Corporate economics Association of organizations Association of organizations nGoals of organization associations nTypes of organization associations nForms of organization associations nConsortium nCartel nInterest grouping nGroup nTrust nJoint Venture nFranchising Association of organizations nEnlarging organizations nnatural growth of organizations ngrowth by association of organizations n nAssociation of organizations can be: ncooperation nconcentration Nature of association nhorizontal association of organizations nvertical association of organizations nbackwards nforward nconglomerates (diagonal association of organizations) n Goals of organization associations n nincreasing the economy, nenhancing competitiveness, nreducing business risk, ngaining an economic position, nthe formation of economic unions. Goals of organization associations nThe reason for associating can be to gain advantages in functional areas: npurchase, nproduction, nsales, nresearch and development, nfinance, nother goals. Types of organization associations n nOrganization associations can be typologically defined based on these criterias: nthe way of linking the economic level (production, sales,…) nduration of the merger nintensity of connection (economic and legal autonomy) Types of organization associations nBy duration: npermanent association ntemporary associations n nAccording to the influence of organization associations on their legal and economic autonomy: nlegal autonomy– maintaining its legal structure neconomic autonomy– the choice of making their own decisions without external interference An overview of basic forms of organization associations • • § Consortium § Cartel § Interest grouping § Group § Trust § Joint Venture Consortium n nThe consortium is a temporary horizontal association of organizations while the members retain their legal and economic autonomy. Cartel nThe cartel is a permanent horizontal or vertical association of organizations while the legal and economic autonomy remains for all parties. n nThe most known forms of cartels: nprice cartel, nconditional cartel, nterritorial cartel, nquantity cartel. Interest grouping nInteresting grouping are permanent horizontal associations of organizations, both economic and legal autonomy remains. Group nHolding company (controlling parent company) nSubsidiary (controlled, subordinate) n nIn practice, we distinguish: npure holding company (it focuses on the holding and management of majority holdings in legally autonomous subsidiaries and the output associated with it) nmixed holding company (the existing organization takes over the shares of the other affiliated organizations or establishes new subsidiaries and retains its original operating activities). Trust nTrust is a permanent horizontal, vertical, or diagonal associationof organizations where their original legal and economic autonomy are lost. n nThere are two types of trust: nCombination nAnnexation Joint Venture n nJoint Venture is a permanent association of a horizontal or a vertical type in which the legal autonomy remains, but the economic autonomy of two or more organizations ceases to exist. Franchising nFranchising is a contracted cooperation in which the subjects are legally and economically autonomous, where the franchisor provides franchisee with the right to sell products under a given trade mark. n nThe franchisor gives the franchisee under the contract for the duration of the contractual relationship: nbusiness name and brand of your business, nmethods and techniques of operational management, nmanufacturing processes, recipes, ndelivery of goods, nthe concept of marketing, nstaff training. Franchising nThe franchisee, on the other hand, in nunder the contract: npay a one-off or a regular recurring franchise fee, nuse the franchisor‘s prescribed methods of business management.