European Industrial Restructuring in the 1990s

During the second half of the eighties, "Euro-pessimism" slowly started giving way to "Euro-optimism". Several years of uninterrupted economic growth, soaring stocks markets and improving East-West relationships gave Europe the confidence that it might regain some of its lost economic power. In this optimistic environment, the 1992 initiative quickly gained momentum. This book evaluates what has been accomplished and what the key remaining tasks are. The first section of the book on "European Industrial Restructuring - How Far Along?" takes stock of the ongoing restructuring and makes a comparison with restructuring activity in the United States and Japan. It also addresses the required restructuring of a key East European country, East Germany, following the 1989 revolution. The second section on Restructuring Mechanisms deals with various ways in which restructuring can take place (competition in either product or capital markets), evaluates their relative efficiency, and analyzes the appropriate public policy response. The third section on Managing the Restructuring Process examines the managerial dimensions of the restructuring task. This includes the management of organizational transitions, merger and acquisition integration, and partnerships and alliances. The final section on Industrial Restructuring and Technological Change addresses the increasingly important role of R & D, product standardization and "open systems" alliances in international competition.