Consortium Business Definition

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The Tornado was designed and built by Panavia Aircraft GmbH, a trinational consortium consisting of British Aerospace (formerly British Aircraft Corporation), MBB of West Germany and Aeritalia of Italy. [Citation needed] See the full definition of consortium in the dictionary of English language learners Remember that in a consortium, only the references of the main bidder in terms of financial and technical qualifications are taken into account by many customers, while a joint venture may be satisfied with the technical and financial weight of its project promoters. Consortia are often found in the non-profit sector, for example in educational institutions. Educational consortia often pool resources such as libraries, research activities and professors and share them with group members to help their students. Several groups of North American colleges and universities work as consortia. Airbus Industries was founded in 1970 as a consortium of aerospace manufacturers. The retention of production and engineering assets by partner companies has made Airbus Industries a sales and marketing company. [2] This agreement has resulted in inefficiencies due to the inherent conflicts of interest faced by the four partner companies. They were both shareholders and subcontractors of the consortium. The companies collaborated in the development of the Airbus range, but kept the financial details of their own production activities and tried to maximize the transfer prices of their assemblies. [3] However, no company can join a consortium.

Travel agencies, for example, must reach the turnover threshold. However, when they sign up, they can enjoy significant benefits. Companies join a consortium because they can pool their resources with partners and competitors to take advantage of technological development that benefits their companies. Consortium members usually obtain licenses to use the technology or know-how developed with the group`s funds. Coopetition – a combination of cooperation and competition – is a consortium of competitors who cooperate in areas that are not strategic for their core business. They form alliances to reduce their costs in these non-strategic areas. For example, the GENIVI Alliance is a non-profit consortium of competing car manufacturers. The objective is to facilitate the development of an infotainment system in the vehicle.

In France, the consortium, considered a subspecies of the joint venture, has significant theoretical and practical importance. The French legal system does not give a definition and does not explicitly use the notion of temporary groupings of companies. The consortium agreement in France is a purely contractual cooperation agreement that does not include the constitution of a third party. The consortium shall have neither legal personality nor legal capacity. The contract is concluded between two or more natural or legal persons who undertake to carry out certain works in order to carry out a joint project that the members of the consortium have not been able to carry out themselves. The consortium agreement is not expressly governed by the French legislature, but is admissible under the principle of contractual freedom interpreted in Articles 6 and 1134 of the French Civil Code. [5] intrinsicValue Business Integration Pvt. Ltd. helps you connect with other like-minded organizations and entrepreneurs to help you collaborate and complement each other to unlock your potential and develop a roadmap for building a business infrastructure that brings a robust, ever-evolving and profitable business model, as well as the predictability and stability of your business operations.

A consortium is a group of two or more people, companies or governments working together to achieve a common goal. Companies participating in a consortium have resources, but are otherwise only responsible for the obligations set out in the consortium agreement. Each company that is part of the consortium therefore remains independent from its normal business activities and has no say in the activities of another member that is not related to the consortium. In the Polish legal order, the legal nature of the consortium agreement is controversial. According to the dominant approach, a consortium is a form of cooperation different from a civil partnership and is carried out between economically independent entities already operating on the market in order to implement a particular undertaking, which is a segment of the regular activities of those companies, is based on an unnamed contract and is characterised by a temporary nature. Minimize institutionalization and lack of separate ownership, the need to indicate how the parties participate in the joint venture, and the intention not to establish a «community» with partial interests (the partnership itself). According to this concept, despite the very broad formula of a civil partnership provided for companies that undertake to cooperate in a certain way in order to achieve a common economic objective (which is a common element for both types of contracts), the partnership agreement does not exhaust all forms of cooperation and the automatic qualification of consortium agreements as partnerships is not allowed. [8] Coopetition is a word coined by cooperation and competition. It is used when companies that are otherwise competitors work together in a consortium to collaborate in areas that are not strategic to their core business. They prefer to reduce their costs in these non-strategic areas and be competitive in other areas where they can better differentiate themselves.

Alyeska Pipeline Service Company, the company that built the Trans-Alaska pipeline system in the 1970s, was originally a consortium of BP, ARCO, ConocoPhillips, Exxon, Mobil, Unocal and Koch Alaska Pipeline Company. [Citation needed] Each participant retains its own legal status and the consortium`s control over each participant is generally limited to activities involving the joint venture, in particular profit sharing. A consortium is formed by contract to define the rights and obligations of each member. A joint venture (often referred to as a joint venture) is a unit formed between two or more parties to jointly carry out an economic activity. The parties agree to create a new entity by providing equity and then participating in the revenues, expenses and control of the company. Although consortia tend to share resources, they act independently when it comes to day-to-day operations. In a joint venture (JV), two or more parties typically share ownership of a company, as well as risks, profits, losses, and governance. «An organization of several companies or banks that come together as a group for a common purpose.» An example of a for-profit consortium is a group of banks that work together to make a loan – also known as a syndicate. This type of loan is more commonly referred to as a syndicated loan. In England, it is common for a consortium to buy football clubs in financial difficulty in order to save them from liquidation.

[Citation needed] Countries that develop standards have a competitive advantage over those that do not, and countries and industries that accept a global standard are often leaders in international trade. However, creating standards can lead to potential abuses and antitrust concerns. In the United States, the legal basis for cooperation and consortia can be found in the Department of Justice and Federal Trade Commission antitrust guidelines for competitor cooperation. The Big Ten Academic Alliance in the Midwest and Mid-Atlantic, the Claremont Colleges Consortium in Southern California, the Five College Consortium in Massachusetts, and the Consórcio Nacional Honda are among the oldest and most successful university consortia in the world. [Citation needed] The Big Ten Academic Alliance, formerly known as the Committee on Institutional Cooperation, includes members of the Big Ten Athletic Conference.