early sixties, when it became one of the first countries to establish diplomatic ties with the European Economic Community (EEC). Progress in economic relations has been rapid, reaching new...

In order to capitalise on the opportunities outside their home market, Indian companies must now invest their resources in hiring the right talent and training employees to become part of the global workforce.(Partner or protectionist? India's view of Europe)
September 22, 2006... I believe that Europe is India's most valuable market and will continue to be so in the future. This is not wishful thinking. Statistics from the Government of India show that Western Europe accounted for 32 per cent of the country's imports in...

While private firms, such as Dusseldorf-based Metro Cash and Carry, could strengthen the supply chains between India and Europe, protectionist policies on both sides are thwarting attempts at value creation.(Partner or protectionist? India's view of Europe)
September 22, 2006... Does Europe matter to India? Yes, it does. But it could matter more. Much more. The EU accounts for a fifth of each of India's imports and exports. Bilateral trade at about [euro]33bn is more or less balanced and growing sharply. Further,...

Indian companies are keen to apply what they have learned at home and in the US to Europe. The benefit will ultimately be two-way. Even strong European brands such as Nokia have emerged fitter from engaging with India.(Partner or protectionist? India's view of Europe)
September 22, 2006... In May 2006, while Indian drinks tycoon Vijay Mallya was smarting in Paris from the Gaullist pique that destroyed his bid for French champagne house Taittinger, GE's CEO Jeffrey Immelt was in Bombay chiding the rise of "economic nationalism"....

Moi.(DOES HUMOUR TRAVEL?)(Cartoon)
September 22, 2006... Moi, JE VoiS D' UN TRES BoN OEiL LA REPRiSE DES ABATToiRES EURo PEENS PAR CES iNVESTiSSEURS iNDiENS

BELGIUM.(DOES HUMOUR TRAVEL?)(Cartoon)
September 22, 2006... BELGIUM "I think the takeover of the European slaughterhouses by Indian investors is a very good idea" ITALY

UK.(DOES HUMOUR TRAVEL?)(Cartoon)
September 22, 2006... "I mentioned that I wanted to branch out it Europe and now he says he won't come out unless I give him a final salary pension plan, private healthcare and 20 days holiday a year". [ILLUSTRATION OMITTED]

US.(DOES HUMOUR TRAVEL?)(Cartoon)
September 22, 2006... "Long term, I look forward to a stronger EU-India economic partnership. Short term, I look forward to a cappuccino and a croissant" [ILLUSTRATION OMITTED]

India.(DOES HUMOUR TRAVEL?)(Cartoon)
September 22, 2006... Vyapar badhiya ho raha hai... maine fransisi sanskriti apana li hai "Business is going well. I am adapting to French culture" [ILLUSTRATION OMITTED]

Capitalising on the customer; Most large companies are adept at traditional market research. But many fail to connect the dots between what they learn about their customers and the end product. Here's how to close the delivery gap.(IN DEPTH)(Company overview)
September 22, 2006... Creating loyal customers has never been harder. Everything from internet price comparisons to proliferating global markets make it increasingly difficult for companies to attract and hold customers. Nor will the problem get easier; in the...

The India effect; India's offshoring sector has been driven by cheap labour and a competitive culture. But as the country's low-cost advantage diminishes, Indian firms will need to find innovative ways to stay ahead of new emerging economies.(IN DEPTH)
September 22, 2006... With an annual economic growth rate of around seven to eight per cent, India has emerged as a future economic superpower. But is the country's impressive growth down to lower costs alone? Once India's cost advantage diminishes, will future...

The nature of corporate communication: mother Nature has spent millennia perfecting its communication systems. How can large complex organisations draw on these lessons.(IN DEPTH)
September 22, 2006... Corporations can learn important lessons from Mother Nature about the art of communication. Here, we examine the idea of the "organismic metaphor", which views organisations as biological organisms (Morgan, 1998). [ILLUSTRATION OMITTED]...

Extreme innovation; Nearly two-thirds of new products fail after launch. The extreme programming methods used in software engineering show how firms can adopt more effective, customer-led innovation processes.(IN DEPTH)
September 22, 2006... Managing the development of product innovation is a severe challenge for industrial firms. Nearly two-thirds of new products fail after launch, largely because companies are under pressure to address rapidly evolving customer demand (Lempres,...

Are you covered? Just as professionals use futures and options to hedge their risk in interest rates, equities and foreign exchange, businesses can now manage their economic exposure to fluctuations in the weather.(IN DEPTH)(Company overview)
September 22, 2006... A change in the weather can have a significant impact on a company's bottom line. The agriculture, apparel, beverages, construction, energy, entertainment, gaming, production, promotions, retail, sports and transportation sectors are all...

Making Europe responsible.(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... what role do governments have in promoting corporate social responsibility (CSR) in Europe? A new report from the European Academy of Business in Society (EABIS) suggests that governments have a major role to play as promoters and drivers of...

China's young consumers.(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... Teenagers are an integral part of China's burgeoning consumer class but little is known about their buying behaviour. New research by lan St-Maurice and Claudia Wu at the Shanghai offices of consultant McKinsey & Company attempts to cast light...

is complexity becoming more complex?(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... Ever since Herbert Simon advanced his cybernetic theory of organisation in the 1950s and argued that complexity is a necessary feature of the modern organisation, researchers have been searching for deeper insights into how organisations...

The price of sunshine.(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... Suppose sunshine was a commodity on which a price could be put. Would people be willing to pay? This was the question put by researchers at strategy and marketing consultants Simon-Kucher & Partners in London in June this year. Researchers...

The fair value challenge.(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... From 2005, companies trading in regulated markets within the EU have been required to produce their consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). This changeover from the mosaic of...

The need for pension reform.(SUMMARIES OF RESEARCH PROJECTS FROM AROUND THE WORLD)
September 22, 2006... In Germany, the coalition government of chancellor Angela Merkel intends to increase the retirement age to 67. In the UK, there is talk of raising it to 69. With pension reform in the air, pensions consultant Alain Roulleau has conducted a...

Digital democracy: eleven years ago Rodrigo Baggio set up a computer school for disadvantaged children in Rio. the CDI has since trained 600,000 people to work their way out of Poverty. Baggio's challenge now is to expand the organisation without losing sight of its original objective.(CASE STUDY)(Company overview)
September 22, 2006... Rodrigo Baggio, executive director and founder of Comite para Democratizacao da Informatica (CDI), sat down to read a book about the history of Vila Isabel, a district of Rio de Janeiro. This book had a special significance for Baggio because...

Political philosopher: while the philosophers of ancient Greece were teaching in Athens, India's own great mind, Kautilya, was forming political ideas that would be studied up until the present day.(INDIA'S FIRST)
September 22, 2006... There is a natural tendency to think of India as an emerging economy. In fact, it is re-emerging, regaining its economic and political strength. India has a tradition of strong domestic businesses. In the 18th century, admiring British...

EBF special feature in association with kpmg.(Interview)
September 22, 2006... Q How relevant is the financial services sector to the European economy? A The financial sector generates more than five per cent of European GDP, according to statistics from Eurostat. That equates to [member of] 500bn, a fifth of which...

Insights and opinions from the boardroom and beyond.(LEADERS)
September 22, 2006... When William Fung finished his MBA in 1970, he wasn't planning on returning to his family's business in Hong Kong. At the time, he says, Li & Fung was a typical Chinese family company, employing dozens of family members, and run largely with...

Erhard Busek, special co-ordinator of the Stability Pact for south-eastern Europe, discusses the steps towards creating a sustainable, long-term regional co-operation body and the flaws in European leadership.(LEADERS)(Interview)
September 22, 2006... EBF: The Stability Pact is preparing to hand over its responsibilities to a new regional co-operation council in south-eastern Europe. Is your role coming to an end? [ILLUSTRATION OMITTED] EB: I think so. There is a schedule laid out...

Leaders.(Interview)(Company overview)
September 22, 2006... EBF: The Financial Times recently reported that CSR is experiencing a renaissance: "The debate on climate change among businesspeople has moved on from whether it is an issue to when it will be and how far it may affect them." What are your...

Leaders.(Interview)
September 22, 2006... EBF: Why do you think that business strategy is analogous to warfare? JV: The terms "strategy" and "tactics" are deeply rooted in military warfare. One of the oldest and most famous studies of strategy was Sun Tzu's Chinese military...