first year

1. Sorin Anagnoste

2. • To define “shareholders” and “stakeholders” and differentiate between the two concepts
• To identify several groups of stakeholders and explain the relation 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 may influence a company’s activity

3. Shareholder = an individual or organization (including a corporation) that owns shares in a business (contributors to the company’s capital)
Stakeholders = anyone who has a direct or indirect interest in the business entity
Shareholders/ stakeholders – different objectives and interests

4. Managers and employees
Suppliers
Customers
Competitors
Credit institutions
Consultants
Other business partners
Public authorities
Labor unions
Society
…
Sales agents
State

5. •Managers (top management, middle management, first line management)
•Employees

6. •Suppliers- entities which provide the necessary raw materials, equipment and services to a company
•Customers- domestic or foreign companies or households which buy the company’s products or use its services
Today there is a strong customer orientation
B2B (Business to Business), B2C (Business to Consumer)

7. Competitors- organizations that target the same customers
Direct competition- between products which perform the same function
Indirect competition- between products which are close substitutes
•Credit institutions- institutions (in general banks) which provide external capital to the company (to finance its current activity, to make investments etc.)

8. •Business consultants and other business partners- third parties which support/ assist the management of the company in order to reach its business goals
Outsourcing of subsidiary activities
Audit
•State- sets the legal framework for the activity
of the company
•Public authorities - the institutions of the state with which the company communicates, such as Ministries, labor office, tax office etc.

9. •Business associations – organizations which represent the interests of the company or professional groups (e.g. Trade associations, Chamber of Industry and Commerce etc.)
•Labor unions- organizations which represent employees’ interests and defend their rights
•Civil society- represented by NGOs, universities, research institutes, initiative groups etc.

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

11. Some basic underlying questions:
•How should limited economic resources be used to satisfy society’s needs?
•What goods and services should be produced? Who should produce them?
•How should these goods and services be divided among the population?

12. Free market system/ Capitalism
•Individuals own and operate the majority of businesses
•They are free to decide what/how to produce, to whom/ at what price to sell
•Philosophical origins of capitalism- Adam Smith, the market as a self-correcting mechanism: “invisible hand”
Mixed capitalism- limited intervention of the state in order to influence prices and wages or to change the way resources are allocated

13. Planned system
•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
Communism
•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
Socialism
•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
Trend towards privatization
Economic, political and social systems

14. Political factors
Technological factors
Social factors
Economic factors
Company

15. •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

16. •Economic growth
•Interest rate (cost of capital)
•Exchange rate
•Price stability/ inflation rate
•Unemployment rate
•Local economic trend

17. •Demographic trend/ age distribution
•Social classes
•Education
•Religion
•National and individual values
•Cultural mobility

18. Ageing population in Europe
Country
1990
2010
2030
Germany
21,7
30,3
49,2
France
20,8
24,6
39,1
Italy
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

19. •The level of technological equipment
•The level of technology use
•The ability to adapt to technological changes
•Telecommunications
•Infrastructure

20. Thank you!