BEI lecture 2

7/30/2019 BEI lecture 2

http://slidepdf.com/reader/full/bei-lecture-2 1/20

Simona Agoston



• To define “shareholders” and “stakeholders” and differentiatebetween the two concepts

• To identify several groups of stakeholders and explain therelation between them and an organization

• To differentiate between a free-market system and a planned

system

• To identify and comment the main external factors which mayinfluence a company’s activity



= an individual or organization(including a corporation) that owns sharesin a business (contributors to thecompany’s capital)

= anyone who has a direct orindirect interest in the business entity

Shareholders/ stakeholders – differentobjectives and interests





• (top management, middlemanagement, first line management)

•



• - entities which provide the necessary rawmaterials, equipment and services to a company

• domestic or foreign companies orhouseholds which buy the company’s products or useits services

Today there is a strong customer orientationB2B (Business to Business), B2C (Business to

Consumer)



- organizations that target the same customers

Direct competition- between products which performthe same function

Indirect competition- between products which areclose substitutes

• - institutions (in general banks)which provide external capital to the company (tofinance its current activity, to make investments etc.)



• third parties which support/

assist the management of the company in order to reach its business goals

Outsourcing of subsidiary activities

Audit

• - sets the legal framework for the activityof the company

• - the institutions of the state with which the companycommunicates, such as Ministries, labor office, tax office etc.



• – organizations which representthe interests of the company or professional groups(e.g. Trade associations, Chamber of Industry andCommerce etc.)

• - organizations which representemployees’ interests and defend their rights

• - represented by NGOs, universities,research institutes, initiative groups etc.



• Identify the stakeholders of the chain store Carrefour inRomania and explain their interests related to the company.



• How should limited economic resources beused to satisfy society’s needs?

•

What goods and services should beproduced? Who should produce them?

• How should these goods and services bedivided among the population?



• Individuals own and operate the majority of businesses

• They are free to decide what/how toproduce, to whom/ at what price to sell

• Philosophical origins of capitalism- AdamSmith, the market as a self-correctingmechanism: “invisible hand”

- limited intervention of thestate in order to influence prices and wagesor to change the way resources areallocated



• Governments control all or part of the allocation of resources

• Major goal= social equity, private enterprises and private gain is regarded as negative and exploitive

• Allows individuals the least degree of economic freedom

• Almost all resources are under government control

• Resources allocation through rigid centralized planning

• Private ownership is restricted to personal and household items

• Between capitalism and communism

• High degree of government planning

• Partial government ownership of land and capital

• Government control over the vital industries

• In not vital industries private ownership is allowed

• High taxes



Political factors

Technological factorsSocial factors

Economic factors

Company



• Political stability

• How and to which extent the government intervenes in the economy

• Tax policy

• Environmental regulations

• Trade restrictions, tariffs

• Goods and services provided by the state

• Attitude towards foreign investors and foreign products



• Economic growth

• Interest rate (cost of capital)

• Exchange rate

• Price stability/ inflation rate

• Unemployment rate

• Local economic trend



• Demographic trend/ age distribution

• Social classes

• Education

• Religion

• National and individual values

• Cultural mobility



Ageing population in Europe

Germany 21,7 30,3 49,2

France 20,8 24,6 39,1Italy 21,6 31,2 48,3

Great Britain 24 25,8 38,7

Romania 27,7

EU-27 21,4 25,9 40,6

Source: Pelau, 2009



• The level of technological equipment

• The level of technology use

• The ability to adapt to technological changes

• Telecommunications

• Infrastructure



Documents

BEI lecture 2