Gcmb tutorial 5
8
Global Context of Modern Business 23/01/2014 Tutorial 5 European Union
-
Upload
imran-akhtar -
Category
Education
-
view
22 -
download
2
Transcript of Gcmb tutorial 5
Global Context of Modern Business
23/01/2014
Tutorial 5
European Union
23/01/2014
TurkeyActivity 1
• Read Mini-case 13.1 ‘Turkey and the EU’ p349
• Groups of 5/6• A brief debate within the group• Half of the group argues for and the
other half of the group argues against accession
23/01/2014
Industry and Competition Policy and the European Airlines
Activity 2
• Why have low cost airlines grown in significance within the EU?
• Why is state aid a particular problem in the context of the European airline industry?
23/01/2014
Industry and Competition Policy and the European Airlines
• Move from regulation to competition• Struggle by incumbents• Required by the economic growth• Major airports are dominated by flag carriers• Local authorities are under pressure to grant
aid• Local development and employment
• National politics (Alitalia)• 300 million-euro capital hike and credit
lines worth 200 million euros (Economist)
23/01/2014
Industry and Competition Policy and the European Airlines
• National politics (Alitalia)
• 300 million-euro capital hike and credit lines worth 200 million euros (Economist)
• Competition between the big and low-cost
• Mergers and acquisitions
23/01/2014
EMI/Universal
• Large number of retailers offering online music• CDs <----- > online, almost equal share• Competition problems in the EU by the merger of
two• Higher prices• Licensing restrictions• Concerns raised by the large retailers• Small retailers will not be able to compete
• Impact on consumers• Entry problems for new entrants• Expansion problems faces by existing firms• Reduced consumer choice
23/01/2014
EMI/Universal
• Commitments to divest catalogues and assets• Lower level of maintained control and power
• Divestment on EMI
• Divestment of classical music labels• Now music
23/01/2014
EMI/Universal
• Gives consumer more choice to buy from• Competitiveness• Greater control and influence as consequence
of part-sale of EMI to new or existing business• Based on the above measures, merger will
have lesser impact on consumer choice and new entrants• EMI-Universal deal cleared by EU and US
regulators• £1.2bn ($1.9bn)
