Enterprise connection

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Forms

Co-operation

Co-operation designates the freiwillige co-operation between different enterprises for the execution of large-scale projects or for the penetration of joint interests opposite third, for example in the form of a strategic alliance. The characteristics of co-operation are on the one hand the cooperation between enterprises by coordination of functions or separating of functions and transmission of decision making on a joint mechanism (for example in form of an open commercial company - OHG). On the other hand the connected enterprises must retain their legal and also their economic within the ranges, which are not subjected to the co-operation contract.

If co-operation is connected with restraints of trade, approximately with price-fixing arrangments, allocations of markets, supply, restraints of trade or reference obligations, then co-operation at competition right of the individual nations or the European, in particular at the trust prohibition is to measure.

Concentration

The concentration describes against it the connection of enterprises under task of its economic The legal remains existing however further. Outstanding feature of concentrations of enterprise is the subordination of the united enterprises under a uniform line. This is done either via acquisition of a participation of the majority with the controlling enterprise or with conclusion of a controlling contract. Even if the enterprises give up their legal with the union, one speaks of a fusion. A fusion is present whenever either an enterprise is integrated by admission into an enterprise already existing or by new formation, with which two enterprises A and B form a new enterprise C.

The concentration of enterprises represents a union, which in legal regard in principle, if it achieves or exceeds a certain order of magnitude, to which is subject to of the individual nations or European union control.

The economic development to globalisierten markets and the increasing mechanization and automation of production and paragraph processes, and the safety device of raw material and energy resources as well as ever more becoming research and development projects lead to intensified concentration tendencies with larger enterprises. Thus small and middle enterprises are forced to co-operation, in order to be able to exist at the market. Here the tendency of the free free-market economy points itself, to gradual self destruction by abolition of the free competition due to from co-operation and concentration efforts of the enterprises.

Objectives

General goals

Principal purpose of a trust is it to maximize on a long-term basis the profit. The individual steps to this goal are:

• Growth: With growth between an internal and an external growth one differentiates:
  • Internal growth is a natural growth from the inside out, i.e. capacities developed due to rising demand and/or a rising market share. Internal growth is particularly possible on new, prosperierenden markets with only little competition (example: Biotechnology).
  • Today one finds more and more above all large enterprises, which try by external growth to open new markets. They are partly received for it or than entire with other enterprises connections. Frequently thereby an enterprise of another is taken over (see for example Daimler Benz AG and Chrysler corporation or, as example of a hostile takeover, a Vodafone and a man man).
• Increase of economy: For this gladly the synergy is stated. By the dismantling and/or by the pool of doubly existing departments after the union - as for example the financial accounting or the personnel department - effects of rationalization are obtained. Also the exchange of know-how existing in the enterprises is to bring increases to economy.
• Reduction of the risk: By allocation of the risk on several partners with co-operation and/or by diversification into new products and markets with the concentration the risk for the united individual enterprises is to become smaller.

Goals for individual divisions

Procurement area

An improvement of the negotiating position can be achieved by joint occurrence at the procurement market opposite strong suppliers. More favorable conditions (terms of delivery, conditions of payment) and - by according to larger purchase quantities - more favorable procurement prices can be implemented. Above all trading ventures united to purchasing associations. Industrial enterprises pursue against it different goals: With them above all the Risikominderung is the center of attention during the supply of raw materials, both quantitatively and qualitatively. Here connections with enterprises of the pre-aged production stage (raw material extraction enterprises) are entered.

Production department

A goal is it the improvement of the production processes regarding quantity, quality, to optimize place and time. Further Einsparungspotenziale is reached in process engineering by classification and standardization.

Financing range

, An individual enterprise can carry the high financial loads particularly with large-scale projects usually not alone. Therefore enterprises co-operation are received among themselves, in order to be able to accomplish such projects nevertheless. The union to a working group and/or the financing possibilities are to extend project getting thing and to distribute the risk on several partners.

Trading area

Unions within this range have the improvement of the sales prospects as motive above all by a common distributing organization. The selling is arranged by coordination of the sales markets and marketing measures more rational by products.