Cooperation between Economically Independent Companies that form a Business Concern

Abstract

During the examination of a Hungarian manufacturing companyoperational defects had been detected, which mainly originated from theincorrect structure of the corporation. This article deals with the analysis ofthe relations between divisions; its aim is to define the benefits and thedrawbacks of structural features to achieve an optimal cooperation model.A special sub-type of division cooperation, problem and solution isdemonstrated through the waste material handling processes of aHungarian manufacturing company. In the article a cooperation regulationis also described, which is how the process protocol should operatebetween divisions. The formation of a business cooperation betweenindependent companies belonging to a business concern is the result of thefact that not all of these separate companies can fulfil customer orders100%, because of the lack of resources, technology or know-how. In suchcases these companies have to work in cooperation to provide suchcircumstances that their production can run with full capacity. Constantproduction with maximum capacity is the essential interest of eachcompany. If these elementary principles are not present the companydivisions obstruct each other. To detect the exact problems, and thesolutions first the features of the basic structure types are demonstrated.