Syndicate  - an association of homogeneous industrial enterprises created for the purpose of marketing products through a general sales office, organized in the form of a special trading company or partnership (joint-stock company, limited liability company, etc.), with which each of the participants in the syndicate concludes the same terms and conditions contract for the sale of their products.

Syndicate Features  as organizational forms of company integration are:

· Preservation by participants of the syndicate of legal, industrial, but limitation of commercial independence;

· This is a form of cartel agreement. Syndicates eliminate internal competition among its participants;

· Centralization of sales of products, organization of sales of products of its participants through a single sales authority. The functions of centralized marketing of products of syndicate participants may also be entrusted to one of its participants. Depending on the terms of the agreement, not all, but only a certain part of the products of the syndicate participants may be sold through a single sales agency;

· The preservation by the participants of the syndicate sometimes of their own sales network, which is closely connected with the syndicate sales office or society;

· Often also through the syndicate sales office or sales company, the procurement of raw materials for syndicate participants.

The form of the syndicate is most common in industries with mass homogeneous products: mining, metallurgical, chemical.

In modern conditions, the syndicate as a form of monopolistic associations of a single industry profile is losing its significance, giving way to more complex and flexible forms.

Pool(English pool letters. common boiler) is a form of company combination, characterized in that the profit of all pool participants goes to a common fund (boiler) and then is distributed between them according to a predetermined proportion.

As pools features  can be called:

· This organizational form of integration is one of the forms of monopolistic associations of companies, a kind of cartel;

· Pooling of companies is usually quite temporary;

· The rules for the distribution of total costs and profits are established within the pool.

In world practice, you can meet the following types of pools:

Exchange pool - pooling of financial resources to increase or decrease the price of shares on the stock exchange and in a speculative game on the difference in exchange rates.

“Concrete” pool  - an association of investors directing their investments to a specific object.

Patent Pool  - An agreement between more than two companies on the mutual use of a patent. Participants in the patent pool receive income in the amount of the quota assigned upon joining the pool from the profit that the use of the patent gives.

Trading pool  - an association in which participants agree on the accumulation and delay in warehouses of any product until the moment most profitable for its sale at higher prices as a result of an artificially created deficit.

Trust

Trust- an association in which its member companies merge into a single production complex and lose their legal, industrial and commercial independence, and their activities are managed from a single center. The total profit of the trust is distributed in accordance with the equity participation of individual enterprises.

Features of Trusts  are:

· It is the toughest of all the considered forms of company integration;

· With this form of integration, all parties of the economic activity of enterprises are united, and not a party, as in a cartel or syndicate;

· The trust differs from other types of associations by the comparative production uniformity of activity, which is manifested in specialization in one or more similar types of products;

In the global economy, the process of concentration of production and centralization of capital has led to the formation of various forms of monopoly associations.

1. Concentration production  - A process aimed at increasing the output of products (works, services).

2. Centralization of capital  - an increase in its size as a result of the merger or merger of several previously independent capitals.

Business combinations result from various type of mergers and acquisitions.

At absorption  one company buys another (in whole or in part), and in the future, control over it, i.e. it maintains a dominant position.

At merger  enterprises with a common interest are combined to create a new company.

There are mergers horizontal, vertical and conglomerate.

Horizontal mergers  - associations of enterprises that are competitors   in the same the industry . The goal of horizontal mergers is to benefit from economies of scale and to protect against fierce competition.

Vertical merges   - associations of enterprises operating in one industry, but in different parts of the technological chain . The purpose of vertical mergers is to gain reliable access to sources of resources and markets. These mergers contribute to monopoly manifestations and therefore require special attention from the state.

Conglomerate Mergers   - associations of enterprises of various industry affiliations that are not technologically related, committed to scale up and reduce risk due to diversification of production.

The purpose of these mergers is to accelerate enterprise growth and diversify risk.

Theoretically, if there is a decline in one of the types of production, the rise may begin in the other, which will allow the company as a whole to maintain equilibrium in the market.

Organizational Forms of Association  enterprises:

1. POTATO  - The simplest form of monopolistic association.

Each enterprise included in the cartel retains production   and commercial   independence.

The objects of the agreement can be: pricing, spheres of influence, terms of sales, use of patents, regulation of production volumes, coordination of the terms of sale of products, hiring of workers.

Acts, as a rule, within one industry . The functioning of market mechanisms is hindered. It is subject to antitrust laws. In some countries of the world are prohibited by law, in others, on the contrary, their formation is encouraged in order to restructure the industry, standardize materials and components, and limit competition between small firms.

2. SYNDICATE  - the organizational form of a monopolistic association of enterprises, in which the companies included in it lose commercial independence, but retain legal and industrial freedom of action (the purchase of raw materials and the sale of products are carried out centrally).

They were widespread in pre-revolutionary Russia. A classic example of an international syndicate is the De Beers diamond syndicate, which has concentrated in its hands the sale of almost all rough diamonds mined in the world.

Russia, like many other countries, is forced to cooperate with this syndicate. While he has the ability to pressure outsiders trying to trade in diamonds on their own, until they are completely ousted from the market.

Many countries have adopted laws against any form of monopolistic associations that have an inhibitory effect on economic development.

3. TRUST  - a business combination in which participating enterprises lose production  and commercial  independence and submit to a single management - the central company.

The real power in the trust is concentrated in the hands of the board or parent company ( centralization  industrial and commercial activities). Trusts gained predominant development in industries that produce homogeneous products. In the modern period, trusts are rare. In Russia, in construction, an organizational and production unit (e.g., construction and trusts, etc.).

4. CONCERN  - a diversified joint-stock company, which is characterized by the unity of ownership and control (acquires a controlling stake in various companies that are subsidiaries to it).

Rosenergoatom Concern OJSC   Engaged in the production of electric and thermal energy at nuclear plants in Russia and its implementation.

Today, the concern includes all 10 nuclear plants in Russia, which are endowed with the status of its branches, 7 directorates of nuclear power plants under construction, as well as the Capital Construction Directorate of the Rostov Nuclear Power Station under construction, the Directorate of Floating Nuclear Thermal Power Plants under construction, and the Scientific and Technical Center for Emergency technical work at nuclear power plants ”,“ Design and Development Branch ”,“ Technological Branch ”and“ Engineering and Technical Center of Nuclear Power Plants ”.

Rosenergoatom Concern OJSC is the owner of fixed production assets and has on its balance sheet the property necessary to carry out its core business - production of electric and thermal electricity.

The authorized capital of Rosenergoatom Concern OJSC is 391 562 534 427 rubles.

CJSC Concern Nanoindustry   is an integrating research and production company specializing in the practical use of the achievements of nanotechnology and the creation of high-tech industries of competitive products based on them.

OJSC "Confectionery concern Babaevsky"   - The oldest enterprise in Russia, part of the United Confectioners holding.

5. ECONOMIC ASSOCIATION  - a mild form of voluntary association of independent enterprises, which at the same time can be included in other associations (joint solution of scientific, technical, industrial, economic and other problems).

6. CONGLOMERATE - a monopolistic association, a diversified corporation, which arose as a result of the merger of diverse enterprises that are not related to each other by industry or technology, credit institutions that are under common control.

Conglomerates were popular in the 60s when they were thought to provide better management and provide more reliable financial support and, therefore, bring greater profit than small independent companies. Some conglomerates became so bulky that they were difficult to manage.

In the 80s and 90s, some conglomerates sold their units and concentrated on several core business areas.

Most analysts believe that conglomerate stocks are difficult to measure, as conglomerates are engaged in many unrelated activities.

7. HOLDING  - a financial company owning a controlling stake in other enterprises with the aim of controlling and managing their activities and generating income on capital invested in shares.

Integrated Energy Systems Holding   - a vertically integrated company combining the production of heat and electricity and the sale of heat, electricity and gas

IES Holding establishedsix divisions   in the areas of activity: “Generation of the Urals”, “Generation of the Center”, “Generation of the Volga”, “Trading”, “Development of capacities” and “Retail”.

Each division is headed by IES Executive Vice President.

Russian Electronics OJSC   - A holding company that unites over 70 electronic industry enterprises that specialize in the development and manufacture of electronic equipment, electronic materials and equipment for their manufacture, as well as microwave equipment, semiconductor devices and materials. It is part of the Russian Technologies State Corporation.

8. CONSORTIUM  - a large financial organization, created as a result of an interim agreement between banks and industrial enterprises for the joint conduct of major financial transactions (investing in a large industrial project).

Uralmash Engineering Corporation CJSC and Industrial Drilling Rigs LLC   concluded the General Agreement on the creation of the consortium "Uralmash - Industrial Drilling Rigs". The purpose of the consortium is the development, design and construction of modern drilling rigs of various modifications, followed by maintenance and staff training.

Alfa Group Consortium - one of the largest financial and industrial consortia in Russia, whose interests extend to such areas of business as: oil and gas production, commercial and investment banking, asset management, insurance, retail, telecommunications, media, water supply and sanitation, and also investments in industrial and commercial enterprises on a selective basis.

At the initial stage of the process of creating an enterprise, it is necessary to determine the form of organization and correctly draw up documentation. Individual entrepreneurs, small businesses, large firms, huge corporations - all started with this.

Carrying out its activities, commercial or not, any company focuses on its interests and plans, but, of course, without any competition, which not everyone likes, no area is complete. To be the first in their industry and to develop it, enterprises can join forces and form a kind of union called a syndicate.

What is a syndicate?

Initially, the so-called trade unions - associations of workers of one and the same sphere. When it became difficult for them to promote and defend their interests, they united in one structure. But later this term acquired a slightly different meaning, which is relevant in our days.

Syndicate is a commercial form of organization of activity, which is aimed at combining companies operating in the same field. In other words, a monopoly.

Firms that have joined the syndicate, completely or partially lose their freedom of action in the market. Simply put, one large corporation controls the sale of a certain product and dictates its terms to the members of the association.

Examples

Companies do not always voluntarily join a syndicate; examples of such unions prove this. At the end of the 19th century, a small company De Beers was founded in Africa, which is engaged in the extraction and sale of diamonds. Over time, the corporation grew and by the mid-20th century created a real international syndicate that controlled about 90% of the market. They dictated prices, and smaller companies were forced to join them in order to have at least some profit. Now, according to various estimates, the share of De Beers is 40-60%, but this is still a monopoly.

Banks also know what a syndicate is, and sometimes create similar unions. Financial institutions jointly credit profitable projects, invest in various sectors of the economy and so on. For those who work together, the risk of losing capital is noticeably lower. But those who receive funds have little choice, because there is one major player in the market, and there is no way to find more favorable conditions.

Criminal groups can also create their own syndicate. It makes no sense to consider examples, because it’s clear what such an organization does.

Management Features and Benefits

Owners of large corporations understand what a syndicate is and how powerful it is. Having a significant share of market presence, they can begin to dictate their terms. Then the smaller companies have two options for development - either try to fight, which rarely ends well, or join an alliance.

Someone may say that it is easier to buy up small firms, but there is antitrust law. Regulatory government agencies will not allow this when the market share of one company reaches a certain value. A syndicate is more difficult to fight.

The creation of the syndicate is accompanied by the execution of the agreement, according to which the members of the association lose their independence in matters of marketing, but still remain the owners of their firms and make a profit. The head of the syndicate controls the entire process. The benefits of such an enterprise can be imagined without difficulty, because almost complete control of a certain area of \u200b\u200bthe economy brings huge profits. It is difficult to identify such a monopoly, because, in fact, there are several companies on the market, and not one.

Conclusion

The syndicate is a monopoly, and the sole control of the market is bad. One of the foundations of economic development is competition; without it, such an important part of life will decline. When the sphere is controlled by one participant, the development is inhibited.

“Why produce something new or improve a product, because everyone buys everything” is the approximate logic of the monopolist’s thinking. Accordingly, the consumer has no choice, and he is forced to be content with what is. Of course, creating a syndicate, you can be guided by good intentions, but in the end it will not lead to anything good.

Developed countries know what a syndicate is and try to create mechanisms to counter such organizations, although they do not always succeed. But it is worth noting that in our time the situation is not as bad as it was in previous years, and improvements are taking place, which means that there is hope for a positive outcome.

Syndicate

Syndicate- an association of homogeneous industrial enterprises created for the purpose of marketing products through a general sales office organized in the form of a special trading company or partnership (joint-stock company, limited liability company, etc.), with which each of the participants in the syndicate concludes the same terms of the contract for the sale of their products.

A distinctive feature of the syndicate is the conclusion of an agreement between enterprises of the same industry to control the sale of products and the purchase of raw materials in order to obtain monopoly profits.

Syndicate Features  as organizational forms of company integration are:

preservation by participants of the syndicate of legal, industrial, but limitation of commercial independence;

it is a kind of cartel agreement. Syndicates eliminate internal competition among its participants;

centralization of sales of products, organization of sales of products of its participants through a single sales authority. The functions of centralized marketing of products of syndicate participants may also be entrusted to one of its participants. Depending on the terms of the agreement, not all, but only a certain part of the products of the syndicate participants may be sold through a single sales agency;

the preservation by the participants of the syndicate sometimes of their own distribution network, which is closely connected with the syndicate sales office or society;

often, through a syndicate sales office or sales company, also purchasing raw materials for syndicate members.

The form of the syndicate is most common in industries with mass homogeneous products: mining, metallurgical, chemical. In modern conditions, the syndicate as a form of monopolistic associations of a single industry profile is losing its significance, giving way to more complex and flexible forms.

The enterprises included in the syndicate retain production and legal independence, but at the same time lose their commercial independence. Sales of products by all participants of the syndicate is carried out through a single body - a sales office. This achieves the sale of all homogeneous products at monopolistically high prices. The sales office accepts the products of enterprises at prices predetermined by the syndicate.

The functions of the sales office may also include the concentration of all orders with their subsequent distribution among the parties to the agreement in strict accordance with the established quotas. In addition, the syndicate may purchase raw materials for its members at monopolistically low prices. Thus, the concentration of trading operations allows syndicate participants to directly benefit from the purchase of raw materials at low prices and the sale of products at high prices, as well as dictate prices in the market, carry out commodity dumping, etc.

Syndicates are usually created in the form of joint stock companies. Along with individual enterprises, whole trusts and concerns can be participants in the syndicate. The latter began to play a dominant role in syndicates in the late stages of their development, which was caused by the need to strengthen control over small and medium enterprises in the domestic market, as well as expanding to the foreign market.

Syndicates enter into competition with firms manufacturing products (substitutes), with outsiders. The relationship between the parties to the agreement is also competitive, manifested, in particular, in the struggle for orders and quotas, which, ultimately, leads to a weakening of the syndicate and often to its collapse.

In modern conditions, the syndicate as a form of monopolistic associations of a single industry profile is losing its importance, giving way to more complex and flexible forms - conglomerates, corporations, concerns.

Relations between syndicate participants can be regulated by a simple partnership agreement; an essential condition for this agreement may be a provision on the creation of a sales organization. In this case, this organization will not have non-contractual (i.e., more than what is assigned by the contract) control over the participants in the syndicate, since, in essence, it is their subsidiary.

Many modern holdings are syndicates in terms of their economic content - they include a trade organization, often located in the zone of the preferential tax regime, providing supply and marketing of products, accumulating and optimizing financial flows. Various types of associations (trusts, syndicates) began to be created as early as the 1920s. XX century Almost the entire industry consisted of trusts. The trust was considered as an industrial enterprise, which included factories and factories, often the largest enterprises were vested with the rights of trusts. The trusts acted on the basis of cost accounting, making extensive use of economic methods in the management of their production units. Under the new economic policy in industry, large trade associations began to form - syndicates designed to streamline the trading functions of trusts. Syndicates took upon themselves the tasks of organizing sales, distribution of orders, pricing, supply, organization of mutual settlements. Syndicates, integrating groups of trusts on a sub-sector scale, were an instrument for centralizing public administration, while trusts, which are self-supporting units, provided a process of industrial concentration. There was a monopolization of the national economy: large associations - syndicates, which concentrated in their hands the procurement and marketing of products in a particular industry, being self-supporting units, were not interested in the development of the national economy as a whole.

The reorganization of the industrial management system in 1926 — the merger of the Supreme Economic Council’s central administration system and the syndicate system into a single system of associations operating on a self-financing basis — was aimed primarily at centralizing the planned management while decentralizing the operational functions of production management. As a result of the reorganization, syndicates began to create industrial associations for industries that were self-supporting organizations combining the functions of planning and operational management of production. In the structures of industrial associations, various forms of subordination of industrial enterprises to the association were combined - either directly, or through trusts, or in one form or another simultaneously. The lack of uniformity and orderliness, the uncertainty of the jurisdiction of industrial enterprises and trusts ultimately led to the collapse of industrial associations. On March 15, 1934, the Central Executive Committee and the Council of People's Commissars of the USSR, by their Decree, liquidated industrial associations and reduced the number of trusts. In the People's Commissariats, the main production or production-territorial departments were formed, which had all the powers to manage their subordinate enterprises, although retaining economic independence. In the period 1934 - 1957. vertical centralization by industry principle has become dominant.

The narrow industry industrial management system, along with certain advantages, also had significant shortcomings; departmental barriers violated normal production relations between enterprises of various ministries located in the same administrative-territorial region. To eliminate these shortcomings, the USSR Law of May 10, 1957 "On the Further Improvement of Industrial and Construction Management" reorganized the industrial management system, which was based on the territorial principle. In accordance with this Law, the Supreme Soviets of the Union Republics received the right to form economic administrative regions, which, as a rule, coincided with the existing administrative-territorial division. To manage industry and construction in each economic administrative region, a Council of National Economy (Sovnarkhoz) was created, directly reporting to the Council of Ministers of the Union Republic. The economic councils and their branch administrations carried out functions in relation to subordinate enterprises, such as approving the organizational structure, appointing leaders, planning and controlling their activities. The narrow framework of economic independence of enterprises deprived them of the necessary efficiency, and impeded the further development of the socialist economy. Therefore, the economic reform of 1965 was largely aimed at strengthening decentralization, providing greater independence to medium and even small enterprises. An assessment of this reform is contained in numerous economic studies. It is important to note here that experience soon led to the conclusion that it was necessary to strengthen the centralization of industrial management. Centralization was ensured by the enlargement of enterprises, the creation of a system of associations that took over the implementation of a number of production management functions carried out earlier at the enterprise level.

The legal regulation of the activities of production associations was carried out in accordance with the Constitution of the USSR of 1977 and the Constitutions of the Union Republics, the Resolution of the Central Committee of the CPSU and the Council of Ministers of the USSR of March 2, 1973 "On some measures to further improve the management of industry." The said Decree approved the General Regulation on the All-Union and Republican Industrial Associations, the Regulation on the Production Association (Combine). From this moment, the understanding of the association as a production and economic complex, which includes a governing body, enterprises and organizations, has become generally accepted.