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Section 3. Management
Section 3. Management
Xhemajli Ariana, PhD, European University of Tirana, Department of Management, Lecturer of Economics Courses, Peja, Kosovo E-mail: Ariana.xhemajli@unhz.eu
Models of privatization in some of southeastern countries - Literature Review
Abstract: Destruction of communist systems mostly in some of European countries, has lead to countries to think for planning the different models of transition process, especially from post-communistic to free market economic system. This paper treats some models of different countries mostly of South Eastern Europe, how they’ve managed to pass the process of privatization of companies and mostly of some important resources (natural, etc.). There are different models and forms that these countries applied, using from one to another form. For some of them, in short description, we will try to show the ways how the privatization process gone though, and of course, what economic impact did it had in all of its process.
Keywords: JEL qualification, privatization process, transition economy.
Introduction
Since the breakup of the Soviet Union (in late ‘89), many countries have begun to re-construct their economies, in particular the privatization of large firms or who have had the greatest impact to the economy of their countries (income, employment, etc.) (Bjornskov, Christian; Potrafke, Niklas, 2010). But central European countries, in most times, have adopted different strategies, some gradual adoption have made economic transition, while others had applied “Bing Bang" method, as some countries are still in the process of transition in Eastern Europe, still have work to do to re-structured centralized economic segments, so some are acting and being adapted quickly, while others more slowly.
While through “gradualism”, states that have passed and are passing through a transitional phase, aimed to keep under control as high implementation of economic reforms, including; price stability, monetary and credit policy, competition, unemployment, etc. According to Galbraith’s “shock therapy”, thinks that is convenient to you only those who do not think before you take any action, in other words, the more you believe formulas rather than facts. Galbraith - of, certainly favors a return to free market competition, especially for consumer products, and other goods, the return of favors in the later stages of the transition period (K. Galbraith, 1996). In other words, by many authors, theorists and economists,
is intended for a new economic system, which is the foundation of support to the roots of capitalism, i. e., As applied in some of the most developed countries of the world, as e. g. US, Japan, Canada, etc.
The main goal was to markets, including businesses, consumers, suppliers, etc., to operate more easily and more flexible, always target the primary objective of which was the selection, price, quality, diversity of products and services on the market, the central financial stability, increasing employment, etc. Since the concept of economic transition in itself involves many problems and issues, such as property transformation — privatization, foreign direct investment (FDI hereinafter), the participation of Internet users by society and in particular the impact of information technology on growth and business development, globalization and the recent financial crisis, liberalization and monetary system, as well as many different factors which will address in this paper carefully will treat, analyze and observe very carefully.
1. The ideology of privatization in Central Europe (since ‘89)
At the time the Hungarian state opened its borders Austrian state in September 1989, this resulted in the most effective manner to the coming end of Soviet domination in Central Europe, and from that time began initiatives and activities of German unification communist democratic it. Hungary, even before the expiry
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Models of privatization in some of southeastern countries - Literature Review
of the post-communist system had begun to allow you to make some foreign direct investment (FDI) in their country. Hungarian state had increased gross social product (hereinafter GDP), from 5 % to 50 %, for 4 consecutive years since 1989. Also, the Czech Republic’s GDP had increased to 47 % in 2007 (EBRD, 2008). Also in the state of Poland, the private sector or the generation that brought this sector accounted for 30 % of GDP since 1993. The privatization process began to exceed and be realized in many other countries, as e. g. in Ukraine the private sector generated 50 % of GDP, etc.
1.1 Countries and time of termination of countries covered and analyzed
The data will be used for how small businesses and the importance of generating powerful, will be used by the data provided by the European Bank for Reconstruction and Development (EBRD). Mostly these data include the privatization process is done since 1989-2008. There are 9 countries mainly to the part of the eastern and
Table 1. - Dates of some ex. Yugoslav republics
south-eastern Europe, but among them include some central European countries: Albania, Bosnia and Herzegovina, Montenegro and black, Serbia, Kosovo, Croatia, Macedonia, Hungary, Bulgaria and the Czech Republic. We begin with the Republic ofAlbania when in 1991 the ruling was a conservative party, which could loosely call nationalist party and popular classics. But this problem was not present only in Albania, but almost even in other countries of Eastern and South Eastern Europe, eg Croatia was led by a nationalist leader, while in other countries, especially the SFRY, had begun bloody conflicts and wars, especially in Bosnia and Herzegovina. Countries like Slovenia, Bosnia and Herzegovina, Montenegro, Croatia, began transition, in particular the Economic later than Central European countries. The following are presented in tabular form in what time periods and circumstances began the transition, especially considering and taking into account several variables which are presented in the following table 1. that had separated from communistic system
Country Date/Year Civil War
Albania March, 1991 -
Croatia Tune, 1991 March 1992 - November 1995
Montenegro Tune, 2006 -
Slovenia Tune, 1991 10 days
Macedonia September, 1991 -
Czech Republic December, 1989 -
Kosovo Tune, 1999 March 1998 - Tune 1999
1.2 Forms of transformation and privatization of property in some central European countries and in particular the eastern part/south-east
1.2.1 Types and forms of privatization in Albania
In the implementation of the privatization process of companies with state capital was free to wholly or partially transfer to the private sector both types of rights: the right of ownership and the right to use the development. In selecting the method of privatization affect various factors, including the size of the enterprise to be privatized, as well as the characteristics ofbuyers/potential investors. In Albania, the law allows the use of all kinds of methods of privatization. Forms of privatization in Albania can be divided into two groups (Moses, 2012): - Form “picker" of ownership — by applying methods “picker” state transfers ownership rights to the new private owner, without taking any financial risk. However, unemployment generated by privatization is a social risk that the state should take into account and should afford. Thus, an indirect financial involvement of the state is pashmangshrne. The methods mentioned below are characterized by way of transfer of ownership rights.
- Direct Selling — with this form of “picker” state sells directly an enterprise (or part thereof) private buyers.
- Direct selling can be done in two ways: Direct sales through auction/tender; Sale to a buyer default. The second form is used in Albania. Objects were privatized by this method is mainly residential waffle shops, restaurants, parts of companies, etc. (The so-called small privatization).
1. To managers or managers or employees - common for these privatization schemes, are that the right of ownership is transferred to a particular group, who may be directors or employees of that enterprise. In Albania, this form is used to mainly privatized enterprises are final subunit.
2. Public auction — this form is used privatization of small and medium enterprises (or part thereof), through an open public competition.
3. Liquidation — liquidation is the closing of a company and selling its assets, while it has discontinued its operations due to bankruptcy.
4. Mass privatization — forms of mass privatization based on free distribution of securities to the population.
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Section 3. Management
This method aims at rapid privatization of enterprises, previously transformed into a business, from a large number of letters, holders of securities.
5. Strategic Investor — This form implies direct negotiations between the State as owner represented by the respective authority and private investors will take a majority stake to ensure the direction of the enterprise. Strategic investor is often seen as a precondition to provide technology and financial resources available to the privatized enterprise. Instrument for the implementation of this method is open auction or tender.
1.2.2 The economic transition — with particular emphasis privatization process in Croatia
The process of privatization in Croatia, start from the beginning of the war, and continue with the wide end of the war and today, when the Croatian state is now
officially the 28th member of the European Union (EU). On the basis of laws passed by the Republic of Croatia:
a) The Law on social capital (1989), and
b) the Law on transformation of SOEs (1991), and in particular on the basis of the second law, all utilities will needed turn into a mixed capital company, or limited liability company [7]. During this process was used mainly these models:
a) the sale of a part or the whole enterprise;
b) additional investment in the equity ofthe company;
c) transformation of claims against the company in investments in enterprises;
d) transformation of all shares Croatian Fund for Development and also in the Pension (Isufi, 2005). For the economic perspective, the process ofchange and economic transition in Croatia, known as the “so-called" process.
Fig. 1. The ratio between the number of employees and registered businesses Source: This resource is utilized by Denis Redzepagic having carried made his doctoral dissertation
It is worth mentioning that according to a survey by the Croatian Competition Agency, retail during the years 2008-2010, increased from 52.4 % to 58.4 % (Agency, 2011). These data, if the relevant literature, or agency concerned, individuals and independent researchers, shows that the transition process, in particular economic transition has had a positive impact on sustainability and economic stability of this country [2], since it is known that one of the main criteria requires the EU, is exactly meeting the standards economic criteria. Croatian Capitalism is specific, either in form or in development. This
fact is proved by the analyzes of many different authors Croats, whether quantitative or qualitative terms [2], even the World Bank has moaning to 84 among 183 countries for doing business, however, the Bank for Reconstruction and Development (ERBD) was moaning with grade 3 (from 1 to 3). Government expenses that are dedicated to development and education based on its GDP, are considerably smaller in comparison with EU countries [3], although already Croatian state should invest more, since the views and goals of global firms on the one hand seeking to find employees with lower cost.
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Models of privatization in some of southeastern countries - Literature Review
1.2.3 The economic transition — with particular emphasis privatization process in Montenegro
The initial phase of the privatization of SOEs in Montenegro is done through the transformation of SOEs in “joint stock company" or “limited liability company" [8]. Despite law approved in 1994, where are provided 8 privatization models (Ljajovic, 1998), however in practice are used mainly three main models: a) pattern of giving and sale of sheet-shares or assets discount, with
the intention of selling capital; b) model issuance and sale of sheet-stock in order to create additional capital, ie capital increase; c) model sheets transferring shares without compensation funds: in Fund for the development of the Republic of Montenegro, Pension Fund and Disability Fund, Employment Fund or the corporation “Holding", the distribution pattern of leaf-stock without compensation to 10 % of the carrying amount of capital privatized enterprise.
Fig. 2. The initial structure of the property in the corporation
Funds were obliged to leaf-shares, which jumped on sale, before all, must be provided enterprise that these leaf-shares transferred to the funds in order to be able to purchase on behalf of the captives to work. This right enterprise can implement in 2 ways:
a) by purchasing shares sheets for workers and others, the company operates foreign account, and
b) the company may act on its own behalf and also on its own account [7] — refers to Nebojsa Medojevic, Podgorica (1996, p. 252, not specified title of the publication in the bibliography). The first phase of transformation, best its structure can be seen in Fig. 2.
1.2.4 The economic transition — with particular emphasis privatization process in Slovenia
On the basis of some evidence, including laws, practices and expectations set forth by the competent authorities of the Slovenian state, is determined [7]:
a) The process of privatization of social property is realized in a very slow manner;
b) Sale of enterprises are not made under prescribed intensity;
c) The interest of foreign capital was significantly below expectations Slovenian.
d) Relying on this “failure" if that can call, creators of the previous model were defined for mass privatization through “certificates" without compensation of all
Slovenian citizens including their only major age, but of course by his well defined the price of this “certificate", which at that time belonged to the former German currency (mark). Values of “certificates" change, since the highest price was for persons age of majority, while the price of a “certificate" to a youthful age was 300-400 % lower.
1.2.5 The economic transition — with particular emphasis privatization process in Macedonia
For sale or rather the preparation and implementation of the privatization process in Macedonia is looked after Privatization Agency of the Republic of Macedonia. However, as in any other country that has gone through the process of economic transition, especially privatization as one of the most vital parts of the transition has relied on laws passed in the Parliament of the Republic of Macedonia [7]. The privatization of small enterprises is realized through two models:
a) purchase of the company by employees through internal stock warrants the sale of ideal part of company;
b) Privatization of medium is realized through these models: sale of ideal part of company acquisition of shares through internal enterprise sale of the company who run the company granting stock warrants for the sake of additional depositions;
c) through conversion of contested claims in permanent capital.
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Section 3. Management
Compared to small and medium to large enterprises little choice model “exclusive” has determined the Privatization Agency of the Republic of Macedonia. The specifics of the privatization of these enterprises can be synthesized in the following areas: if the company is bought by a person who will lead the company is required to pay, the initial amount of the payment is 10 % of the total equity value of the company, compared to medium enterprises where required to paid only 20 % of the value.
According to this it appears that the Republic of Macedonia in terms of privatization of medium and large is mainly used by credit sales model and manipulate acquisition, which has resulted in a greater plunder of social capital on which mixed mugging is the government of the country [7].
1.2.6 The economic transition — with particular emphasis privatization process in Czech Republic
In the Czech Republic, the privatization process has begun in early 1990, and since then has become the privatization of small enterprises. Main features Czech model transformation of property and property privatization will support on two main issues (Patrick, 2007):
a) Creators of the privatization process of the Czech Republic, was that neither the process ofpenetrating much more investment and foreign capital in the country.
b) Because of the length (more than 4 years), managers of enterprises through the so-called “spontaneous privatization” have benefited a great deal of wealth, and taking into account the fact that the funds are transformed owned enterprises owners large, both are transformed into owners of large financial institutions [7].
1.2.7 The economic transition — with particular emphasis privatization process in Kosovo
Kosovo, have experienced a bloody and painful for the population and material destruction of the country of Kosovo. However, Kosovo is not stopped, immediately start with creating and building its institutions, including the Privatization Agency of Kosovo. Privatization Agency of Kosovo is established as an independent public body which carries out its functions and responsibilities fully independent, under Law No. Assembly 04/L-034, on the PAK. The AKP has full legal capacity, particularly to make contracts, to acquire, hold and dispose of property and have all implied powers to discharge fully the tasks and powers conferred by this law; and to sue and be sued in its name.
PAK is established as the successor of the Kosovo Trust Agency regulated by UNMIK Regulation 2002/12 “On the Establishment of the Kosovo Trust Agency”, as
amended, and all its assets and liabilities will be assets and liabilities of KPA.
Special Chamber has exclusive jurisdiction for all suits against the Agency KPA given the Board of Directors, consisting of three directors International and five Kosovar. In accordance with the old Law No. KPA. 03/L-067, the inaugural meeting of the Board of PAK was held on 26 August 2008. Since then, KPA is working to privatize Socially Owned Enterprises (SOEs). Begin to discuss the process of privatization in Kosovo, is like “a student who in a university exam, claims repeatedly that the final outcome accounting know ... but I do not know how to reach it”! Kosovo as the country with 10 908 km2, with a population observed in the region, with many useful natural resources and rich, but also the assets that were present at the time of the war, could be used, at least in the most optimal way, so that this country therefore Kosovo today, in 2014, have a significantly more stable situation for terms of microeconomic indicators, especially those macro (higher employment, real economic growth ongoing price stability, a much lower cost in relation to financial foreign trade, and in particular a lower cost them more social).
At such a time, “Kosovo Trust Agency — KTA” (Today, Kosovo Privatization Agency hereinafter Agency), on the occasion of its consolidation, numbered 8 directors, and international 4, 4 residents who must be residents Kosovo (UNMIK Regulation 18.5 of). Competence of the Agency, were all enterprises with social capital and public capital enterprises. Where institution dealing with “liquidation” of the so-called “capital naked”, but it will also deal with the privatization of social capital through the model spin-off and spin-off special. Of the 600 SOEs that were in Kosovo, the Agency has managed to privatize the maj ority of them ( KPA, 2014). According to the Agency, former employees are beneficiaries of 20 % of selling SOEs, and that up to date, employees have received about 80 million € (KPA, 2014).
Conclusions
The privatization of state-owned entrepreneurial assets has played an outstanding role in this process. Mass institutional privatization — which was one of the means of establishing a market economy — has been practically concluded. We have come to the end of an important and difficult period in the economic history of each transitional country. But, as is have been shown above, each country applied different kind of systems and forms of privatization. Which one can be assessed as the best forms, it can be analyzed in other further research and economic analysis.
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What is the basis of strategy? Fundamental approach to building a strategy
References:
1. Comission E. Progress Raport for Kosovo. - EU: European Commission, 2014.
2. Cvijanovic V. R. From political capitalism to clientelist capitalism - The case of Croatia. - 2011. - 29, 330-349.
3. Eurostat. Data on Education. 2011.
4. Kosovë, A. p. Raporti 2009 i Privatizimit. - Prishtinë: AKP, 2009.
5. Moisiu U. The Proces of Privatisation in Albania. - 2012.
6. Mouhoud E. M. Medunarodna podjela rada i ekonomija znanja. In C. Vercellone (ur.) - 2007.
7. Selmanaj S. Globalizimi dhe Tranzicioni (dilemat dhe sfidat). - Prishtinë: RIINVEST, 2006.
8. Simon D. J. Ekonomske reforme u Jugoslaviji. Izvorni naucni rad. - 2003. - Р. 104-128.
Kyrnats Doyna Valerevna, Plehanov Russian University of Economics, sophomore, the Faculty of Management E-mail: doyna93@mail.ru
What is the basis of strategy? Fundamental approach to building a strategy
Abstract: The paper offers a new view on building a strategy and it is dedicated to analysis of fundamental elements of strategy which in most of cases are the source of many problems which companies face with. In the article this elements are inspected from both views: apart and in interaction. Their impact on company’s activity is investigated on the example of the NOKIA Company case.
Keywords: strategy, effectiveness, ideology, leadership, fundamental approach, nokia.
Кырнац Дойна Валерьевна, студентка 2 курса, Российский Экономический Университет им. Г В. Плеханова, факультет Менеджмента E-mail: doyna93@mail.ru
Что лежит в основе стратегии? Фундаментальный подход к построению стратегии
Аннотация: В работе предлагается новый взгляд на построение стратегии и содержит анализ основных элементов стратегии, которая в большинстве случаев является источником многих проблем, с которыми сталкиваются компании. В статье эти элементы проверены с обеих сторон: друг относительно друга и во взаимодействии. Их влияние на деятельность компании исследуется на примере компании Nokia.
Ключевые слова: стратегия, эффективность, идеология, руководство, фундаментальный подход, Nokia.
Стратегия и что на неё влияет
Какую же роль играет стратегия? Бесспорно это незаменимый инструмент в работе любой компании, так как стратегия- это концепция достижения победы [1, 8]. Другими словами, стратегия- это комплексный план управления, цель которого вести фирму к желаемому результату, идеалу. Но достаточное ли внимание компании уделяют оценке эффективности своих стратегий?
На формирование стратегии имеют влияние огромное количество факторов. При разработке
долгосрочных стратегий большинство компаний больший интерес уделяют таким факторам, как экономические, политические, технологические и социальные. И это естественно, так как данные факторы формируют среду вокруг компании. Без учёта внешних факторов деятельность компании не возможна в принципе. Например, компания, являясь резидентом РФ, не может действовать, основываясь на законодательстве Китая. Особое внимание концентрируется на экономических выгодах, и из-за недостаточного внимания другим факторам компании сталкиваются с проблемами,
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