The European Marketplace

565 Pages·1991·57.958 MB·English

by  James Hogan (auth.)

The
European
Marketplace
T h e
European
Marketplace
James Hogan
M
© The Macmillan Press Ltd, 1991
Contributions © The contributors, 1991
Softcover reprint of the hardcover 1st edition 1991
All rights reserved. No reproduction, copy or transmission
of this publication may be made without written permission.
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First edition published 1991 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in Auckland, Delhi, Dublin,
Gaborone, Hamburg, Harare, Hong Kong, Johannesburg,
Kuala Lumpur, Lagos, Manzini, Melbourne, Mexico City,
Nairobi, New York, Singapore, Tokyo.
British Library Cataloguing in Publication Data
The European Marketplace.
1. European Community countries. Economic
integration
I. Hogan, James
337.1'432
ISBN 978-1-349-11346-0 ISBN 978-1-349-11344-6 (eBook)
DOI 10.1007/978-1-349-11344-6
For
WILLIAM POETON
and
THE UNION OF INDEPENDENT COMPANIES
• •
• •
1-\1-' BARC=LAYS 1992 HAS
• l~LRI~i\DY START1~D. •
• •
No one can afford to ignore the dramatic implications of 1992.
The Single European Market. The removal of tariffs. 320 million
potential customers.
• •
But it may be difficult to see exactly how your business can
take advantage.
• That's where we can help. •
With experts on everything from electronic cash management
to international finance. From cross border leasing to exchange risk
• •
management.
To give you all the specialist advice you need.
• We've also been established in Europe for many years. So we'll •
have someone on hand to help, wherever you decide to trade.
But you don't have to go abroad to draw on our wealth of
• •
experience. As we've now set up Business Centres all over the UK.
And with 327 in total, that's more than any other bank.
• We can make 1992 work for you. If you start work on it •
now. By filling in the coupon. Or calling into your local Barclays
Business Centre.
• •
Please send me details of my nearest Barclays Business Centre.
• Name _________________________________________ __ •
)'( II '/, / COmpany _______________________ _
• H / I / / /, (1/ f- Address _________________________ _ •
1,1//,/.\'(,/(1
• ~, BAR CLAYS PPOOS BTO TXIl lNSO C.O 1U63P. O'IVNE TYOIIR: BIDAGJlE.C. LSAUYRS. RINEYfO KRTMIJA 'TUIHON. OCRE NFTRlElEE . •
PHONE _ muo.
MEN BEll OF IMIlO
Contents
Foreword Sir Leon Brittan ........................................................ xiv
Acknowledgements ........................................................................ xv
Contributors ............................................................................... xvi
Introduction ............................................................................... xx
PART ONE: THE EUROPEAN DIMENSION
1 People and products Mike Rosser ........................................ 3
Cultural differences .................................................................... 4
Marketing approaches ................................................................ 6
Opportunities and problems ......................................................... 8
The role of advertising agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Developing a European attitude .................................................... 9
2 The New Europeans James Hogan ...................................... 11
Origins of European unity .......................................................... 14
The Single Market .................................................................... 15
Key events in uniting Europe ...................................................... 16
3 Corporate Strategy Caroline Bentley ................................. 21
Single Market implications for corporate strategy ............................. 21
1992: A catalyst for change ......................................................... 22
Acquisitions and alliances ........................................................... 26
4 Winners and Losers Barry Baldwin .................................... 31
Options for major companies ....................................................... 32
Action for smaller businesses ....................................................... 33
5 The National Wealth William Poeton .................................. 39
The German experience ............................................................. 41
The Economy and business confidence .......................................... 42
Response to the Single Market programme ..................................... 44
vii
Contents
PART TWO: SELLING FROM THE UK
1 The European Sales Team Kelly Dow ................................ 51
I
2 A Shop Window in Europe Peter Webster ........................... 58
3 The Market for Inventions British Technology Group ....... 74
Eurotech ................................................................................ 74
4 Electronic Data Interchange Richard Wakerley .................. 81
5 The Mark of Quality Sir Derek Hornby .............................. 89
Role of certification bodies ......................................................... 89
PART THREE: MANAGEMENT, WORKFORCE AND
COMPANY SKILLS
1 A New Breed of Bosses Anthony Saxton ............................. 97
The search for the Euro-executive ................................., ............... 97
Recruiting Euro-executives ......................................................... 98
Qualities of the Euro-executive .................................................... 99
Demand for Euro-executives ..................................................... 100
2 The Making of Managers George Bain and Janet Temple. 102
University management school courses ........................................ 104
3 Universities and Industry Hugh Thomson ........................ 108
Benefits of collaboration .......................................................... 110
Pre-competitive research .......................................................... 110
4 Polytechnics and Business Committee of Directors
of Polytechnics .................................................................. 114
European business-related services ............................................. 114
viii
Contents
5 The European Student Timothy F. Beyer Helm ................ 121
Student societies ..................................................................... 122
ERASMUS ........................................................................... 123
COMETI ............................................................................. 123
6 Languages and Business Nigel Reeves 126
7 Bureaucracy Untrained James Hogan 135
8 Training the Workforce Peter Morgan ............................. 139
Vocational training ................................................................. 141
Training schemes . .... . . . . . . . ... . . ... . . .. ... .. ... . . ... .. .. . .. ..... . . .. . .. ...... 142-156
PART FOUR: CASH FLOW AND PROFITS
1 Maximising Profits - I Anthony Pierce ........................... 159
Competitive pressures ............................................................. 161
Economic factors .................................................................... 163
The risks............................................................................... 165
Role of management ............................................................... 167
2 Maxmimising Profits - II Anthony Nolan ...................... 169
The product .... . .. ... . . ... . ... . . ... . . .. ... . . .. . . ... . .. .... . .. .. . . . ... .. .... . . . .... . .. 170
The tender ............................................................................ 171
The contract .......................................................................... 171
3 Money for Business Ted Ettershank ................................. 173
Bank overdraft ....................................................................... 174
Invoice discounting ................................................................. 175
Packaged lending .................................................................... 175
4 Export Credit Insurance Charles McCartan ..................... 179
Safer open account trading ........................................................ 181
Financial discipline .. . . .. . . ... . .... .. .. ... . .... . .... . .. .... .. .... . . ........ .. . . ... .. 182
ix
Contents
5 Banking Services Barclays Bank Pic ................................ 187
Impact of changes in the European Banking system ........................ 188
Electronic banking .................................................................. 190
Free movement of capital ......................................................... 191
Monetary union . ..... ......... ...... .. ...... ....... ............. .... ........ ........ 191
6 Investment Incentives Monica Brebner and James Hogan. 195
7 EC Grants and L~ans ......................................................... 208
Part I - Structural funds .......................................................... 209
European Regional Development Fund ....................................... 211
European Social Fund ............................................................. 215
European Agricultural Guidance and Guarantee Fund .................... 216
Community Financial Instruments .............................................. 218
Part II - Research and Development Programmes .. ......... ........... . 222
Activities under the Framework Programme 1987-91 ...................... 223
Activities under the Framework Programme 1990-94 ...................... 253
PART FIVE: THE ECONOMIC AND TRADING
ENVIRONMENT
1 Coporate Structures John Brebner .................................. 265
Appointing an agent ................................................................ 268
Appointing a distributor ........................................................... 269
Franchising ........................................................................... 272
Licensing a product or know-how ............................................... 275
Joint venture ......................................................................... 277
Setting up a subsidiary ............................................................. 278
Establishing a branch office ....................................................... 282
2 Doing Business in Eastern Europe Edward Dolling,
Neil Payne, Susanne Schalk ............................................... 285
Problems and cultural barriers ................................................... 286
Eastern European states ...................................................... 285-295
x