LOGO The Vertical Boundaries of the Firm Chapter3 趙琪國立雲林科技大學.

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VERTICAL boundaries of the firm

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LOGO The Vertical Boundaries of the Firm Chapter3 趙琪國立雲林科技大學

LOGO Make versus Buy  Upstream, Downstream  Defining Boundaries  Some Make-or-Buy Fallacies

LOGO Case 1 Vertical disintegration in the pharmaceutical industry

LOGO Reasons to “Buy”  Tangible Benefits of Using the Market: Exploiting Scale and Learning Economies  Case 2 Self-Insurance by British Petroleum  Intangible Benefits of Using the Market: Agency and Influence Effects

LOGO Bureaucracy effects: avoiding agency and influence costs  Agency costs  Influence costs

LOGO Case 3 Make versus Buy: Pepsi-Cola and Its Bottlers

LOGO Costs of Using the Market CCoordination of Production Flows Through the Vertical Chain LLeakage of Private Information TTransaction Costs CCase 4 Made in Italy?

LOGO Technological Change and Evolving Firm Boundaries  Case 5 An Application of the Make-or-Buy Framework to Children’s Memorial Hospital