E:\Notes Of M Com 2\Converted Pdf Notes\International Business
Management contracts
1. MANAGEMENT SERVICES
CONTRACTS.
Maria Alejandra Tovar B.
International business I
Group: 02
2. MANAGEMENT SERVICES CONTRACTS.
“Practice by which one company supplies
another with managerial expertise for a specific
period of time.”
3. INVOLVED PARTIES
Owner of a business and a third-party management company
Two types of knowledge can be transferred through management
contracts.
• The specialized knowledge of technical managers.
• The business-management skill of general managers.
6. ADVANTAGES OF MANAGEMENT SERVICES
CONTRACTS.
• Exploit an international business
opportunity without having to place a
great deal of its own physical assets
at risk.
• Government can award companies
management contracts to operate and
upgrade public utilities.
• Government use management
contract to develop the skills of local
workers and managers.
7. DISADVANTAGES OF MANAGEMENT
CONTRACTS.
• International management in countries that
are undergoing political or social turmoil
can place manager´s lives in significant
danger.
• Suppliers of expertise may end up nurturing
a formidable new competitor in the local
market.
8. EXAMPLE.
Heathrow Airport Holdings Limited of Britain, for example,
possesses general airport-management skills. In the EEUU,
Heathrow operates the Indianapolis Airport under a 10 year
management contract and provides retails management at the Air
Mall in the Pittsburgh Airport.
10. REFERENCES.
• Czinkota, M., Ronkainen, I., & Hoffelt, M. (2004). Fundamenta´s of international
business.
• Wild, J., Wild, k., & Han, J. (2003). International business.
• http://www.youtube.com/watch?v=QIVkI7SwvzE.
• Heathrow . (s.f.). Recuperado el 25 de Marzo de 2013, de
http://www.heathrowairport.com/about-us/partners-and-suppliers
