烟草会议中欧讲稿(1)

Management Performance
learning, through repetitive manufacturing,
which is different than just being bigger or
smarter.
2019/11/13
William A. Fischer
14
The Centrality of Scale Economies
Richard R. Nelson
especially where firms are the principal
allocating agents
2019/11/13
William A. Fischer
3
The Nature of the Players
?economists tend to see firms as players in a multi-actor economic game ...
• a faith in market allocation of resources in complex situations over government allocation -because the customer is voting with their purchases
• the maximization of the overall social welfare
Cost per Unit
Cost per Unit
2019/11/13
Rated Capacity of Facility
Cumulative Production of A Standardized Item
13
In such a classical market setting, it is important to consider economies of scale
• But even in such a non-complex setting, bigger was not always better.
• One of the lessons of the Japanese
manufacuring triumphs of the last three
decades has been the importance of
Richard ischer
4
The Nature of Rivalry
The essence of rivalry is a striving for potentially incompatible positions ?
Frederic M. Scherer
William A. Fischer
7
Establishing the Arena
[A market is] that set of suppliers and demanders whose trading establishes the price of a good.
George Stigler & Robert Sherwin
Lessons from Competitve Experiences
W.A. Fischer CEIBS, Shanghai February 1, 1999
2019/11/13
William A. Fischer
1
Understanding Rivalry:
The Heart of the Competitive Equation
Suppliers
Rivalry
Customers
2019/11/13
William A. Fischer
8
In such a classical market setting, it is important to consider economies of scale
• The history of the industrial revolution was one of economies of scale.
Some fundamental assumptions
搮 an entity run by agents of the capital-owning principals with the sole objective of maximizing the profits of the latter 厰 Ronald Dore
manufacuring triumphs of the last three
decades has been the importance of
learning, through repetitive manufacturing.
• Yet, learning, especially when based on repetition, comes with the risk of rigidity if the focus is too-much on consistent costreduction.
2019/11/13
William A. Fischer
2
The Nature of Economic Inquiry
?the focus of economics [from a Western, market-oriented perspective] has largely been on how well an economy allocates resources, given preferences and technologies.
• But even in such a non-complex setting, bigger was not always better.
– In fact, in studies in the US, mid-century, minimum optimal plant/firm size appeared to be small relative to market size [single-digit].
Cost per Unit
Cost per Unit
2019/11/13
Rated Capacity of Facility
Cumulative Production of A Standardized Item
10
In such a classical market setting, it is important to consider economies of scale
function by the accumulation of numerous
personal decisions -- the customer being seen as
being in the best position to determine what they
want 2019/11/13
Cumulative Production of A Standardized Item
15
In such a classical market setting, it important to consider economies of scale
• One of the lessons of the Japanese
2019/11/13
William A. Fischer
11
In such a classical market setting, it is important to consider economies of scale
• The history of the industrial revolution was one of economies of scale.
2019/11/13
William A. Fischer
9
The Centrality of Scale Economies
• The Economics of the Industrial Revolution
Theoretical
Static Economies
Dynamic Economies
2019/11/13
Capon, Farley & Hoenig
William A. Fischer
17
but, markets are changing; they are no longer classical nor
simple
2019/11/13
William A. Fischer
18
The History of Competition was marked by successive Industrial Revolutions
• The Economics of the Industrial Revolution
Theoretical & Empirical
Static Economies
Dynamic Economies
Cost per Unit
Cost per Unit
2019/11/13
Rated Capacity of Facility
• In the US, it has been shown that firm size is positively correlated with profitability.
• However, cause and effect are not well-established.
• Also, larger shares for some, mean lower shares for others.
?the jockeying for share by firms within a market.
Besanko, Dranove & Shanley
2019/11/13
William A. Fischer
5
Who are these 揻irms?and what are their roles?
2019/11/13
William A. Fischer
12
The Centrality of Scale Economies
• The Economics of the Industrial Revolution
Theoretical & Empirical
Static Economies
Dynamic Economies
• The history of the industrial revolution was one of economies of scale.
• In markets where consumers are price sensitive, larger firms can use their cost advantage to gain an appreciable advantage over smaller firms.
2019/11/13
William A. Fischer
16
The Importance of Market Maturity
empirical research on 113 US manufacturing firms by CEIBS faculty
?nearly one half of the revenues generated by the 11 most successful firms ?came from mature markets. However, 77 percent of revenues for 15 of the least successful firms came from mature markets.
thus, in 搈odern?market economy, we can separate
management from ownership...
2019/11/13
William A. Fischer
6
Other Underlying Assumptions
• profits [surpluses] being seen as a signal of performance in a market