Subject(s): Technology, R&D Management Keyword(s): strategic management of technological innovation, R&D, technology as competitive advantage JEL Classification: M10, M16

The purpose of this report can be summarized as follows:
1. Update our awareness of the issues and challenges facing European firms in terms of technology management.
2. Understand the future of ESMT’s sponsors and clients in terms of their R&D and technology organizations.
3. Develop our understanding of the need for skills and capabilities development of the current and future managers and executives in the areas of Research, Development and Engineering (i.e. all those making technology decisions).
4. Seek input for R&D/technology program portfolio that ESMT could offer in the future.

Subject(s): Human Resources Management/Organizational Behavior, Keyword(s): executive coaching, executive education, learning and development

This business brief addresses the questions of what coaching is and what coaches do, from the perspective of executive coaching as a professional service. The findings are based on a survey of executive coaches and corporate clients at the 1st ESMT Coaching Colloquium in 2009. When posed with the question what do you sell as a coach, executive coach responses highlighted: dedicated time, space and a safe environment, awareness, empathy and challenge, and a promise of a transformation opportunity. When corporate clients were posed with the question of what do you buy from a coach their responses highlighted: awareness and sparring partnership, dedicated time and space, and a happy internal customer. The theme of solutions was also highlighted, although views differed from that of the desire that executive coaches provide solutions, to that of the provision of a solution from an executive coach is undesireable and executive coaches should provide coachees assistance in finding own solutions. From the answers given and despite published definitions of what coaching is, it can be surmised that much confusion remains about what coaching actually is and what it is not.

Subject(s): Finance, Accounting & Control [Finance, Accounting & Corporate Governance], Keyword(s): banking

The ongoing world financial crisis, now in phase two mainly affecting the loan books of banks, is forcing financial institutions to reflect or modify their business models. A review of the last full credit cycle shows opportunities to identify the relevant drivers of value that are measured in terms of both return on equity and risk. On this basis we analyzed the balance sheets and P&L accounts of about 65 European banking groups over the last cycle (2000 to 1H 2008). Five drivers define the long-term success of a bank’s business model: the dynamics of growth, the asset mix, the size, the cost-to-income ratio and the relative market share compared to the banks top three country peers. As we show in detail, based on these five drivers managers are able to define their management agenda inside a consistent empirical framework. The key to success in defining a strategy is to knowing one’s relative position within the competitive risk-return arena.

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Subject(s): Finance, Accounting & Control [Finance, Accounting & Corporate Governance], Keyword(s): banking

Die Finanzmarktkrise zwingt alle Banken zur Überprüfung ihrer bisherigen Geschäftsmodelle. Dabei ist für die Entscheidung der künftigen Positionierung die Kenntnis der Treiber für den Erfolg (gemessen an Rendite/Volatilität) entscheidend. Vor diesem Hintergrund haben die Autoren eine empirische Analyse der Jahresabschlüsse 65 europäischer Banken über den Zeitraum der Jahre 2000 bis 2008 durchgeführt. Dabei wurden fünf Treiber für den Geschäftserfolg identifiziert: Wachstums-Dynamik, Portfolio-Mix, Unternehmensgröße, Kostenposition und relativer Marktanteil. Langfristig bedeutsam sind dabei nur Wachstums-Dynamik und Portfolio-Mix. Die drei übrigen Faktoren haben zwar einen bedeutenden, aber insgesamt ‚überschätzten’ Einfluss. Auf der Basis dieser Analyse wird anschließend aufgezeigt, wie eine Umsetzung in die jeweilige Management-Agenda aussehen kann. Entscheidend ist hier die Kenntnis und Bewertung der eigenen Ausgangslage im Markowitz-Portfolio.

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Subject(s): Human Resources Management/Organizational Behavior, Keyword(s): management development, executive education, financial and economic crisis

With the current financial and economic crises and expectations or reality of a recession companies are looking at ways of optimizing the use of their resources and reconsidering their investments. Efforts at developing management talent and leadership capacities of company employees are often associated with significant costs and may, therefore, be among the first to undergo scrutiny in terms of feasibility and expected effectiveness. On the other hand, underinvestment in preparing people for leadership and management roles and tasks may come at a cost for the organization's survival, competitiveness, and future success. Although leadership development can take many forms, executive education courses and programs traditionally play a large role in the process, and constitute a major part of leadership development costs. This business brief outlines a number of issues that need to be taken into account when designing, developing, and delivering leadership and management development programs under the conditions of scarce financial resources.

Subject(s): Finance, Accounting & Control [Finance, Accounting & Corporate Governance],

A growing share of inward investment into the European Union, including but not limited to sovereign wealth funds (SWFs), will come from countries with diverse political regimes with which Europeans may not always see eye-to-eye. The current crisis may increase both Europe’s need for such investment and its sensitivity to the non-economic implications. New investor countries have incentives to refrain from political use of their assets, as illustrated by the recently published ‘Santiago principles’ for transparency and accountability of SWFs. But these incentives are not powerful enough to spare Europe its own assessment of security risks linked to new trends in foreign investment.

Subject(s): Economics, Politics & Business Environment, Keyword(s): consolidation-index, critical success factors, airline industry

As markets internationalize while consolidating, companies have to ask themselves if they can become leaders in these broader international markets. The consolidation index, developed by Burger, is a framework for developing and validating strategies in this regard. The European airline industry has a comparably low level of consolidation with the top 5 airlines having a combined market share of 31 percent in Europe. This business brief applies the consolidation index to the European airline industry and shows which airlines are in a good position to drive the future consolidation process in this industry.

Subject(s): Strategy & General Management, Keyword(s): Europe, China, industry consolidation

Extensive industry consolidation is taking place in Europe in many industries. The aviation industry, for example, has seen mergers between Air France and KLM, as well as Lufthansa and Swiss. The German banking industry just recently started to consolidate with the takeover of Dresdner Bank by Commerzbank and the partial takeover of Postbank by Deutsche Bank. But how about consolidation in one of the biggest growth-markets worldwide - China? A recent survey by ESMT has looked at the differences between Europe and China when it comes to consolidation.

Subject(s): Finance, Accounting & Control [Finance, Accounting & Corporate Governance], Keyword(s): Konsolidierung, Banken, Deutschland

Following the merger of Commerzbank with Dresdner Bank and the subsequent takeover of a 30% share in Deutsche Postbank by Deutsche Bank the German banking market seems to enter the long awaited consolidation. The Business Brief analyses the consequences of these transactions and shows that they are merely first steps. Only the reform of the public sector banking system - with the dominant savings banks and the Landesbanken - will provide Germany's banks with a chance to remain market driving generalists in a consolidating European market.

Subject(s): Economics, Politics & Business Environment, Keyword(s): energy, energy system, current energy system, new energy system, scenario, high energy prices, eMobility, Smart Grid, CHP, consolidation, centralized energy generation, decentralized energy generation, competitive landscape

Translating IPCC climate models into CO2 emissions per head results in 2030 emission targets of 5 percent of today’s emission levels for the US and 10 percent for Europe. In an energy environment where externalities like CO2 are priced and where fossil fuels are becoming scarce and more expensive, only a major transformation of the 20th century energy and mobility infrastructure will be able to cope with these climate and fossil fuel scarcity challenges. With increasing energy prices, energy efficiency and decentralized energy generation will be key ingredients for this energy paradigm shift.
Focusing on this paradigm shift, the business brief as a thought experiment intends to:
• Identify implications for the value chain, namely the creation of new value-chain segments;
• Indicate potential shifts in market size and margin of the respective value-chain segments;
• Derive implications for players involved, namely the emergence of a new competitive landscape.
The business brief addresses all energy players involved, especially incumbents who face the challenge to balance the tasks of securing and optimizing traditional business while at the same time taking part in new disruptive innovations.

Extensive industry consolidation is taking place in Europe in many industries.
The aviation industry, for example, has seen mergers between Air France and
KLM, as well as Lufthansa and Swissair. The German banking industry is
currently actively investigating consolidation opportunities. But how about
consolidation in one of the biggest growth-markets worldwide – China? A
recent survey by ESMT has looked at the differences between Europe and
China when it comes to consolidation.

This publication has been removed from circulation.

Subject(s): Strategy & General Management, Keyword(s): consolidation, aviation, utilities, telecoms, banking

Summary of results from the 2007 Consolidation Impact Survey. The survey covers four industries that are most affected from consolidation trends in Germany: Aviation, Utilities, Telecoms and Banking.

Subject(s): Strategy & General Management, Keyword(s): consolidation index, industry consolidation, industry structure, critical success factors, banking industry, utilities industry JEL Classification: L10

While markets internationalize and at the same time consolidate, companies have to ask themselves if they can develop to one of the market leaders in this broader international market. To give guidance to this question, the business brief introduces the concept of the consolidation index as a framework for developing and validating strategies in this regard and discusses the results of the consolidation index for the European banking and utilities industry.

Subject(s): Strategy & General Management, Keyword(s): Konsolidierung, Consolidation-Index, Banken

Der Abstieg erfolgte vergleichsweise unspektakulär, aber nachhaltig: Noch zu Beginn der neunziger Jahre war die Deutsche Bank gemessen an der Marktkapitalisierung die größte europäische Bank und gehörte zu den zehn größten Banken weltweit. Seither haben sich die Relationen grundlegend verschoben: In allen großen europäischen Ländern gibt es inzwischen jeweils mindestens zwei Banken, die eine größere Marktkapitalisierung aufweisen, als die Deutsche Bank. Damit stellt sich die Frage, welche Rückschlüsse für die, neben den in Deutschland dominierenden Volksbanken und Sparkassen, börsennotierten privaten Banken zu ziehen sind.

Subject(s): Strategy & General Management, Keyword(s): banking, strategy

Auf den ersten Blick erscheint es paradox: Kreditausfälle im US-Immobilienmarkt führen zur Existenzkrise von zwei deutschen, im nationalen Geschäft verwurzelten Instituten. Selbst wenn noch nicht sämtliche Einzelheiten der aktuellen Krise im Bankgeschäft bekannt sind, können erste Ansätze zur notwendigen Aufarbeitung und Ableitung eines künftigen Marktszenarios vorgenommen werden.

Subject(s): Strategy & General Management, Keyword(s): banking, strategy

At first glance it seems paradoxical: Loan defaults in the U.S. real estate market threaten the viability of two major German financial institutions-both with deep national roots. But although the full extent of the current banking crisis remains yet unknown, the first steps toward a critical reappraisal of future market scenarios can begin now.

This paper investigates the role of exploitative abuse under Article 82. Unlike exclusionary practices, there is relatively little economic commentary on the proper role of exploitative abuses in competition policy, even though the legal perspective in Europe has consistently emphasized the importance of enforcing antitrust action in the arena of exploitative practices. In this paper I will address the following two questions: what are the effects of antitrust action against exploitative conduct? and when to take antitrust action against exploitative abuses?

Subject(s): Strategy & General Management, Keyword(s): Konsolidierung, Consolidation Index, Energiebranche

Im Hinblick auf die endgültige Öffnung der europäischen Energiemärkte im Juli 2007 sehen sich die ursprünglich nationalen Versorger der Gefahr sinkender Marktanteile im Heimatmarkt, aber auch der Chance, das internationale Geschäft zu forcieren, gegenüber. Nachdem sowohl die deutschen als auch die ausländischen Energieversorger bereits in den 90-iger Jahren und verstärkt ab der Jahrtausendwende mit den Privatisierungen in Osteuropa international tätig wurden, befindet sich die Industrie nun in einer Phase der europäischen Konsolidierung. Zeichen hierfür sind die versuchte Übernahme von Endesa durch E.ON, die Enel als „weißen Ritter“ auf das Spielfeld brachte, die gelungene Übernahme von Scottish Power durch Iberdrola oder von Gaz de France und Electrabel durch Suez.
Folglich stellt sich die Frage, ob die deutschen Energieunternehmen die Neuverteilung der europäischen Energiemarktanteile für sich nutzen können.
Zur Beantwortung dieser Frage sind drei Aspekte zu betrachten:
i. Haben die deutschen Energieunternehmen im Vergleich zu ihren europäischen Konkurrenten die nötigen Kompetenzen, um den europäischen Konsolidierungsprozess treiben zu können?
ii. Ist die Marktdefinition „Integrierte Strom-/ Gasunternehmen“ für die Beantwortung dieser Frage die richtige Abgrenzung?
iii.Welche Implikationen erschließen sich daraus für die deutschen Energieversorger?