Serbian Serbian Journal of Management 2 (2) (2007) 147 - 155 Journal of Management www.sjm.tf.bor.ac.yu

MARKET DEVELOPMENT IN GORNJE POLIMLJE AND THE NECESSITY OF TOP MANAGEMENT INTRODUCTION IN FUNCTION OF NEW OPERATIONS

J. V. Bulatovi}a* and G. D. Rajovi}b

aVisoka strukovna tekstilna {kola za dizajn, tehnologiju i menad`ment, Beograd b"DIS", Beograd

(Received 12 May 2007; accepted 10 September 2007)

Abstract

This work agitating problem market processing in Gornjem Polimlju. Represent are basis phase process market, area, and structured changes. One of priority is and probability inducting top management in market organization. Show him through technology and procedure administrative practice, realization organization activity as to create channel traffic, determining, create strategy tactics and practically practice, abetment motivation, management informatics and management economy process.

Keywords: Gornje Polimlje, market, organization, top management

1.INTRODUCTION Gornje Polimlje is including three municipalites: , Andrijevica and Plav. Gornje Polimlje area is locate between Total area is 1.486 km2. According to 1991. Kolašin (west), Podgorica census in three towns, borough and municipality (south-west), serbian- 109 villages there was 64.954 inhabitants, in montenegrin-albanian border (south), AP other words 43,7 inhabitants per km2 [1]. and Metohija and Ro`aje System of goods exchange is inseparable municipality (east), Bijelo Polje municipality from the economy. Along with economy (north) and Republic of (north-east). development the bulk and structure of goods As for administrative-territorial belong, excahnge were also changing. Gornje

* Corresponding author: [email protected] 148 J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 Polimlje is in many characteristics exponent Internal market and trade were of one area, where every cause of life undeveloped until the town of Berane was tranformations in changing processes is found (in 1862 Berane was found as military taking part indirectly or by consequences. colony for the needs of turkish army). In the Economy turnover is very important on time of natural economy, shortage of money amount of market employment, so it must be introduced cattle, copper dishes, weapons, considered seriosly as social-economic salt, grain etc. as means of payment. All phenomena. First aspect of market influence articles were used as substitute for money on economy is mostly forgotten in emphasise during land purchase or sale, exchange of of economy effects. We are considering this goods etc. Main crossroad of East and West unacceptable, because the purchase of was exactly this area, when the caravans agricultural-foods, fuel, grease etc., is the moved from Istanbul, Skoplje, Niš towards direct consequence of market interest in Podgorica, Skadar, Dubrovnik and opposite. economy fluctuations. In the other half of nineteenth and at Besides this direct transformation, via begging of twentieth century this area retail, market is achieving very important enabled to its population thanks to domestic effect on economic, inkeeping and other market selling of cattle, fodder, alcoholic objects wnich are directly participating in drinks, wood products, products (salt, textile, formation of economic offer [2]. This is dishes, petroleum etc). According to M. directly reflecting on market activate and Lutovac informations, trade from livestock development. That is confirmed by the fact fairs in Gornje Polimlje was moving towards that the market turnover, for those kind of Skadar, Podgorica, Kosovska Mitrovica, Pe} goods that are objects of economic demands, [5]. has to fit into economy and has to play Old Skadar road down the river along important part in structural changes of Gusinje, merchants were moving cattle, hide, economic consumption and her growth. Of wool and bringing salt, oil and tobacco. But all economic activities exactly the marketing because of newly created border between can adjust to economic consumption because Turkey and (1878) there were it hase more flexible features [3]. smuggler exchanges, wnich could be The other aspect in economic part of bypassed only by going through wastelands marketing network is coming to distinct not or by secret crossings [5]. only by its development, organization, space Next period is represented by mixture of arrangement, but also by its assortment and population activites, and the strenghten of quality of services [4]. one activity toward another (handicrafts- trade), crystallizing the main economic 2. PHASES OF MARKET routes. In spite of all troubles (going to DEVELOPMENT unknown, separation from the family, risk and others), relatively large number of Rather favorable economic conditions for Gornje Polimlje population in this period cattle raising, relatively fertile land on wnich was beginng to engage with trade. But the various cultivations could be grown, would main soil of their production still remained be a strong influence to economic agrarian production. development. Balkan wars, then First World War, crop J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 149 failures (1926.,1927.,1928.), great economic "womens'' market on wnich domestic crisis (1929-1933), and finaly Second World products made by women, and also milk War were the events that effected in market products were sold [7]. slander. In this period, after First World War, 3. AREA AND STRUCTURED relation between merchants and consumers- CHANGES IN MARKET peasants was especialy interesting. Merchants gave goods to peasants on loan, After Second World War in the period of so they had many "customers by book'', reconstruction the advantage was given to wnich asked for salt, gas, oil, nails for horse products activity development. Trade shoeing etc. Payment of a debt was rather experienced essential changes regarding its simple. Merchants went to villages and from social part and significance. Collective and their debtors they took best sheeps, wool, state sector of trade strengthened by removal and even a cow or an ox. Cattle estimation of private stores and favoring goods from was done on the place and the debt was socialist network. Collective trade network writen off from the "book''. Taken cattle was was dominant (present in almost every later resaled. village), and the main exporter of After First World War there were two agricultural products and main importer of periods in trade development. In first from industrial products. From year 1948. private 1918-1929, trade was rising, and later it capital participation was ceased in the goods slandered. The recovary of area gradualy turnover. started from 1934. Actual common trade enterprise forms its Because we have not enough warehouses and stores in Berane, information's on market development in the Andrijevica and Plav. From nationalized area, we will be using meager information's private stores in year 1949. Republic trade from M. Savi}. In the year 1921. in the area enterprise was formed, wnich was were 22 slaughterhouses, 24 vegetable stores reorganized in 1950. to Main purchasing and 25 stores. Same author is quotes that in enterprise, and in year 1954. into "Jasikovac'' the year 1929.from the Berane market was enterprise. In the same year in Berane an exportet 5 railroad cars of wool, 6 railroad enterprise "Poljopromet'' was formed only to cars of cheese, 2 railroad cars of cream, 50 be integrate in Podgorica enterprise with the railroad cars of potatoe, 30 railroad cars of same name wnich was changed into sheep, 40 railroad cars of grain, 50 railroad "Prehrana''. cars of corn, 5 railroad cars of plum, 5 Trade enterprise for mixed and industrial railroad cars of apple, 1000 oxes, 500 cows, goods turnover on a large scale "1. May'' 1200 sheeps, 500 goats, 1000 swines, raw exists in Andrijevica since 1953. It operates hides, fures, alcoholic drinks, wood products with assortment of goods spacious [6]. consumption and is the main supplier of On the eve of the Second World War in municipality and partialy of neighboring Gornje Polimlje was 40 merchant stores. also areas (Berane, Gusinje i Plav). Berane, Andrijevica and Plav had livestock In Plav-Gusinje basin there was not one fairs, grain market, hay market, wood local trade organization, and so collective market, wood products market and farms took their tasks along with trade firms 150 J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 from Berane, Andrijevica and elsewhere. emphasize the effects that would be achieved Holder of agricultural products purchase by production and sale of souvenirs and (meet, cheese, potatoe, medicinal herbs etc.) articles of domestic production'' [3]. was collective farm "Aljo Hot'' from Gusinje. This datas are giving the full picture of Along with these trade firms in Gornje accessible level of trade network Polimlje some of other stores outside this development. Fact that capacites in Gornje area were operating: "Jugopetrol", "Borovo", Polimlje are not brought to required level is "Košuta", "Ibar", "Gradina", "Elektrotehna" i seen from underlined data. That data are druge. telling us of Gornje Polimlje's small number Proceeding from importance of trade for of employed by one trade capacity (2,1), economy development, we can ask question unsufficent trade room of 11.777m2 and whether is trade of Gornje Polimlje adequate dissatisfiing number of stores per inhbatians and adapted to population economic (231). requirements? The answer to this question Trade development on small scale could we will obtain when we look at level of trade be realized on the base of reports on work of development in this area so far. That level we economic departments. In can perceive through main quantitative and year 1998. In Andrijevica municipality, there qualitative changes during a relatively longer were 37 stores, in 472 period. Besides this trade on small scale is and in 76. Average number the best illustrate on economic trend of of employees by store was 1,3 in Andrijevica Gornje Polimlje so far. and Plav and 1,5 in Berane. Number of We can at once notice insignificant inhabitants per store was from 82 in Berane, participation of trade capacities, which 180 in Andrijevica to 254 in Plav. According Gornje Polimlje possessed in these years, or to this, in new conditions of marketing to say in other words trade never longed to fit economy trade network of Gornje Polimlje into creation of economic offer. Achieved must change in its structure i adapt to new growth rate of trade capacities (Berane and needs, in aspiration to get close with its users Andrijevica - 2, 00%, Plav - 2, 34%) was not and customers. the result of accelerated economic Since there was no quality way of trade development, but rather divided and funcioning enforcement in case of Gornje unorganized trade network. From the same Polimlje, in the period ahead some concrete reason, in Gornje Polimlje, during this measures must be undertaken: period, turnover growth was achieved Optimal concept of capacity build and expressed in thousands of diners from adding of characteristic functions in trade, 69.972 (year 1968.) to 3.744.507 (year while the sale capacities and technical- 1992.) or by year growth rate of 0,08%. distributive capacities would have priority, Total trade turnover calculated by current Reconstruction and modernization of prices and achieved by on inhabitant, in this existing capacities, and build of new one. period by one inhabitant, increased fastest in Here we think of department stores system, Plav by the rate of 0, 11%, and slowest in supermarkets and specialized stores. These Berane and Andrijevica - 0, 07%. We believe capacities have no place or notable part in that Plav's fastest trade turnover increase existing trade network of Gornje Polimlje. helped tourist turnover. ''It is too much to J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 151

Table 1. Small market by municipalities in Gornje Polimlje

Growth rate Municipalities 1968. 1978. 1984. 1992. 1968 – 1992.

Berane and Andrijevica À) number of stores 133 189 228 227 2,00 B) turnover in thousands of diners 59.992 471.700 2.717.000 3.351.592 0,71 C) turnover by residents 1.256 8.541 52.745 73.420 0,07 Plav À) number of stores 32 59 72 57 2,34 B) turnover in thousands of diners 9.980 105.400 564.000 392.915 0,11 C) turnover by residents 516 4.830 32.925 20.353 0,11 Gornje Polimlje À) number of stores 165 248 308 334 2,06 B) tturnover in thousands of diners 69.972 577.100 3.281.000 3.744.507 0,08 C) turnover by residents 1.772 13.371 85.670 93.773 0,08 Source: RZS, Municipalities in Montenegro (appropriate year) Under these stores, we assume existing of by means of market research function unites. trade firms that would engage in sale of That function should equally include market drinks, groceries, homemade products, and optimal acquisitions, analysis and souvenirs etc. This could be in function not prognosis of market. According to this, only for domicile inhabitants, but also for market demands must be seriously treated economic market. Besides we think that this and respected [4]. would stimulate agricultural sector-purchase,

Table 2. Expanse dispersion of trade network by municipalities of Gornje Polimlje in year 1989. Number of Number of Sale keep scope in Area inhabitans by store employed by store m2 Berane and 196 2,2 9.330 Andrijevica Plav 402 1,6 2.447

Gornje Polimlje 231 2,1 11.777

Source: RZS, Municipalities in Montenegro (appropriate year) cooperation etc. Overcome division of trade network, 4.NECESSITY OF TOP MANAGEMENT improve quality of service, mutual INTRODUCTION IN MARKET FIRMS cooperation of trade, touristy-catering and OF GORNJE POLIMLJE other economic organizations and Cooperation of mentioned organizations In order to help faster development of 152 J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 market in Gornje Polimlje and to use all must be familiar with all these flows, so he potential possibilites, it is necessary to make can track them and creatively direct them many changes, starting from social treatment towards well-being of his organizaiton, but of this area, to concrete measures of market also for well-being of his business partners and total economic policy. Amongst these and social-economic environment in wnich changes, that have to be achieved, top the business is performed. management introduction in market firms of Communication is very important Gornje Polimlje is priority and necessity in function in every business system. The more order to fulfill desired results. This research is trade system jagged, the greater is is not the only one pointing on them, but also communication's influence. Communication the considerable number of positive in trade can be classified, so there exist: experiences from other regions of Europe. - visual, verbal, tactile, auditive, scent and In theory we have a standpoint, in practice other sensual sorts of communication, it is confirmed, that the handling functions - intended, planned, unintended, and topics of market business system top unplanned communaction, management are differing through next - indirect and direct, organiyational activites: - direct (thelephone), correspondence - channel turnover creation, (writing), internet and other, - decision making, - interpersonal and others as much as - strategy creation, tactics and operation imagination of manager [10]. of practical affect, Decision making is the main activity of - motivational urge, top management in marketing. ''Skill of - informatics management and decisions making lie down in timely and - business processes management [8]. rationaly decision making, not too early not Channels of turnover present the roads too late, not decisions that can't be wnich could be used for goods transportation performed, not decisions that must be taken from producers to its final users. Through by other man'' [11]. Therefore, good channel of turnover main flows of this informations are the base for succesfull activites are developing, organizing trade decision making. If level of management is work. higher, informations are all-inclusive, up-to- Throught trade three main flows of these date and valid. activites are developing, and they must be Policy creation, tactics and operations is permanently designed and coordinated: achieved through process of decision making - flow of merchandise and services (flow in top management. Trade organization of merchandise worth), from primary policy comes from choice of development producers, through processors and vision and mission of top management, merhcants, to final consumers, wnich represent base for further operations - money flow (flow of monetary worth), in practical conditions. In trade important wnich is operating in other direction than parts of top management are: policy of above mentioned, communication, policy of purchase, policy - flow of informations, wnich is of marketing logistics, policy of sale, policy developing in different directions [9]. of promotions, financial, staff and other. Top management of trade organization Strategy of business making presents J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 153 middle-period and long-period of business market organizations should know these and making and making of right moves for other motivational theories, in order to market organizations. Tactical part of this understand subject with whom are strategy is achieved through operative communicating, psychologicaly urge to decision making and perfomring in short desirable behavior in mutual or individual time period. Work process presents practical work. implementation of chosen strategy and Successful top manager must direct data tactics. Strategy, tactics and operations are and his ability is demonstrated buy his obtain achieved through business plans, middle- of relevant informations and right decision period and long-period programs of business making. This is exactly the reason for top making and other project instruments of manager's strategy development, tactical and management and market organization. By operational informations, using all needs, to strategy we can achieve many business get more quality informations in his work projects, chose and lead drastic turns in way [12]. of work and business of market organization. Considering that business world is Tactics are adopted through making short- everyday overflown with informations, top period decisions and operative plans. manager in market organization must Which strategy, tactics or operation will perform careful choice of informations and manager apply in market organization and in according to them to make quality decisions. certain situation, wnich depends of many So in order to achieve quality informations, circumstances, like: in market organization he should form - his knowledge and capability, suitable marketing of informatons system, - position of market organization in for quality of identification, gathering, channels of flow and in interactive processing and preparation, efficient relationships with environment, shipping and store keeping of relevant - top management, wnich is limited by business informations [13]. type of firm, or by type of merchandise flow Process management in marketing of mentioned organization, requires skill, talent and knowledge of - it's psychological constitution, management. It includes many activites of - achieved position and authority in businees syste: market reserch, purhcase, market organization and other factors. delivery, storage keeping, offer promotion, profit disposal of goods on target marketing Motivational urge on buyer to buy more, etc. Successful top manager in marketing business partner to cooperates, is important should know in wnich period of life cycle function of every top manager in market (creation, growth, development, maturity, organization. In marketing theory, business decline) his market organization is, or its psychology and staff management many product (non-invested product), in order to classical and modern theories were formed, take measures to revitalize (market, most notably one from Abraham Maslow technology and other) market organization, (hierarchy of human needs), Sigmund Freud or product. (unconscious mind), Carl Jung (collective It is necessary for top management to unconscious), russian scientist Pavlov operatively covers all field of activites, (conditional reflexes) etc. Top managers in especialy these works: 154 J.Bulatovi} / SJM 2 (2) (2007) 147 - 155 - trade organization planning and goods Andrijevica and Plav municipality was 1,3, assortment planning, and in Berane municipality 1,5. Number of - tracking of plan carrying and concrete inhabitans on one store was between 82 in measures undertaking, if plan is not working Berane municipality, 180 in Andrijevica out in desired way or desired dynamics, municipality, to 253 in Plav municipality. - tracking of legal regulation and carrying According to this, in new conditions of out concrete management activites, marketing economy there is no considerable - development of evidence business and fittage in economic offer creation. directioning of informational flows, In order for market development in - tracking of competition and tracking of Gornje Polimlje and adequate use of competiting markets, substitute and potential possibilites, it is necessary to make complementary products, many changes, starting with social treatment - managing of staff policy (admission, of this area, concrete measures of marketing training, managing, tracking and control of and total economic politics. With this many staff), changes, top management introduction in - promotion of trade organization and market firms of Gornje Polimlje are priority programs she's offering etc [14]. and necessity if we want to achieve full Neglecting any of these spheres of effect. This research is not the only one activity can create problems in trade pointing on them, but also the considerable organization, no matter if the other aspects of number of positive experiences from other busineess are decently covered. That is why regions of Europe. top managers of trade organizations must, not only do tracking of business aspects of Literatutre their business systems, but also they have to track business and cultural events in their 1. G.D.Rajovi}, Geography basic evolution environment, and also events on science and for economy Gornjeg Polimlja,"Vedes", business technoly field, where one can Beograd, 2005, pp.2. obtain many chances but also many 2. 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