Browsing Cand.merc.IB - MSc in International Business by Title
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Rivalry strategy impactMushtaq, Najm-Us-Saqib; Sarwar, Jalal (Frederiksberg, 2011)[More information][Less information]
Abstract: An increased focus on CO2 emission level from the road transport sector has over the years put immense pressure on the global automobile industry to lower its carbon footprint. Today, the global automobile industry is standing in front of a major technological change, as there are several competing technologies which can possibly become the mainstream in the future. Not to miss out on a potential competitive edge, represented by this technological change, automobile manufacturers have presently undertaken a multi path strategy. In addition to comply with the strict environmental regulations, like EU’s 20-20-20 carbon footprint reducing policy. These factors are creating uncertainty in the evolving future of the automobile industry. Which path will the industry take? Questions like the former are increasingly demanding a plausible look into the future of the global automobile industry in this context. Among the technologies in emergence, hybrids, plug-in hybrids and electric vehicles are identified to have the highest impact on the future of the automobile industry. How will that affect the internal rivalry among automobile manufacturers is the essential research area of this thesis. This paper follows M.E. Porter’s (1979) model of competition coupled with scenario thinking to provide a look into the future of the global automobile industry, given the impact of the fuel technologies in emergence. Key findings in the paper are that the extent of consumer acceptance of these technologies mainly depends on the volatility in the oil price. Since consumers are primarily driven by their personal economy. Automobile manufacturers, on the opposite, are pushed through the shift by the strict environmental regulations. Whether manufacturers are able to produce the desired quality or not, and to what extent are the consumers going to accept these technologies lays the basis for the industry scenario interpretation in this paper. This industry study has revealed several major implications for the automobile manufacturers in a given future industry scenario. Firstly, different firms have to strategize differently, according to their resource strengths and capabilities to take advantage of the opportunities and defend against the threats arising in a plausible future. Secondly, there is an increasing focus on electrification of vehicles in the coming years, with many manufacturers already investing millions of Euros into these technologies. Finally, in the future a vast number of changes will be evident in the global automobile industry. New players like start-up firms, third parties and even suppliers are likely to form a part of the new era of the automobile industry. URI: http://hdl.handle.net/10417/3055 Files in this item: 1
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An econometric analysis of Botswana, Ghana, Kenya, Mauritius, Nigeria & South AfricaGaronfolo, Herbert Julius (Frederiksberg, 2011)[More information][Less information]
Abstract: The purpose of this paper is two-fold. Firstly, it explores the macroeconomic environment of Sub-Saharan Africa, and accounts for mutual challenges and characteristics that might exist among these economies. Secondly, it analyzes how macroeconomic variables affect stock market capitalization by using co-integration analysis. The assumption underlying the use of market capitalization as an indicator of stock market development is that the size of the stock market is positively correlated with the ability to mobilize capital and diversify risk (Levine, 1996). Based on the two pillars mentioned above, the thesis forms an empirical platform on which African policy-makers and economists from the World Bank and IMF can learn how macroeconomic indicators interact with the stock markets in Sub-Saharan Africa. In order to provide a sufficient framework for understanding the macroeconomic environment of Sub-Saharan economies, the thesis presents stock market and macroeconomic profiles of the countries in this study. These profiles help in identifying common challenges and opportunities that apply to Sub-Saharan Africa. Understanding the interactions between macroeconomic indicators and market capitalization helps investors optimise their portfolios and guide policy-makers in forming policies that are beneficial for the development of stock markets and accessibility to financial capital through financial markets. The thesis distinguishes between two groups of economies, namely resource-driven economies and diverse economies. Each type of economy has its unique challenges and opportunities with regards to the macroeconomic environment. Diverse economies tend to be associated with a high value added from the services sector, and with less vulnerability to shocks in the terms-of-trade. Resource-driven economies, on the other hand, are subject to increased vulnerability due to fluctuations in commodity prices. Hence, resource-driven economies have a tendency towards more unstable macroeconomic environments. However, having a rich natural resource base also has some obvious advantages. If exploited successfully, natural resources provide a country with goods that can be traded, and hence guarantee a certain revenue stream from exports. Due to the many risks associated with being highly dependent on a limited number of resources, a diversified economic structure is something that in principle is desirable. To foster and maintain a diversified economy, mechanisms for efficiently allocating investment resources across and not merely within economic sectors are important. To allow for this process, it is crucial to set up a framework allowing the development of a sound banking sector and strong stock markets. The macroeconomic and fiscal management has greatly improved during the last decade, and most of the economies are succeeding in controlling inflation and ensuring reforms that allow for a strong and healthy growth. A firm commitment to improving infrastructure and enhancing the business environment through more efficient public administration and reduction of red tape is observed. Concerning stock exchanges, market capitalization and the number of listed companies are generally on par with EU frontier markets, except for South Africa which exhibits levels comparable to the BRIC countries. When it comes to turnover ratios, we observe that Sub-Saharan Africa is plagued by low ratios. The turnover ratio reveals that compared to other regions, market liquidity is low in Sub-Saharan Africa and the level of transaction costs is high. Furthermore, the low turnover ratio is interpreted as a sign of limited access to the markets. The variables that were found to have the strongest influence on MC are GDP, CPI, the money supply, imports & exports, FDI and value added from the banking, gas, electricity & water, manufacturing and the services sector. From a purely macroeconomic point of view, it is therefore recommended that developing economies interested in enhancing their financial system with a stock market pay special attention to creating the best possible environment for GDP growth by ensuring: That inflation is under control through prudent monetary policy (managing the size and growth rate of the money supply and the level of the interest rate). Openness of the economy through international trade and FDI. A focus on developing the banking sector and infrastructure (gas, electricity & water) of the economy. Furthermore, services and manufacturing drive the development of MC through their contribution to diversifying the economy and increasing the international trade. URI: http://hdl.handle.net/10417/3064 Files in this item: 1
herbert_julius_garonfolo.pdf (1.838Mb) -
A study of Scandinavian companies in RussiaNilsson, Catja; Nilsson, Maria Katarina (Frederiksberg, 2010)[More information][Less information]
Abstract: Saturated markets in the western world compel companies to seek new opportunities. For Scandinavian companies operating within the business-to-consumer segment, Russia constitutes great potential, foremost due to its increasing affluent middle class who has a fondness for western-branded goods. However, it is evident that Scandinavian companies face challenges when operating in the Russian market. The aim of the research project was therefore to investigate why Scandinavian companies, operating within the business-toconsumer segment, face operational challenges in Russia, and how the Scandinavian companies should manage these challenges. In order to answer the research questions, a qualitative study was conducted, which included interviews with respondents from Scandinavian companies and experts within the subject field. The collection of data was partly executed through a field trip to Moscow. Based on the findings, it is evident that the operational challenges have to be understood by taking on a wider context-specific perspective. The development of the ISC framework hereby resulted from the analysis. According to the ISC framework, the formal and informal rules in the Russian business environment influence the corporate behaviour of Russian stakeholders. In turn, the unfamiliar behaviour of Russian stakeholders creates challenges for the Scandinavian companies, since Russian corporate behaviour differs from Scandinavian corporate behaviour. Managerial implications on how to handle the challenges where identified on three levels: the individual, the company and the country level. On the individual level it is crucial for Scandinavian companies to find a balance between the number of expatriates and local staff members employed, as well as to create appropriate compensation for them. On a company level it is essential to take on a stakeholder approach in order to understand how the Russian stakeholders may impact the operations of the Scandinavian companies. On a country level, the findings emphasise a thorough investigation of the Russian business environment and long-term investments, whereas Scandinavian companies may ultimately influence the norms and rules regulating economic exchange. It is argued that the findings from the research project are significant for Scandinavian companies wanting to operate on the Russian market. Hereby, it is fair to state that a deeper understanding of the findings is crucial, whereas the research project is deemed essential. URI: http://hdl.handle.net/10417/1510 Files in this item: 1
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Calmac, Diana Maria (Frederiksberg, 2012)[More information][Less information]
Abstract: While VAT is functioning very well in the domestic settings, its application beyond the borders of each Member State can be flawed and can result in unwanted fraud. One of the most common types of cross-border fraud is MTIC (Missing Trader Intra Community). Within this type of fraud, if the same supplies travel multiple times across the same borders through the same supply chain then the more specific name for this MTIC fraud is carousel fraud. It is important to acknowledge the fact that MTIC fraud is not restricted only to goods but it can also affect tradable services. Within the transitional destination-based VAT collection principle, it is very difficult for the authorities to keep track of all the transactions happening across their borders. Therefore, several zero-rated transactions and their correspondents may lead to VAT evasion by enabling companies to receive high VAT amounts from the purchasers and then to disappear before remitting these amounts to the state authorities. It is very difficult for the tax authorities to estimate precisely the VAT losses due to MTIC, but they are noteworthy and they lead to heavy VAT losses. This thesis sets to determine methods of detecting, avoiding and fighting MTIC fraud. First, several significant Court cases are meant to highlight how MTIC takes place in practice and how the Courts look upon these facts in order to emit their decisions. Further on, numerous solutions against MTIC fraud are clearly detailed and assessed from an advantages / disadvantages outlook. The most prominent ones are the reverse charge, the joint and several liability and the knowledge test. In addition to these, several technological alternatives such as RTvat, VLN and D-VAT are also taken into consideration. To end this series of solutions to MTIC fraud in the current VAT system, a couple of alternative VAT regimes such as VIVAT and CVAT are also detailed and analyzed. The concluding remarks are that MTIC has been treated very seriously both from the part of the tax authorities and from the part of the European Union. The solutions against MTIC fraud are plentiful but their downsides are that they might generate high implementation costs, might impose high administrative burdens or might even move this fraud into other categories of goods once applied to the affected cases. URI: http://hdl.handle.net/10417/3740 Files in this item: 1
diana_maria_calmac.pdf (1.570Mb) -
CSR As a Governance ProblemPaaske, Abraham Hvidberg (Frederiksberg, 2013)[More information][Less information]
Abstract: This thesis analyzes Corporate Social Responsibility (CSR) as a governance problem by examining the level of CSR activity of firms that experience a reduction in the level of managerial monitoring, measured as the number of security analysts who follow the firm. If CSR rating of firms can be used as a proxy for the CSR expenditures of firms, then following the overinvestment hypothesis on CSR, one would observe a higher level of CSR expenditures in the firms who’s managers are unexpectedly less monitored, implying that managers obtain utility from investing in CSR, at shareholders’ expense. The thesis starts with an overview of different perspectives of CSR, and how this thesis fits with the existing literature. To measure the effects of a reduction in managerial monitoring, a natural experiment is undertaken. Brokerage house mergers are used as an exogenous event causing a reduction in analyst coverage. Following the merger of brokerage houses, it is expected that a number of analysts employed at said brokerage houses will be found redundant in the new merged entity, causing some firms to be followed by fewer analysts than before the merger. Using a difference- in differences methodology, I compare the difference in the observed CSR rating of companies affected by the brokerage house mergers, compared to those companies that are not affected by the brokerage house mergers. To measure the level of CSR activities of companies, I use data from Kinder, Lydenberg, and Domini (KLD). The results of the natural experiment, if valid, indicate that firms experiencing a reduction in analyst’ monitoring receive a significantly higher “community involvment” score in the year after the exogenous reduction in analyst coverage compared to the group of control firms who do not experience a reduction in analyst coverage. This effect is however only observed in the group of firms with a below-median level of analyst coverage in the year before the merger. Some caveats, mentioned in the text, must also be considered. URI: http://hdl.handle.net/10417/4702 Files in this item: 1
abraham_hvidberg_paaske.pdf (1.444Mb) -
A Case Study on the LEADER Initiative in the Mezzogiorno Region of PugliaSergi, Giulia (Frederiksberg, 2012)[More information][Less information]
Abstract: Today's European Union counts 27 Member States and presents high levels of infra-state and between-regions disparities. Already in 1988, reigning Commission's President Jacques Delors proposed a new Reform of Regional Policy which had as its main objectives “economic and social cohesion” and the reduction of “disparities between the level of development of the various regions” (Article 158 of the EU Treaty). Also, the Reform supported a series of innovations in the delegation of power between higher and lower level authorities, thus building a new system of governance. This thesis encompasses the major changes in governance and administrative capacity introduced by the 1988 Reform. Also, it investigates these changes in a case study of a Southern Italian agency implementing the LEADER initiative. The LEADER initiative has a local rural character and represents only a small portion of the overall funds deployed for Regional Policy. Yet, it incorporates all the main features of the European policy's innovations of the last 20 years. However, It is hard to provide a long-term assessment of outcomes of Regional Policies and it is hard to define strict cause-effect relations between interventions and outputs. In the final part of this study, it will be shown that sub-level authorities have not yet adapted their administrative capacity in an effective way capable of generating sustainable economic development. URI: http://hdl.handle.net/10417/3899 Files in this item: 1
giulia_sergi.pdf (1.208Mb) -
A qualitative Case Study of Damage Limitation Strategies used by Danish Boycott Targets during the Cartoon CrisisGrundmann, Frederike; Nilsson, Ebba (Frederiksberg, 2015)[More information][Less information]
Abstract: This research investigates how multinational companies can respond in order to limit damage caused by macro-boycotts. The research is a qualitative multiple case study and uses the Cartoon Crisis as an illustrative example. Relevant existing literature is reviewed in order to build an overview of previous research and to develop an analytical framework. Four prominent directions of damage limitation strategies are identified in the boycott literature: communication, marketing and operations, stakeholder, and internal strategies. These set the ground for the analytical framework, which will serve as structure guidance in the research. The following section gives a detailed description of three case companies and examines which strategies they used in order to limit potential damage caused by the macro-boycott known as the Cartoon Crisis. The chosen case companies are Danish multinationals operating in the dairy industry. The analysis consists of two parts, a within-case analysis and a crosscase analysis. In the within-case analysis, each case is analyzed individually and is compared to the literature review. In the cross-case analysis, the case companies are analyzed and compared to each other. Patterns, similarities, and differences among the cases are identified. The discussion includes a short assessment of the companies’ damage limitation, aspects that could affect the choice of strategies, and potential explanations why some strategies are more effective for some firms than for others. The following section outlines managerial implications, which are recommendations for macro-boycotted companies of how to limit potential damage. The recommended damage limitation strategies apply for multinationals of various sizes and include strategies such as quick response, consistency in values and behaviors, and a continuous information flow to stakeholders. Furthermore, the findings show that macro-boycotted companies should downscale its country-of-origin, make sure that knowledge about the boycotting regions is accessible, and appoint a responsible person or team for strategy formation and implementation. The researchers believe that the purpose has been fulfilled and that findings contribute to and complement the existing literature. The research has some limitations and additional research can be made to strengthen the generalizability of the implications. The macro-boycott literature is scarce and future research is needed to help companies and managers to cope with the increasing phenomenon of macroboycotts. URI: http://hdl.handle.net/10417/5486 Files in this item: 1
ebba_nilsson_og_frederike_grundmann.pdf (4.337Mb) -
A study of how - and if - the Chinese government strategically uses foreign companies to cultivate the home market and ultimately to promote the growth of the Chinese economyMcGrail, Vanessa (Frederiksberg, 2010)[More information][Less information]
Abstract: Based on the hypothesis that from a western perspective doing business in China is either viewed as a pot of gold: a vast market with endless opportunities to earn big money, or viewed as a trap for the unwary: that doing business in China equals loosing know-how and core competencies to Chinese partners, suppliers or competitors, this thesis sets out to examine the Chinese government‘s possible agenda of strategically using foreign companies operating in national strategically important sectors to cultivate the domestic enterprises and thereby boost the Chinese economy. In acknowledgement of the importance of viewing the dilemma from an emic-etic approach, the thesis wears two pairs of glasses, examining the hypothesised dilemma from two perspectives: the Chinese government perspective and the foreign company perspective. The Chinese government perspective examines how, and if, the Chinese government takes the best from foreign companies operating Chinese national strategically important sectors in order to upgrade domestic companies and ultimately promote the growth of the Chinese economy. The Chinese government perspective is analysed with political and economic data from China as well as by an expert interview with a professor in Chinese political economy. The foreign company perspective examines how foreign companies face the Chinese institutional set-up of national strategically important sectors, and how foreign companies ensure staying in competition, despite transferring knowledge and technology to Chinese competitors and suppliers. The foreign company perspective is analysed through three case examples of Danish companies operating in sectors that have national strategic importance in China. In an analysis combining the two perspectives the thesis concludes that although the Chinese government is strategically using foreign companies to cultivate domestic enterprises, foreign companies are not necessarily pacified and crowded out. This thesis finds that there is momentum where the Chinese government‘s and the foreign company‘s goals can align and a win-win situation, so often proclaimed by the Chinese government, can be achieved. In conclusion, it is within this momentum that both players can navigate the Chinese national strategically important sectors successfully. URI: http://hdl.handle.net/10417/1968 Files in this item: 1
vanessa_mcgrail.pdf (1.490Mb) -
Rømler, Anna Frederikke Bay (Frederiksberg, 2010)[More information][Less information]
Abstract: The basic premise of the thesis is that the Google search engine poses a limitation to internationalisation of non-branded online businesses that are dependent on the internet as their main market source. Studies have shown that many non-branded online businesses that are setting up an online presence, find they have a smaller international reach than hoped for via their web page and are faced with little or no demand. The thesis argues that the unwanted effect of limitations is brought about due to Google‘s need to supply the searchers with the results that the searchers perceive to be the most relevant. The issue then becomes one of consumer search behaviour versus internationalisation in a local demand driven context. Because of the difficulties in finding reliable data on the search engine and the ‗algorithm‘ behind it, the thesis takes an inductive approach to unveil the algorithm behind the Google search engine with external popular data being its main source. To supplement the secondary data, an experiment is carried out. The experiment backs up the basic premise of an increased number of local results dependent on a number of proximity factors identified in the algorithm. The thesis proceeds to look at the theoretical reasoning for the search engine to employ the importance of the proximity factors to the search results, and to look at the implications this approach has on internationalisation. A discussion on the subject is followed by practical advice on how to avoid the limitations to internationalisation imposed by the Google algorithm. Based on the factors it is concluded that searching the internet via Google inhibit the reach of one global market but rather acts as a channel to reach many geographical individual markets. The thesis concludes that non-branded online businesses must target each market individually in order to rank well in all of Googles local search engine. The thesis outlines the practical requirements needed to improve rankings within all of the Google search engines. In short; to reach many geographical markets, non-branded online businesses must produce individual web pages in an effort to meet the need for proximity within the Google search engine algorithm. URI: http://hdl.handle.net/10417/1963 Files in this item: 3
anna_frederikke_bay_roemler.pdf (11.76Mb)Interview Professor Karlheinz Kautz.WMA (15.52Mb) -
A study on how to overcome gender-based barriers for entry into the 21st centuryGuler, Gønul; Glende Johnsen, Nina (Frederiksberg, 2010)[More information][Less information]
Abstract: In this study we have shown that Norwegian female managers and chef executives, in male dominated organizations, feel restricted with regards to behavior and at times misunderstood, excluded, and neglected in their organization. We also found that, due to role-incongruence between the masculine leadership-role and the female gender-role, female managers are likely to feel uncertain how to behave and execute leadership in male-dominated contexts. We further conclude that the organizational work-culture is seen to be the main challenge for women‟s advancement into senior positions. If male-dominated environments are more likely to create uncertainty among women, it is also likely to affect their ability to develop as influential leaders. Based on the female managers‟ experiences we find two adjustments necessary in order to create equal opportunities for both genders. First, organizations must revise work-culture to make the environment more gender-neutral. Second, organizations must change the definition of executives as exclusively masculine. In addition, to successfully implement a cultural change, organizations must break the “tokens” and ensure representation of women in all levels. However, in order to change a situation that, despite numerous political and organizational initiatives, has show little progress over the last decades, we suggest that organizations must make deliberate action steps to enable more efficient use of talents into the 21st century. The results of this study have implications for organizational change efforts focused on improving opportunities for women in male dominated industries in Norway. URI: http://hdl.handle.net/10417/1519 Files in this item: 1
goenul_guler_og_nina_glende_johnsen.pdf (1.585Mb) -
A Comparative Study of Important ConsequencesHjelseth Hansen, Heidi (Frederiksberg, 2015)[More information][Less information]
Abstract: In this thesis the difference between being a highly integrated outsider to the EU as in the case of Norway, is compared to being a EU Member State as in the case of Denmark, Sweden and the United Kingdom. The focus are mainly on the power these countries have to influence the EU legislation that is affecting them, their annual financial contributions to the EU and other benefits and challenges in terms of trade and foreign direct investments. It was found that Norway is highly integrated with the EU through a number of agreements, in particularly through the EEA Agreement and the Schengen Association. The main differences between Norway’s agreements with the EU and these countries’ EU-memberships are that Norway is not a part of the EU common commercial policy, the EU customs union, the common agricultural policy or the common fisheries policy. Norway is not a part of the EMU either, but neither are any of the countries in comparison. Moreover, the EU Member States in this analysis have differentiated memberships due to voluntarily opt-outs from EU-policies. Denmark and the United Kingdom in particular have a number of opt-outs that makes them less integrated with the Union and which affects their power to influence. In the thesis it was found that Norway is experiencing a democratic deficit and consequently has major challenges compared to these Member States in regards to the power to influence EU legislation. However, it is not that easy for individual Member countries to have a significant influence either. Larger EU countries such at the United Kingdom often have more power to influence legislation in the Union, but also find it difficult at times when their interest diverges from other members. Smaller EU members such as Denmark and Sweden use different strategies in order to strengthen their power to influence legislation, such as building alliances or using most of their resources on niche policy areas. In terms of financial contributions, it was found that Norway has an advantage of being an outsider to the EU. The country contributes with a much smaller annual amount to the EU compared to these Member States. The EU countries contribute to the EU budget by a percentage mainly based on each Member States GNI (around 1%), whereas Norway contributes with financial mechanisms, payments for program and agency-collaborations and EEA/EFTA institutions among other things. If Norway was to become a part of the EU, the country would have to pay directly into the EU budget, and their contribution would be significantly higher due to the country’s high GNI. In regards to trade of goods and services it was found that trading with Norway can be considered more cumbersome, because of the differences in Norway’s trade policies compared to the EU’s policies. Norwegian exporters and foreign companies exporting to Norway have to go through custom procedures such as import and export declarations, including rules of origin for all exported goods and payments of VAT. These procedures are eliminated between EU Member States. Furthermore, Norway has higher average tariffs on imported goods and services compared to the EU average. They also have a more restrictive FDI policy compared to these EU countries. On the other hand, this does not seem to affect their trade and investments with other EU countries in a negative way. The analysis found that Norway is highly integrated with trade of goods and services and FDI with EU countries. Norway’s share of export to EU countries was larger than Sweden, Denmark and the United Kingdom’s shares of intra export of goods in 2013. Also when excluding oil and gas from the export, the share of Norwegian export going to EU countries still exceeded Sweden and the United Kingdom’s shares of intra export that year. However, Norway’s share of imports from EU countries was not as high compared to these countries’ intra imports. Only the United Kingdom’s share of intra imports was smaller than Norway’s share in 2013. In terms of trade of services on the other hand, Norway’s share of trade with EU countries was greater than Denmark and the United Kingdoms’ shares of intra trade in 2013. Clearly, Norway is highly integrated in terms of trading goods and services with EU countries. However, some studies have indicated that Norway’s total export could have been higher if the country had been a member of the EU. Moreover, it was further found that Norway’s total inward FDI stock represents a higher share of investments from EU countries compared to Denmark and the United Kingdom’s stocks. Furthermore, Norway’s outward FDI stock represents more investments from EU countries compared to all of these EU countries outward stocks. This implies that Norway is highly integrated in regards to investments with EU countries. However, Norway’s total FDI stocks are quite low in percentage of the country’s GDP compared to these Member States’, with the exception of Denmark’s inward stock that is smaller. But since Norway joined the EEA, they have liberalized their investment policy, and have experienced a higher growth rate of inward and outward FDI than most of these EU countries in recent years. Additionally, the country’s recent FDI flows have been much more stable and strong during the economic and financial turmoil. But even as Norway is well integrated in the EU and has great benefits with this association form in terms of trade and foreign direct investments, it is not likely that other countries will adapt the “Norwegian Model” any time soon. The model’s success is largely based on Norway’s resources, geography and history with the EU. Additionally, not many countries would accept the strong democratic deficit the country is experiencing due to this form of association to the EU. URI: http://hdl.handle.net/10417/5716 Files in this item: 1
heidi_hjelseth_hansen.pdf (2.378Mb) -
Current State and Future Development Perspectives. A Case Study of the North SeaZnachko, Anna (Frederiksberg, 2013)[More information][Less information]
Abstract: The following research has been aimed to evaluate the current competitive position of offshore wind energy industry in the North Sea region compared to other energy suppliers on the European electricity market. In relation to that, existing business environment and competitive rivalry surrounding the industry has been properly analysed and evaluated, consequently indicating few significant factors possessing the most influence on the industry’s performance, growth potential and further development. Accordingly allocating those factors in a two-dimensional framework allowed assessing the future development and deployment potential of the industry in the North Sea region in the upcoming years. In order to learn about the industry, understand the operation principles of technology applied, and determine the factors shaping future growth and development pattern of the industry in a chosen region, exploratory/qualitative research design has been applied in the following study. Accord to chosen research design, the research has been built on data gathered upon own direct observations and conversations with the field experts, and in-detail analyses of various consulting reports, policy statements, planning documents, journals, magazines, and other materials available online and in print. Through comprehensive and thorough analysis of the industry’s business environment and its competitive position on the European electricity market it has been concluded that the industry currently possesses certain competitive advantages, and is strongly preferred by the market and political powers. However, being uncertain in support from the politicians and public in the near future, as well as speed and path of further development of offshore wind technology, different scenarios for future growth and development of the industry in the North Sea are presumed. Assuming the industry to continuously invest into R&D and expand existing technology potential aiming for higher profits and decrease in involved cost level, inclines the “Great Growth” scenario in the short-term and “Market Rival” scenario in the long-term perspective in terms of future competitive pattern for the offshore wind energy industry. As for active industry players, it is presumed for Siemens and its followers to consolidate their current business position, leaving Siemens the dominant player in the industry due to the first-mover advantage. URI: http://hdl.handle.net/10417/4717 Files in this item: 1
anna_znachko.pdf (1.582Mb) -
Research on internet domain names as a source of competitive advantagesLima, Lars Miguel Sandborg (Frederiksberg, 2011)[More information][Less information]
Abstract: The internet has radically altered the conditions for MNEs conducting internationalization. Online market entry costs are comparatively much smaller than their offline counterparts. Setting up a website and developing appropriate functionality can be costly, but the cost fades compared to setting up an international line of physical retail locations, finding local suppliers and all the other necessary steps needed to complete a traditional internationalization process. Furthermore the internet has allowed MNEs to simplify the consumer targeting process. Instead of using regional outlets they now have the possibility of assembling the global consumer base into one virtual location. This new arena of modern business has also entailed a new pool of competitive advantages. Traditional advantages such as manufacturing assets and employee expertise has not lost its significance. But it is joined by new online specific resources. Chief amongst these are internet domain names. Domain names are increasingly being used in branding efforts. This is understandable since it allows companies not only to communicate its product name and characteristics, but also instantly convey a retail location. Consumers can view a commercial and seconds later be in a virtual location that allows them to instantly purchase the product or service. This paper examines internet domain names as a source of competitive advantages. Using internationalization theory, the peculiarities of online internationalization are examined and the rationale behind internationalization is discussed. The theory is used to extrapolate domain name specific business attributes that are determinate for successful online internationalization. To document the value of domain name strategy the growth in the E-commerce sector is analyzed and quantified. Growth in E-commerce has previously been fueled by spending from American consumers, but future growth indicators such as internet penetration rates and E-commerce spending, points towards Asia and the BRIC countries as the future champions for online consumption. By using case material collected from market innovators and consumer feedback, domain name strategy is discussed and best practices identified. Cases include online innovators such as the Disney Corporation. Disney is increasingly capitalizing on the inherit benefits of generic domain names. In lieu of redirecting their category killer domain names such as, Movies.com, to the Go.com network, they are now developing independent websites. This is done to both capitalize on the search engine benefits, but also brand their business units to a wider audience. It is found that the makeup of a domain name has a large significance for inherit consumer trust. Choosing a keyword domain name based on a local domain extension will carry more consumer trust than a brandable domain name on a global generic domain extension. Finally the domain name industry is studied in depth, by looking at the key stakeholders and institutions. Domain selection criteria are discussed and domain acquisition strategy touched upon in order to prepare corporate managers for domain name specific strategic considerations. URI: http://hdl.handle.net/10417/3053 Files in this item: 1
lars_miguel_sandborg_lima.pdf (2.068Mb) -
Behavioural Finance and an Empirical Investigation of the Patriotic Bias in the U.S. Equity MarketPødenphanth, Inger Kirstine Dalgaard (Frederiksberg, 2013)[More information][Less information]
Abstract: Identifying patriotism in the financial market can, to some extent, be difficult, because the concept is based on feelings rather than rationality. However, several scholars have already proofed the existence of patriotic bias in the equity market, which is not consistent with the efficient market hypothesis. Patriotic bias occurs because agents feel patriotic and want to support their home country. One of the possible ways, to support their country, is by investing in companies with patriotic names in them, thus referring to the agent’s home country. This kind of investor behaviour, of preferring patriotic equities, all else equal, is not rational and therefore challenges the traditional economic theories that are developed on investor rationality and perfect markets. In this study the patriotic bias is investigated in the US equity market around patriotic holidays. A surge of patriotism around those days in the US, together with previous findings by other scholars, contributes to the foundation of this thesis. In order to investigate whether there exists a patriotic bias or not around the patriotic holidays, two patriotic portfolios are constructed, one equally weighted and one value weighted. The portfolios consist of 97 American equities with the company names including either of the four names America(n), or US(A). Thirteen American patriotic holidays have been identified and a dummy variable has been constructed to capture these. Several regression analyses with the equally weighted and the value weighted portfolios, as the dependent variables have been performed to see if there is any significance in the variable of the patriotic holidays. The results did, however, not show any significance of increased returns in the patriotic portfolios around patriotic days. In fact, each estimated coefficient on the patriotic holidays dummy was slightly negative for both the equally weighted portfolio, and the value weighted portfolio in all the regressions, after controlling for economic market news, and other calendar anomalies such as pre-holiday effect, week day effect and month effect. These results indicate a return in the patriotic portfolios of approximately 0.026%-0.05% less, around patriotic holidays compared to any other “regular” days. The results proofed to be valid, as same evidence of negative estimated coefficients of the patriotic holidays dummy were found when making robustness checks of increased time periods. Thus, no patriotic bias was detected around the patriotic holidays. URI: http://hdl.handle.net/10417/4698 Files in this item: 1
inger_kirstine_dalgaard_poedenphanth.pdf (1.268Mb) -
Marstrand Kristensen, Inge (Frederiksberg, 2013)[More information][Less information]
Abstract: The aim of this study was to investigate Public-Private Innovation (PPI) and provide insights on what factors to prioritise in addressing the problem of attracting private medico companies to engage in a two-stage model proposed by the Danish Regions. The study therefore tested a structural equation model (SEM) of factors influencing Private Medico Companies’ Propensity of Engaging in Pre-commercial PPIs with the Danish Regions. The proposed SEM draws upon a framework developed by Sambasivan et al. (2013), which measures the success of inter-firm strategic alliances. Based on a number of interviews the inter-firm framework was modified by changing the construct measuring success to a construct measuring the propensity of engagement. The interviews also led to the introduction of an additional construct, Manager Motivation. The result of the modifications was a model that better captures the aspects of PPI. Self-administered questionnaires were used to collect data from 31 Danish medico companies and the model was estimated via Partial Least Squares. Testing the SEM returned seven statistically significant factors influencing the propensity to engage; Environment, Strategic Alliance Motive, Asset Specificity, Perception of Opportunistic Behaviour, Interdependence, Relational Capital and Manager Motivation. These factors are able to explain 78.2% of the variance in the Propensity of Private Medico Companies Engaging in Pre-commercial PPIs with the Danish Regions. Perception of Opportunistic Behaviour, Manager Motivation and Relational Capital directly influence the propensity to engage. With a path coefficient of 0.438, Manager Motivation has the strongest direct influence on the propensity to engage. Additionally, Interdependence, Asset Specificity, Strategic Alliance Motive and Environment indirectly influence the propensity to engage through Relational Capital. Changing the perspective from inter-firm to Public-Private caused a proposed mediation effect of Relational Capital to be insignificant for the effect of Asset Specificity and Perception of Opportunistic Behaviour on the propensity to engage. Furthermore, the effect of Asset Specificity on Interdependence turned out to be insignificant. URI: http://hdl.handle.net/10417/4767 Files in this item: 1
inge_marstrand_kristensen.pdf (2.298Mb) -
Veidung, Haakon Jard (Frederiksberg, 2015)[More information][Less information]
Abstract: The thesis attempts to figure out if a simple yield curve can be used to predict the stock market. The yield curve is made up of two variables; the 10-year treasury bond and the 3- month treasury bill. Due to the fact that the Norwegian 3-month treasury bill was only established in 2003 the regression analysis was split into two. A short- and a long-term. The annualized quarterly return on seasonally adjusted, chained GDP was used as the dependent variable and the spread was the independent variable in the regression analysis. The results of the regression analysis, plotting GDP against the spread, indicated that the yield curve could be predicting seven quarters ahead for the long- and ten quarters for the short-term in Norway. In the US the yield curve seemed to predict ten quarters in the long- and sixteen in the short-term. These assumptions were based on the strength of the models. The S&P 500 and OSEBX indexes were used as proxies, representing their respective countries stock markets. The correlation test and the regression analysis was performed to see if the stock market is able to predict future changes in GDP. The stock market seems to be leading GDP by three quarters in Norway and one quarter in the US. The tests were only performed using the longterm scope. In order to test the overall research question, a comparison test was designed. The cumulative return on a risky, risk-free and Alternative portfolio were compared. The predictive horizon of the yield curve and stock market was decided on the basis of the results of the regression analysis. At least one Alternative portfolio outperformed the stock market proxy in all tests. It was, however, outperformed by the risk-free portfolio in the long-term Norway comparison. The only Alternative strategy portfolios that outperformed the stock market in both the short- and long-term were k3 and k9 in Norway and the US respectively. The null hypothesis was rejected and the yield curve is able to predict the stock market to a certain extent. URI: http://hdl.handle.net/10417/5637 Files in this item: 1
haakon_jard_veidung.pdf (985.0Kb) -
How does the oil price affect the Norwegian Krone?Kopstad Vanvik, Martine; Sjøgren Iversen, Søren (Frederiksberg, 2015)[More information][Less information]
Abstract: Inspired by the striking fall in the Norwegian krone, which has coincided with the oil price’s tumble since June of last year, this thesis will investigate the impact of oil on the Norwegian currency. The aim of the paper is to give an understanding of how dependent the Norwegian economy and currency are on the country’s petroleum sector. Relevant subjects like the possibility of Dutch disease and the role of the country’s sovereign wealth fund in the Norwegian economy will also be looked into. However, the main research question of the thesis is: “How does the oil price affect the Norwegian krone?” The thesis presents relevant history of the Norwegian economy from the time of oil discovery in 1969 to the present date in order to reveal the country’s financial state as well as its dependence on oil. It is found that the oil sector is the country’s largest and most important industry, constituting over half of Norway’s exports, which makes the country largely dependent on the price of oil, and thus the forces shaping the oil market. Furthermore, the government and central bank’s measures to improve the economy and the country’s terms of trade are described. This part also involves the functions of the Norwegian sovereign wealth fund in the economy. With the purpose of understanding which forces shape the price of oil, the world’s largest producers, exporters and importers of oil are listed. Graphical evidence is provided to show the co-movements between the Norwegian currency and the price of Brent crude oil. Although the sovereign wealth fund was established to diminish this dependence, events in the economic history of Norway are often found to coincide with fluctuations in the oil price, as the development in the real exchange rate of the krone closely co-moves with the price of oil through the 16-year observation period. This also seemed true for other currencies of oil exporting countries. Currencies of net oil importing countries presented ambiguous results. By thoroughly investigating the development of a number of exchange rates through graphical evidence and OLS-regression models, the thesis finds that oil price has had a larger impact on several currencies including the Norwegian krone after the financial crisis in 2008/2009. For oil exporting countries’ currencies, the oil price increasing has mostly led to an appreciation against foreign currencies. Through use of theory and extensive historical research the thesis concludes that the Norwegian terms of trade will improve when the price of oil is low. However, as the country and the krone are quite dependent on oil, a lower oil price can have severe consequences for the Norwegian economy if the price of oil stays low over a longer period of time than we have seen so far. Nevertheless, the Government Pension Fund - Global should be capable of securing the Norwegian economy against a crash due to a prolonged situation of a low oil price, and is considered to be the main reason for the lack of evidence of Dutch disease in Norwegian economy to date. URI: http://hdl.handle.net/10417/6259 Files in this item: 1
Søren_IversenMartine_Vanvik.pdf (9.854Mb) -
Erbo Mortensen, Kasper; Andersen, Kasper (Frederiksberg, 2010)[More information][Less information]
Abstract: Outline of the subject: The objective with the thesis at hand is to provide mobile operators with a business model proposal for mobile internet in emerging markets. To achieve this goal we have carried out an end user analysis on the consumer needs and demands in emerging markets. Here we have mapped out the requirements that end users have to mobile internet. Next, we have conducted a marketing analysis to identify the marketing aspects of mobile internet for mobile operators. The findings from our end user analysis and marketing analysis have been combined into our business model discussion. Herein, we have discussed what a mobile internet business model can include. Based on this discussion, we have proposed a business model. The business model proposal that close this paper is put forward with the aim to support mobile operators in emerging markets reaching the middle class consumers with access to affordable mobile internet. Theories and concepts applied: To conduct the end user analysis and the marketing analysis, we have used consumer behavior theory, theory on disruptive technologies, pricing theory, competition theory, and transaction cost theory. The theories have been applied in this thesis in order to provide a set of basic premises‟ that functions as the academic base in our analysis. For the business model proposal we have made use of the concept of “The 9 Building Blocks”. This concept has also guided us in structuring the discussion leading up to the proposal. Main findings: Our analysis shows that we basically see two different user segments in emerging markets. First, we have discovered that the lower middle class consumers earn 2-12 USD/day, most often living in rural areas. This segment makes up around 87% of the emerging market middle class. Second, we have found that the medium-to-upper middle class consumers earn 12-50 USD/day, often living in urban areas. This segment comprises around 13% of the middle class. In the discussion, we have calculated that total ICT services must not be priced higher than 10.83 USD/month on average for the lower middle class and 46.85 USD/month for the higher middle class. The first segment can only afford a basic handset with browser access, while the other middle class segment has higher income power and an IT literacy level necessary to smartphones. In the business model proposal, we suggest IT learning activities for the lower segment to beat the IT literacy lack. We also suggest services to be tailored to local contexts. The higher segment speaks English and will as such demand international services like Facebook. URI: http://hdl.handle.net/10417/1966 Files in this item: 1
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Dinons, Tigran (Frederiksberg, 2011)[More information][Less information]
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A Grounded Theory approachAleknavičiūtė, Eglė (Frederiksberg, 2011)[More information][Less information]
Abstract: The topic of the thesis is an economic value of hydrologic (numerical water simulation) software. Dutch research institute and specialized consultancy Deltares is facing a challenge – shifting business models, from the conventional license fees and support income to the open source environment. Open source software implies no more lump sum purchase revenues for the institute, while complex scientific software requires extensive investments to keep up the state of the art technology development. To adjust the business models, but also to justify the rationale for the governmental subsidies, the proof of the economic value created by the use of hydrologic software raises a question. After investigating the existing economic literature, however, it proved obvious that no economic valuation framework exists for quantifying the economic value created by the use of scientific software. The research is hence focused on two goals. Firstly, on the development of the valuation framework, and secondly, on the quantification and assessment of business/economic value of Deltares hydrologic software packages. The method employed in the research was chosen according to the circumstances. Qualitative exploratory research, and more specifically – Grounded Theory approach is suggested to be used in the fields that have not been studied extensively before. It entailed interviewing, transcribing, coding and comparing the interview material to conclude with the emerging framework. The sample included seven Dutch engineering consulting bureaus, two of them – smaller but highly specialized companies, and the rest – large international companies, falling into top 10 engineering bureaus in the Netherlands. As suggested by Grounded Theory, additional interviews were sought as more questions were arising. Proposed method of valuation is based on layering economic value in different levels – project level, organizational level and unanticipated value. As a case valuation, an attempt to quantify the value of Delft3D and SOBEK software packages is illustrated. The closest estimate for the project level value is based on the number of modelers working with the hydrologic software within the companies, and the multiplier of the direct value is offered as a possible spread of direct value on the organizational level. Unanticipated value is impossible to estimate at this state of research. URI: http://hdl.handle.net/10417/3060 Files in this item: 1
egle_aleknaviciute.pdf (1.044Mb)