The document discusses management service contracts (MSCs), which involve a company providing management services like operations, personnel, marketing, and accounting to another company. MSCs are commonly used in industries like hotels and hospitals when local skills are lacking. Some key advantages are that the management company handles day-to-day tasks while the owner remains a silent partner, but disadvantages include the owner having to handle any issues the management company cannot. Examples of MSCs include one formed between Qantas and Duncan Upton in 1978 and one between DBS Asia and a Taiwanese company for digital television programming.

1. MANAGEMENT SERVICE
CONTRACTS
JUAN FELIPE MORA BONILLA
1520101018

2. ¿ What is MSC ?

3. Technical Management
Operation of of personel
a Production
Marketing
Accounting
Services
Training

4. • Can be found in industries like hotel, hospital,
and infrastructure entities like airports,
seaports, and public utilities.
• Management contracts are often formed
where there is a lack of local skills to run a
project.
• The first recorded management contract was
initiated by Qantas and Mr. Duncan Upton in
1978 to create an airline in Sidney.

6. DETAILS

7. ADVANTAGES
The Management More
Company →
owner → Day-to-day performance
Silent tasks. = More
partner. bonuses

8. DISADVANTAGES
What the
management What
company cannot decision More
handle, the expenses
owner have to do have to
it. make?

9. • DBS Asia (Thailand) agreed a
management contract to set up
and run a company of digital
television programming in Taiwan.
• In Asia, many hotels operate under
management contract
arrangements, as they can more
easily obtain economies of scale, a
global reservation systems, brand
recognition etc.

10. MANAGEMENT SERVICE
CONTRACTS
Home Country Host Country
Multinational Local
Firm Firm
Wholly-Owned
Subsidiary

12. SOURCES
• http://www.ehow.com/info_8067580_manag
ement-service-contracts.html#ixzz26fgNkmaV
• http://entrymodes2.wikispaces.com/Manage
ment+Service+Contracts
• http://en.wikipedia.org/wiki/Management_co
ntract