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2016 (2)

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Dissertation
Facilating the implementation of a global performance reporting system from a business perspective : the case of a German pharmaceutical multinational
Authors: --- --- --- --- --- et al.
Year: 2016 Publisher: Liège Université de Liège (ULiège)

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Abstract

This thesis deals with the development of a global performance reporting system in the context of a German multinational active in the pharmaceutical industry.
The objective of the document is to discuss and assess the decisions taken and actions implemented during the course of an eight-month project conducted within the pharmaceutical company Boehringer Ingelheim. The project consisted in facilitating the implementation of such a system from a business perspective and taking into account the specific context at stake.
Therefore, this paper begins with a brief presentation of the company and the reasons underlying the decision to enable the reporting of local performance at corporate level. After this introduction, the proper analysis is structured around the three dimensions of strategy, namely the context, the content and the process of the project. 
First, the contextual analysis follows a funnel structure while always being related to the project. It starts from an overall market perspective before dealing with purely internal elements such as the organizational culture and the financial situation of the company.
Second, the activities and the outcomes achieved are presented in the section dedicated to the content of the project. It starts with the description of the specific aspects of reporting in the context at stake before presenting the features of the system that are expected to cope with the contextual challenges. Finally, it provides an overview of the remaining steps and potential system extensions.
Third, the process of the project is analyzed based on criteria coming from the Translation Theory. Indeed, political games and organizational culture revealed highly influential and were therefore the object of particular interest from a change management perspective. 
In the end, the organizational context of Boehringer Ingelheim reveals a need for implementing a global performance reporting system. Indeed, despite strong resistance from subsidiaries and internal tension, it appears that the bottom-up business model of the company would benefit from a certain degree of integration, especially given the added value brought by technology-driven aspect of the project


Dissertation
The performance of the Real Estate Mutual Fund industry: an empirical examination from 2003 to 2015
Authors: --- --- ---
Year: 2016 Publisher: Liège Université de Liège (ULiège)

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Abstract

Thanks to the real estate industry’s strong growth since the early 2000s, financial investors have shown increased interest in it. This has paved the way for the quick development of specialized investment vehicles and especially Real Estate Mutual Funds. This is precisely what led to the writing of this paper.
As a first step, it aims at describing the economic environment that surrounds this specific industry between 2003 and 2015. It provides information and details about the main drivers of the expansion of the US housing bubble. It further illustrates the disastrous consequences of the bubble’s rupture on the global economy and the way financial markets recovered over the next years.
In a second step, it analyses the past performances of global REMF during the pre-crisis (i.e. 2003-2006), crisis (i.e. 2007-2009) and post-crisis (2010-2015) periods. While REMF market showed strong signs of inefficiencies throughout the 1990s, the paper demonstrated standardization in the industry, as the results were fairly similar to those obtained by the broad mutual fund industry. In fact, managers were no longer able to consistently outperform the real estate benchmark over the period.
Following that, the paper used regression models to highlight the factors (i.e. total expense ratio, turnover ratio) impacting the REMF alphas. It found that REMF with the lowest TER and turnover ratio tend to produce better performances. However, the relatively low r-squared suggested that no general conclusions could be drawn from this analysis,
Finally, it provides a cursory analysis of the existing relationship between the stock market and the real estate mutual fund industry at the global level. With the exception of the 2000-2006 period, which featured contrasting trends in the economy (i.e. the quick expansion of the housing bubble and the recovery of the stock market), it found a strong correlation between them. This in turn suggested the low diversification benefits from the real estate industry, when added to a world stock portfolio.

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