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• 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
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= 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
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• (top management, middlemanagement, first line management)
•
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• - 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)
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- 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.)
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• 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.
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• – 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.
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• Identify the stakeholders of the chain store Carrefour inRomania and explain their interests related to the company.
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• 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?
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• 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
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• 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
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Political factors
Technological factorsSocial factors
Economic factors
Company
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• 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
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• Economic growth
• Interest rate (cost of capital)
• Exchange rate
• Price stability/ inflation rate
• Unemployment rate
• Local economic trend
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• Demographic trend/ age distribution
• Social classes
• Education
• Religion
• National and individual values
• Cultural mobility
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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
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• The level of technological equipment
• The level of technology use
• The ability to adapt to technological changes
• Telecommunications
• Infrastructure