Diversification: the European versus the US experience

Article Abstract:

Mergers and acquisitions in the US rose from 1,400 in 1980 to 3,165 in 1985. A 1985 survey of European companies found that over 50 percent had diversified with a 92 percent success rate. Any large company considering diversification of its product or market range must examine the issue from many different aspects before making a decision. Questions which must be answered concern the most advantageous path to diversification, the obstacles to entering a new market, the role of technology, and other more complex matters. A research project was conducted by Future Organisation Resources (FOR) in order to gather data which would aid in considering such questions. The diversification activities of 300 top US and European companies in 23 industrial sectors were examined. A sectoral analysis was produced using the following indices: degree of diversification; degree of penetration; degree of specialization; number of diversification points in a sector; and the number of penetration points in a sector. Results of the survey are discussed, along with areas requiring further research.

Research, United States, Planning, Conglomerate corporations, Business planning, Diversification in industry, Industrial diversification, Europe, Western

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European corporate responses to the stock market crash

Article Abstract:

Responses from a joint survey concerning the Oct 1987 stock market crash were gathered by Business International and the Economist Intelligence Unit. Results indicate that European companies are hedging short-term exposure, while opportunities for potential acquisitions are acknowledged. In West Germany, Siemens, Volkswagen, and Porsche lowered their 1988 forecasts, while Bayer plans to increase production in its US plants. In Italy, Fiat monitored its exposure in the US market. In the UK, Jaguar did not revise its production plans, but Coloroll dramatically changed its business strategy by concentrating on organic growth within the UK.

Finance, Surveys, Stock Market Crash, 1987, Business International Corp., Economist Newspapers Ltd.

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Europe's shrinking workforce - fact or fiction?

Article Abstract:

European corporations may be challenged by a labor shortage between 1990 and 2010. The average age of workers will tend to increase in France, West Germany, Italy, Spain, and the UK. The imbalances in labor supply and demand may be reduced by the transfer of workers between countries and regions. GEC, which employs electronics and engineering workers, has identified several ways of dealing with the labor shortage, including reducing turnover and hiring older unemployed people.

Analysis, Recruiting, Employment, Labor supply, Labor force, GEC Automation Projects Inc.

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