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

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Presentation on theme: "LOGO The Vertical Boundaries of the Firm Chapter3 趙琪 國立雲林科技大學."— Presentation transcript:

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

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

3 LOGO Case 1 Vertical disintegration in the pharmaceutical industry

4 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

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

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

7 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?

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


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