11. The inter-firm cooperation
Thursday, 14 October 2021 14:33
Type of cooperation and agreement that companies may establish—> it’s necessary
because the majority of the companies are of little or medium size, and so it’s not
possible to get bigger with the previous 3 scopes
Ex. Two family owned company: X and Y
The relationship:
• X is a big costumer for Y
• Y is a key supplier for X
• Uncertainty about the future —> need to strength and protect the relationship
Possible solutions:
• X buys and incorporates Y —> 1 institution XY owned by family X
• X buys all shares of Y without incorporating Y —> 2 autonomous companies
• X merge with Y —> they coparticipate in a new company Z: the two families are the
2 main shareholders
• The two family trade some shares between each other —> 2 outonomus companies
X and Y but both family holds some shares of the other
• Establishing a 5 year contract —> X has to buy a minimum amount of units, Y
guarantee exclusivity ans invest an establishes amount to improve its volume
capacity
There are a lot of different solutions, most of them are hybrid between having 2
independent companies and a single entity.
Three categories of hybrid solutions:
○ Corporate groups: based on equity relationship= a company holds the shares
of the other
○ Formal alliances and networks: agreement with a legal validity that can
protect several conditions
○ Informal alliances and networks: agreements that rely on trust, routine…
(See slide 4)
THE MATRIX OF INTER-FIRM COOPERATION
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller saranembrini. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.88. You're not tied to anything after your purchase.