JPMNT
Journal of Process Management – New Technologies INTERNATIONAL
ISSN: 2334-7449 (Online) ISSN: 2334-735X (Print)
Volume 6 Issue 4 October 2018.
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(JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018. JOURNAL OF PROCESS MANAGEMENT – NEW TECHNOLOGIES
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First edition, 2013.
Editor: Prof. Predrag Trajković PhD
Publisher: Mapro Predrag Trajković KD, Vranje
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A Limited partnership MAPRO from Vranje, Serbia, publishes JOURNAL OF PROCESS MANAGEMENT - NEW TECHNOLOGIES INTERNATIONAL and offers membership and cooperation for writing scientific papers that, after the test on plagiarism, review and proofreading published under instruction that is attached. Partnership was established in 1990. as a marketing project aimed at public opinion polls and market trends in the area of southern Serbia. Cooperation with young people especially students and young entrepreneurs in the pioneer period, the appearance of entrepreneurship in our country, for the introduction and development of marketing management, and application of new knowledge in economic practice and the creation of conditions for sustainable development, environmental awareness and health education. Statistical monitoring trends and developments investments and measure the effects of changes investment. Special whether additional review is to discover and use new resources in an optimal manner with the use of new technologies. The aim of publishing this magazine is to engage researchers and scientists, from all parts of the world, to his knowledge, both theoretical as well as practical in writing concentrated more on one site in the form of publications, which will contribute to their greater recognition and the development of economy and society. Management process of new technology permeates all aspects of social life which is a huge area of coverage through this magazine. Sincerely, Prof. PhD Predrag Trajković
Komanditno društvo MAPRO iz Vranja izdaje časopis MENADŽMENT PROCES – NOVE TEHNOLOGIJE INTERNACIONALNI pa Vam nudi saradnju za članstvo i pisanje naučnih i stručnih radova koje, posle testa na plagijarizam, recenzije i lekture objavljuje shodno uputstvu koje je u prilogu. Društvo je osnovano 1990.godine kao marketing projekt sa ciljem istraživanja javnog mnjenja i tržišnih kretanja na prostoru Južne Srbije. Saradnja sa mladim osobama posebno studentima i mladim privrednicima u pionirskom periodu pojave preduzetništva kod nas, za upoznavanje i razvoj marketing menadžmenta, kao i primene novih saznanja u privrednoj praksi te stvaranje uslova za održivi razvoj, podizanje ekološke i zdravstvene kulture. Statistička praćenja tendencije kretanja ulaganja i merenje promene efekata te opravdanost dodatnih ulaganja. Poseban osvrt je na otkrivanje i korisćenje novih resursa na optimalan način uz primenu novih tehnologija. Cilj izdavanja ovog časopisa je animiranje istraživača i naučnih radnika, sa svih prostora sveta, da svoja saznanja, kako teoretska, tako i praktična u pisanoj formi koncentrišu na jednom mestu u vidu publikacije, što će doprineti njihovoj većoj afirmaciji i razvoju privrede i društva. Menadžment proces novih tehnologija prožima sve pore društvenog života što čini ogroman prostor obuhvatnosti rada kroz ovaj časopis. S poštovanjem, Prof. dr Predrag Trajković
Address of the editorial Board: Filipa Filipovica 28, 17501 Vranje, Serbia Phone/Fax: +381 17 413 586, +381 17 432 278 Web: www.japmnt.com E-mail: [email protected] [email protected]
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EDITORIAL BOARD
Editor PhD Predrag Trajković, Business school "Trajkovic", Vranje, Serbia
Editorial Advisory Board
Academician Full Professor DR. SCI. Angel Džambazovski, Institute of Applied Kinesiology - intensive rehabilitation physiotherapy and chiropractic, street. "Pirin" 38, Macedonia Academic Professor Radenko S. Krulj PhD, Serbian Royal Academy of scientists and artists, Council of academics, Serbia PhD Alla Belousova, Chair of Psychology of Education, Faculty of Pedagogy and Practical Psychology, Southern Federal University, Russian Federation PhD Andon Majhošev, Faculty of Law at the University of "Goce Delchev"-Stip, Macedonia PhD Dana Mesner Andolšek, University of Ljubljana, Faculty of Social Sciences, Kardeljeva pl. 5, SI-1000 Ljubljana, Slovenia PhD Dejan Tubić, College for Management in Tourism and Informatics in Virovitica, Croatia PhD Ekaterina Dimitrova Kyuskieva-Arabska, University of agribusiness and rural development – Plovdiv, Faculty of economics and management, Plovdiv, Bulgaria PhD Robert Dimitrovski, MIT - University, Dean of the Faculty of Management, Skopje, Macedonia PhD Gabriela Paula Petruta,University of Pitesti, Arges County, Romania PhD Hemanta К. Baruah, Vice-Chancellor, Bodoland University, India PhD Henrietta Nagy, Szent István University, Faculty of Economics and Social Sciences, Hungary PhD József Káposzta, Szent István University, Faculty of Economics and Social Sciences, Hungary PhD Jurka Lepičnik Vodopivec, Faculty of Education of the University of Primorska and of the University of Maribor, Slovenia PhD Ljubiša Stojmirović, High business School, Belgrade, Serbia PhD Mladen Ivić, PIM University of Banja Luka, Republic of Srpska, Bosnia and Herzegovina PhD Nada Živanović,Faculty of Business and Industrial Management, University "Union - Nikola Tesla", Belgrade, Serbia PhD Natasha Georgieva Hadji Krsteski, University "MIT", Faculty of Security, Skopje PhD Nikola Vojvodić, PIM University of Banja Luka, Republic of Srpska, Bosnia and Herzegovina PhD Oksana Baruskova, Chair of Psychology of Education, Faculty of Pedagogy and Practical Psychology, Southern Federal University, Russian Federation PhD Ranjan Upadhyaya, Professor & Director, UBS- Mumbai- India PhD Svetlana Trajković, Collage of applied professional studies, Vranje, Serbia iv www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
PhD T. C. Manjunath, Ph.D. (IIT Bombay), FIETE, MIEEE Principal, HKBK College of Engg., 22 / 1, Nagawara, Arabic College Post, B’lore-45, Karnataka, India PhD Veljko Vuković, PIM University of Banja Luka, Republic of Srpska, Bosnia and Herzegovina PhD Vladimir Matić,Vocational school Vukovar, Croatia PhD Zoran Božič, University of Nova Gorica, Faculty of Humanities, Slovenia
Secretary Snežana Manasijević Milkić, Masters of Laws, The company for consulting and engineering Mapro, Vranje, Serbia Technical editor PhD Lazar Stošić, College of professional studies educators, Aleksinac, Serbia Technical editor deputy Ana Kostić Stošić, MSc, The company for consulting and engineering Mapro, Vranje, Serbia Lector Maja Mihajlović M.A. in English Language and Literature, High business school, Vranje, Serbia Lector Ana Stanković M.A. in English Language and Literature, Business school "Trajkovic" Vranje, Serbia
REVIEWER BOARD MEMBE RS
PhD Agnes Csiszarik-Kocsir, Obuda University, Keleti Faculty of Business and Management, Hungary PhD Aleksander Janeš, University of Primorska, Faculty of Management, Slovenia PhD Aleksandra Gruevska-Drakulevski, University of "Ss. Cyril and Methodius", Law Faculty "Iustinianus Primus", Skopje, Macedonia PhD Aneta Barakoska, University "Ss. Cyril and Methodius", Faculty of Philosophy, Skopje, Macedonia PhD Anica Milošević, College of applied technical sciences, Nis, Serbia PhD Anita Prelas Kovačević, College for Management in Tourism and Informatics in Virovitica, Croatia PhD Biljana Petrevska, "Goce Delcev” University – Stip, Faculty of Tourism and Business Logistics, Stip, Macedonia PhD Boško Vojnović, Higher School of Agriculture in Šabac, Serbia PhD Csaba Szűcs, Faculty of Marketing and Hospitality at the Gyöngyös Campus of Eszterházy Károly University, Hungary PhD Dejan Tubić, College for Management in Tourism and Informatics in Virovitica, Croatia PhD Dejan Vitanski, University "St. Kliment Ohridski" - Bitola, Faculty of Law - Kicevo, Macedonia PhD Dervis Kirikkaleli, Business Faculty at the Girne American University, North Cyprus
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PhD Dragi Rashkovski, University "Ss. Cyril and Methodius", Law Faculty "Iustinianus Primus", Skopje, Macedonia PhD Dušan Jarić, University "Union - Nikola Tesla", Faculty of Business and Industrial Management, Belgrade, Serbia PhD Edit Székely, Budapest University of Technology and Economics (BME), Faculty of Chemical Technology and Bioechnology, Department of Chemical and Environmental Process Engineering (KKFT), Budapest, Hungary PhD Ekaterina Dimitrova Kyuskieva-Arabska, University of agribusiness and rural development – Plovdiv, Faculty of economics and management, Plovdiv, Bulgaria PhD Elena Ignovska, University "Ss.Cyril and Methodius", Faculty of Law, Skopje, Macedonia PhD Emanuel Soare, Vice Rector at University of Pitesti, Arges County, Romania PhD Erzika Antić, University of Travnik, Pharmacy and medical faculties, Travnik, Bosnia and Herzegovina PhD Gordana Bogdanović, College of Applied Professional Studies, Vranje, Serbia PhD Henrietta Nagy, Szent István University, Faculty of Economics and Social Sciences, Hungary PhD József Káposzta, Szent István University, Faculty of Economics and Social Sciences, Hungary PhD Jugoslav Aničić, University Union - Nikola Tesla, Faculty of entrepreneurial business, Belgrade, Serbia PhD Jelena Maksimović, Faculty of Philosophy, University of Niš, Serbia PhD Ka Lok Man, Xi’an Jiaotong-Liverpool University (XJTLU), China PhD Ljiljana Stošić Mihajlović, College of applied professional studies, Vranje, Serbia PhD Vitus Lam, The University of Hong Kong PhD Margarita Matlievska, Faculty of Economics, "Goce Delcev" University – Stip, Macedonia PhD Megi Rožič, University of Nova Gorica, Faculty of Humanities, Slovenia PhD Mitricka Stardelova, Faculty of Physical Education, University St. Cyril and Methodius, Skopje, Macedonia PhD Miroslav Milutinović, University "Union Nikola Tesla", Faculty of Law, security and management "Konstantin Veliki" Nis, Serbia PhD Miroslav Pavlović, The Union University, Faculty of Property Management, Belgrade, Serbia PhD Mirche Kokalevski, MIT University, Faculty of Architecture, Skopje, Macedonia PhD Nataša Simić, University of Union Nikola Tesla, Faculty of entrepreneurial business and management of real estate, Belgrade, Serbia PhD Nikola Petrović, High medical college of professional studies"Milutin Milankovic", Belgrade, Serbia PhD Petar Namichev, University of Goce Delcev, Faculty of Natural & Technical Sciences, Stip, Macedonia vi www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
PhD Predrag Raosavljević, PIM University of Banja Luka, Republic of Srpska, Bosnia and Herzegovina PhD Radmila Ćurčić, University Union-Nikola Tesla, Faculty of business and industrijal management, Belgrade, Serbia PhD Radovan Ilić, University "Singidunum", Faculty of Physical Education and Sports Management, Belgrade, Serbia PhD Rayna Zaharieva, Sofia University "St. Kliment Ohridski", Department for information and teacher's qualification, Bulgaria PhD Svetlana Trajković, Director in the Collage of applied professional studies, Vranje, Serbia PhD Svetlana Veljanovska University "St. Kliment Ohridski" - Bitola, Faculty of Law - Kicevo, Macedonia PhD Svetlana Vukotić, University Union - Nikola Tesla, Faculty of entrepreneurial business and management of real estate, Belgrade, Serbia PhD Srdjan Radulović, University of Prishtina, Faculty of Law, Serbia PhD Straško Stojanovski, University Goce Delchev, Faculty of law, Stip, Macedonia PhD Tatijana Ashtalkoska Baloska, FON University, Faculty of Law, Skopje, Macedonia PhD Vera Naumovska, State university "Cyril & Methodius", Fakulty of Economics, Skopje, Macedonia PhD Vesna Petrović, University of Union Nikola Tesla, Faculty of entrepreneurial business and management of real estate, Belgrade, Serbia PhD Vojo Belovski, Faculty of Law in the University "Goce Delcev" in Stip, Macedonia PhD Zoran Lovreković, Higher education technical school of professional studies, Novi Sad, Serbia PhD Zorica Siljanovska, FON University, Faculty of Law, Skopje, Macedonia
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CONTENTS
PAGE 1 - 8 Paper 1: THE INFLUENCE OF ECO-MATERIALS ONFURNITURE AND INTERIOR PRODUCTION IN MACEDONIA
Authors: Petar Namicev, Viktorija Tasevska, Macedonia
PAGE 9 - 16 Paper 2: GOING GLOBAL - ACTING LOCAL: MARKETING STRATEGY OF SIEMENS IN SERBIA
Authors: Aleksandra Stojiljković, Slađana Đurić, Serbia
PAGE 17 - 26 Paper 3: DESIGNING MARKETING CHANNELS: MULTIPLE MARKETING CHANNELS AT WINERY “MAČKOV PODRUM”
Authors: Slađana Đurić, Aleksandra Stojiljković, Serbia
PAGE 27 - 34 Paper 4: SWOT ANALYSIS - THE TOOL OF ORGANIZATIONS STABILITY (KFC) AS A CASE STUDY Authors: Soran K. Omer, Iraq PAGE 35 - 40 Paper 5: THE ROLE OF COMMUNICATION MANAGEMENT IN SPORTS WITH SPECIAL EMPHASIS ON HANDBALL
Authors: Jadranka Denkova, Mirjeta Bajramovska, Macedonia
PAGE 41 - 49 Paper 6: TOBACCO PRODUCTS STOCK MANAGEMENT ON THE CASE OF THE RETAIL CHAIN IN THE REPUBLIC OF SERBIA
Authors: Tanja Tekić, Dragana Tekić, Serbia
PAGE 50 - 64 Paper 7: INFLUENCE OF FOREIGN DIRECT INVESTMENTS ON ECONOMIC DEVELOPMENT OF THE REPUBLIC OF SERBIA
Authors: Milan Šušić, Bosnia and Herzegovina
PAGE 65 - 69 Paper 8: ANALYZING THE AMAZON SUCCESS STRATEGIES
Authors: Zana Majed Sadq, Hawre Nuraddin Sabir, Vian Sulaiman Hama Saeed, Iraq
PAGE 70 - 78 Paper 9: THE COURT EXPERT AS A MEANS OF EVIDENCE IN THE LITIGATION PROCEEDINGS
Authors: Vojo Belovski, Vlatko Nacev, Macedonia
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PAGE 79 - 84 Paper 10: SELF-REGULATORY SYSTEMS: SELF-REGULATION AND LEARNING
Authors: Maja Matric, Slovenia
PAGE 85 - 89 Paper 11: DOES IT MATTER HOW THE STUDENTS FEEL? PRACTICAL IMPLICATIONS OF SOCIAL RELATIONSHIPS IN SCHOOL
Authors: Maja Matric, Slovenia
PAGE 90 INSTRUCTIONS TO AUTHORS
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(JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
THE INFLUENCE OF ECO-MATERIALS ONFURNITURE AND INTERIOR PRODUCTION IN MACEDONIA
Petar Namicev1, Viktorija Tasevska2
1,2 University Goce Delcev Shtip, Republic of Macedonia [email protected], [email protected]
Professional Paper doi:10.5937/jouproman6-19121
Abstract: The modern style of living very often Introduction: dictates us to spend great part of our time in a working atmosphere i.e. in business space with The green or eco- friendly interior business services, in restaurants, as well as in design includes design- solutions of hotels. That is why it is very important these kinds of environment to be planned in a way that would interiors which include the use of eco- remind us on a cozy domestic atmosphere. materials used to design the look and the atmosphere of the home. With the use of In the interiors, sustainable materials still eco-friendly interior design, not only that it have the epithet of timeless materials which never go out of fashion. However, the special moment in positively influences health of people choosing the material depends on an individual’s living in this type of home, but it also lifestyle. captures harmony of the interior, which gives itself a feeling of tranquility and Recently, more emphasis is put on the fulfillment, and yet reduces the living costs quality and longevity of natural (eco) materials, because not only they are good for people and in the home. living environment, but also the same ones are with an unsurpassed quality. The materials used as their (Carla J. Nilson, David A. Taylor, 2012). replacement cost less, but their quality is not nearly with the same quality and longevity. “The interior is natural protection of the soul.” - Coco Chanel The term eco-material represents a term which widely includes natural resources derived The concept eco-design in the directly from nature, and the same ones can be used section of construction is defined as: for various projects in interior design. With the use of natural materials in the home, there is a warm “creation and responsible management of feeling which is also felt in the nature itself. healthy built living environment, based on effective use of resources and ecological In Macedonia the use of eco -materials is principles.” different, depending on the type of production of the furniture manufacturing companies. On the Ecological and green design basis on the researches that I made of some Macedonian companies of this type, you will learn represents any form of design which what materials, and in what percent and what minimizes ecological destructive purpose they are used for. influences with emulation and integrity with natural eco systems, well known as Key words: Ecological, green, design, material, furniture design, interior design. eco-design.
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As such, the eco-design strives to is vital. It spends natural resources as provide a framework of ecological much as needed energy for production. It adequate system of design and is based on technical needs such as: price, management with incorporation of hardness, temperature stability, density, as anthropogenic ecological values, in spatial well as resistance of the material itself. time scales. (Fan Shu-Yang, F. Freedman, (Mike Ashby, Kara Johnson Elesevier, B. and Cote,R.2004). 2002).
The principles of eco-design can be Natural or eco-materials represent applied within framework of continuum of materials derived directly from nature can spatial dimensions, such as individual be used for different types of projects for homes, settlements, industrial zones, as home design, where they give the home well as making products. Therefore it can the warm atmosphere felt in nature. be concluded that eco-design can be Natural materials used in interior design applied for improvement of the already are: wood, bamboo, wooden girders, existing environments, also for planning stones, leather, metals etc. new ones. It can also be used widely in the development and production of certain On the basis on researches made products. for eco materials and their use in the world, I have made a survey in some With continuous increase of Macedonian furniture manufacturing human population and industrial companies, as well as their use of eco production, also grows the concern for the materials in their production: living environment, and the main reason for this is extraction and use of materials, 1. SIMPL – MEBEL (established in use of products and their final recycling or 1998, in Radovish with activity – destruction. Within the framework of this production of upholstered furniture). context, eco-design is well known as a 2. GUN INTERIER(established in strategy which is applied for reduction of 1990 in Gostivar, with activity – influences in connection with production production of dining Room tables and consumption of products. and chairs and club tables). According to what has been said so 3. JUMIS (established 2008 in Kochani, with activity – production far, interior architecture as a discipline of upholstered furniture and flat controls design of interior space, and also surfaces). it has a potential to control and give 4. DRVO PRODUKT (established in direction to ecological and green 2002 in Pehchevo, with activity – parameters of interior design. (W. Wimer, production of dining tables and 2004). chairs and club tables). 5. ZLATEV INJINERING 1. Application of eco-material in (established in 2016 in Shtip, with Macedonia activity- production of flat furniture). Materials are part of our everyday 6. PIRAMIDA (established in 1993 life. They are met in every single segment in Strumica, with activity – by which we are surrounded, and production of flat furniture. depending on their type they are On the graphic display, a characterized with the a variety of features. percentage presence is represented of eco- The choice of material for a given product materials:
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USE OF ECO / NATURAL MATERIALS %
PIRAMIDA 40% ZLATEV INJINERING 20% DRVO PRODUKT 60% JUMIS 30% GUN INTERIER 60% SIMPL – MEBEL 10%
0 10 20 30 40 50 60 70
Chart 1 : Use of eco/ natural materials in Macedoniа
From the graphic display it can be However, during their production it noticed that according to the type of the can be noticed a use of artificial – furniture produced by the Macedonian conventional materials whose use is much companies, eco materials are used for more present than the one of the eco- different purposes. So the percentage use materials. of the eco materials depends on the purpose of the companies. The companies On the graphic display, a which produce dining tables and chairs, percentage presence is represented of eco- use eco- materials for making a materials and also of artificial – construction of their products, while, the conventional materials, used by the rest of them use these materials for surveyed companies. production of details, or for fastening and twisting of the construction of the product.
100 90 80 70 Natural/eco 60 materials % 50 40 30 Artificial 20 /conventional 10 material %
0
JUMIS
MEBEL
–
ZLATEV
PIRAMIDA
INJINERING
GUN INTERIER
SIMPL DRVOPRODUKT
Chart 2: Use of eco materials versus conventional materials in Macedonia
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For each company a different percent of In continuation, on the graphic the use of eco material is noticed, but still, display, the quality and economic factor it is on a lower level in relation to the are represented with their influence of the application of the use of conventional selection of materials, which are supposed material. to be used by the surveyed companies, for production of their products: Often in selecting materials, the crucial role have some decisive factors, among which are quality and economic factor.
DECISIVE FACTOR OF THE COMPANIES IN SELECTION OF MATERIALS
PIRAMIDA
ZLATEV INJINERING
DRVO PRODUKT
JUMIS
GUN INTERIER
SIMPL – MEBEL
0% 20% 40% 60% 80% 100%
Quality of a product % Economic factor %
Chart 3: Аn influential factor in the selection of materials among the surveyed firms in Macedonia
From the graphic display it can be which put quality on the first place, not seen that, in general, the companies in paying attention how the same one would Macedonia strive to use materials which influence the final price of the product will give a good quality of a product, but (SIMPL - M and DRVO PRODUKT). at the same time they will also satisfy the economic factor, i.e. they will not be too Materials used by the companies expensive (GUN INTERIER, JUMIS, supplied from various markets, and their ZLATEV INZHINERING and percentage relation are presented in the PIRAMIDA); there are also companies following graphic display:
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MARKET OF SUPPLY OF MATERIALS 120
100
80
60
40
20
0 SIMPL – GUN DRVO ZLATEV JUMIS PIRAMIDA MEBEL INTERIER PRODUKT INJINERING Foreign market % 0 50 0 30 40 30 Domestic market % 100 50 100 70 60 70
Chart 4: Market of supply of materials to the surveyed firms in Macedonia
From the above given graphic display, it companies in Macedonia for furniture can be concluded again that material used production was made, from the surveyed in Macedonian production of furniture are results it can be concluded that in R. mostly supplied not only from domestic Macedonia, the companies for furniture but also from foreign market, but each production use eco-materials for different they are supplied in a different way by use and in percentage. In general, these each of the companies. eco-material are used by the companies which make dining tables and chairs, for production of design constructions. The CONCLUSION other companies which make corporeal furniture and sitting furniture, mostly use On the basis on the made artificially made material, while eco - researches based on natural/eco materials, materials are used by them to make details their characteristics and divisions, as well or for tightening of the product as the way they are used, a survey of a few construction.
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SIMPL – GUN JUMIS DRVO ZLATEV PIRAMIDA SURVEYED MEBEL INTERIER Kochani PRODUK INJINERING Strumica FIRM Radovish Gostivar T Shtip Pehchevo
-Dining -Upholstery -Dining PRODUCTION Upholstery chairs -Flat chairs Flat furniture Flat furniture -Dining surfaces -Dining table table - Coffee - Coffee table table -Wood -Massive -Wood -Massive -Wood -Wood -Metal wood -Metal wood -Boards -Boards - Plywood - Steamy - Plywood - Steamy - Plywood - Plywood -PU soft beech -PU soft beech - Cork -Metal USED foam -Boards foam -Boards MATERIALS -Furniture -Wood glue -Furniture -Wood glue fabric -Water fabric -Water paint - Leather paint -Acrylic - Glass -Acrylic paint - Boards paint -PU soft -PU soft foam foam -Eco- -Eco- leather/ leather/ furniture furniture fabric fabric
10 % 60 % 30 % 60 % 20 % 40 % TYPE OF Natural Natural Natural Natural Natural Natural MATERIALS 90 % 40 % 70 % 40 % 80 % 60 % Artificial Artificial Artificial Artificial Artificial Artificial
DECISIVE 50 % 50 % 50 % FACTOR OF Quality Quality 50 % Quality Quality THE 100 % 100 % COMPANIES IN Quality 50 % 50 % Quality 50 % Economic 50 % SELECTION OF Economic Economic factor Economic MATERIALS? factor factor factor
Table 1: Survey results from the questioned firms
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50 % 70 % 60 % 70 % Domestic Domestic Domestic Domestic MARKET OF 100 % market 100 % market market market SUPPLY OF Domestic Foreign MATERIALS? market 50 % market 30 % 40 % 30 % Foreign Foreign Foreign Foreign market market market market
EXPERIENCE WITH ECO 20 years 28 years 10 years 16 years 2 years 25 years MATERIALS?
Massive Massive -Beech -Beech tree THE MOST wood wood tree -Eco USED ECO Beech tree steamed Leather steamed -Cork boards MATERIALS? beech beech -Water paint
PART OF For the PRODUCTION Strengthening Construction Construction outer part BASED ONECO the of products Upholstery of products Details of the MATERIALS construction of product products (parts that are visible)
THE MOST RECEIVED / Chairs TDF Sets Chairs Table Kitchen PRODUCT BASED ONECO MATERIALS? .
Table 2: Survey results from the questioned firms
The reason why Macedonian References: furniture manufacturers use eco-materials, Carla J. Nilsson, David A. Taylor - than the conventional ones, is mostly Interior Design: introduction: Ars lamina, because of their price. But the question, 2012. - 510 p.: Illustration; 25 cm. whether in their further production they Emilija Fidancevska, Vineta would use mostly eco-materials, the most Srebrenkoska- Materials Engineering: frequent response is positive one, because Project Activities in the Tempus Project they are easily maintained, they do not Tempus 158989-Tempus-1-2009-1-BE- pollute the living environment, and they Tempus- are long-life materials compared to the SAMARDZIOSKA, Todorka, Building artificial ones. Materials / Todorka Samardzioska. - Skopje: Faculty of Civil Engineering - Skopje, 2015 - 191 pages. : Illustration. ;
20cm.
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H. Stevanovic, A. Jovanovic: Life Cycle Fan Shu-Yang, F., Freedman, B. and Cote, Assessment Life Cycle Assessment as an R. “Principles and Practice of Ecological Instrument in Strategic Waste Design” Environmental Review Vol: 12, Management Planning, 2010, Monograph 2004 in a Stamp. David Pearson, The New Natural House, W.Wimer, Ecodesign implamantation, Ed. Conran, Octobus, 1989 Springer 2004 ISBN 1-4020-3070-3 Forest Products Laboratory. 2010. Wood Spiegel, Ross and Dru Meadows. Green handbook — Wood as an engineering Building Materials - New Jersey: John material. General Technical Report FPL- Wiley and Sons, 2006 GTR-190. Madison, WI: U.S.Department of Agriculture, Forest Service, Forest Materials and Design, Mike Ashby and Products Laboratory. 508 p. Kara Johnson Elsevier, Butterworth - Heinemann, 2002
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GOING GLOBAL - ACTING LOCAL: MARKETING STRATEGY OF SIEMENS IN SERBIA
Aleksandra Stojiljković¹, Slađana Đurić²
¹˒² Faculty of Economics in Subotica, University of Novi Sad; Republic of Serbia [email protected]; [email protected]
Original Scientific Paper doi:10.5937/jouproman6-18693
Abstract: When a company has been operating in the Russian state telegraph network (1853) the world for 170 years, and for 125 years in one to the Digital Hub in Singapore (2017), specific country, it more than surely deserves to have its business and marketing strategy from discovery of the dynamo machine by considered. There are not so many companies that Werner von Siemens (1866) to have achieved this and not so many companies can MindSphere (2016), through sales serve as an example of how a global company can difficulties during World War I and World be domestic. This is the case with Siemens in the War II to the overcoming of the crises, world and Siemens in Serbia, and there is probably no company which has influenced the industrial from employees’ first shares in company and economic development of Serbia in such a results (1858) to present Business to powerful way as Siemens. This is a sufficient Society concept, Siemens has become reason for studying the marketing strategy of during this 170-year-long period a Siemens, with the focus of this paper on studying worldwide global company, with around the business and marketing strategy of Siemens in Serbia, in order to identify the marketing strategy 377,000 employees in more than 200 that has brought this company to global success countries/regions (Wegener and and which can be used by other companies in their Karczewski, 2017). Today, according to presentation in the global market. Siemens – Global (2018) “Siemens is a Key words: Siemens, marketing strategy of global leader in electrification, automation Siemens, marketing strategy of Siemens in Serbia and digitization, and one of the world's largest manufacturers of energy efficient 1. Introduction resource saving technologies and a leading provider of power generation and Since Werner von Siemens invented the transmission systems, as well as medical first pointer telegraph and together with diagnosis and infrastructure and industrial Johann Georg Halske founded the solutions in which the company has a company “Telegraphen-Bauanstalt von leading role”. Siemens & Halske” in Berlin with 10 employees (1847). What followed was In its global business and marketing opening of London office “Siemens, strategy, the company applies the principle Halske & Co.” headed by William of local operating by opening its own Siemens (1850), the office in St. companies in foreign countries, which Petersburg (1855), Brussels (1871), Paris requires large investments in the research and The Hague (1878), Vienna and and development of each individual Warsaw (1879), Stockholm and Turin market, the costs of adapting to domestic (1880), New York (1886), Tokyo (1887), economic, cultural and political Rio de Janeiro (1888), Budapest (1890) conditions, but it also brings great benefits. and Chicago (1892). From establishing
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In its 170-year-long history, Siemens has Hanlon (2018) plays an important role in been operating for 125 years in Serbia. A creating marketing communications plans few companies in the world have such a that allow marketers to prioritize long tradition of doing business in a propositions, then develop and provide country and business in global. Such a personalized and relevant messages to long history and successful operation of different segments of the audience. STP is Siemens in the global market, as well as its focused on commercial efficiency, long tradition in Serbia market and the selecting the most important business importance of company for the economy segments, and then developing a development in Serbia, is certainly a marketing and product positioning strategy sufficient reason to study its business and for each segment. marketing strategy. There is not much literature on this subject, so the aim of this Rakita (2012) explains that the paper is, through the study of the significance of the segmentation of the marketing strategy of one such successful market in international marketing, as a company in global market as well as in strategic approach to international market Serbia market, to contribute to the study of targeting, except in respect of more Siemens marketing strategy, as well as to adequate selection of foreign markets, has pay homage to importance of Siemens in a great importance in the process of Serbia. planning, organizing and controlling international marketing activities, given its The first part of this paper is focused on preventive character, which enables the study of key elements of the Marketing successful international market selection. Strategy of Siemens, the main competitive In international business environment, the advantages and the analysis of competition significance of segmentation is particularly in the global market, while the second part increased due to the greater heterogeneity is focused on the study of Siemens of the market in demographic and cultural marketing practice in Serbia. The last part terms, as well as in the socio-political and relates to the conclusions we have reached economic-developmental terms (Jović, in this analysis - what the elements of the 2002; Rakita, 2012). marketing strategies of successful global companies such as Siemens are, which can According to Bhasin (2018) “Siemens uses serve as a guide to other companies geographic and demographic segmentation operating under the conditions of global strategies for the products for B2B market competition. businesses and demographic and psychographic segmentation strategies for 2. Marketing Strategy of Siemens the products and services intended for retail customers and differentiating The focus of Siemens marketing strategy targeting strategy to target MNC’s and is on careful segmentation and targeting government organizations to sell its foreign markets and on long-term products bundled with other offerings. positioning in them through the The company has positioned itself as a development of core competitive brand having a global presence and as a advantages. pioneer in electrical engineering and automation processes, and uses customer 2.1. The core elements of Marketing benefit positioning strategy to achieve Strategy of Siemens that”.
Segmentation, targeting, positioning (STP): The STP model according to
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Competitive advantage: What features Internationality: Operating in Russia was distinguished Siemens from other just the beginning. It soon became clear companies and enabled it to have a 170- that the company had an international year-long history of successful business? ambitions. But a lot of effort was required to establish the company as a local partner Research and development (R&D): This and a member of local society. To achieve is a key component of the Siemens this, it was not enough to simply speak the marketing strategy which implies constant local language, it meant understanding investments in the development of attitudes and local customs, and innovative and sustainable solutions for acknowledging them, and applying them the customers, in accordance with the wherever they are consistent with the company's strategy and safeguarding of values of the company as a whole competitive advantages. This is confirmed (Wegener and Karczewski, 2017). The by Annual Financial Report of the company is viewed not as a German company (AFR, 2017) according to which company, but as a local company in each “in fiscal 2017 company reported research country. This is what makes Siemens truly and development expenses of €5.2 billion, international. compared to €4.7 billion in fiscal 2016. The resulting R&D intensity, defined as Focus on quality and customers: This the ratio of R&D expenses and revenue, quality also emerged early in the was 6.2%, thus above the R&D intensity company’s history. According to Wegener of 5.9% in fiscal 2016. Additions to and Karczewski (2017) this quality and capitalized development expenses customer focus is visible, for example, in amounted to €0.4 billion in fiscal 2017, Siemens’ founding of a digital hub in compared to €0.3 billion in fiscal 2016. As Singapore and its collaboration with of September 30, 2017, Siemens held customers, partners and representatives of approximately 63,000 granted patents civil society there, to address the major worldwide in its continuing operations. As questions of the future facing the city- of September 30, 2016, it held state. approximately 59,800 granted patents. On average, company had 37,800 R&D Proven itself in crises and ability to employees in fiscal 2017”. change: Crises are part of company’s history, but it has always found ways to Innovativeness: From the beginning, overcome them, and come out stronger Siemens was defined by its each time, improving its main advantages. innovativeness. Its innovativeness started with the pointer telegraph, then with the Responsible action: Werner von Siemens dynamo machine and, as can be seen today incorporated this value into the company's in innovations like MindSphere, an strategy from the very beginning. He operating system for the Internet of Things thought that responsibility requires all (ToI). Over time, key creators of the employees to act as though the company is company history combined scientific their own, and creates an “ownership curiosity with entrepreneurial action to culture” that is brought to life every day. make Siemens the leading standard-setting company and master of the entire value Competitive analysis: A global company chain of electrification in the way that few has many competitors, but in this paper we competitors can do it (Wegener and will highlight some of the main Karczewski, 2017). competitors in several of the company's major business sectors.
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Amor, Valls, Casserras and Cortegiani Price: Siemens is present in different (2013) point out that one of the company's sectors, so the company's pricing policy is main competitors certainly is General different for each of them. According to Electric Co. (US), then Bombardier Inc. Annual Financial Report of the company (Canada) and Alstom SA. (France) in the for 2017 (AFR, 2017), “Power and Gas rail manufacturing sector, ABB Ldt. in businesses gives Siemens a profit margin energy sector, and Philips Electronics N.V. of 11 – 15%, Energy Management 7 – (Netherlands) in healthcare sector. 10%, Building Technologies 8 – 11%, Mobility 6 – 9%, Digital Factory 14 – 2.2. Marketing mix of Siemens 20%, Process Industries and Drives 8 – 12%, Healthineers 15 – 19% and Siemens The Marketing mix as a set of controllable Gamesa Renewable Energy gives Siemens variables serves to achieve a higher level a profit margin of 5 – 8%. These of customer satisfaction and, at the same percentages show that the company was time, achieves its objectives (Kotler and profitable in fiscal 2017 thanks to the Keller, 2017). policy of lower prices achieved by a mix of lowering production and installation Product: Siemens focuses on costs, and positive effects of project electrification, automation and execution and completion. Investments in digitalization. It operates in ten divisions: R&D are still high, as can be seen in the Building Technologies, Drive Technology, previous section”. Energy, Healthcare, Industrial Automation, Mobility, Financing, Place: Siemens is one of the leading Consumer Products, Services and global business leaders with business units Software. The Building technologies in more than 200 countries and with over division provide products, services and 370,000 employees. Siemens operates all solutions in its marketing mix that over the world on all continents and in optimizes the performance, energy costs almost every country like Austria, and infrastructure of buildings (Mba skool, Australia, Brazil, China (also see Ahsan, 2018). The Energy management division Qazi, Shahabuddin and Khan, 2014), provides cutting-edge products and Chile, Denmark, Egypt, India, Japan, services covering the entire energy value Serbia etc. Table 1. shows the company's chain like turbines and generators to presence in particular countries according virtual power plants or intelligent grid to the revenue and the number of management and innovative storage employees in fiscal 2017. solutions. Healthcare is separately managed business, with powerful mix of Promotion: Siemens has a very intensive unique products and services like Medical approach to its marketing mix strategy to Imaging, Ultrasound or Healthcare IT. reach the desired audience. It uses both Within the hardware and software traditional and modern marketing tools, portfolio of the company MindSphere, such as TV ads, online videos and print cloud-based, open IoT operating system ads and social media as well (Facebook, that connects products, plants, systems, Twitter etc.) to promote its campaigns. and machines has already been mentioned, Some of the famous Siemens campaigns enabling to harness data generated by the are: “Answers”, “Face the nation”, “Good Internet of Things (IoT) with advanced Morning America”, “Meet the press” and analytics (Siemens – Global, 2018). “Ingenuity for life” (Mba skool, 2018).
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Table 1. Global presence in fiscal 2017 Share of total Country Worldwide Americas Revenue¹ €23.5 billion 28% Employees² 76,000 20% Germany Revenue¹ €11.1 billion 13% Employees² 118,000 31% Europe (excluding Germany), CIS³, Africa, Middle East Revenue¹ €32.2 billion 39% Employees² 113,000 30% Asia, Australia Revenue¹ €16.2 billion 19% Employees² 70,000 19% 1 As reported in FY 2017; by customer location 2 As of September 30, 2017. With beginning of FY 2018 part time employees are included to the full extent. Prioryear information is presented on a comparable basis 3 Commonwealth of Independent States All figures refer to continuing operations. Source: Siemens-Global, 2018
in each of them. 1923 Siemens delivers 3. Marketing Strategy of Siemens in state-of-the-art electronic trams for the Serbia needs of Belgrade's city transport, and the Siemens has been operating in Serbia for first automatic telephone exchange system 125 years since 1887, but it was actually by Siemens started operating in Novi Sad present long before. The first product of (1927) and then in Belgrade (1931). In Siemens & Halske, which appeared in 1941, " Srpski Siemens Elektrik a.d." was Serbia, was the arc lamp, which was used founded, and in 1945 "Genex" company for the first time to illuminate the National started representing Siemens, and in 1960 Theater in Belgrade in 1882, and the Siemens started production and second one was the first telephone in technological cooperation with EI Niš, Serbia (1883). According to Marković, after which the Factory of High Frequency Antić and Šarenac (2012) from the first arc Devices, together with Siemens and lamp in Belgrade during 1881-1882, Genex, founded joint venture company Siemens began to play a key role in the under the name "EI VF-TEL" in 1990 electrification of Serbia, through the first (Marković et al., 2012). electric power station in Dorćol in Belgrade (1893), and then the first Serbian According to Siemens-Serbia (2018) in hydroelectric power station "Under the 1996, April 8th, the local company city" near Užice (1900) which is also the Siemens d.o.o. Belgrade was founded, first electric power station built according which currently employs about 1750 to Tesla's principles of polyphase employees engaged in all areas in which alternating current system in Serbia and the parent company is active, and in 2005 the other in the world, after Niagara in Siemens bought the factory Loher Elektro America. Then, hydroelectric power plants Subotica, which produces generators for were built near Leskovac (1903), Niš windmills, in which about 1600 of total (1908), Ivanjica (1911) and Zaječar employees work in. (1909), with Siemens equipment installed
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Operating through a local company is one advertisement in that time was dedicated of Siemens's key approaches in its global to the drawing or photographs of the marketing strategy. Local company Siemens product with the description of operates in the field of electrification, the features of Siemens equipment, and the automation and digitization, which are also accompanying graphics were paid special the areas of Siemens's long-term progress, attention. According to Marković et al. and in order to fully take advantage of the (2012) part of the material distributed in market potential in these areas, Siemens Serbia was printed in Cyrillic according to d.o.o. Belgrade is grouped into nine local market affinities. In addition to the divisions, where the healthcare division is telephone, Siemens' orientation to the additionally allocated as part of the radio, in the sense of production and business that is managed separately marketing, is very interesting, considering (Siemens-Serbia, 2018). These divisions that the radio at that time was still a produce a wide range of products and luxury product and considered as a solutions for the successful handling of privilege, but it was especially interesting fossil fuel power plants, the use of for the company, both from the production renewable energy sources, economical, and marketing perspectives, because the reliable and intelligent transmission and devise was portable and it could be used distribution of electricity, efficient and out of home. integrated transportation of people and Experiments were carried out with the goods by rail and road or supply of radio set in the car, which was also a modern medical and laboratory challenge in the sense of production and infrastructure. marketing at that time. Siemens introduced These products are distributed to public their radio devices to potential customers and private companies, such as utility and partners at fairs and radio shows, for services or, for example, public or example, Belgrade radio show in 1936. In independent electricity producers, addition, Siemens also participated in engineering, procurement and construction broader marketing campaigns aimed at companies (EPC) or industrial customers, promoting the use of electricity in for example, oil industry and gas industry, households, with the help of Bipel, ie. the all over Serbia, but also in the region and propaganda bureau for the use of beyond (Siemens-Serbia, 2018). electricity in Serbia (1937), and what is According to Marković et al. (2012) the most interesting, the first neon sign in company has developed very successful Belgrade was actually the Siemens cooperation with some of the largest commercial for Telefunken (Marković et Siemens customers in Serbia, such as EPS, al., 2012). EMS, NIS-Gazprom Neft, FIAT, Kolubara Since that time, technology has progressed and many others, through partnerships and drastically, but the needs of marketing to joint ventures. adapt to the economic, social, cultural and As an important part of this marketing mix political conditions of one country have within Siemens's marketing strategy in remained the same. Serbia, throughout its 125-year-long The marketing strategy of Siemens in history in this market, when promoting its Serbia has been affected by numerous own products or those belonging to its turbulent circumstances. The company has partners (such as Telefunken), Siemens had to leave the market several times due used a large number of advertisements to political circumstances, but for example, published in daily or monthly press and during the economic sanctions in Serbia, professional journals stated until 1941. Siemens played an important role in The central part of almost every providing assistance.
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There were other economic and socio- for 125 years is an important part of cultural difficulties that the company development of Serbia. successfully overcame, which is confirmed by 125 years of its successful business in Conclusion Serbia. In its global marketing strategy Siemens Since the beginning, the company has had applies a strategy of careful market a long-term orientation towards the selection and diversification based on key Serbian market, which shows numerous competitive advantages that involve innovations and investments, where the constant innovation that has been its key company has never given up its core aspiration since the beginning. Research elements of marketing strategy - and development require the largest investments in research and development, investments of the company, as well as the investments in education through student internationalization, which means being support programs, sponsorships in the field present in every country. The company's of science, culture and sports, investments priority in production and marketing is in people and the environment, through also providing of high quality products and socially responsible behavior. According services, as well as customer, employees to Marković et al. (2012) through Siemens and the environment care, and prove itself Educational Program Siemens Generation in crisis circumstances. This marketing 21 companies have been helping students strategy, in which one of the main business and professors in technical sciences to gain philosophy of Siemens - to be a good the latest knowledge, and encourage young citizen of the country in which you work – people to become interested in technical (which was the case with Siemens in professions. Within this program, Siemens Serbia) has brought the company to global has organized a competition for success. It could serve as an example for elementary and secondary school students other companies in their attempt to called Create the Future. Within the succeed in the global market - how to framework of environmental protection, think global, and act local. Siemens Serbia launched the internal project "Siemens Green Week", as well as Literature: the project "Energy Efficiency and Environmental Protection" and many 1. Ahsan. L., Qazi. B., Shahabuddin. S., Khan. others projects aimed at raising the M. A. (2014). Marketing Strategy of Siemens awareness of employees and all others of Engineering Company in Chinese Business environmental protection. Environment. Research Journal of Engineering Sciences, 3(9), 7-11.
2. Amor. P., Valls. C., Casserras. G., Cortegiani. Siemens has become an integral part of the A. (2013). Qualitative and Quantitative domestic economy that provides a constant analysis of Siemens AG. Barcelona: contribution to economic progress in all Universitat de Barcelona. regions and all sectors of the economy as a 3. Bhasin, H. (2018). Marketing Strategy of promoter of significant cultural, scientific, Siemens – Siemens Marketing Strategy. artistic and sports events, which further Retrieved August 2018, from Marketing91: confirms that the company wants to https://www.marketing91.com/marketing- remain permanently in this region. strategy-siemens/ 4. Hanlon, A. (2018). The Segmentation, The history of Siemens in Serbia Targeting and Positioning model. Retrieved represents a significant part of the history August 2018, from Smart Insights: of Serbian economic development, and https://www.smartinsights.com/digital- company that has been present in Serbia marketing-strategy/customer-segmentation-
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targeting/segmentation-targeting-and- positioning/ 5. Jović, M. (2002). Međunarodni marketing. Beograd: Institut ekonomskih nauka. 6. Kotler, P., Keller. L. K., (2017). Marketing menadžment, 15 izdanje. Beograd: DATA STATUS. 7. Marković. J. P., Antić. Č., Šarenac. D. (2012). Korak ispred vremena 125 godina Simensa u Srbiji. Beograd: Siemens d.o.o. Beograd, Institut za savremenu istoriju. 8. Mba skool. (2018). Siemens Marketing Mix. Retrieved August 2018, from mba skool: https://www.mbaskool.com/marketing- mix/products/17112-siemens.html 9. Rakita, B. (2012). Međunarodni marketing. Beograd: Centar za izdavačku delatnost Ekonomskog fakulteta u Beogradu. 10. Siemens – Global. (2018). About Siemens. Retrieved August 2018, from Siemens - Global: https://www.siemens.com/global/en/home/co mpany/about.html 11. Siemens – Global. (2018). Annual Report 2017. Retrieved August 2018, from Siemens - Global: https://www.siemens.com/content/dam/webas setpool/mam/tag-siemens- com/smdb/corporate-core/siemens- com/About_Siemens/siemens-ar2017.pdf 12. Siemens – Global. (2018). Products & Services. Retrieved August 2018, from Siemens - Global: https://www.siemens.com/global/en/home/pro ducts/software/mindsphere.html 13. Siemens – Serbia. (2018). About Siemens. Retrieved August 2018, from Siemens - Serbia: http://www.siemens.rs/portal/onama/ 14. Wegener, Ch., Karczewski, J. (2017). 1847 – 2017 - Shaping the future - Qualities that set Siemens apart – after 170 years. Retrieved August 2018, from Siemens - Global: https://www.siemens.com/content/dam/webas setpool/mam/tag-siemens- com/smdb/corporate-core/communication- and-gov-affairs/tl/HI/siemens-historical- institute/home/094-shi-siemens-at-170-years- the-siemens-narrative-2017-e.pdf
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DESIGNING MARKETING CHANNELS: MULTIPLE MARKETING CHANNELS AT WINERY “MAČKOV PODRUM”
Slađana Đurić1, Aleksandra Stojiljković2
1,2 Faculty of Economics in Subotica, University of Novi Sad; Republic of Serbia [email protected], [email protected]
Original Scientific Paper doi:10.5937/jouproman6-18694
Abstract: Designing marketing channels in innovation, quality or brand identity, can order to penetrate targeted market and to attain be copied, matched or even improved upon desired position in that market requires making by competitors from all over the world in a various decisions related to the channel structure, relatively short period of time.” selection of channel members and organization of (Rosenbloom, 2006.). Rosenbloom (2006) activities that need to be performed in those channels in order to deliver the product/service to argues that, for modern companies, it is customers. This paper is about the process of very difficult to build sustainable making decisions involved in designing the advantage focusing on product marketing channels of the company. Seven phases differentiation or lower price. Cheap labor, of the Paradigm of the channel design decision are more flexible business politics and laws of discussed. Winery “Mačkov podrum” from Irig, Vojvodina, is taken as the example of the company some world regions have made these two that successfully combines several channels to business strategies easy to overcome. attain market presence and coverage. Products can be manufactured, and Key words: Marketing channel, marketing presented at the market at lower prices, channel design, multiple marketing channels, characteristics and design can be imitated marketing channel strategy, final consumer, and adopted thanks to advanced and intermediary innovative technologies thus the 1. Introduction implementation of multichannel strategies may be crucial for attaining the sustainable Intensive business changes, business advantage in targeted markets. Offering the innovations, new technologies based on the advanced and superior value to customers Internet, shorter lifecycle of products and can be done by applying multichannel educated customers, have made it very strategy and synergy of all channels in difficult for a company to attain order to meet customer’s needs and sustainable competitive advantage in standards. today’s global market. Globalization, digitalization, the Internet, mobile phones Designing marketing channels is a and social networking have made process that requires making a sequence of customers more mobile, educated, choices and decisions related to the informed and connected. Channel structure of marketing channels, channel managers can no longer rely only on procedures, the choice of intermediaries, traditional and conventional marketing organization of relationships and activities channels if they want to stay successful of all channel members and conflict and competitive in the market. resolution. “Product differences whether based on technological superiority, design
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„The company’s own field sales force the best suitable to deliver the product to channel, the distributor channel, the sales the market the producer wishes to enter. rep channel, the catalogue/mail order The crucial point of every marketing channel, the online channel, the call center channel is the customer (whether it is the channel, and several other may all be final customer or business buyer) and all needed by the same company to serve efforts and activities of channel members customers effectively and efficiently.” need to be focused on the end users and (Rosenbloom, 2006; Friedman & Furey, their satisfaction. 1999). Channel managers make decisions to select among possible alternatives of The essence of marketing channels is channels in order to create efficient consisted of following components: channel mix that will serve targeted (Lovreta, Končar, Petković, 2018): customers with desired amount of product, Organized system in which in due time, at the location they prefer, at participants together undertake the acceptable price. Making such integrated and/or coordinated decisions takes serious researching and actions planning. Agencies and institutions that When applying multi-channel strategy, take place as participants in it is of vital importance to create, combine, marketing channels integrate and coordinate all elements of the The functions of marketing channel mix. Multi-channel strategy, its channel members development and implementation implies Connections between suppliers planning, researching, investment in and buyers, and infrastructure and work organization, Marketing tasks in the process educating personnel and making long-term of connecting producers and commitment. Problems in delivering the consumers superior value to customers may cause in their deep dissatisfaction and they might It is significant that marketing channels leave the company and transfer their are designed in accordance with the overall transactions and loyalty to competitor’s marketing and positioning strategy of the business. company and may be the critical point of differentiation and attractiveness of some 2. Marketing channels company in the market. “In short, a strong Marketing channels are, formally, channel system is a competitive asset that chain of interdependent organizations is not easily replicated by other firms and whose role is to make product and services is, therefore, a strong source of sustainable available for users (Kotler, Keller 2006). competitive advantage. Further, building or modifying the channel system involves Basically, marketing channels are the costly and hard to reverse investments.” routes that products and services go (Coughlan, Anderson, Stern, El-Ansary, through on their way from producers 2006) (manufacturers) to final consumers or business users- a link between producers „It is the quality of the channel mix and final users. The main purpose of rather than quantity of channels that has marketing channel is to have the right the most influence on the size of a firm’s product delivered on the shelf of the store customer base “(Rosenbloom, 2006). when the customer wants it, and at the price customer is willing to pay for it. Marketing channel manager must decide which intermediary, or more of them, are
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Decisions that the company takes Product information- customers related to marketing channels and their look for information about specific design, length, intensity, members, products (especially new products leadership and conflict resolution are, in and technologically complex and fact, crucial for positioning the company in changing products). Product the market, since the company uses its customization- if technical channels to communicate to market modification of products is participants. Those decisions affect other necessary to meet customer’s elements of marketing mix, promotion requirements. techniques, product/services prices, market Product quality assurance- when a positioning and shape the opinion and customer needs the assurance of attitude of consumers towards the product product’s integrity and reliability and the company, and channel managers because of products consequences need to bear that in mind when designing for the customer’s own operations or modifying existing channels. or production. The principal participants in marketing Lot size- depends on the channels are producers (manufacturers, characteristics of the product and originators), intermediaries (wholesalers, the amount of money that customer retailers and specialized intermediaries) needs to spend to buy specific and final users (individual consumers or product business customers). Other specialized Assortment- product need to be participants, involved in transfer of available to customer when needed; products and services to the spot of their customer may need various final utilization are: brokers, products once, or may need special manufacturer’s representatives, agents and size or amount of specific product other specialized intermediaries (transport, Availability- customer requires the warehouse, merchandising, delivery, channel to support a high degree of assortment, labeling, financing, crediting, product availability, especially insurance, arrangement, promotion, important for customers whose research etc). product usage rates are not easy to predict (like spare parts). Channel members are involved in the Customers are not willing to wait performance of channel flows or functions until product is delivered to the in the channel: physical possession, store or the office and might rather ownership, promotion, negotiation, turn to the competition financing, risking, ordering, payment and After sales services- installation, information sharing (Coughlan et al, repair, maintenance and warranty- 2006). Physical possession, ownership often the quality and availability of transfer and promotion move forward these services influence the initial through the channel, from manufacturer to sale final consumer. Ordering and payment move upwards the channel, from final Logistics- transporting, storing and consumers to manufacturers. Negotiation, supplying product to the end user financing, risking and information sharing may be complex task such as move in both direction and among transhipping or hazardous products different channel members. transport and increase investments for the company and costs for the According to Profesor Kasturi (1994) customer. of Harvard Business School there are eight generic channel functions:
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Besides channels that are used to has been established, when company transfer goods and services forward, changes intermediary policies or the towards the final users, there are reverse availability of certain intermediaries has channels that are driven in opposite changed, because of new technologies, direction, from final consumers towards conflict or behavioural problems within the manufacturers. These channels are used to channel or when a company periodically return unwanted and damaged products evaluates the costs and benefits of used (for replacement or reparation) and for channels. recycling (packaging, plastic, glass bottles, 2. Distribution objectives need to be organic waste, old and broken technical explicitly stated and congruent with other products etc). Sometimes the company marketing mix areas and with the long-run itself uses reverse channels to withdraw objectives and strategies of the company, products from the market, when there is since these decisions affect the image of the malfunction or damage to the line of the company and its ability to generate the products discovered after the product was sales and customer’s loyalty. Channel released to the market. objectives may include growth in sales in Organizing marketing channels is done existing markets or by reaching new in two steps: designing marketing channel markets; structuring new channel to in accordance to defined goals and plans, achieve new performances such as specific and then structuring channels through time frame, place, utilities; improving the determination of adequate relationships performance of existing channels; between participants in the channel maintenance or improvement of market (Lovreta, Končar, Petković, 2018). shares. 3. A paradigm of the channel design 3. The third step in designing decision marketing channels refers to specifying the set of various distribution tasks that need to Rosenbloom (2013) determines seven phases in marketing channel design: be carried out in order to deliver the product/service to the customers in the 1. Recognizing the need for a channel manner that will evoke their satisfaction. In design decision this phase the channel manager needs to 2. Setting and coordinating gather available information on target distribution objectives market and desired customers segments 3. Specifying distribution tasks including their shopping patterns and 4. Developing possible alternative habits. Tasks such as promotion, product channel design features info, creating offer and special 5. Evaluating the variables affecting offers, tryouts, orders and specific orders channel structure and desires processing, special packaging, 6. Choosing the best channel inventory maintenance, in-time delivery, structure transporting and storage, credit and 7. Selecting the channel members financing, warranty service and product 1. Company needs to design new return procedures, repair and technical channels or to modify existing channels assistance, need to be detailed and when it wishes to penetrate the market with specified to avoid malfunctions in some new product or a line of products, performance of designed marketing when enters a new market with the existing channels which could lead to customer’s product, if new market is opened, when abandoning the company. some components of the marketing mix have been changed, when merger or acquisition took place or a new company
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4. After all tasks and eventual sales via direct mail, telemarketing, mobile problems that might emerge in the marketing, catalogue, vending machine, distribution, are taken into consideration sales force, interactive television, social and analyzed, marketing channel managers networks etc. Indirect channels include need to develop alternative channel intermediaries in the process of structures. Taking into consideration transferring the product from the market that the company is planning to manufacturer to final user. cover with its products or services, Intensity is related to the number of characteristics of target customers intermediaries at each level of the channel. segments and the specifics and quality of Intensive distribution refers to situation distribution that it desires to achieve, when the company uses all available marketing channel managers need to outlets, intermediaries and opportunities at develop the distribution network by each level of the channel to place its choosing among following channel product in the market. This strategy dimensions: number of channel levels- the enables high brand exposure and makes length of the channel, intensity at different consumer’s convenience a priority (easily levels and the type and number of accessed products such as milk, intermediaries that are going to be used at newspapers etc. are sold using this every level of the channel. At this stage it strategy). Selective distribution enables is necessary to consider the specifics of better control over the marketing channel particular industry, market demand level, than intensive distribution and refers to a the market size and the size of target situation when a company chooses several segment, availability of intermediaries and, intermediaries, among many available, to in accordance to these parameters, to distribute its product. This strategy is used design the channel network that will when a company sells its products only in maximize the profits and minimize overall some chosen outlets and may require the costs and investments. intermediary to add some value to the The company may sell its products product (specific service, store ambience, through direct and indirect channels. customer education etc) When a company Direct channel represent the type of sales chooses only one intermediary to distribute where the company sells its product or its product to carefully chosen segment of service directly to the final consumer of customers (such as specific and expensive business user, without intermediaries. products) it is referred to as exclusive Direct channel includes direct sales, direct distribution. This distribution strategy marketing, special stores and infrastructure creates strong interdependence between the owned by the manufacturer or the manufacturer and its intermediary. Since originator of the service and every channel this approach requires the intermediary to structure where the product or a service is promote the product, add a special value to transferred from the manufacturer or the it and to maintain the certain level of sales, originator to the final user directly. Direct it is necessary for the intermediary to have sales is, however, not necessary limited to special skills and knowledge to handle all direct channel since it refers to every direct activities that are required by the contact between the seller and the buyer manufacturer. and therefore might represent selling- In today’s overcrowded market and buying process between the manufacturer various customer segments companies and final consumer, the manufacturer and need to create complex distribution intermediary, the intermediary and the networks in order to reach additional final consumer etc. Direct marketing, on segments of customers and to gain more the other hand, refers to all activities where market coverage. the seller and buyer interact directly: direct
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Multiple marketing channels, analyzed. The behaviour of channel international channels, hybrid members and possible conflicts need to be intermediaries, contractual systems, predicted. integrations, corporate systems, strategic 6. Channel manager, after careful alliances, and many different agreements consideration and expert analysis of all and networks are used by companies all in available data, research results and order to attain competitive advantage and information, chooses the optimal channel to keep satisfying market position. structure to cover desired market segments The types and number of and to maintain the economic viability of intermediaries that are going to be used, as the channel. In reality, even though the well as the number of levels and intensity company undertakes all analysis and of marketing channels need to reflect the calculation, accurate methods for overall marketing and business strategy calculating and predicting punctual costs of and objectives of the company. the chosen channel network and its return 5. The channel managers need to of investments. Although several attempts evaluate all variables that might affect have been made in this direction and some channel structures. Market variables, alternative methods have been developed, product variables, company variables, every one of them lacks punctuality and intermediary variables, environmental comprehensiveness. variables and behavioural variables 7. Based on the objectives of distribution, (Rosenbloom, 2013) are the main marketing and distribution strategy of the categories of variables that might influence company, background information on the channel structure. distribution performances of some Market size, market density, market intermediary, territorial coverage, sales structure and geography and all competency, reputation and availability of the intermediaries that operate in certain characteristics of target customers segments (including their buying patterns area, the channel manager makes choices and habits) need to be taken into among several alternatives. According to consideration. Further, channel managers enlisted criteria and requirements, the need to consider all product characteristics channel manager needs to gather as many and specifics that might influence the information of previous accomplishments channel structure such as: bulk and weight and results, financial situation, references of the product, perishability, unit value, if available, motivation and then to choose standardization degree, technical and members of channel network. At this point nontechnical specification, newness and it is necessary to establish the channel product prestige and image. The size of the leader and conflict resolution procedures. company itself, its financial capacity, „Marketing channel design should result in goals, strategies and objectives and a developed distribution system, capable of managerial expertise are also factors that surviving in competition with differently need to be analyzed. The availability of designed marketing channels. If not, intermediaries, costs, services they offer, individual participants in a particular special skills, business portfolio are to be marketing channel could define strategies systematically inspected. External contrary to interests of other members of environment variables such as the state of the marketing channel, which would, in the the competition, economic procedures and long run, undoubtedly, lead to business rules, political and legal constrains, social failure both of the marketing channel and cultural factors, technology and all system as a whole, and the less viable other factors that might affect the members of the marketing channel.“ effectiveness of channel system are to be (Grubor, 2008)
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4. Multiple channels at “Mačkov Picture 1: Winery- HoReCa marketing channel podrum” winery. Winery, Hotel, “Mačkov podrum”, a winery from Irig, winery restaurant, Guests-final Serbia, is relatively young and very representati coffee bar- consumers ambitious winery managed by enthusiastic ve HoReCa and professional management, with explicit objectives and vision to gain wide market coverage and to deepen the loyalty 2. The consumer can order wine via the of satisfied wine lovers. This company Internet (by filling out the online ordering produced its first wine in the year of 2006, form), but, only 2-3 % of overall orders and is ever since present at numerous wine come through online ordering. One reason festivals, exhibitions and various cultural for this is a result of the fact that “Mačkov manifestations all over Serbia. “Mačkov podrum” wine is a specific, exclusive and podrum” became very recognizable brand sensitive product that needs to be smelled, as a result of marketing and promotional tasted and consumed prior to buying and efforts of a small, but very dedicated team online marketing channel is not capable of of experts. providing the consumer with that unique The main production complex, with the experience. Another, very important capacity of 200 000 bottles of wine, is reason, comes from the fact that online placed in Irig, Vojvodina surrounded by 32 paying in Serbia is not developed enough hectares of vineyards with the finest sorts to ensure the safety and efficiency in this of grapes grown. This Winery produces line of business. Third, reason is related to 150 000 bottles of the finest wine for previous attempts of this company to Serbian wine market and for export. This develop online marketing channel which winery produces wines labeled as “Mačkov resulted in failure. In fact, when the podrum” wines (wines of high quality and customer orders wine via the Internet, the middle price category) and in 2016, the winery personnel sends ordered amount of line “Sunčani breg“ (wines of high quality wine by courier delivery service. Usual and lower price category) was introduced packaging contains 6 bottles of wine. It to Serbian wine market. happened, on several occasions, that some bottles in the package were damaged and “Mačkov podrum” winery developed very in such occasions the courier delivery complex multiple channel system of wine service did not deliver remaining distribution to gain desired territorial undamaged bottles to the ordering address, coverage and to reach as many customer and did not report damage of the package segments as possible. For the Serbian to the winery. market the intensive distribution strategy is implemented. Picture 2: Internet based marketing channel 4.1 “Mačkov podrum” marketing channels Final consumer orders wine from the 1. The winery- HoReCa- final consumer winery via the Internet marketing channel is designed for wines Courier with the label “Mačkov podrum” and it Final Winery delivery consumer aims to reach the customers of high middle service class and high class with a lifestyle that includes the consumption of wines of high quality.
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3. Winery operates several channels with Picture 4: Winery- small distributor channels different intermediaries (distributors) for different wine markets in Serbia. The structure of these channels is a result of Bolero- HoReCa, Western availability of intermediaries, their final Serbia reputation, reliability and their business consumers distributer organization (territorial coverage). The winery operates wine distribution through Winery Barrique- three big distributors. Supernova doo HoReCa, South final distributor covers distribution to big Serbia consumers wholesalers such as Idea, Mercator, Metro distributer cash and carry, Veropoulos and DIS who then sell wines to final consumers and business buyers. Gold Distribution doo The winery transports its wines to handles distribution to Delhaize group, Univerexport warehouse directly, without restaurants and smaller distributors. Valor any intermediary. doo handles wine distribution for Northern Serbia and the rest of Vojvodina. Picture 5: Winery- Univerexport channel Picture 3: Winery- big distributor channels Univerexpo Idea, Final Winery rt- Mercato consumers warehouse r, Dis, Veropo Final consum Superno ulos, Winery ers, va doo Metro cash business 4. Customers (consumers- wine lovers and and buyers business buyers- small restaurants and carry retailers) may purchase wines in the winery store at Irig. This is a direct
channel used by the winery to sell its wines directly to customers, but is also HoReC used to obtain more information about the Gold Final a, small Winery Distribu consum customers experiences and wishes. distribut tion doo ers ors Another activity is also very developed at winery - tourism. Customers are invited to spend some time in the winery, to explore the vineyards, to get familiar with the wine Final production process, to take part in Winery Valor doo consumers harvesting of grapes and to taste wines. This channel generated the increase in sales and is very appreciated by the Western Serbia market is covered by management of the winery. Bolero distributor, and Niš, Kruševac and Southern Serbia is covered by Bariqque from Kruševac.
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Picture 6: In Winery sales and tourism- direct Picture 7: The export channel to USA channels market
Customers- wine Balka Wine lovers , restaurant n bow HoRe Winery "Mačkov owners and retailers Wine group Final Winer Ca, podrum" Irig- Projec - New consu y retaile winery store t- York rs mers Tourists and visitors Broke distrib r uter
5. “Mačkov podrum” company exports its The warehouse of wine to USA for nine years. Previously the shipping agent some deliveries were made to markets of and transporting Poland, Great Britain, Switzerland, 5.wine Conclusion to USA in Slovenia, Austria, Montenegro and Bosnia containers and Herzegovina, but because of the lack of experienced, devoted and reliable distributers in these countries management of this winery left these plans for future, since the development of continual „Customers all over the globe are delivery system and the image of reliable demanding more channel options for and responsible business partner is the gaining access to product and services imperative of this company. The winery while technology has made it possible and exports its brand “Portugizer” to the economically feasible for firms to offer a market of USA. This wine is sold under the wider array of channels, especially name of “Agrina Portugieser” with the Internet-based online channels.“ different label (in accordance with USA (Rosenbloom, 20016) In order to attain market requirements) with the origin and maintain competitive advantage at specification. Wine is exported with the dynamic and ever-changing global market participation of Balkan Wine Project and to deepen customer’s devotion, it is the broker, who was granted the exclusive imperative for companies to integrate new right to handle the “Agrina Portugieser” technologies and online channels in their distribution for the USA, who places multichannel mix, to create synergy and to shipment in the warehouse of the shipping improve cooperation and trust among all agent and then uses the transport company channel members, to resolve conflict to ship the cargo to New York. Winebow within the channels more efficiently, too group accepts the shipment and places it in coordinate and to control their multiple the warehouse. From there the wine channels and to provide more effective “Agrina Portugieser” is distributed to service to customers. hotels, restaurants, coffee bars and „What implication does the channel retailers. flows paradigm hold for modern global management? Actually it is a very straightforward and pragmatic one: global marketing requires more efficient and more coordinated channel flows.
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Fortunately the awesome technology provided by the Internet and worldwide web has made meeting this challenge much more feasible, particularly because with the exception of physical products, all eight channel flows can be implemented via the Internet. Managing the ownership, promotion, negotiation, financing, risk, ordering and payment flows mainly via the Internet is commonplace today in both business-to-consumers (B2C) and business-to-business (B2B markets).“ (Rossenblom, 2010) References Coughlan A.T., Anderson E., Stern L.W., El- Ansary A.I., (2006), Marketing Channels, Seventh edition, Pearson Prentice Hall
Grubor A.(2006), Marketing channel design, Economic themes, University of Niš, Faculty of Economics, Nº 4,p51-62.
Kasturi, R.V. (1994), Designing channels of distribution, Harvard Business School, 9-594-116,
Kotler. P., Keller K.L. (2006), Marketing menadžment, 12. Izdanje, Data status, Beograd
Lovreta S., Končar J., Petković G. (2018), Kanali marketinga: Trgovina i ostali kanali, Osmo izdanje, Centar za izdavačku delatnost Ekonomskog fakulteta u Beogradu, Beograd
Rosenbloom, B. (2006), Multi-channel strategy in business-to-business markets: Prospects and problems, Industrial marketing management 36, 4-9
Rosenbloom B. (2010), Six classic distribution paradigms for global marketing channel strategy, Simphonya emerging issues in management, n.1
Rosenbloom B. (2013), Marketing channels: A management view, South-Western, Cengage Learning, 2013, 2004
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SWOT ANALYSIS - THE TOOL OF ORGANIZATIONS STABILITY (KFC) AS A CASE STUDY
Soran K. Omer Department of Administration and Accounting, Faculty of Humanities and Social Sciences, Koya University, Koya KOY45, Kurdistan Region – F.R. Iraq. [email protected]
Original Scientific Paper doi:10.5937/jouproman6-19188
Abstract: The study is an effort to test the role of and goals of the organizations and matter SWOT analysis as a marketing implementation of importance know or get their inform of strategy to provide stable condition for organizations. In more detail SWOT analysis is the organizations vision and mission. independent variable and organization stability is One of the crucial steps is reviewing in any dependent variable. The methodologies depend on organization to obtain optimal performance the several problems by reviewing books and journals, as well as tracking down the information and organize their aims and goals; they the KFC (Kentucky fried chicken) as a global brand need to check out or review internal and and chain food. The result shows that accurate external factors regularly that would information which is obtained to managers through directly affect the organizations the analyzing and classifying with the application accomplishment and general of SWOT and PEST has the importance role to make strategic plan and stable the organization for a improvements. The skillfulness of longer time. To conclude, these strategies are management is to study these external and playing and leading the essential role the internal factors. Also evaluate and properly organizations to conduct the best or at least optimal apply these skills to sketch or distinguish solutions with time and location respectively. them from organizations or purely makes Key words: SWOT analysis, Organizations stability them stand out. Abbreviations: Organizations that have mission and vision KFC – Kentucky fried chicken. will make effort towards achieving their short term and long term missions and SWOT - strengths, weaknesses, visions. The goals and objectives are need opportunities and threats. to pursue strongly with high sense of PEST - Political, Economic, Socio-culture commitment and passion in order to realize and Technology factors. stability continuous progressing. It is worthy to annotation that the managing an 4p - Product, price, promotion and organization to confirm stability, in the placement other hands the particular strategic planning process should be employed for this purpose of this exercise SWOT 1. Introduction analysis which is part of strategic planning To understand and create better condition instrument will be considered. for stability in an organization, the board of any organization have to understand the matter of fact familiarize their purposes 27 www.japmnt.com
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1.1 Study problems and questions One of the most important threats which is conflicting the managers of organization is when they will make a decision they cannot make a right decision, especially decide through their products price and choosing the place to take the out puts of the companies, at the recent days, there is an effective way or reality tool to sort the strategic plan for the companies which are called (SWOT Analysis), and depend on this position the study problem include some of the questions which are this study Figure (1) SWOT matrix designed by attempts to find out suitable and acceptable (Author, 2018) solution, such as: In addition, “SWOT is the acronym for a Q1) What are the significant of SWOT company’s strengths, weaknesses, analysis in companies planning especially opportunities and threats. According to the Kentucky Fried Chicken (KFC)? advocates of SWOT, strengths refer to Q2) How can the SWOT analysis stabilize inherent abilities to compete and grow the organization for a longer time globally strong. Weaknesses are the inherent compare to the others? deficiencies that cripple growth and survival. Strengths and weakness are Q3) Does organization needs to apply mostly internal. Opportunities are the good SWOT Analysis for running their business chances and openings available for growth. or is there an alternative? Threats are externally wielded challenges, which might suppress inherent strengths, 2. The concepts of SWOT analysis accelerate weakness and stifle (definitions and visions) by the opportunities from being exploded. To recent scholars. succeed in any field, weaknesses must be overcome through strengths and threats SWOT analysis is a technique which is must be transferred into opportunities. The used to analyze the strengths, weaknesses, four elements of a SWOT are analyzing opportunities and threats of business undertaking as part of a wider strategic (Ommani, 2011) and it is one of the several planning.” (Kaczmarek, 2016). Also strategic planning implements that are used “SWOT refers an acronym of strength, by businesses and the other organizations, weakness, opportunities and threats. The on the other hands, all factors (Internal and first two factors (strengths and external) are related to the effort, both weaknesses) are related to internal positive and negative see fig (1) and it's organizational factors, while opportunities identified and addressed. In order to and threats cover a wider context or achieve this task, the process involves four environment in which the entity operates. areas of consideration: strengths, The first are likely to be under control of weaknesses, opportunities, and threats. It the organization but the latter one, should be noted that, when identifying and although they are no less important when classifying relevant factors, the focus is not looking at the impact on the enterprise, are just on internal matters, but also external not.” (Oreski, 2012). components that could influence the success of the project. (Osita et al, 2014).
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In addition, (Kaczmarek, 2016) focused the organization. The strengths and on that SWOT elements in more detail are weaknesses belong to the internal field of divided into internal and external elements business, and threats and opportunities which are clear in other words, the SWOT belong to the external environment. The analysis is based on two pillars: the tables (1, 2) are clearly show explanations internal analysis and external analysis of below: Table 1. Internal Factors. (Kaczmarek, 2016) Strength and description
- Employees with in high level of Knowledge and capability. - Good foundation and basic for team work and delegation of responsibilities. - High engagement external services. - Strong leadership of top management. - Attractive maintenance department for new employees.
Weaknesses description
- Number of employees with low willingness for personal development. - Too much focus on “daily activities and problems” and low planned maintenance and innovation. - Dealing with high numbers of priorities. - High fluctuation of production planning. - Ineffective and unclear communication. - Lack of appropriate rewarding system.
Table 1. External factors. (Kaczmarek, 2016)
Opportunities description
- Continuous personal development. - Advanced technology. - Long term relationships with supplier. - Friendly and safe workplace. - Standardized equipment. - Lean organization. - Further new diagnostic method development. - Supporting software tools for activities
Threats description
- Lack of availability operators for clean, inspect, lubricate and tighten, and preventive maintenance. - Centralization of decision making investments and modifications. - Limited value of stock spare parts. - No time for preventive maintenance (only weekend). - Decrease of maintenance budget. - Lower availability external services. - Decrease on employee's engagement and motivation. - Higher dependency on external services. - Legal constraints. - Aging machinery and installations. - Aging employees. - Decrease of quality and life time of components
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But its difference, according to Eggerts with the firm made it clear that the sales viewpoint (2012) with service sector which manager had no idea of how to structure is focused on that SWOT analysis of bank the complex situation. As the authors see is here: it, there were not real alternatives to SWOT. With only one participating 1- Strength person, a rather restricted time frame (for It includes good financial fundamentals, interviews and the number of interviews good domestic brand recognition, strong that could be expected), SWOT seemed as and growing presence, loyal customer, the best option. As mentioned earlier, the experienced executive management application of SWOT was made through 2- Weaknesses several meetings allowing the sales manager to reflect on both the issues and Focused on eroding market position, the situation and on the methodological presence performing below expectations, approach for structuring the problem. The heavy reliance on wholesale funds, high time between meetings made up a more cost brick and mortar infrastructure. productive and interactive analysis. By 3- Opportunities starting out discussions one day, the sales manager became more attentive to the Export of image to other markets, global SWOT factors discussed, and at next growing wealth, well positioned to benefit meeting he could always add on new from improving conditions. relevant issues. However, it was also clear 4- Threats that the analysis could not have been applied without the technological The fourth element is threats which is knowledge of the facilitator. Application of include increasing global regulation and SWOT requires a good information and foreign target markets sound knowledge base to succeed. The 2.1 The Advantage and disadvantages of sales manager did not have sufficient SWOT analysis knowledge especially about the external (Oreski, 2012) emphasizes that the SWOT SWOT factors, and the direct engagement analysis is simple and useful for organizing of the facilitator as an expert was a information, especially for preliminary requirement for carrying out the analysis. research, on the other hand, it also as a In terms of using SWOT with an basis for more applied and theoretical illustrative purpose, it is the authors’ work. One of the advantages but at the perception that the manager did get so same time disadvantage of SWOT analysis much insight into SWOT methodologically is the fact that it is the method of valuation. that he could be able to apply it himself or The emphasis on the evaluation of the take on a facilitator role.” (Vega, 2004). work seems more applied than theoretical. “Typically used at the enterprise level, but SWOT has proved very useful in can be applied at higher levels, for understanding the environment of the example, in strategic plan in tourism of the organization and, consequently, in the destination. Strategic planning for the strategic planning of their growth and destination could be a difficult task as there development.and SWOT is use to assess a are many possible strategies derived from business or a proposition. This shouldn’t the assessment of environmental factors. be restricted to a business you own, but But the decision without a systematic also to use it for your competitor’s approach would result in less effective business. (Fine, 2009). strategies.” (Oreski, 2012). As well as, On the other hands the “SWOT analysis SWOT analysis is used commonly in firms was used simply because the first contact and classrooms.
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Normally, it's the centerpiece of situation Furthermore, PEST analysis is a scan of assessment. (Valentin, 2005). the external macro-environment in which In addition, Downey & Technical an organization exists. It is the one of the Information Service (2007) concentrated beneficial tools for understanding the on when using SWOT analysis, it should political, economic, socio-cultural and be ensured that the internal and external technological environment that an factors are prioritized so that time is spent organization operates in. It can be used for concentrating on the most significant evaluating market growth or decline, and factors. This should include a risk as such the position, potential and direction assessment to ensure that high risk or high for a business. impact threats and opportunities are clearly 1- Political factors: this factor is identified and are dealt with in priority consisting of government order. Also the analysis is pitched at the regulations such as employment project or business activity level rather laws, environmental regulations than at a total company level, which may and tax policy. Other political be less actionable. While, the issues factors are trade restrictions and identified are retained for later in the political stability. strategy formation process. 2- Economic factors: These affect the cost of capital and purchasing 2.2 SWOT and PEST analysis and power of an organization strategy formulation 3- Economic factors: this feature is (Fine, 2009), emphasis that the questions including economic growth, are crucial even today in business, and interest rates, inflation and currency should be the starting point when looking exchange rates. at either a new product, or to see how to 4- Social factors: this factor also has improve the net profit for a company or an impact on the consumer’s need organization. and the potential market size for an 1. What product/s are we selling? organization's goods and services. 2. What is the process we have in Social factors include population place to sell the product? growth, age demographics and 3. Who are our customers, who are attitudes towards health. going to be interested in our 5- Technological factors: this factor product? is influence barriers to entry, make 4. What ways can we deliver the or buy decisions and investment in product to the customers? innovation, such as automation, 5. What are the finances needed to investment incentives and the rate create and sell this product? of technological change. 6. Who will oversee all the stages In addition, PEST factors can be classified from having an idea, to having as opportunities and threats in the SWOT enough finance to complete the analysis. Figure (3) shows full detail about task? it. Also, it is often useful to complete a However, a well-established SWOT PEST analysis before completing a SWOT analysis can benefit a company to analysis. (Downey & Technical understand itself better and it is an Information Service, 2007). important guideline for making a proper marketing strategy plan (Huiru, 2011).
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Figure (2) Strategy formulation (Author, 2018)
Figure (3) it can be seen SWOT Analysis vs PEST Analysis (Author, 2018)
3. Illustration of KFCs SWOT 3.1 Introduction to the KFC analysis Kentucky Fried Chicken which is To illustrate the theories of this termed to KFC is a chain of fast food research, formulating marketing restaurants based in Louisville, strategy with using SWOT analysis, Kentucky, in the United States. Plus PEST and 4p of KFC. the KFC products are involves fried chicken, grilled chicken, related
southern foods see fig 4.
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Figure (4) demonstrates KFC’s products (web page)
Furthermore, the 4 p’s of KFC marketing and total KFC chicken pieces sold annually as a marketing mix are include: is 5.89 billion and total retail sales is $8.9 1. Product: KFCs products have the billion. special raspy for chicken products. 3. Promotion : KFC uses the bill boards 2. Pricing: during pricing the KFCs the major source of advertisement and one products keep the different points in the of the most important thing that they uses mind like they adopt the cost base price media especially the newspapers to strategy. Likewise, pricing of the product promote their products. contains the government taxes and excise 4. Placement: placement of the KFCs duties and then they come at final stage of product is not important but the placement control the price of their products. Then, of the restaurant is key that it can easily KFC prices of products are a bit high judge that the KFC target the place for according to the market segment and it is their restaurant, which is well known and also compatible to the standards of their is in the Porsche area where the income products. On the other hands the total level of the people is high then the middle pounds of chicken served in KFC class level. restaurant annually equal to 1.914 billion, Table (2) SWOT analysis of KFC
Strength Opportunities 1. -Undeveloped markets in many countries. 1. Delicious and well liked recipes. 2. Increased 18-25 age groups. 2. Strongest category among nearest competitors. 3. Increasing trends to take meal out of homes. 3. Well global penetration. 4. Well recognized brand logo. 5. - Strong cash flow via franchisee and license fee. Weaknesses Threats 1. Other cheap alternatives available. 1. Most KFC items have close substitutes in market. 2. Bird flu. 2. No product innovations. 3. Cannibalization of own products. 3. Lack of control in joint venture arrangements. 4. Changing health trends of customers. 4. - Inconsistent quality of service in many outlets. 5. - High calorie food.
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4. Conclusions SWOT analysis for farming system businesses management, case of wheat of This case project has conducted and shadervan district, Shoushtar Township, pointed the role of SWOT analysis, in Iran. African Journal of Business terms of gathering and collecting Management Vol. 5(22), pp. 9448-9454, information in to the interior and external Available online at http://www.academicjournals.org/AJBM environments of the organization with ISSN 1993-8233 annual data base , while SWOT is 7. Oreski, D. (2012) Strategy development by simplifying the actions however, managers using SWOT- AHP, TEM Journal, Vol. 1, need to skill limitation for the factors that No. 4. can effect on the organizations products 8. Osita, I. C., Oneybuchi, I. R., Justina, N. and services after this strategy SWOT (2014) Organizations stability and analysis depend on PEST analysis to limit productivity; the role of SWOT analysis an the strength, opportunities, weaknesses and acronym for strength, weaknesses, threats, and all of these elements have opportunities and threat, International expressed the other things or indirectly Journal of Innovative and Applied Research , Volume 2, Issue 9,Pp. 23- 32. related such as financial, staffs, knowledge and make new product or the 9. Tiwebyse, A. Y. (2015) A business plan same product of the competitive development: the case of paint company Douala- Cameroon, Uiversity of the organization. Moreover, according to Basque Country. Donpstia – San Sebastan. KFC’s statistics as they claim that KFC 10. Valantin, E. K. (2005) A way with SWOT stabilities related with their marketing analysis: use defensive/ offensive strategies and there are a good SWOT evaluation instead, The Journal of Applied analysis and accurate PEST to the segment Business Research – Volume 21, Number the market especially they can succeed to 2 , Weber State University. choose the product, logical pricing, 11. Vega, P. E. J. (2004) Strategic analysis and attractive promotion and factual market or recommendation for XYZ research placement. corporation, master thesis, University of Florida.
Website: References www.KFC.com 1. Downey, J. and Technical Information Service (2007) Strategic analysis tools; Topic Gateway Series No. 34, The Chartered Institute of Management Accountants (CIMA). 2. Eggert, C. (2012) A strategy analysis of the “Big Five” Canadian banks. 3. Fine, L. G. (2009) the SWOT analysis; using your strength to overcome weaknesses, using opportunities to overcome threats, Kick It, LLC. 4. Hurino, D. (2011) the importance of strategy management, Savonia university of applied science. 5. Kaczmarek, M. J. (2016) SWOT analysis for planned maintenance strategy – a case study, International Federation of Automatic Control 49-12 ,Pp. 674–679, Hosting by Elsevier Ltd. 6. Ommani, A. R. (2011) for strength, weaknesses, opportunities and threats
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THE ROLE OF COMMUNICATION MANAGEMENT IN SPORTS WITH SPECIAL EMPHASIS ON HANDBALL
Jadranka Denkova1, Mirjeta Bajramovska2 1,2 University Goce Delchev Shtip, Faculty of Law [email protected], [email protected]
Original Scientific Paper doi:10.5937/jouproman6-19001
Abstract: Communication management plays a INTRODUCTION significant role in all aspects of social life and is increasingly representing an inevitable segment for The approach to effective implementation the successful functioning of organizations. Hence, of communication management using all the topic of this research in order to perceive how available resources and tools applies to all is communication management perceived in the types of activities and organizations, as world of sport in the Republic of Macedonia. The main emphasis is on researching the leadership for well as the organization of sports and communication in handball in the Republic of sports recreation. Within the Macedonia. The significance of this work is communication, the management team especially pointed out in terms of the fact that sport usually uses the media tools in order to is the basis for the development of young people in transmit the specific message. In order to a country, both physically and mentally, and should be an indication of the creation of healthy implement effective communication individuals. Therefore, the internal and external management, there should be a clear and communication in sports clubs will affect their consistent communication plan that will achievements, the development of their image and determine the organizational responsibility the achievement of efficiency of sports and the types of communication that will organizations. Sport is a sensitive topic from the aspect of being directly related to the citizens as be used in it. users of their services. Whether these clubs will be However, the key role for the achievement successful depend on how they function, what is of success in organizations is certainly, their approach, the quality, how they communicate with the public, inside the clubs and how they management, or management teams of communicate on a wider level, sports clubs among different profiles, because they need to themselves. Bearing in mind that this work is know how to effectively manage their concentrated on a serious methodological approach team, as well as they need to know the which analyses relevant documents, statistical overall structure of the organization. indicators, as well as qualitative analysis of an interview, it can be concluded that very little Accordingly, the sport also becomes a attention is paid to communication management. Its productive activity where professional significance and role is not properly understood and all this has further reflections and the negative segment relies on the laws and conditions results in sports in the Republic of Macedonia. In of the closest environment, that is, the addition, there is a need for legal changes, training market. Because of this, certain internal of the involved people in the field that will enable structures arise, whose effective more serious approach to this scientific discipline, organization is due precisely to the quality which would improve the efficiency of sports organizations in the Republic of Macedonia. management of the selected management team of the sports club itself. Keywords: communication, sports, handball, management, organizational structure.
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Communication management framework implementation and determining the in sports organizations, involves effectiveness of communication realization and implementation of management in handball sports clubs in processes necessary for ensuring the the Republic of Macedonia was collected timely and complete creation, collection, through secondary data sources, as well as segmentation, preparation, distribution, their connection to the effective finding and utilization of the ultimate functioning of the sports organization. The organizational information and available primary source of information is a resources. When talking about structured interview made of 12 questions, communication in handball, it should be more than 10 respondents who are in emphasized above all that communication charge of sports clubs. The results of the itself is a kind of interdisciplinary field paper are based on qualitative analysis of related to all branches of industry, sports, the interview and other relevant databases, business, etc. as well as to everyday life of scientific and professional domestic and each person on the Earth. All the work and foreign literature, as well as various sports activities are based on documents and information relevant to the communication between shareholders who subject of the research. participate in the process of connecting, Consequently, in order to prove the i.e. communicating. Without a successful hypotheses of this paper, several different handball communication, the team as a methods were used to meet the basic separate group of people would not be able methodological needs - objectivity, to reach their goals and succeed in their reliability, basis and systematicity of it. intentions. In a word, communication is the most important and crucial part of a During collecting, segmentation and successful team. In addition, analysis of the data, the following methods communication in handball is crucial in and techniques were used: data analyses, order to achieve a successful relationship the content of the information analyses, the with the spectators and the audience. The data relevance, checking, both primary and aim of sport is to connect people of secondary contents and information from different nationalities, age, religions the already conducted research. through successful intercommunication. ANALYSIS OF THE RESULTS OF METHODOLOGY OF THE PAPER RESEARCH The main goal of this paper is to If we were to analyze the handball understand the role of communication and the sport in general over the years, we management and its carriers in the field of will come to the conclusion that there were sports recreation, more precisely handball positive changes, and the handball today and handball clubs in the Republic of differs from that in the past. The same can Macedonia. The subject of this paper is be said about the communication in the aimed at perceiving the application of handball as well as the communication communication management in handball itself which is much more developed than sports clubs, how much it is applied, in the years of the last century and much whether there is an application and earlier in history. This expansion of the understanding of it, and how well these development of communication in the issues are regulated. For the theoretical handball is directly related to the part of this paper, standard methods of prevalence and influence of the sports secondary research are used, for which, industry on it. information on the process of
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An undeniable fact is that sport is Sports clubs are autonomous increasingly taking up space in the society, organizational forms in relation to the among people, as well as in their diverse sports and social environment, due to the cultures and traditions, considering the fact independent component in the selection of that a lot of people in their daily life are resources and the setting of goals, as well more committed to sport in general, some as the ways of their realization1. as passive active observers, some as direct The development of management participants on the field, on the in the economy is also imposed in other playground. In the Republic of Macedonia, areas of social life of people. Managers of there are several handball clubs that are the sports organizations existed long present across several cities. Such as before the concepts of sports manager Men's Handball Clubs: Rabotnicki, Vardar were created. Many sports organizations in Skopje, as well as RC Gjorche Petrov, have a centuries-old tradition, as today and Handball Club Delcevo, Handball Club in the past these organizations were Metalurg and Rabotnicki, as well as managed by a group or an individual. Handball Clubs Strumica, Kavadarci and Ovche Pole. Management can refer to profit and non-profit organizations and its On the other hand, Vardar and applicability is different in those areas. Metalurg are part of the Women's Sport as a whole belongs to non-profit Handball Clubs in Macedonia. It is organizations and hence we can talk about interesting that women's handball players the specific application of the principles of have only two handball clubs that have management. But today, the high level achieved much greater success in their sport is more organized in the system of activities in the field of sports, unlike male the profit organizations, which, like other players with far more handball clubs in business organizations, inevitably appear several cities in Macedonia. on the market. Having in mind that for the However, with the greater sports organization, the most important commercialization of the success of the goal is to produce top results out of the women's handball athletes, since 2008, human resources (athletes), the there was significantly increased interest in management in the sport makes functional the female public about the handball, content, the basic one. This means that which was followed by the creation of without a sports organization, the several junior, independent and amateur management can not realize its functional handball clubs in most cities in content; and vice versa, the sports Macedonia. So there are other women's organization has no connecting and handball clubs such as Vardar SCBT, stimulating power of action and Vardar Junior Women, Kumanovo, Ovche development without the management. In Pole, Pelister, Prilep and Gjorche. the sports organization, the management On the other hand, in the field of provides integrity in all processes and the men's handball clubs, the newer ones resources that are relevant to governance, like Pelister, Prolet 62, Prilep, Ohrid 2013, and primarily translating ideas into Radovish, GRK Borec, Zomimak-M and successful implementation of goals. Metalurg 2 stand out. Handball juniors like Vardar Junior and other smaller and amateur clubs are included in these clubs 1 Havelka, N. i Lazarević, Lj. (2011). Psihologija across several cities. menadžmenta u sportu. Beograd: Visoka sportska i zdravstvena škola 37 www.japmnt.com
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It ensures the functioning of the They were asked 12 previously structured entire system of the sports organization, questions related to communication i.e. the establishment of a system of talent management and were asked how they selection, provides expert work and creates perceive them, if they implement them and general conditions for preparation of the also other questions needed to obtain an athletes for the highest achievements, overview and information about the creates preconditions for organizing sports attitude towards communication competitions, provides materials and management in handball. functional means, and finally provides The interview was carried out with communication with the sports public. managers, secretaries and other relevant As in all organizations, the sports responsible people from the following managers communicate with the sports clubs: the Academy of Handball employees (who are not managers) or with Club Metalurg, Handball Club (HC) managers from lower levels of Zeleznicar, The Union of Sports in management. Here, it is important to note Macedonia, HC Vardar, HC Eurofarm, HC that informal communication in sports Pelister, HC Prilep, HC Prolet, HC Spartak achieves greater efficiency. The sports Kisela voda and HC CEMS. organization, by its very nature and Unfortunately, several clubs and the essence, strives to not constitute a strict Agency of Youth and Sports were not hierarchical organization, and pursues willing to cooperate and therefore I could more towards the establishing of quality not receive answers to my questions. interpersonal relations. It creates From the answers we received from the friendship and community in which interview with the relevant persons in informal communication plays an handball, and upon the conducted important role2. qualitative analysis of the interview, we Sending it to the recipient of the message, can conclude that effective communication the subject who receives the given management is one of the main tools for information and from which a certain achieving the success of the handball clubs response is expected. The sender has a in the Republic of Macedonia; and a small portion of the responsibility for whether part of the interviewed responsible persons the recipient can understand the in the handball clubs understand its information in an appropriate and expected significance. From the results of the manner. research we came to the conclusion that In addition to the analysis of the relevant the handball clubs in the Republic of document and theories related to Macedonia need some improvement and communication management, this part upgrading of the models of effective communication management, especially in also includes analysis of the results obtained through interviews of more than the framework of the realization and 10 participants (relevant people from implementation of certain sports projects sports clubs in the Republic of and events in the country and abroad. This Macedonia). means that the communication management and the success of the handball club strongly depend one on another, in the same manner as the success of the handball club is closely related to 2 Temelkovski, S. (2009). Sportski menadzment. Skopje: Аgencija za mladi i sport i Sojuz na the projects and events attended by the sportski federacii na Republika Маkedonija. club in the country and abroad.
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The handball clubs in Macedonia need to communication process. Bearing this in improve and upscale the communication mind, communication is always regarded management models having known that as something that has to be enhanced in communication and management are order to obtain success in functioning of living things that develop simultaneously one organization and its projects, with the development of the society, implementing and anticipating, therefore, handball clubs should constantly determining targets, needs, resources, keep up with the world of communication condition statements as well as successful trends and communication management. managing of the whole team and the Also, the research suggests that there is a projects included in the activities of the need for improvement and modernization sports organization in this case. of the handball sports clubs, i.e. they If the Republic of Macedonia changes its should be provided with quality approach in organizing and managing equipment, information, including efficient sport through implementing compulsory distribution of such information to the obligation for establishing rules and users of the services. Special emphasis procedures for communication should be placed on the role of the modern management, appoints communication technology in the efficient communication management experts as well as modern management, and at the same time, the technical equipment for the support of the success of handball clubs in the Republic communication management, this will of Macedonia. create the possibility to establish efficacy Nevertheless, it has to be accentuated that in both individual and group sports. there is need to introduce organizational In order to establish an effective units for communication management as communication system in handball, it is part of the handball clubs. These units vital to create all compatible information shall intensively deal with implementing activities in Macedonia that have to be and carrying out communication constructed, compatible and on a quality management practices. I also believe that level, while emphasizing the necessity for trainings for communication managers possessing modern information should be organized. Moreover, technology, programs and personnel that participants from handball clubs should will manage them. In light of this attend those trainings and implement discussion, in order to implement an knowledge and recommendations from effective communication information those trainings. As the chief system in handball, it is necessary to recommendation I point out the need to organize the organizational fulfillment of implement legal acts with which handball the normative conditions and assumptions clubs in Macedonia will have to see the in order to enable the collection, importance of communication processing, interpretation and distribution management, i.e. implementing the term of information and data that are prudent communication management in the Law of for the development of handball in sport in the Republic of Macedonia, its Macedonia . definition and its processing.
Communication is a prudent process in managing organizations all over the world. It is a complex process in which one has to work thoroughly and with much devotion in order to attain a successful
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CONCLUSION AND implementation of the acquired knowledge RECOMMENDATIONS and recommendations. The most important The results of the paper point to the recommendation is to make legislative need for successful and effective amendments and to establish legal norms communication management that will that will emphasize the necessity for sports contribute to successful realization of the clubs to appoint responsible persons for set up goals in handball. All of this will be communication, to establish procedures for accomplished through successful internal and external communication, to communication management in each develop communication plans and sports club individually, as well as through programs, as well as to establish models mutual communication between all sports for effective communication. clubs. In this context, we can draw a Bibliography conclusion that the handball clubs in the Havelka, N. i Lazarević, Lj. (2011). Psihologija Republic of Macedonia need some menadžmenta u sportu. Beograd: Visoka sportska i improvement and upstaging of effective zdravstvena škola. communication management models, Temelkovski, S. (2009). Sportski menadzment. especially as a part of the realization and Skopje: Аgencija za mladi i sport i Sojuz na sportski federacii na Republika Маkedonija. implementation of sports projects and events in the country and abroad. With the Tomić, M. (2007). Sportski menadžment.Beograd: Data status. help of the effective communication management, the handball sports clubs in Dzatoska – Zdravkovska, S. (2011). Komunikaciski menadžment vo javnata the country can use, and learn how to use, administracija. Skopje: Univerzitet za turizam i all available information and resources that menadžment. can contribute to successful Kokovič, D. (2000). Socijalna antropologija. implementation of certain short-term and Sportska akademija. Beograd. long-term sports projects. Kokovič, D. (2001). Socijalno – psihološki osnovi The communication management plays sporta. Beograd: Viša košarkaška škola. a great role in the sports organization and Rot, N. (1983). Psihologija grupa. Zavod za sports recreation within the handball clubs udžbenike i nastavna sredstva, Beograd. in Macedonia, especially in support of the Chadwick, S. (2009). From outside lane to insade implementation and realization of a certain track: sport management research in the twenty- first century. Management Decision, 47 (1), 191 – sports events and projects, at the same 203. time contributing to the successful Taylor, T., Dorothey, A., and Mcgraw, P. (2008). operation and mutual communication of Managing people in sport organization. Burlington: the organizational sports clubs and their Elsevier Ltd. external and internal surrounding. Onağ, Z. and Tepeci, M. Team Effectiveness in However, we must emphasize the need Sport Teams: The Effects of Team Cohesion, Intra Team Communication and Team Norms on Team for introduction of organizational units for Member Satisfaction and Intent to Remain. communication management within the Procedia - Social and Behavioral Sciences 150 ( handball clubs that will intensively deal 2014 ) 420 – 428. with implementation and realization of the Janićijević N., Upravljanje organizacionim communication management. It is also promenama, Ekonomski fakultet, Beograd 2004. necessary to organize trainings for Dugalić, S. Finansijski i marketinški aspekti communication managers that should be strategija u sportu. Beograd: Visoka škola za sport attended by the representatives of handball (2005). clubs who will be tasked with
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TOBACCO PRODUCTS STOCK MANAGEMENT ON THE CASE OF THE RETAIL CHAIN IN THE REPUBLIC OF SERBIA
Tanja Tekić1, Dragana Tekić2 1JT International, Belgrade 2MSc student, Faculty of Agriculture, Novi Sad [email protected], [email protected]
Original Scientific Paper doi:10.5937/jouproman6-18952
Abstract: Companies nowadays have profit as a wishes. The significance of the retailers main goal with optimal costs and other resources. supply chain and its set up on the proper However, how to achieve the optimal costs and way are core for the satisfying of the end resources are the main issue and problem for all companies? Is the way to achieve them the same customer. Well organized supply chain for all organizations, industries? Of course not, should give opportunity to retailer to every company organize its business in accordance operating without out of stocks (OOS) and to the environment and internal needs. This paper optimizing costs (transport, inventory, are based on tobacco products stocks analysis, data storage etc.). Modern retail systems that are collected for the retailer operating in the urban, operate mainly in several markets, have a city area in Serbia. In order to complement analysis problem of organizing the supply chain stock level data for observed tobacco product used in paper, temperature and retail sales data have and achieving its efficiency and been collected. Mentioned data collection, analysis effectiveness at the same time. There are and research were implemented in order to set up numerous ways for organization of the an adequate model which should be used in the companies worldwide, however the retailer future projections of the stock level and organization of distribution, storage and optimization of the costs. stocks sometimes does not only depend on Key words: stock, OOS, distribution, logistic, the retailer, but also on the product. tobacco products The main aim of the paper and research it INTRODUCTION is based on w be to observe stock level of the tobacco product brand, data is Internet and technology changed everyday collected from one retail chain in Serbia, life and environment people live, in the paper the tobacco brand will be digitalization and new devices widespread called brand A. Analysis of the brand A and accessible, all resulting changes in all stock level trend, discovering the segments of the society. Logistics systems correlation of the observed variables and have been dynamically changing over the other impacting factors, all in order to set past period, the development of new up an adequate model which can be used innovative hardware and software by the retailer in the future for everyday solutions will impact their changes in the work with tobacco products stocks and its future. Today's business is characterized costs calculation. by the final consumer, his needs and satisfaction. Therefore, retailer should organize business in such a way to develop a long-term relationship with that consumer and satisfies all his needs and
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1. ORGANIZATION AND policy in marketing channels leads to EFFICIENCY OF THE RETAIL integrated and global trade which is the DISTRIBUTION leader in the emergence and development of modern management (Končar & Technological changes, digitalization, Leković, 2013). Changes in the way of globalization and other mentioned trends organizing the procurement and in modern ways of business led to a trade distribution process were necessary based revolution. Retailer as an end link in the on it. The intensity and importance that supply chain has connection with Internet and technology changes have had consumers, knows them and their needs on the modern organization of distribution and because of that become marketing are viewed through a push and pull channel leader. The trade modernization strategy of production and logistic.
Scheme 1. Push i pull strategy of the production and logistics
Source: (Rodrigue, Comtois, & Slack, 2009) A push strategy of commodity flows can the task to directly distributing goods to be described as a vertical organization end consumers (Koncar, 2015). Large, within which separate entities supply the modern retailers mainly have several next link in a chain and that chain different horizontally integrated retail communication flows in one direction. The systems, as well as vertically integrated pull system is based on the two-way supply systems. communication, the client has the highest point in the chain, and he is the last chain Schema 2. Vertically integrated supply chain – examples participator, because of data which is v.i.l.s. 3 v.i.l.s. 1 v.i.l.s. 2 obtained from the point of sale (PoS). This way of organizing supply chain implies the Source: P2 P3 P3 Producer P1 interaction between participants in order to achieve as much efficiency as possible within the chain. Information is crucial, as Distributor D21 D22 D23 D31 D32 well as data collected and used at the right time by each participant.Today retailers operate beyond the national borders, big international companies operating all over R1 R2 R2 R2 R2 R2 Retailer region 1 region 21 region 22 region 23 region 31 region 32 the world, the result is their horizontal and vertical integration with other participants Source: (Stankovic, 2014) of the marketing channel. Retailer as an intermediary in distribution channel has
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The vertically integrated supply chain 1 is modern retail system. Stocks represent a based on the distribution of manufactured puffer between input and outputs goods on the retailer's territory. The whole streams of material goods, these puffers territory achieves larger control, efficiency arise as soon as the difference between of business processes and performance, the time and the quantitative structure of lower costs due to economies of scale etc. the input and the outflow stream occurs A vertically integrated supply chain 2 is (Gereke, 1991). Nowadays retailers have organized with several distributors of one large amount of data available which can producer are divided into so-called be used for reading stocks level status of divisions by region of distribution. A long- each product in real time and adequate term relationship is achieved on the planning of them. Consequently, there are distributor-retailer relationship, main many different systems and ways to characteristics of this system are organize inventories and access to their consumer-oriented orientation, greater planning and identification. In order to flexibility, and however more complex and determine and adequately set up necessary demanding organization of business, less inventory level for normal operating, efficiency of individual business decisions about that must be made at the processes, more costs due to reduced highest level. For normal functioning of a economies of scale and orientation to production or retail system both crucial permanently changing requirements of the aspects of inventory management must be customers. Finally, the vertically contained (Božić & Aćimović, 2016): integrated supply chain 3 starts from the Quantative – with what is being division of the producer itself into regions managed (what makes the assortment), where each producer has a distributor that how much goods (all items) should be supplies a retailer in that region. in stock and how much quantity is Characteristic of this chain type is the needed to renew stocks, long-term relationships between all Financial – it is a consequence of the participants of the observed chain occur, way in which product assortment is firstly relationship between the producer structured and a stock management and the distributor, and then the distributor model, and it represents the and the retailer. Each retail system, incorporation of a structural and depending on its organization, quantitative inventory into a rational development and needs, has a different financial inventory management. way of distribution. The most important factor which determinates the choice of the The empirical part of this paper will be distribution model are stocks and their devoted to quantitative planning and management within the system. stocks analysis, whereby financial effects will be ignored, assuming that the 2. STOCK MANAGEMENT OF THE company has economies of scale, quantity MODERN RETAIL CHAINS of products sold as a main target. It is necessary to make synergy and optimize The aforementioned technology the entire procurement process and stocks development and customers’ centric level regardless on the inventory approach have added value to the stock management approach used in company. management within retail systems. An When it comes to inventory management adequate stock management policy and itself, the literature has different choosing the right distribution model are approaches. Two general approaches used the basis for the success. Customers in inventory management are (Božić & dictate offer, and therefore the dynamics Aćimović, 2016): of moving and organizing the stocks of a
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Continuous filling system, implies c. Replenishment, delivery and that the stocks level are speed of filling in shelves. continuously monitored and that 2. Centralized - there is a function in their filling is carried out after charge for the procurement process falling below a certain level, the for the entire retail chain. This amount of newly ordered goods is feature takes care of the following: fixed. In this case, the ordering a. Ordering goods at certain time quantities are fixed, and period intervals, depending on the between the two orders is variable. capacity of the warehouse, Periodic system, implies ordering distribution centers, at fixed intervals, regardless of b. Distribution to retail facilities, available stocks level, the size of c. Refill, the filling speed of the the order is predefined to provide shelves average stocks level. In this case the interval between the orders is As well as stock management and fixed, and ordered quantities are organization of procurement depends on variable. Therefore, this system is the company itself and its targets, and also called the fixed interval depends on the products that are system. The level of stocks within purchased, i.e. stored. The largest number this system is determined by of modern retailers are supplied capillary; periodic stocktaking of goods in all it’s a small number of retailers that facilities in which the stock tracked completely centralized their stocks. goods can be present. However, and these modern retail chains In practice, large retail chains are choosing acquire daily consumption products inventory management system according decentralized, in most cases process of to their distribution and inventory distribution is done by the producer or organization. However, retailer must wholesaler itself. Because of the products consider product type and its sales before that are in consumers focus every day and making a decision about used inventory whose turnover is exceptionally high management system, so one retailer can FMCG (Fast-moving consumer goods), use different systems for different companies have to have properly set products. The organization of the supply and distribution chains. Marketing procurement of each retail system dictates orientation for big companies implies the further flow of inventories and the way targeting of different segments with brands they are organized, as well as their costs, that are specially created to fulfill the planning. There are two ways in which needs within (Corstjens & Corstjens, large retailers organize the procurement 1995). Various customer groups are process (Gruen & Corsten, A targeted with different segments, but each Comprehensive Guide to Retail Out-of- one of them is “empty shelf” sensitive, Stock Reduction in the Fast-Moving meaning the inability to buy desired Consumer Goods Industry, 2007): product during the process of purchase. 1. Decentralized - each store orders Since the customers opinion and their goods for itself, in this case it is loyalty are the basis of todays’ companies’ necessary at the facility level to success, this represent really huge consider: problem. Increased customers intolerance a. Availability and up-to-date to the fact that product is missing in the information on current stock level object (OOS), with the increase of their and turnover status, importance and technology development b. Prognosis and ordering process, lead to the fact that OOS is becoming
44 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018. more and more important topic since 90’s Mentioned research was conducted in 29 (Schneider, 2009). This is a problem countries and involved over 71.000 because huge number of customers will customers that were looking for 32 seek for some other company product or different kinds of FMCG products within similar product, and part of them will modern retail system. On the following continue buying that substitute long-term. chart is shown what customers did in case However, there are customers that in case of OOS in retail object; data that are of lacking the product in the store they will presented are average on the mentioned buy the same product in some other store sample level so they cannot be applied on that can become object of their everyday one specific country, but they are indicator shopping; so, in every retailer interest is of customers behavior on developed not to have OOS. A lack of stocks has market. negative influence on retailer’s business, directly is leading to decrease of sales Chart 2. Consumers respond on OOS, global average volume, customers are giving up on purchase, changing retail store or mostly buying cheaper substitute (brand or product) (Grubor, Milićević, & Đokić, 2016). Research about OOS is in the focus especially in the last years; supply chain, logistics, distribution, stocks are gaining bigger importance because of extremely Source: (Gruen, Corsten, & Bharadwaj, 2002) high costs and long-term consequences regarding the relation to end user. This is The largest number of customers in case of the reason why is conducted huge number OOS was searching for products on the of researches globally. One of those global other place, which influenced retailer the researches was conducted 15 years ago on most, while lesser percentage of customers developed market with already set retail bought some others company substitute system, where were tested P&G stocks and even lesser percentage of those who within largest retail chains. This research bought the same company product, and showed that usually reasons for OOS more than 20% of them that didn’t even occurrence are problems in planning, make a purchase process. This research while in lesser volume those are upstream confirmed previously stated theoretical problems and logistics and CRM facts and as a result it gave mentioned disorganization within those retail objects. losses for retailer and manufacturer, Chart 1. Reasons for OOS origination: Global because both of them lost end user loyalty average that dictates market demand. All mentioned theoretical facts are confirmed on developed world market by global research, however the question is what result will be if the research is conducted in our country? This kind of research would require a huge amount of resources, both financially and human, so Source: (Gruen, Corsten, & Bharadwaj, 2002) in this paper we will focus only on tobacco products and trend of their stocks within one modern retail chain.
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3. TOBACCO PRODUCTS STOCK wanted product in the moment of MANAGEMENT ON THE CASE OF purchase. The biggest number of retailers RETAIL CHAIN IN REPUBLIC OF in Serbia leaves distribution of cigarettes SERBIA and other tobacco products to wholesalers, while small number of them are supplied Market of tobacco products is still centralized. This way of organizing the underdeveloped in the Republic of Serbia, distribution gives high importance on the but even so, it is one of the most relation between three participants in the developed market in the region, on which channel; between manufacturer, distributor operate big, international companies. With – wholesaler and retailer. With those characteristics, Serbian market has development of technology and techniques various number of cigarettes and other each one of the participants can track its tobacco products, and even though prices sales, stocks, costs and other parameters are increasing due to tax, they are way related to tobacco products in real time. lower than the prices in EU. Tobacco All data are basis for making qualitative companies alongside with other industries sales plans, plans of stocks and colleagues are segmenting customers organization of distribution. To see groups with certain brands and they are success of tobacco stocks planning, we competing each other. Market came into possession of sales data and segmentation can be defined as a process stock data of one of the largest retail of market dividing to separate consumers’ chains in Serbia and we made an analysis subgroups that have common needs or and forecast of future development trend. characteristics and choosing one or more Cigarettes are products with highly segments to which bidders will target their expressed seasonality as independent marketing offer (Schiffman G. & Kanuk, variables that have an impact on stocks, so 2004). Sales of tobacco and tobacco we observed average monthly products in the Republic of Serbia is temperatures in Serbia and monthly sales strictly regulated with big number of legal of observed cigarettes, brand A. and executive acts, therefore tobacco sales As we can see in Table 1. the correlation and traffic can be done only by certified coefficient is 0,7927; interdependence retailers. Tobacco and tobacco products, between our observed variables, the value unlike other daily products, can be sold of stocks on one side and temperature and only on certified point of sale which is the sales on the other side is extremely strong. only place where the communication with Determination coefficient is 0,6284 and it customers is possible. That is the reason shows that this model covered almost for investing huge amount of funds in the 62,84% variations of dependent variables PoS organization and communication and (stocks), while the rest of 27,16% of stock above all in relationship with retailers and variations are explainable with other their employees on PoS. As Serbian factors. Adjusted determination coefficient tobacco market is still underdeveloped, shows that with model is included 60,52% there are various number of different local of stock variations. F-test, i.e. Friedman and international brands with whom test has table value of 27,055 while p = 0,0 customers can be targeted by the which is less than 0,01 so we can conclude companies. When the cigarettes are that this model is highly statistically mentioned we cannot skip the fact those significant. At the end, standard error is a are products that cause smoking addiction, measure that represents accuracy of one of the most common addiction, so for predictions and in this case it is 2.273 the end users is really important to have cigarette packs.
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Table 1. Basic statistical indicators view and model significance appraisal
Regression Summary for Dependent Variable: Stock A R= .79270824 R2= .62838635 Adjusted R2= .60516050 F(3,48)=27.055 p<.00000 Std.Error of estimate: 2272.6 b* Std.Err. - of b* B Std.Err. - of b t(48) p-value
Intercept -9464.53 1952.658 -4.84700 0.000014
Stock A 0.803191 0.090980 15.26 1.728 8.82824 0.000000 Temperature -0.076344 0.091775 -6.52 7.835 -0.83186 0.409609 Source: Author
First column, parameter b* represents Chart 3. Analysis of tobacco product A within the standardized values of this parameter for one Serbian retail chain: The correlation between each and every variable. On the basis of stocks level, sales and average temperatures in the other part of the table, column B, we can observed time period create formula of observed model: y = -9.464,53 + 15,26x1 – 6.52x2
These parameters show stock values if all others independent variables in this model have zero value. Next column is standard error for each independent observed variable of this model. Then we have a column with table values based on t-test. At the end, there is a p value according to rated t-test, on the basis of which we conclude the following: Parameter a (it is only theoretical Source: Author value and has no economic The scatterplot above shows that observed significance) and parameter b1 are variables (temperature, stocks and sales of statistically significant, because their product A) have a quadratic U shape value is less than 0,01. (concave up) that fits them and describes Parameter b2 is not statistically the best, the correlation between them is significant, i.e. it has no impact on curvilinear. Based on calculated regression stock trend of observed retailer. equation it can be concluded that observed retailer will have in stock 6.165 packs of This multiple model will be shown also by cigarettes in case he does not sell product chart with square trend, unlike previously A; sales development trend and stock trend presented results of multiple line is positive so we can conclude that it is a regression. brand that will have sales increase and stock increase also and that is a brand of cigarettes that is not susceptible to seasonal influences and variations.
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Based on calculated regression the retailer years and it has loyal customers which could infer that product A stocks will be number is still increasing. In case of OOS, 6.165 packs of cigarettes in the case there this brand consumers will probably decide are no sales at POS. The observed product to go to other retail object to buy it; A has positive sales and stock trend, considering the fact this is a tobacco however it is not susceptible to the product, not some other daily consumption seasonal variations and influences. product, there is small number of consumers that will buy a substitute. Brand would face a real problem if a consumer CONCLUSION wouldn't find brand A and in next retail object; in that case consumer will switch to some other substitute. OOS of tobacco products is highly specific and today is In the past period market has been almost inadmissible due to characteristics changed, it has been turned to the and habits that these products are causing, consumer and its requests. Logistics has because sales is moving almost perfect in been given much more important role and accordance with stocks, which can be seen all large companies have in their focus to on this example. In the future growth and observe the organization of its chain value advancement of PoS from the aspect of not only from the aspect of funds, but also tobacco product storage, and also from the from the aspect of the quantitative flows. aspect of stocks planning and stocks With the new way of distribution retailers management in modern system is became leaders of marketing channel and expected. now they dictate its dynamics; organization of distribution and supplies dynamics are now starting from the retailers and their requests. REFERENCES
Republic of Serbia is still undeveloped market looking from the aspect of how Božić, V., & Aćimović, S. (2016). Marketing retail network is composed and from the logistika. Belgrade: Centar za izdavačku delatnost, aspect of development of tobacco market Faculty of Economics, University of Belgrade. that was studied. Cigarettes and other Corstjens, J., & Corstjens, M. (1995). Store Wars - tobacco products retailers are getting from The Battle for Mindspace and Shelfspace. Sussex: the wholesalers, in the exact agreed time John Wiley & Sons. and in line with dynamics of consuming. Consumption dynamics and inventory Gereke, L. (1991). Poslovna logistika. Belgrade: management dynamics of one brand in one Viša poslovna škola. of the biggest retailers in Serbia is shown Grubor, A., Milićević, N., & Đokić, N. (2016). The here. effest of invetory level on product availability and sale. Prague Economic Papers, Volume 25, Observed brand A has exceptionally large Number 02 , 221-233. initially stocks, trend of sales growth, trend of stocks growth in the future was Gruen, T., & Corsten, D. (2007). A Comprehensive not susceptible to seasonal influences, i.e. Guide to Retail Out-of-Stock Reduction in the Fast- average temperature was not statistically Moving Consumer Goods Industry. Colordo: significant. Based on everything stated, as Grocery Manufacturers Association (GMA), Food Marketing Institute (FMI), National Association of a logical conclusion we can say this is a Chain Drug Stores (NACDS), The Procter & brand that is present on the market for
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Gamble Company (P&G) and the University of u funkciji održivog razvoja. Anali Ekonomskog Colordo. fakulteta u Subotici, Vol. 49, Broj 29 , 409.
Gruen, T., Corsten, D., & Bharadwaj, S. (2002). Rodrigue, P., Comtois, C., & Slack, B. (2009). The Retail Out-of-Stocks: A Worldwide Examination of Geography of transport systems. New York: Extent, Causes and Consumer Responses. Routledge. Washington: The Food Marketing Institute and CIES. Schiffman G., L., & Kanuk, L. (2004). Ponašanje potrošača. Zagreb: Mate. Kalinić, V. (1993). Marketing logistika. Subotica: Faculty of Economics Subotica, University of Novi Schneider, M. (2009). Out of Stock! Out of Sad. business? Twente: University of Twente.
Končar, J. (2015). Menadzment maloprodaje. Stanković, Lj. (2014). Trgovinska revolucija: novi Subotica: Faculty of Economics Subotica, odnosi snaga u kanalima marketinga. Belgrade: University of Novi Sad. Čigoja stampa.
Končar, J., & Leković, S. (2013). Trendovi modernizacije i strukturne transformacije trgovine
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INFLUENCE OF FOREIGN DIRECT INVESTMENTS ON ECONOMIC DEVELOPMENT OF THE REPUBLIC OF SERBIA
Milan Šušić
University of Business Studies, Banja Luka, Faculty of Business and Financial Studies, Bosnia and Herzegovina [email protected]
Original Scientific Paper doi:10.5937/jouproman6-18873
Abstract: The paper analyzes the importance of empirical research of economists after the foreign direct investment and their impact on the Second World War. The continuous new economy as well as the motivation factors for foreign direct investments. Process of integra-tion globalization process resulted in the of the world economy influences the changes in the changing attitude of many countries about attitude of the countries of the recipients of capital the importance of foreign direct in relation to foreign direct investments. Today, investment. Developing countries in the there is a favorable climate on theinvestment in FDI are no longer looking at suspicions, developing and transition countries, because these countries no longer watching with suspicion. FDI but on the contrary, in their economies, entry controls are customized adapting to selective they seek to create favorable business state policies in order to boost their investment conditions that will be attractive and volume. supportive for foreign investors. The role The effects of foreign direct investment in of national governments is the proper developing and transition countries are not equal, as all countries do not have the same performance. choice of a quality strategy for attracting The success of securing FDI inflows depends on the foreign direct investment are of paramount chosen strategy of each country and on the overall importance. level of social and economic development of the country. The ability to government and domestic Since foreign direct investments of companies is to optimally take advantage of foreign direct investment. The paper analyzes the positive transnational companies are recognized as and negative effects of direct foreign investments one of the basic channels by which for certain macroeconomic indicators of the developing countries gain access to state- Republic of Serbia. of-the-art technologies whose diffusion plays an important role in explaining Key words: importance of foreign direct economic growth, there is also a investment, FDI investment motives, macroeconomic factors, economic growth and competitive struggle to attract foreign development, Republics Serbia. investors. However, with all the positive effects that transnational companies can have on the recipient's country, the INTRODUCTION potential social costs that may arise should be assessed. Foreign direct investment Foreign investment, in its widest sense, does not represent a solution to all implies problems and their positive impact depends all types of investments of foreign legal on the conditions prevailing in the host and natural persons in the economic country. activities of a country. Foreign Direct Investment (FDI) are starting to become more intensified in theoretical and
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We see that the attitude towards foreign numerous problems, which had a negative direct investment has changed over the impact on its economic development. The past twenty years. The growth of deep economic crisis caused by long-term globalization and liberalization has caused isolation, war conflicts, obsolete the need to support new, more productive technology and the lack of capital for the activities, that is, there is a need for the overcoming of key development problems production of goods and services capable prevented a better development of the of sustaining competition and survival on country. In addition, from the aspect of the market. Today, most of the countries external liquidity and solvency, Serbia was are considered to be an important source of among the most influential countries in funds for activating their own potentials transition. For the above reasons, foreign necessary for development. Today, investments represent the most important developing countries, which for a long development opportunity of Serbia, but time have been cautious and omitted from also of other transition countries, which are participating in international operations, trying to improve their national economies liberalized in the early 1990s the regim and rank among the competitors on a and policies for attracting foreign global scale. In order to do this, they must investment. carefully devise strategies to attract foreign Foreign investments, in addition to investment, since only in this way can they obtaining capital, significantly contribute provide a congressional position in a to internal and external liberalization of modern business environment, which is an national economies, reintegration into important condition for the faster international division of labor, change of development of their economies. ownership through privatization, sectoral restructuring of the economy, introduction Foreign capital has a significant impact on of modern managerial and marketing the integrative processes of industrialized knowledge, easier acceptance of developed countries, and has affected developing technologies, intensification of research countries for the past ten years. In a large development activities , as well as easier number of countries, there is a tendency of access to important international financial liberalization of national regulations institutions and markets around the world. governing foreign investment, which, with numerous bilateral and multilateral Today, foreign direct investment is one of agreements, leads to the creation of a more the key elements of the transformation favorable climate for the implementation process in the market economy in the of foreign investment projects, on a global countries of the Visegrad Group, where level. In the literature it is basically existed a centrally planned economy was emphasized that the realization of developed. It was considered that foreign investments and trade constitutes the basic direct investment would lead to the "support pillars" of the globalization of the accelerated economic growth of these world economy. countries, however, they did not always It is important to point out that there is a yield the expected positive results. significant conditionality between the legal However, it is assumed that the regulations of national legislations and the development effects of FDI will occur later inflow of foreign capital, as well as its if an appropriate policy towards foreign contribution to export orientation and direct investment is adopted and faster growth of gross domestic product, consistently applied. market openness, technological development, reduction of unemployment At the end of the last millennium, the of the country of receiving capital. Republic of Serbia was confronted with
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MOTIVATIVE FACTORS FOR framework that allows business under FOREIGN DIRECT INVESTMENTS conditions that are known at the time of investment, etc. If there are such Movement of capital in the international conditions in the country, the inflow of capital market depends on the mutual foreign capital can be realized faster and interest between the provider and the on a larger scale. However, if one of the beneficiary of the capital. The goal of a above general conditions is not met, there foreign investor is to achieve maximum is a decrease in foreign investments, that is, profits, while the goal of capital users is to a reduction in the transfer of realized profit develop rapidly without losing their to the country of origin of capital. economic independence. Capital investor realizes profit using advantages such as: Investment motives for foreign direct capital, new technologies, knowledge and investors experience, new brands, management, marketing, etc. At the same time, the The motive of each investor is to make as beneficiary of the capital has its interests, much profit as possible. So, in order to such as: reducing the differences in investment engagement abroad, it is technological development, the rate of necessary that the country's profit rate in economic growth, the inflow and outflow the country of the recipient of capital be of foreign exchange, the increase in greater than that which can be achieved in competitiveness, employment, the standard the country of origin of capital. Apart from of living of its population. Every investor making profits, important motives for who wants to invest in any country must be foreign investments are the following: motivated. In order for foreign investors to market size and quality, infrastructure invest capital in a country, they must be development, labor force qualification and motivated to invest. Although the main political, or macroeconomic stability of motive of foreign investors is the potential foreign investment countries. In achievement of profit, it is possible to modern business conditions, motives for distinguish two basic groups of foreign foreign investments are very complex and investors. The first group includes export- interconnected. Capital exporting countries oriented investors, and the second group have many positive effects, such as: includes investors oriented to the domestic increasing national income, improving market. their own position in the global market, gaining an appropriate position in Export-oriented investors primarily expect international political and economic that in a country where they want to invest relations, and the like. Thus, foreign capital there is a stable political climate, so investment motives are much wider than that their investment would not be achieving financial profit and necessarily compromised. They demand that there is a involve expanding the activities of the highly skilled workforce in the country, parent company globally, in one of the which is a prerequisite for the production following ways: of sophisticated products. In addition, a mobile and flexible workforce, which can Supply-oriented (supplies, delivery), FDI quickly and easily be adapted to perform undertaken in order to obtain production various types of jobs. Foreign investors resources. This is mainly about the who are not export oriented, want a large investment of developed countries in part of the domestic market to market their underdeveloped countries in order to products, expect that the country's provide cheap raw materials and labor; economy has an upward growth, in order to grow consumption and a stable legal
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Demand-oriented (demand, demanding), a call from abroad for business FDI that are motivated by demand. In this engagement outside national borders, if it case, capital usually moves between the comes from a reputable and high place; two developed countries in the expectation foreign investment as a result of fear of that higher demand in the second losing market; to follow others and to go developed market will justify investment, into areas that are currently attractive; and which will be more profitable than direct the strong pressure of competition on exports; domestic markets, can be a motive for Trade-oriented (trade), FDI, whose motive investing and compromising competition is the expansion of trade, also explains the in the competitors market (Kovač, O. movement of foreign direct investment 1994). (Vidas-Bubanja, M., 1999). Strategic motives of the TNK for investing Economic motives of FDI relate to a abroad can be represented by a division number of factors: advantages of given by Dunning in 1992, according to economies of scale; marketing and which it is possible to distinguish four management experience; technological types of international production: advantages and advantages of financial production in order to provide resources; potentials and differentiation of production securing the market; achieving greater (Kovač, O. 1994). efficiency and production in order to Generally speaking, the motives for acquire strategic resources-advantages foreign direct investment relate to the (Bahar Bayraktar-Sağlam, Selin Sayek following: seeking new markets, that is, Böke 2017). extending the existing business; reduction Motives for investing abroad can be of transport costs, that is, rationalization of classified into three basic groups: strategic foreign direct investment; exploitation of motives, subjective and economic motives resources in order to gain control over (Kovač, O 1988). strategic resources, which can be material (oil, coal) and human (labor); advantages Strategic motives of investors, consist in of a particular location; profit making; securing the target market and installing strategic behavior; cheaper labor; lower the necessary technology. Respecting the prices of raw materials and energy; rationality principle, it is necessary to completing its production process; opening provide appropriate physical resources, new facilities abroad, and avoiding workforce, technology, management, payments the prescribed legal obligations. marketing and organizational skills at a lower cost, in order to achieve the highest Unique motives of capital users efficiency of production. An important strategic motive is the choice of a country One of the motives of foreign capital users in which there is a rule of law and is the creation of conditions for increasing generates knowledge and technology. In social assistance as well as the comparison addition, it is necessary to take into of costs and social benefits generated by account the degree of corruption and crime the inflow of foreign investments. Social in the country in which they want to invest, benefits or gains from foreign direct as well as the type of technology that the investment are manifested through various strategic partners intend to install in it. positive influences. Such a creation of profits by a multinational company, which The subjective motives of foreign direct is then taxed, ensures substantial inflows investment are diverse, and the four most into the state budget. important ones are:
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One of the most common fiscal measures The motives of the countries of foreign used by Governments to attract foreign direct investment users are the social capital is exemption from paying taxes on benefits that will be achieved in them, in profits for a certain period of time. the transfer of new technologies, Furthermore, there is the possibility of knowledge, as well as their significant creating new jobs and related to that impact on economic growth, employment, transfer of knowledge, technology and foreign trade, investment and management skills. environmental protection in the host country. Using the comparative advantages of a local economy with the economy of a Opponents of foreign investment often foreign investor's level can be an important stress the fear of the rise in the impact of element for the exit of domestic production multinational companies on economic to the world market. The entry of foreign policy and country stability, and the companies into the manufacturing sector achievement of a monopolistic relationship can lead to the strengthening of between the multinational company and competition, which increases the pressure the country of foreign investment users. on more efficient business of the rest of the sector. Another important motive of the RESEARCH OF THE INFLUENCE OF country of capital beneficiaries is the fact FOREIGN DIRECT INVESTMENTS that foreign direct investment is not ON THE ECONOMIC included in the debt side of the country, DEVELOPMENT OF THE REPUBLIC and countries have additional motivation to OF SERBIA provide as much foreign investment as possible with respect to other items in Foreign direct investment can significantly capital and financial account of balance of affect the economic development of the payments. country of the recipient of capital. This type of investment affects the increase in Potential social costs of foreign direct income, the increase in the technical investment can cause a reduction in composition of the production factors, the employment due to the rationalization of increase in productivity and the increase in labor i take it or, on the micronivu, due to employment. „Import the capital increases the demands of unsuccessful domestic budget revenues through revenue growth“ enterprises. Furthermore, distortions in the (Kragulj D., Miličević D., 2007). labor market can occur, that is, the amount of "good" jobs can be reduced and the The Republic of Serbia, as the last among amount of "bad" jobs increased (workers' the European countries that entered the salaries with the same abilities or changes transition process, has the advantage of are changing due to foreign direct using the experience of other transition investment and mismatch in the labor countries in terms of the effects of the FDI market structure). In on macro level, there inflow. These experiences should be used may be a deterioration in the current to make the most of the positive effects of account of the host country's balance of FDI for the development of the domestic payments, if firms they were created by economy. However, given that the foreign direct investments have got of Republic of Serbia has begun reforms at a imports more than export, for example, time when those countries in other from their central offices abroad. countries are already ending, this may represent a potential restriction for higher inflows of quality FDI in its economy.
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For these reasons, the Republic of Serbia privatization processes and creating must conduct an active policy towards the conditions for competition“ FDI, which implies intensive promotion of (www.ien.bg.ac.yu (date: August 15, the country and targeting investors, with 2018). the continuous improvement of the domestic investment climate, with various „Expansion of investment activities would economic policy measures. enable an increase in the production base necessary for the creation of economic „Foreign direct investment plays a very development. Attracting a foreign important role in the rapid and stable economy would be a national economy economic growth of the country: directly profile by expanding the product range for (through capital inflows) and indirectly exports. In fact, it is well known that many (through transfer of technology, knowledge investors have distribution chains and sales in the field of new technologies and of products“ (Šušić, M. 2018). One of the management of the real production sector, prerequisites for new product innovation, which give us a chance to conquer new increased production and export are markets in the global market. and foreign investments for the Republic of strengthening competition in the domestic Serbia. economy)“.( Ivana, S. D. and Darko, M. M. 2017) In the initial period of the Investigations into foreign investment transition process, FDI mostly went to the inflows for the Republic of Serbia are existing capacities of the transition shown in Table 1., an inflow of 27,020 countries, enabling better use of available billion euros from 2006 to 2017 was resources and productivity growth, and in shown, while FDI inflows amounted to the next phase of transition, after 17,184 billion euros in the period 2006- exhaustion of existing reserves (bringing 2012. the end of the privatization process), long- term economic growth can be achieved Table 1: Presentation of the results of the survey of through „Greenfield“3 Investments. „In the certain macroeconomic indicators for the Republic of Serbia in the observed period (FDI, GDP, GDP Republic of Croatia for the period from per capita) 1993 to 2005, only slightly less than 20% (http://data.stat.gov.rs/Home/Result/170303?languageCo of total foreign investments relate to de=en-US, The Author 2018) greenfield investments“ (Bilas, V. Franc, Year FDI FDI, GDP GDP, GDP GDP (in growt (in growt per per S. 2006 ) millio h rate million h rate capit capita, FDI influenced the process of transition in n EUR) a in growth EUR) EUR rate a direct and indirect manner. „Direct 2006 3.323 165,8 24.435 4,90 3.297 16,26 4 effects can be reduced to those effects, 2007 3.219 -3,13 29.452 20,53 3.990 21,02 which are related to economic growth in 2008 2.711 - 33.705 14,44 4.586 14,94 15,78 key industrial branches, trade and 2009 2.100 - 30.655 -1,05 4.187 -8,70 development of trade links with the West 22,54 2010 1.278 - 29.766 -2,90 4.082 -2,51 and transfer of technology (management, 39,14 2011 3.544 177,3 33.424 12,29 4.619 13,16 consulting, advertising, real estate sales, 1 etc.), while the indirect impact FDI looked 2012 1.009 - 31.683 -5,21 4.400 -4,74 71,53 at the construction of the country's 2013 1.548 53,42 34.263 8,14 4.781 8,66 institutional system, encouraging 2014 1.500 -3,00 33.319 -2,76 4.672 -2,28 2015 2.114 40,93 34.491 0,52 4.720 1,03 2016 2.129 0,71 34.617 0,37 4.904 3,90 2017 2.545 19,54 36.795 6,29 5.241 6,87 3 Greenfield investments are investments in the Total: 27.02 386.60 53.47 establishment of new companies that bring new 0 5 9 Mediu 2.252 25,22 32.217 4,63 4.557 5,63 knowledge, technology or some other assets with m them, while brownfield investments represent the value: takeover of an existing company.
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Analyzing these data, we see that the national analysis“ (Obradović, Ć. J , Mitić, Foreign Direct Investment in 2007 P. , Dmitrović, M. 2017) amounted to EUR 3,219 billion euros and (http://data.stat.gov.rs/Home/Result/24000 had a negative growth rate of 3,13 % in 20 40 1? languageCode=sr-Cyrl, relation to the previous year. The inflows (https://www.nbs.rs/internet/cirilica/80/plat of foreign direct investments until 2011 are ni_bilans.html) in decline, and in 2010 they amounted to (http://www.trend.uns.ac.rs/stskup/trend_2 EUR 1,278 billion euros and they recorded 017/radovi/T2.1/T2.1-3.pdf). the largest decrease of 39,14 % compared to 2009. Foreign direct investment inflows „The positive results of foreign direct from 2015 to 2017 have a positive trend, investment inflows should be shown by ie, gradual growth, amounted to 6,788 increasing and changing GDP, GDP /per billion euros, and the increase in 2017 was capita, production structure, market 19,54 % compared to 2016. In the openness and an increase in the Republic of Serbia since 2014, we have a employment rate. However, foreign direct gradual recovery of the economy measured investment can also cause negative by GDP and GDP / per capita. consequences for the economy due to changes in the sector structure. This refers to the reduction in employment, followed by the dismissal of employees, due to increased productivity“ (Šušić, M. 2018). Research selected macroeconomic indicator for Serbia, measured in% g / g, shown are in Table 2.
Table 2: Results of the survey of selected macroeconomic indicators for the Republic
of Serbia, (The Author 2018) Figure 1: Graphical presentation for the Year PFDI_GDP SR_GDPps TRG_GDP R&D_GDP Interest rate Unemploy. in % research macroeconomic indicators for the 2006 13.60 16.26 77,4 0.50 14.00 20.9 Republic of Serbia in the observed period 2007 10.93 21.02 80,1 0.45 10.00 18.1 2006-2017 (Growth Rate), (The Author 2008 8.04 14.94 82,6 0.46 17.75 13.6 2009 6.85 -8.70 69,0 0.50 9.50 16.1 2018) 2010 4.29 -2.51 79,8 0.82 11.50 19.2 2011 10.60 13.16 82,7 0.72 9.75 23.0 THE RESEARCH RESULTS OF 2012 3.18 -4.74 89,8 0.75 11.25 23.9 2013 4.52 8.66 92,6 0.70 9.50 22.1 FOREIGN DIRECT INVESTMENT 2014 4.50 -2.28 97,7 0.72 8.00 19.2 2015 6.13 1.03 102,6 0.70 4.50 17.7 The dependent variable (SDI) in relation to 2016 6.15 3.90 106,8 0.75 4.00 15.3 the observed independent variables for the 2017 6.92 6.87 113,3 0.85 3.50 13.5 Republic of Serbia in the observed period was investigated in this paper, the Selection of variables, data and methodology was chosen, independent metodology variables and statistical analysis were defined using the available data from the The panel data includes the Republic of Republic Institute for Statistics of Serbia Serbia for which data is available annually and the National Bank of Serbia and data from 2006 to 2017. from the the Labor „Significance of investments in science - regional and The general form of the multiple regression model is given in the equation 1. (Author 2018)
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imports as a share in GDP. For investors it PFDI_GDPt=f(SR_GDPps,TRG_GDP, is very important that the country is open R&D_GDP, Int. rate, Unem_thousdfaces)t and that there are no trade restrictions. It is (1) therefore expected that greater openness will attract more foreign direct investment. In this model, PFDI_GDP is a dependent „R & D_GDP represents gross domestic variable. This is a occurrence whose expe-nditure on research and development variations are expressed by independent (GERD) as a% of GDP, which is a proxy (regressive) variables: SR_GDPps, technology variable. Research and TRG_GDP, R&D_GDP, Int. rate, development is a good indicator of both Unem_thousfaces. Equation (1) is additive. technology and human capital. At the same If it is assumed that the relation between time, research and development creates a PFDI_GDP and (SR_GDPps, TRG_GDP, new technology that reduces the R&D_GDP, Int. rate, Unem_thousfaces,) technological gap to other countries. It is a is linear, the model (1) is a multiple linear signal to foreign investors that the host regression model that reads: country has already reached the required level of human capital for the independent PFDI_GDP = β0 + β1*SR_GDPps + advancement of technology“ (Šušić, M. β2*TRG_GDP + β3*R&D_GDP + β4* Int. 2018). It is believed that higher investment rate + β5*Unem_thousfaces + ε in research and development is attracting ….(2) more foreign direct investments, as companies seek educated and high-quality In this model, PFDI_GDP is a dependent workforce. However, opinions are divided. variable, SR_GDPps, TRG_GDP, R & Interest rate is the rate on borrowing D_GDP, Int. rate, Unem_thousfaces are money or loans. This rate is normally according to the creditworthiness of the independent variables, 0, 1, 2, 3, 4 and borrower-borrower and the funding 5 are unknown parameters, and ε is a random variable, and is still called a objectives. The terms and conditions relational error, and its presence is a attached to these rates vary code individual consequence of the statistical nature of the country. If interest rates on borrowed relationship between phenomena (Šošić, I. money are high in the country, a smaller 2006). inflow of foreign direct investment is Foreign direct investments include expected, ie a negative sign of the investments in money, goods, debt coefficient with the variable Interest rate. conversion into equity, intercompany Unem_thousfaces represents the total borrowings and reinvested earnings as volume of unemployed persons, which is shown in the balance of payments. the proxy variable for unemployment. The All other variables are independent. unemployment rate is very important for Where, SR_GDPps denotes the growth rate every country, and for the Republic of of GDP per capita at current prices, which Serbia, it shows us the decline or growth of is the proxy variable for market size and unemployment in the country annually. If growth. According to the theory and the unemployment rate in the country has a previous research, the expected sign of a downward trend, a higher inflow of foreign GDP growth rate per capita should be direct investment is expected, or a positive positive, since a larger and more developed sign of a coefficient with a variable market offers more opportunities to foreign unemployment. investors. TRG_GDP denotes the share of trade in GDP, which is the proxy variable for the degree of market openness, which is calculated as a sum of exports and
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In line with the problem, the subject and objectives of the research, and the Table 3. of the descriptive statistics can hypotheses: Market growth significantly show the observed studies for the average influences the FDI inflow; Openness of the values for the selected variables. In country significantly influences the inflow addition, the average net inflow of FDI of FDI; Investing in R & D has a amounts to 7,1425 % of GDP in the significant impact on FDI inflows; Interest observed period with an average deviation rate significantly influences FDI inflows; from the aritmetic mean of 3,14278 %. Unemployment significantly influences Based on the conducted research, the FDI. inflow of FDI as a percentage of Graphical and tabular display methods, participation in gross domestic product for static panel data, and correlation analysis the observed period ranged from 3.18% to are used. The graphical and tabular display 13.6%. The average growth rate per capita methods represent the movement of the is 5,6342 %, in the observed period with an selected model variables in the period t. average deviation of arithmetic mean of In order for a dynamic assessment to be a 9,3896 %. The smallest rate of growth per good condition, the condition is the lack of capita in 2009 was -8.7%, and the highest a problem of bias, inefficiency and growth rate per capita in 2007 was 21.02%. asymptotic bias. The model analysis starts The share of trade in GDP in the average is from certain assumptions concerning the 89,5333%, which leads us to conclude that nature of the variables involved. These the degree of market openness is not assumptions are true: a) The relation satisfactory in the observed period, as there between the dependent variable and the are trade restrictions. For investors it is selected set of independent variables is very important that the country is open and linear, as described by the equation (1); b) that there are no trade restrictions. It is Independent Variables are not random therefore expected that greater market variables and their values are fixed; c) The openness will attract more foreign direct matrix X is a full rank xi it is assumed that investment. The minimum value of this the variables are independent of each other, indicator is 69% and the maximum is and ℜ(X)=k+1; d) Random variables εi 113,3 %. The average deviation of the have a centered distribution with a constant share of trade in GDP from the average is variance of σ2 and they are mutually non- 13,339 %. linear. We can conclude that R & D expenditures RESEARCH RESULTS are not a high expenditure of GDP. On average, the Republic of Serbia invests in In the following Table 3., the results of the research and development of only 0,66 % study of the Descriptive Statistics for the of GDP. The minimum investment value in sample from 2006 to 2017 are given, using R & D is 0,45 %, and such a small level of the IBM SPSS Statistics v21 program. investment was achieved in 2007, while the maximum investment value is a modest Table 3: Descriptive statistics of the entire sample 0,85 % of GDP, while the EU from 2006 to 2017 (The Author 2018) recommendations are up to 3 % of GDP.
Descriptive Statistics Investing in research and development is Varijable N Minimum Maximum Mean Std. one of the highlights of the technological Deviation development of the country. From the PFDI_GDP 12 3.18 13.60 7.1425 3.14278 SR_GDPps 12 -8.70 21.02 5.6342 9.38960 above results, it is visible that the Republic TRG_GDP 12 69.00 113.30 89.5333 13.33903 R&D_GDP 12 .45 .85 .6600 .14257 of Serbia lags considerably in Interest rate 12 3.50 17.75 9.4375 4.14664 technological development for the Unemploymen 12 13.5 23.9 18.550 3.5018 tin % developed countries of the world. Valid N (list.) 12
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The average interest rate on loans rmined by the change: SR_GDPps; amounted to 9,4375 %, the minimum was TRG_GDP; R & D_GDP; Interest rate; 3,5 % and the maximum 17,75 % in 2008. Unemploymentin in %. The results of the The average deviation of the interest rate F-test (F value 4.080 and the value p = from the arithmetic mean is 4,14664 % in 0.058) indicate that the dependence the observed period. between independent variables The average unemployment rate is 18,55 % (SR_GDPps; TRG_GDP; R & D_GDP; with a standard deviation of 3,5018 %, Interest rate; Unemploymentin and %) and while the minimum unemployment rate is to dependent variable (PFDI_GDP) to 13,5 % in 2017, while the highest statistically significant. Independent unemployment rate was 23,9 % in 2012. variables can be a statistically significant The results of the survey show that the indicator in estimating percentage share of trend of economic recovery and foreign direct investment in gross domestic unemployment reduction in the Republic product (PFDI_GDP) over the coming of Serbia started in 2012. years. Table 5 shows the results of the Coefficients determination between Using the results of the survey of the variables. selected macroeconomic indicators for the Table 5: Coefficients determination Republic of Serbia (Table 2) with the help between variables of IBM SPSS Statistics v21 software a program, a regression analysis was Coefficients Model Unstandardized Standard. t Sig. performed that determined the functional Coefficients Coefficien. dependency between the dependent B Std. Beta variable (PFDI_GDP) and the independent Error (Constant) 23.525 9.420 2.497 .047 variables (SR_GDPps, TRG_GDP, R & SR_GDPps .265 .083 .791 3.179 .019 D_GDP, Interest rates and unemployments TRG_GDP -.133 .093 -.563 - .203 in %). The results of the survey for the 1.428 1 R&D_GDP -2.917 7.916 -.132 -.368 .725 observed sample are shown in Table 4. .238 -.443 - Interest rate -.336 .207 1.413 Unemployme -.049 .214 -.055 -.229 .826 Table 4: Determination coefficients ntin in % between variables a. Dependent Variable: PFDI_GDP
Model Summary Analyzing the research listed in Table 5. Model R R Adjusted R Std. Error by using the IBM SPSS Statistics v.21 Square Square of the Estimate program, the author set the Estimated a model with the calculated parameters for 1 .879 .773 .583 2.02866 the observed sample, which reads as a. Independent variables (Constant): SR_GDPps; TRG_GDP; R&D_GDP; Interest rate; Unemploymentin follows: in%. PFDI_GDP = 23,525 + 0,265*SR_GDPps b. Dependent Variable: PFDI_GDP – 0,133*TRG_GDP – 2,917*R&D_GDP – The results of the research shown in Table 0,336*Interest rate – 0,049* 4 indicate the dependence between the Unem_thousfaces dependent variable (PFDI_GDP) and the Statistically significant is the parameter in independent variables (SR_GDPps; front of the SR_BDPps variable from TRG_GDP; R & D_GDP; Interest rates which it can be determined that the GDP and Unemployments to %).The results of growth rate per capita has a positive and the study show that 77,3 % of the variation statistically significant effect on the of PFDI_GDP is explained by the variable PFDI_BDP. ie. parameter is variability of the independent variables, ie statistically significant at a level of 77,3 % of the PFDI_GDP variation is dete- significance of 10% and 5%.
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The parameter shows that when the GDP Therefore, the increase in investment in growth rate per capita increases by 1 research and development will reduce the percentage point, the net inflow of FDI as a FDI net inflow of funds, i.e. parameter the percentage of GDP is growing by an R & D_ GDP variation it says when average of 0,265 percentage points, with research and development in GDP would other variables unchanged. The set increase by 1 pp, then the net inflow of hypothesis envisages a positive FDI as a percentage of GDP would drop by relationship between market size and an average of 2,917 p.p with other foreign direct investment. The results variables unchanged. confirm the hypothesis that indicates that FDI in theory should be higher that the the Republic of Serbia has the opportunity higher level of human capital in a country to secure and realize foreign direct that is needed for technology to be investments. Furthermore, it also implies accepted. However, in countries with low that economic growth could be a driving human capital, the impact of FDI may be force for increasing foreign direct even negative, and that is our case. The investment. Republic of Serbia, as a developing country, produces part of the same goods The parameter in front of the variable as the developed country, but with TRG_GDP is negative (-0,133) and outdated technology, and some goods are statistically significant, which leads to the not produced at all due to the lack of conclusion that country openness has a technological knowledge. Even when using negative impact on PFDI_GDP. The similar technologies, developing countries hypothesis suggests that a reduction in the use them less efficiently because they do country's openness is needed for a faster not have the necessary skills and abilities. and more quality inflow of foreign direct investment. The parameter shows when the The parameter with the variable interest share of trade in GDP is increased by 1 rate (Ks) is negative and statistically percentage point, the net inflow of FDI as a significant, which leads to the conclusion percentage of GDP decreases by an that the interest rate in the Republic of average of 0,133 percentage points, with Serbia negatively affects the FDI balance. other variables unchanged. Since openness The parameter is significant at a level of is measured by the share of trade in GDP, a significance of 10 %, which confirms the lower level of openness provides greater hypothesis statistically significant but opportunities for direct foreign investment. negative relationship between interest rate In addition, FDIs can enable economic and FDI. High interest rates can be a growth and reduce income disparities consequence of inflation, and foreign between poor and rich countries by investors avoid investments in an unstable spreading knowledge and technology, and economy. Hence, the increase in interest contributing to greater national rates will reduce the FDI net inflow of productivity with their results. funds, i.e. the specific parameter with the Ks variable if interest rates on loans would The parameter in front of the variable PR decrease by 1 p.p., then the net inflow of & D_ GDP is negative, statistically FDI as a percentage of GDP would significant at the level of 5% and 10%, that increase by an average of 0,336 p.p with is, the impact of PR & D_GDP on the other variables unchanged. inflow of foreign direct investment is Parameter in front of the variable indirect. The hypothesis points to a Unemployment in % is negativing and statistically significant and positive statistically significant, indicating that relationship between technological unemployment has a negative impact on development and foreign direct investment. FDI in the Republic of Serbia.
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The increase in unemployment in % will The results of the research indicate using reduce the FDI net inflow of funds, i.e. the coefficient B or β, how an independent parameter with the variable variable influences the dependent variable, Unemployment shows when and then the we get consequently obtains a unemployment in % will decrease by 1 pp, regression equation that shows that the then the net inflow of FDI as a percentage reduction in Unemployment in % of one of GDP would increase by an average of percent results in an increase in 0,049 p.p with other variables unchanged. PFDI_GDP of 0,028 percent. PFDI_GDP = 7,657 - 0,028 * The paper presents the results of the research Unem_thousfaces for unemployment (Table 6). Figure 2 shows the dependent variable PFDI_GDP. and independent variables Table 6: Results of functional dependence Unemployment. From the picture you can between PFDI_GDP as dependent variable and see that the reduction of unemployment the Unemployment as independent variables leads to a minimal increase in FDI. Model Summary R R Square Adjusted R Std. Error of Square the Estimate .031 .001 -.099 3.295
The independent variable is Unemploymentin.
Table 6 shows the results of the research, ie, functional dependence between PFDI_GDP as dependent variable and Unemployment as independent variables. The results indicate that 9.9% of the PFDI_GDP variation is explained by the volatility of the Unemployed. Based on data obtained with F-test (F value 0.805 p Figure 2: Graphic representation of the value 0.726), it can be concluded that the functional dependency between the ratio between Unemployment and dependent variable (PFDI_GDP) and the PFDI_GDP is statistically insignificant, i.e independent variable Unemployment in% determination coefficient is not a „In order to gain a good insight into the coincidence because unemployment is not relationship between the observed a statistically significant indicator in the variables, it is necessary to make a coming years in the assessment of the level correlation analysis that will provide of PFDI_GDP. The following Table 7 information on the strength and method of shows the results of the Coefficients aligning certain variables. Prior to the determination between variables. calculation of the correlation coefficient, a check of the normality of the position of Table 7: Coefficients determination between the observed data was made using the variables (PFDI_GDP - Unemployment in %). statistical package 3B Stat and it was Coefficients concluded that all variables do not have a Unstandardized Standar. t Sig. normal position. This conclusion pointed Coefficients Coefficin. to the need to calculate the Spearman B Std. Beta Error coefficient of correlation (rho)“ (Šušić, M. Unemploy. -.028 .284 -.031 -.098 .924 2018). Table 8 shows all calculated (Constant) 7.657 5.347 1.432 .183 correlation coefficients by Spearman, using the IBM SPSS v.21 program.
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Table 8. Correlation coefficients of variables according to Spearman. (Author 2018.) Correlations PFDI_GDP SR_GDPps TRG_GDP R&D_GDP Interest Unemployme rate ntin in % Correlation 1.000 .790** -.301 -.563 .193 -.256 Coefficient PFDI_GDP Sig. (2-tailed) . .002 .342 .056 .549 .422 N 12 12 12 12 12 12 Correlation .790** 1.000 -.063 -.500 .284 -.046 Coefficient SR_GDPps Sig. (2-tailed) .002 . .846 .098 .372 .888 N 12 12 12 12 12 12 Correlation -.301 -.063 1.000 .542 -.760** -.252 Coefficient TRG_GDP Sig. (2-tailed) .342 .846 . .069 .004 .429 Spearman's N 12 12 12 12 12 12 rho Correlation -.563 -.500 .542 1.000 -.434 .048 Coefficient R&D_GDP Sig. (2-tailed) .056 .098 .069 . .159 .883 N 12 12 12 12 12 12 Correlation .193 .284 -.760** -.434 1.000 .372 Coefficient Interest rate Sig. (2-tailed) .549 .372 .004 .159 . .234 N 12 12 12 12 12 12 Correlation -.256 -.046 -.252 .048 .372 1.000 Unemploymen Coefficient tin in % Sig. (2-tailed) .422 .888 .429 .883 .234 . N 12 12 12 12 12 12 **. Correlation is significant at the 0.01 level (2-tailed).
significant percentage, provided that the The research shows (Table 8) that the other variables are unchanged. dependent variable PFDI_GDP has the strongest correction with the independent Research shows that the correlation variable SR_GDPps (rho = 0,790), then between the dependent variable with the independent variable Interest rate PFDI_GDP and the independent variable (rho = 0,193), and the other variables have Interest rates are weak (rho = 0.193), ie correlations that are indirect: . R & with the percentage growth of PFDI_BDP D_GDP (rho= -563), TRG_GDP (rho = - there is a low percentage growth of 0,301) and Unemployment (rho = -0,256) Correlation with unemployment is the Interest rate., provided that the other insignificant and this ratio is indirect, i.e. independent variables invariable. If we that an increase in the percentage analyze market openness (TRG_GDP) and participation of PFDI_GDP leads to a Unemplo-yment, we see that higher market decrease in unemplo-yment under the openness leads to a reduction in condition that the other variables are unemployment (rho = -0,252), and in the immutable. The obtained data also indicate case of investments in technological that the correlation coefficient is development (R & D_GDP), it can be statistically exceptionally high for the concluded that higher investments in variable SR_GDPps (rho = 0,790), and its technological development lead to a sign indicates that the growth of minimal increase in unemployment, is (rho PFDI_GDP indicates the growth of = 0,048). Market growth (SR_GDPps) SR_GDPps, i.e. the size of the market in a leads to a minimal reduction in unemployment, since rho = -0,046.
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CONCLUSION points, with other variables unchanged. Also, i conclude that there is the strongest The movements in the world economy give correlation between these two variables an increasing importance to the increase in (rho = 0,790), and the rho sign indicates foreign direct investment. Transitional that the growth of PFDI_GDP indicates the countries, such as the Republic of Serbia, growth of SR_GDPps, i.e. market growth have become increasingly open to in a significant percentage, provided that international operations, have adapted their the remaining variables are unchanged. social systems to become attractive for From the further analysis i conclude that foreign direct investment. Multinational the reduction of unemployment leads to companies can significant positive effects higher market openness (rho = -0,252), that on the growth and development of the the reduction of the interest rate leads to Republic of Serbia, but they do not have higher investments in technological to., and they are primarily reflected in the development (rho = -0,434) and market possibility of transferring technology, growth (SR_GDPps ) leads to a minimal knowledge, capital inflows, etc. However, reduction in unemployment (rho = -0,046). the Republic of Serbia needs to assess the Higher market openness (TRG_GDP) will possible risks of such entry, because lead to technological development (R & foreign direct investments are not an D_GDP) (rho = 0,542), ie, if market automatic solution to all problems, the openness rises by 1 pp, then investments in positive effect is also related to the technological development will increase by environment itself within the host country, 0,542 p.p. or the absorption capacity of the host The results of the analysis show that FDI country. By engaging in international inflows, on average, go towards developed integration processes, the Republic of economies, ie, countries with a higher level Serbia opens possibilities for faster and of GDP per capita, lower interest rates, more stable development. The significance more open markets, quality workforce of the realization of foreign direct structure. investments can be of invaluable importance for the development of the country, so the goal of the Republic of LITERATURE Serbia is to attract as many foreign [1] Bahar Bayraktar-Sağlam, Selin Sayek investors as possible. Böke. 2017. „Labor Costs and Foreign The inflow of foreign investments for the Direct Investment: A Panel VAR Republic of Serbia is 27.020 billion euros Approach“, Economies in the period from 2006 to 2017, while FDI [2] Bilas, Vlatka. Franc, Sanja. 2006. The role inflows amounted to 17.184 billion euros of foreign direct investments and the way in the period 2006-2012. of travel, Zagreb: Faculty of Economics [3] Ivana Slavoljub Domazet, Darko Milivoj There is a statistically significant link Marjanovic 2017. „Foreign Direct between the variables PFDI_GDP and Investment in the Function of Economic SR_GDPps, as determined by Regression Development - Example of Selected analysis., from which it can be determined Countries in the Western Balkans“, that the GDP growth rate per capita has a International Letters of Social and Humanistic Sciences, Vol. 79, pp 1-15, positive and statistically significant SciPress Ltd., Switzerland influence on the dependent variable [4] Kovač, O., 1988. Balance of Payments and PFDI_GDP. The parameter shows that International Finance, Belgrade: CES when the GDP growth rate per capita MECOM increases by 1 percentage point, the net [5] Kovač, O., 1994. Balance of Payments and International Finance, Belgrade: CES inflow of FDI as a percentage of GDP is MECOM growing by an average of 0,265 percentage
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[6] Kragulj D., Milićević D., 2007. Process Management-New Technologies Economics: Introduction to economic International, Vol. 6, No 3, Page 13-24 analysis, microeconomics and macro- [10] Vidas-Bubanja M., 1999. „Will capital be economics, Belgrade: Makarije on Balkan “, Business Policy [7] Obradovic - Cuk, Jelena, Mitic, Petar, [11] Wang, H., 2017. Home-country determi- Dmitrovic, Mirjana 2017. Significance of nants of outward FDI: Evidence from investment in science - Regional and BRICS economies and five developed national analysis, Zlatibor: XXIII Skup countries Trendovi razvoja: "The position of higher https://www.google.com/ (date of access education and science in Serbia" (http: // on August 16, 2018) www. Trend.uns.ac.rs/stskup/ trend _2017 [12] www.ien.bg.ac.yu. (date of access on / papers / T2.1 / T2.1-3.pdf) (access dated August 15, 2018) 16.08.2018) [13] https://www.nbs.rs/internet / cirilica / 80 / [8] Šošić, I., 2006. Primijenjena statistika. II. platni_bilans (access date: August 16, izmijenjeno izdanje. Zagreb: Školska 2018) knjiga. [14] http://data.stat.gov.rs/Home/ Result / [9] Šušić, M., 2018. Research the impact of fdi 2400020401? LanguageCode = en-Cyrl, on some macroeconomic indicators in (access date: August 07, 2018) Bosnia and Herzegovina by using of program IBM SPSS Statistics, Journal of
64 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018. ANALYZING THE AMAZON SUCCESS STRATEGIES
Zana Majed Sadq1, Hawre Nuraddin Sabir2, Dr. Vian Sulaiman Hama Saeed3
1Department of Administration and Accounting, Faculty of Humanities and Social Science, Koya University, Iraq, and Visiting Lecturer at Lebanese French University. 2Department of Law, College of Law and International Relations, Lebanese French University. 3Department of Administration and Accounting, Faculty of Humanities and Social Science, Koya University, Iraq, and Visiting Lecturer at Knowledge University. [email protected], [email protected], [email protected]
Professional Paper doi:10.5937/jouproman6-19264
Abstract: This paper aims to present the Amazon individuals who understood the real power success strategies. Since the objective of the of E-commerce and the entire internet Company is to become the best place to buy, find and discover any product or service available retail business. Under Amazon vision, online. Amazon.com will continue to enhance and Bezos injected two comprehensive ideas to broaden its brand, customer base and electronic the E-commerce and these are building the commerce expertise with the goal of creating customer-centric company world over, and customers' preferred online shopping destination, in also creating an environment where the United States and around the world. customers could easily buy almost Keywords: companies, strategies, Amazon success anything they wanted to buy. Indeed, his strategies vision has been hugely achieved since Literature Review 1995 (Hof, 2001). The Amazon success story started Amazon.com’s Objectives& Strategy in July 1995 by Jeff Bezos a computer In its business model, Amazon.com has science and electrical engineering graduate identified the following as key success from Princeton University. After his factors. First of all, a strong brand name resignation from an investment Bank, he location. Then providing clients with settled in Seattle and found what is now marvelous value and a superior shopping known as Amazon. Bezos did not know knowledge. After that, considerable sales much about the Internet. However, "he capacity. Finally, Realizing economies of came across a statistic that the Internet was scope and scale (Modi et all, 2000). growing at 2300%; this convinced him that Amazon.com's marketing strategy is this was a large growth opportunity". designed to strengthen the Amazon brand Amazon’s choice of the location in Settle name, increase customer traffic to the was obvious for its rich technological Amazon.com Web sites, build customer talent and the close proximity of the book loyalty, encourage repeat purchases and wholesalers in Rosenberg. develop incremental product and service Amazon came into being in July revenue opportunities. 1995 and was up to the public in 1997It is claimed that Bezos was one of the few
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Customer- centric category of books, in contrast to the Customer-centric involved asking physical world (Hof, 2002). customers what they wanted, and sorting In addition, Amazon claims that books are: out how their needs would be delivered to Easy for Amazon to ship them, and in the end, delivering it to them. Provide basic information enabling According to Bezos, that is the traditional them to sale on online storefronts with term of customer-centric. And Amazon the information which may be in the focused on this traditional view with form of success evidenced over the years. Chapters Table of contents The other meaning for customer- Editorial centric is innovation on behalf of the Customer reviews (Krishnamurthy, customers. According to Amazon, 2002). innovation simply means searching for On the other hand, Amazon added what the customers don’t know they want maximum value to the inefficient and delivering it to them. The third arrangement of the publishing industry in meaning is the personalization nature of America. In the 1990s, the industry had; the internet. In order to suite this third meaning of customer-centric, Amazon Concentrated on supply-publishers, redesigned their store to suite each printers and wholesalers. customer, by launching a ‘your store There was no key player on the retail service’. This translated this vision into position. Even the Barnes & Noble reality. Amazon valued to deliver had as little as 11% of the American convenient, selected, services at a broadest market. price (Timothy et all, 2000). Publishers had guaranteed the sales of books, yet retailers could return a book Although critics thought that customer- not sold within the defined time frame. centricism of any given company is the The business was unpredictable same with any other company, Amazon’s especially with the lack of stability on customers has continued to rise over the the sales. years. And despite that Amazon began as a The retailers had a fixed cost for global bookstore, the company also displaying the product in a brick and intended to be a place where customers mortar environment. (Krishnamurthy, could buy anything online. Amazon moved 2002). its attention to very new category of The major competitor to Amazon in products, which includes kitchen ware, the book market was from Brick-and-clicks tools, and Auctions (Wiggins, 2001). stores. These included BN.com and Barnes Books as a means of customer- & Noble. Before Amazon came into being, centricism & Innovation BN.com had a number of competitive advantages ranging from, superior Having started as a bookseller, recognition of the Barnes & Noble brand Amazon remains a leader in selling all name, to cross-marketing, co-promotion sorts of books in spite of having drifted and customer acquisition programmers' into other products. Bezos indicates that both in the US and Europe. But come July books have huge items in the book market 1995, Amazon trashed all these market compared to other items in any given advantages by enabling customers to products. And as huge titles of books do browse over 4.5 million titles from their emerge, they can be sorted, searched and computers. This was a fantastic wave of organized by computers. He further success in E-commerce (Modi et all, stresses that the customer proposition is 2000). only done online. The internet has a huge
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Table (1) "SALES GROWTH (OR LOSS) SINCE 2004" Company-s% All 2011 2010 2009 2008 2007 2006 2005 2004 rounded
Barnes & Noble N/A -5% -3% +2% +2% +2% +7% bookstores
Amazon Media(Books, +16% +15% +11% +16% +29% +17% +18% +14% Music, DVDs) North America
Borders/ Waldenbooks N/A -16% -15% -9% -0% -1% +2% +2% Books
BN.com N/A +24% -2% +9% -1% +5% -2%
Source: http://www.fonerbooks.com/booksale.htm
Amazon’s complete dominance in dominant retailer. Besides, it did become a the book business online came very clearly very dominant retailer (Krishnamurthy, by the capitulation of Boarders. Amazon 2001). Amazon has amassed 132% profit went on to create an alliance with the rival in books, Music, and DVD sales between Borders. And borders battled in vain to 2004 and 2011 (16% in 2011 alone). match a web site competitive with Growth Abroad Amazon. And eventually, borders had to release its employees and Amazon front- Amazon now serves well over 152 ended its online book market to this day countries worldwide. However, (Hof, 1998). Amazon.com is the only bookseller in the world’s top 500 websites. According to Music one market analyst report, "Amazon.com is In June 1998, Amazon ventured estimated to have over 80% of the online into the music selling followed by DVDs bookstore market" (Modi et al, 2000: XI). and Videos in the same year. The very As early as 1995 Amazon customers beginning in the music business, Amazon ranged from 45 different countries. With a enjoyed a $14.4 million profits. One of the global market at heart, Amazon launched reasons for Amazon’s shift in its products one of the earliest sites in Germany and the especially into music may have been that UK. All the individual market’s focus has the company had already established been books, Music and videos. In England closeness with the customers with books. alone, Amazon UK has call centers in And leading them into another product like Brogborough, Bedfordshire, Peterborough, music was easy (Hansell, 2001). The other Don Caster, and Hemel Hempstead. argument for the huge shift is that directing its attention into a variety of products would enable the company to be a
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Governmental regulation and Legal Possible Weaknesses: uncertainties. With the unpredictable future e- Currently, Amazon.com faces retail and the growth of competitors common business laws and regulations or with similar market approach, regulations regarding access to online Amazon’s future may be at a threat. commerce in addition to taxation laws. For Although Barnes & Noble seems to instance, expanding company's services be behind Amazon in terms of sales distribution center network might result in and profits, time will tell how long additional sales and other tax obligations. they will remain behind. Regulatory authorities may implement particular regulations and laws governing Available opportunities: the online commerce or Internet. These Amazon may continue to raise more regulations may cover pricing, copyrights, markets in other countries worldwide taxation, user privacy, content, distribution to remain positioned on the E- and features as well as quality of services commerce market that the company and products. Changes in buyer protection has enjoyed so much. laws furthermore may enforce additional Threats: burdens on enterprises conducting business E-commerce predictably changes every online. These regulations or laws might given time. There is a predictable threat a impede the growing of the Internet or other competitor to equal to Amazon will online services. This could, in turn, reduce emerge crushing every bit Amazon has the request for Amazon's services and built over the years. products in addition to increase Amazon's PESTAL analysis: cost of doing business. Additionally, it is not clear how existing laws governing Technically, PESTAL analysis helps to issues for instance sales and other taxes, understand the real effects of the property ownership, libel and personal company's external factors. These includes: privacy apply to the Internet and online Economical, Environmental, Political, commerce. Disapproving resolution of Social, and Technological. these issues may harm Amazon's business. A- Economic: with the current financial SWOT Analysis crises that has been ravaging the global finance since 2008 up until now, can Typically a SWOT Analysis will rose a real danger to Amazon's market. analyze the organization's strengths B- Technology: Amazon should weaknesses and available opportunities relentlessly continue to revamp its and threats to its existence. technology to the need of the modern Applying SWOT Analysis to Amazon revolution to survive. Possible strengths: Porter's Five Forces analysis: o Amazon remains the greatest leader Porter's five forces of Competition can in E-commerce since 1995 through be a helpful tool in analyzing a business. knowledge of its customers and Those factors are: buyer power, supplier providing the best possible E-retail power, competition from substitutes, world over. entrants, and rivals. o The company has raked a total of Power of Buyer: clients that buy 132% of profits since 2004 well books in amazon.com tend to above the rest of the competitors on become standard customers due to the book and music market. the low prices that amazon.com can offer.
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Power of Suppliers: As Amazon [Online]. Available at: continues to develop; its ability to http://www.peekyou.com/_huitom. agreement with suppliers will continue to HANSELL, S. (2001) "LISTEN rise. UP! IT'S TIME FOR A PROFIT; A Rivalry: Amazon.com is one of the first FRONT-ROW SEAT AS AMAZON companies into the electronic commerce GETS SERIOUS", MAY20. field. This gives to amazon.com a positive [ONLINE], AVAILABLE AT: altitude of tranquility into the marketplace. HTTP://WWW.NYTIMES.COM/20 Entry barriers: With today’s principal markets 01/05/20/BUSINESS/LI STEN-UP- being less friendly toward new internet IT-S-TIME-FOR-A-PROFIT-A- start-ups, it would be difficult for a new FRONT-ROW-SEAT-AS- company to effectively compete with AMAZON-GETS- Amazon. SERIOUS.HTML?PAGEWANTED Threat of Substitution: Amazon.com does not =ALL&SRC=PM present threats of substitution at least in the short time (Carmany et al, 2003). Hof, R.D. (2002) "How Amazon Cleared the Profitability Hurdle", Information Conclusion Technology, February 4, Available at: Amazon has become a house-hold name in http://www.businessweek.com/magazine/c both books and music industries. Its position among ontent/02_05/b3768079.htm small competitors is way ahead. The company’s Hof, R.D. (2001) Q & A with Amazon's ability cannot be doubted in both books and music Jeff Bezos, March26. Available at: selling for years to come. Amazon has successfully http://www.businessweek.com/magazine/c expanded and hugely profitable due to the provision ontent/01_13/b3725027.htm of the best E-commerce ever, the knowledge of its Hof, R.D. (1988) amazon.com: the wild customers and the longevity of the relationships world of web commerce, with its customers. And these three aspects will [Online]. Available at: undoubtedly keep Amazon afloat and remain a http://www.businessweek.com/1998/50/b3 dominant retailer regardless of the threats from its 608001.htm competitors. Hutchison, T. (2008) Web Marketing for the Music Business, Oxford, Elsevier. For the smaller firms, the road may be Kotler, P., Wong, V., Saunders, J. and rough and unpleasant to keep up with Amazon. To Armstrong, G. (2008) Principles of remain on the market, they will have to re-invent Marketing, 5th European Edn, Harlow, themselves by providing E-retail equal to the Pearson. competitive market. Without it, success for them Krishnamurthy, S. (2002) Amazon.com- A remains on the horizon. They will also need to Business History1 identify their customers and be able to keep them as To Appear in-“E-Commerce Management: long as possible to enable consistence. Text and Case”, Sep 27, [online]. References: Available at: http://www.google.co.uk/url?sa=t&rct=j& q=Krishnamurthy%2C+2001%2C+Amazo Carmany, L., Guidry, B., Heinsohn, D., n&source=web&cd=1&ved=0CDEQFjAA McPheeters, B. (2003) Can Amazon.com &url=http%3A%2F%2Fwww.fe.up.pt%2F be Profitable? [Online], Available at: ipc%2Fsuporte%2Fvarios%2Famazon_fin http://www.google.co.uk/#q=Porter%E2% al.pdf&ei=C_tsT7_cCoi5hAfmsOSNBw& 80%99s+five+forces+of+Amazon%2Bpdf usg=AFQjCNGo_Y- &hl=en&prmd=imvns&ei=47xtT4b4Ccmp uzmVFczOholIhwyU3RW6a- hAeplum2Bw&start=10&sa=N&bav=on.2 Q&sig2=WcsIWJquiBeI2oUkbjvhkA. ,or.r_gc.r_pw.r_qf.,cf.osb&fp=503a106c9e Modi, T., Durkin, M. A., Kass, C., Ulin, 01e775&biw=1366&bih=677 M. (2000) Strategic Audit: Barnes & Goldhaber, F.I. (2009)"The Politics of Noble, Strategic and International Amazon", The Willamette Writer, p6-10. Management, April 20 .
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THE COURT EXPERT AS A MEANS OF EVIDENCE IN THE LITIGATION PROCEEDINGS
Vlatko Nacev1, Vojo Belovski2 1,2 Faculty of law - University "Goce Delcev" Stip, Macedonia [email protected]
Professional Paper doi:10.5937/jouproman6-18695
Abstract: The expertise as one of the legally court to verify the truth of certain assumptions and defined means of evidence in litigation proceedings facts presented in front of the court form both sides. is an unavoidable procedural action without any litigation procedure can be successfully completed Keywords: court expertise, a judicial system, in the merits. The expertise is usually implemented findings, opinions, Republic of Macedonia in order to answer a specific factual subject important for making legal and precise decision INTRODUCTION about litigation proceedings. In the case of deciding about the implementation of legal form, the The Law on Litigation Proceeding, as one expertise is not applied and required. of the preconditions for the functionality of the judiciary system, provides a direct There are a lot of opinions in the practice that the work of the expert witnesses is not at an appropriate action which is effective for all participants and satisfied level related to the standards and that have an impact on the outcome of the criteria for an independent and efficient judiciary litigation procedure. This law regulates the system. This is characterized especially in the rules of procedures for offering legal countries where the justice system is unstable and protection and according to this law the completely not independent of the political and social influences, such as many other external and litigation cases for disputes arising from internal factors. In these countries, as the Republic violation of the rights of the person and of Macedonia, the expertise is also emphasized with disputes from family, labour, social, subjective nature, where the findings and opinions property and other civil law relations are are considered as insufficiently specialized and solved, except the disputes that need special unprofessional. legal frames another type of procedure is However, there are exceptions to this rule. The court given. practice shows that there are court experts who In litigation procedure with the process of perform their activities honestly, morally and evidence, necessary facts for the adoption professionally. Taking into consideration the great importance that court experts have with their of court decision are determined. The findings and opinions in the litigation procedure, evidence is pointed out through all the they have an influence on this complex process with activities of the court and the parties that their findings and opinions as legal evidence. are undertaken in order for the court itself The court expertise, as means of proof in litigation, to determine the truth of one expressed has a big importance. The judicial review as a means assumption. For practical reasons, in order of proof in the litigation procedure is performed to avoid possible misconceptions, it should when in order to establish the facts or to clarify be always made difference between some of the particular circumstances a direct evidence and means of evidence. Evidence examination and observation by the court is required. That’s why the court experts are (Instrumentum) is a means by which the distinguished as skillful persons who have court receives knowledge of the truth about professional knowledge, which is necessary for the the fact that is important for passing a court decision. 70 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
The evidence is a confirmation of the truth The essence of the court expertise is in about the fact that is established through giving findings and opinions. The finding is certain evidence. When it comes to the a description of the subject matter of the parties, they are obliged to present the facts expertise, while the opinion is a and present the evidence on which their professional analysis or a professional claim is based and their statement, or by conclusion which the court expert presents which it disputes the allegations and his expert knowledge for the subject matter evidence of the opposing party. of the expertise. According to the Law on Litigation Procedure, the deadline for According to the Law, the evidence covers submitting the expert finding and the all the facts that are important for reaching opinion is determined by the court, which the final decision. The court has the cannot be longer than 45 days, and in the competence to decide which of the complex cases, it cannot be longer than 60 proposed evidence will take in days. The court shall deliver the expert consideration as decisive and important finding and the opinion to the court facts for the final decision. participants no later than eight days before The court experts are one of the means of the hearing on which they will be discussed. evidence that the parties can use in the 1. THE CONCEPT AND litigation procedure, while the court DEFINITION OF COURT expertise is a function (action, activity, task, EXPERT obligation, duty, work) of the court expert. Before undoubtedly pointing out the great The law emphasizes that the court will importance of the expert witness as determine the evidence obtained through a evidence in the litigation procedure, it is court expertise report if it comes to necessary to become familiar with the determining or clarifying some facts concept and definition of the court expert, requiring specialized knowledge that the the legal determination and the conditions court does not itself have. for performing the expertise in the civil The court expert is independent in the procedure. performance of the expertise within the Court proceedings in which the court framework of the legal authorization experts do not appear as evidence or as determined by law and the court expert is specific supporters of the court are very obligated to perform the court expertise rare. In English, these court experts are also professionally and conscientiously in known as Surveyors, in Italian Periti, and in accordance with the rules of science and German Gutachters. profession, ethical norms and professional standards. In the Republic of Macedonia, the concept of a court expert is defined by the Law on The complexity of the litigation process Expertise: "The court expert" is a person itself and the increasing complexity of legal who has a license for expertise in the relations actually increase the number of respective field and is registered in the situations in which the judge does not have Register of Experts1. the necessary knowledge for certain expert issues of immediate importance for the proper and legal settlement of the dispute.
1 Law on court expertise (2010) – Official Gazette of Republic of Macedonia No. 115 date 31.08.2010 71 www.japmnt.com
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In practice there are often numerous The modern legal theory takes two main questions about the role and the importance opposite views that refer to the fact that, on that court experts have in court the one hand, the court experts are a proof proceedings. The court experts are because means, while on the other hand, the experts in all of the explanations of the court are only the help and support of the fact- proceedings there are allegations where the finding. court fully accepts the opinion of the court experts as an opinion that is professional, If the court experts in their activity inform complete and objective. the court of their finding and opinion, their statement is classical evidence. However, if The legal theory defines the concept of the court experts with their expertise help to expertise as an activity that brings more form the necessary conclusions, in order to weight and complexity through the the court to form a certain opinion on the importance it has for the given court facts, then they perform the function of a proceedings. From here, there are four specific facilitator in performing a proper different perceptions regarding the legal and fair trial in determining legally relevant specificity of the expert witness's factual situations. statement2: The most acceptable is the understanding I. Court experts are scientific judges, that the court experts are persons whose referring to the expertise as a scientific statement serves as evidence, that is, judgment - the Court is free only in terms of expertise is a kind of evidence tool. The determining the expertise but is not capable most complete definition of the legal of assessing the results of the expert's institute of expertise is that, as a activity. determinant of the expertise, it primarily emphasizes the application of special and II. The court expert is equated with the specific knowledge, whose opinion is based witness - it is more characteristic of the on that knowledge, that is, the fact that the Anglo-Saxon legal system. Experts are expertise creates new evidence. In fact, this scientific witnesses, while expertise is a definition significantly enters the content of scientific testimony. the expertise as a source of awareness of III. The testimony of a court expert equates facts based on professional knowledge, to judicial review - the court directly determining the essence of the expertise in observes those facts for which there is no relation to similar institutes and types of need for professional knowledge, while the evidence. expert points out and notes those facts and The Law on Expertise directly stipulates the phenomena that require specific, complex entities that can perform the expertise and and expert knowledge or knowledge. the conditions that they need to fulfil for the IV. The testimony of the court experts is a performance of the function of the expert self-evident means of specificity and certain witness. The law on expertise specifies the similarities with the other evidence - this entities that can perform the expertise: are one of the most modern legal theories 1. Higher education institution, scientific for defining and explaining the notion of institution and professional institution on expert and expert. the basis of authorizations determined by law if they have employed at least two 2 Arsen Janevski, Tatjana Zaroska Kamilovska persons with a license for expertise, (2001) – Civil proceeding law – administrative law, Faculty of Law “ Justinijan Prvi” – Skopje , page 39-55 72 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
2. An individual solicitor - an expert completion of the inspection or established in accordance with the Law on during the inspection Trade Companies that fulfils the requirements of this Law and has employed Cabinet expertise - all at least one person with a license for material traces and evidence are expertise , and processed - the documentation is relevant by the court expert, taking 3. A commercial company that is registered into account his specialization and in accordance with the Law on Trade knowledge in the field Companies and performs expertise in accordance with this Law and employs at Complex expertise - least two persons with an expertise license. performed in cases where all partial expertise is collected which Institutions and the company that meet the differ from one another and when requirements for expertise in accordance there is a need to be checked and with the Law on Expertise may also aligned in a single and complete perform a super-expertise if they have report. employed at least three persons with an expertise license. The function of the expertise in the presentation of evidence in court consists of For certain matters, determined by law, an formulating and presenting findings and expertise can be performed by a state opinions of court experts. The findings of administrative body that employs at least the court experts are the current expert two persons with an expertise license, and a analysis of the court expert, especially super-expertise can be performed if there aimed at determining the content and are at least three persons employed with an specificity of certain relevant facts. The expertise license. opinion of the court expert is a personal opinion of the court experts on the If there is no expert or institution in the importance, the belief, the conditions, and Republic of Macedonia in a certain area and the consequences of certain factors that in other cases determined by law, an could be of great importance for expertise can be performed by a foreign determining the truth in the process of court expert or a foreign professional proof. institution, according to the laws of the state in which they are registered and meet the The expert shall inform the applicants, i.e. conditions for performing an expert report. the party in the litigation procedure, the court or another competent body that 2. FUNCTION AND CONTENT OF manages the procedure for the findings and COURT EXPERTISE opinion. Specifically, the court expert There are several types of litigation in through his analyzes and knowledge, with different areas, as well as varying degrees his expert knowledge, helps to draw a of complexity and scope; the expertise can conclusion on the observed matter, which also be ranked by category3: means that when giving the opinion, the court experts actually work what should be Situational expertise - done by the bodies that conduct the performed immediately after the procedure, if they have the necessary expert knowledge regarding the facts and the 3 Janevski, A. I Kamilovska, Zoroska T. (2011) – actual facts that are the main subject of the Civil proceeding law – administrative law, Faculty expertise. of Law “ Justinijan Prvi” – Skopje, page 22-32 73 www.japmnt.com
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The court is free in deciding whether it will legal issues and to apply certain legal determine the proof of expertise, where the norms. exception is the rule on the duty of the court to determine another entity that will assist 3. THEORY OF LEGAL in the evidence procedure. The court should PROCEEDINGS AND LITIGATION decide in fact about which professions or SUBJECTS specialization should be the court expert for Civil litigation is a general and basic the specific subject of the expertise and the method of settlement and decision making court procedure to which it refers. The within civil law disputes. According to the suggestion may be submitted to the lawsuit Law on Litigation5, the rules of this for the submission of evidence with an procedure are applied by the competent expert report, a response to a lawsuit, courts in settlement and deciding on submissions or at the latest at the first 4 disputes arising from personal and family hearing at the main hearing . relations, labour relations, property and The court or other competent bodies that other civil legal relations, unless some of conduct the procedure are connected neither these disputes with specific legislative with the finding, nor with the opinion of the norms are placed under the jurisdiction of expert, but for the court expertise as a proof the other courts. of their judgment and their conclusion after Considering the different civil legal a careful assessment. This careful approach relations, the civil procedure is divided into to analysis and evaluation is not directed general and special procedures6. The rules only to the given evidence but is also of the general procedure are applied in implemented on the basis of the situations when there is no regulation of assessments of all other evidence any of the special procedures. According to individually and in their interaction. the former individual understandings, the Accordingly, the court is not obliged to ultimate and basic purpose of the litigation accept the finding and the opinion of the procedure is the protection of subjective experts that the plaintiff filed with the civil rights. It is undoubted that in the civil lawsuit or defendant in response to a procedure a legally protection function is lawsuit, only because they are provided by realized as a significant social activity, but persons who are permanent court experts. in the procedure at the same time is offered The finding and the opinion which one of protection of the subjective rights of the the parties submits with the complaint or in citizens and other legal entities. With the response to the complaint is only an protection of subjective rights ancillary basis in the litigation procedure. simultaneously the existing normative rules However, the role of the court expert in the are realized in social relations. significant co-operative procedures is Ius dicere - judicial practice significantly reflected in the expert assistance of the contributes to the development of the legal body that administers the procedure in order. Any judicial verdict except an act of determining the fact, clarifying certain application of the law is real act of factual issues, and not for legal issues. This concretizing the general legal norms of the means that the court expert is neither called individual social situation. nor authorized by the authority conducting the procedure in any way to help resolve 5 Law on Litigation (2005) - Official Gazette of Republic of Macedonia No.79 date 21.09.2005 4 Law on Litigation – Consolidated text (2011) – 6 Chavdar, K. (2009) – Authorized lectures of Civil Official Gazette of Republic of Macedonia No.7 and Common Law , Skopje , University American date 20.01.2011 College, page 50-62 74 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 6, No 4, 2018.
Despite the protective role, the procedure The litigation subjects are primarily the also implements a significant educational legal parties and the court. In addition, legal role. In fact, the court determines the attorney, authorized person, court experts, reasons for the legal violations and witnesses, interfering persons are also pronounces a sanction for their removal in subjects in the litigation dispute. The the litigation procedure. With this activity, subjects in the litigation procedure are in a the court has a profound impact on the certain relationship that is defined by citizens to behave in a spirit of respecting procedural rules. The entities whose the law and morale in the country by activities influence the beginning, process encouraging the parties to resolve and finalization of the procedure are the peacefully any given and specific dispute. parties and the court. The subjects, whose activities are not undertaken for themselves, The concept of civil procedure is actually but for the primary subjects are the the procedure as a legal institution and is a advocates and the interfering persons. The complete method for the realization of subjects that do not take legal action are the judicial functions in civil-law disputes. The court experts and witnesses. notion of a lawsuit is referred to a specific procedure conducted between the litigants, 4. RESULTS FROM PERFORMING OF on the basis of the specific claim by the EVIDENCE OF COURT EXPERTS - plaintiff and requires protection by the FINDINGS AND OPINIONS court. By mediation of the litigation, litigation procedures are adapted to the After the court expertise, the court expert needs of each individual case in the reports a summary to the court for the exercise of the judicial function. findings and gives an opinion. The facts that the court expert realizes or observes According to the basic concepts and through the research within the rules of aspects, the dispute is any situation that science and his profession knowledge are arises in the legal relations when the request concrete findings. The court expert must arises in a conflict with a certain resistance describe the subject matter of the expertise or opposition to it. It is always a certain and according to the condition of the case at degree of disagreement between the two the moment when the expertise is entities in the legal relationship. It usually conducted. On the basis of the established precedes the litigation, but it does not facts presented in the finding, the court necessarily lead to it. The subjects of the expert is obliged to express his opinion on dispute have their own dispute which the subject of the expert report. This should be resolved by agreement or through opinion must be clear, documented and arbitration. If one of the subjects requests logically exposed. The duty of the expert is court protection, then the litigation is to complete and precisely explain his processed as a procedural and legal relation. opinion, to state the way in which his Although litigation is raised through the assessments have been reached, i.e. dispute, it is independent of its existence. conclusions regarding the examined and The civil-legal relationship on the occasion established facts. of which the litigation arises can be prevented, but it will have no effect on the The court submits to the parties a written existence of the litigation as a procedural finding and opinion prepared by the court and legal relation. expert before the hearing on which ones will be discussed.
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At this point, it can be concluded the fact experts have brought is already emphasized. that the court expert must always present If in the finding and opinion they do not his findings and explain his opinion, but if agree, each court expert specifies his the parties in court procedure are not agreed findings and opinion. the findings and opinions to be explained personally by court expert, then the finding When the data of the court experts on their and opinion must be read at the hearing in findings do not agree essentially, or if the the absence of the expert (principle of the finding of one or more court experts is directness of performing the evidence). unclear, incomplete or in contradiction with itself or with the circumstances examined, The parties in the litigation procedure have and those deficiencies cannot be removed the right to attend the expertise, ask the by re-hearing of the court experts, the court court expert to ask questions related to the can determine a super expertise that will be subject matter of the expertise, and submit performed in a deadline not longer than 45 documents. These procedural actions are days, and in complex cases it cannot be performed by the parties through the court. longer than 60 days. The super-expertise is However, the failure of the court to ask the determined by the president of the council court expert to declare a certain decisive or the individual judge electronically by circumstance in relation to the finding, applying the rule of random choice from the above the application of the parties, with register of court experts, in the presence of this failure the court prevent the hearing both parties, and their attorneys. and thereby violates the procedure. There is a violation of the procedure even if during Super-expertise of a higher degree is the litigation procedure the court does not expert-critical expertise in two provide the parties with the written contradictory expertise, which can be evidence and an opinion by the court performed by a team composed of at least experts at all or does not properly call the three court experts from the appropriate parties and fails to submit a written report area of a state administration body, higher and opinion to the court experts, or they do education institution, scientific institution not properly invites the parties to a hearing or professional institution, while the manner in which the court expert orally presents his in which performed super-expertise is findings and opinion on any controversial regulated by the actual procedural law. fact that goes to the evidence substrate.
The finding, i.e. the description of the CONCLUSION subject matter of the expertise is based on the opinion, as an expert judgement and Summarizing the above-mentioned topic of analysis of the experts. If the court is not research regarding the significance of the satisfied with the expertise, identifying court expert as evidence in the litigation deficiencies or inconsistencies, it may order procedure, it is a fact that the role of the the performance of a re-expertise from the court expert as evidence in the litigation same court expert. The opposing party may procedure is almost invaluable. The also hire another expert, if the facts are not development of the scientific evidence of sufficiently discussed, and the court may the experts is becoming increasingly also appoint a new expert report with important within the judicial system and its another court expert. If more court experts development in the Republic of Macedonia. have been appointed and they provide a common finding and opinion, then the strength of the expertise that the court
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The expertise, as a task and obligation of directly reflects and influences the court or the court expert, should be an exact, civil proceedings. These negative empirical work, free from subjectivity and phenomena and inconsistencies in the bias, but is it always happen, it can be seen execution of the expertise in litigation from the practical implementation of this procedures require the need for legal evidence in numerous litigation procedures. changes in the current Law on Expertise and amendments to the normative The court expert as evidence in the regulation in the field of expertise. litigation procedure, free from subjectivity and bias, has a huge influence through the Legislative changes and normative crucial process actions, on the effectiveness regulation in the field of expertise should be of the litigation procedure through a final aimed at achieving a higher degree of decision based on the independence, professionalism, expertise, and specialty of professionalism, and knowledge of the court experts and eliminating the possibility court expert. The court experts have a great of corruption, subjectivity, and bias in responsibility in the court proceedings, performing the expertise. Having in mind where it is observed from the practice of the the crucial importance of the expert courts in the Republic of Macedonia. It is witnesses as evidence in the litigation very rare in the court practise where the procedure, it is also necessary to determine competent court goes against the findings a higher level of responsibility of the court and opinions of the court expert from whom experts in the process of undertaking the the court seeks assistance in determining procedural actions. the individual facts in the litigation With the new legal provisions, it is proceedings. necessary to provide more frequent and It can also be concluded that the mandatory training, continuous professional independence of the court affects the upgrading and improvement, and in expertise as an evidence in the litigation particular, additional specialization of the procedures through the effectiveness of the experts in appropriate areas. The proposed procedural actions, referring in particular to measures are aimed at guaranteeing the the final decision through the last decision, professionalism and expertise of the court where the legal nature of the expertise expert, as the characteristics on which the determining its crucial role through fair outcome of the litigation procedure independent action is much more than just a depends. process of checking evidence in litigation The new legal solutions in the field of In this context, it can be noted that often the expertise should be in the direction and outcome of the applied lawsuit in civil function of the timely, efficient and expert proceedings where the expertise is proposed performance of the expertise, by observing as means of evidence, to a greater extent the principles established in the depends on the court expert and less than international acts that treat the the court itself. independence of the judiciary. However, as previously mentioned in By adopting new more efficient norms and practice today, there are opinions that the legal solutions in the field of expertise, it work of the court expert is identified will be contributed to the realization of the weaknesses and inconsistencies with final goal of creating an independent and occurrences of subjectivity, incompetence, efficient judiciary system as a guarantor for inefficiency, and inconsistency in legal protection and security of citizens and performing the expertise. This kind of work other subjects in the society. 77 www.japmnt.com
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REFERENCES:
- Arnaudovski, Lj. - Judicial Management (2013) - Skopje,
-Janevski, A. and Kamilovska, Zoroska, T. (2012) - Civil Proceeding Law - Book First, Law on Litigation, (2nd edited edition), Faculty of Law "Justinian Prvi" - Skopje
- Arsen Janevski, Tatjana Zoroska Kamilovska, (2011) - Civil Pproceeding Law - Administrative Law, Faculty of Law " Justinian Prvi " - Skopje
-Georgievski, S. (2000) - Civil Proceeding Law, Kultura - Skopje
-Chavdar, K. (2009) - Authorized lectures on Civil Law and Common Law, University American College, Skopje
-Stanković, G. and Račić, R. (2008) – Law on Litigation, Trebinje
-Opatic N. (2004) – Court Experts an Evidence in Civil Procedure, Zagreb
- Law on Expertise (2010) - Official Gazette of the Republic of Macedonia No.115 date 31.08.2010
- Law on Litigation - Consolidated text (2011) - Official Gazette of the Republic of Macedonia no. 7 date 20.01.2011
- Civil Proceeding Law (2005) - Official Gazette of the Republic of Macedonia no. 79 date 21.09.2005
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SELF-REGULATORY SYSTEMS: SELF-REGULATION AND LEARNING
Maja Matric University of Maribor, Faculty of Education, Slovenia [email protected]
Professional Paper doi:10.5937/jouproman6-19338
Abstract: Self-regulation provides individuals the directly linked to being socially accepted necessary means to achieve goals which can either and depending on the group, as humans arise from their own interests or societal demands. tend to get most of what we need from In both cases, achieving goals will enable individuals to experience self-fulfilment and other humans. Behncke (2002) divides success. Self-regulatory systems also maintain our self-regulatory processes into different actions within the limits of acceptable as well as stages, namely, self-control, goal-setting restrain from unwanted behaviours. and goal attainment, self-evaluation, self- Self-regulatory learning helps learners achieve importance, self-efficiency, self-regulatory higher academic goals as it gives students control failure, etc. Knowing and understanding over their learning. In order to successfully self- these processes can improve self- regulate one's learning, it is important to recognize the essential components of self-regulatory regulation and motivation. Zimmerman learning, which help chose learning methods and (2000) explains why we are able to self- strategies. We aimed at discovering which learning regulate some actions, and not others. strategies and styles the students prefer and which Unlike metacognitive approach to self- elements of self-regulatory learning occur in the regulation which emphasizes the level of learning process. We can conclude that the students lack the knowledge of self-regulatory processes and knowledge and deductive thinking when learning strategies, and are unaware of their selecting a cognitive strategy, Zimmerman preferred learning styles. applies a social cognitive perspective and Key words: self-regulation, learning, learning advises including the individuals’ self- styles, motivation beliefs and emotional responses, such as fear or doubt in the process. Introduction Triadic model of self-regulation Self-regulation is described as the Zimmerman (2000) introduces a triadic individuals' ability to direct their actions model of self-regulation, including the towards goals and ideals which can come personal, behavioural and environmental from personal desires or the expectations domains. The model does not simply relate of others, and helps individuals adjust to to knowledge, skills and self-management the demands of society and the while trying to control elements of the environment. Zimmerman (2000) believes environment, but also raises awareness of self-regulation is of great importance for personal functioning while coping with the the existence of mankind because it is environment. 79 www.japmnt.com
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Figure 1: Triadic model of self-regulation (Clark & Zimmerman, 2014).
As can be seen in Figure 1, the person acts forethought phase, performance phase and in a selected setting and makes conclusions self-reflection. on his or her behaviour based on the Forethought phase includes two categories, consequences of his or her behaviour namely task analysis and self-motivation within the environment. The person can beliefs. Task analysis demands an change subsequent behaviour according to individual to set goals and plan the task the consequences of his or her behaviour. strategically. In this phase, the learner Zimmerman (1989) speaks of the self- fragments the task and establishes regulation loop which begins by using strategies. Self-motivational beliefs, which different strategies and is sustained or include variables that generate and modified based on active feedback. The maintain motivation for task performance, author differs between self-regulatory are self-efficacy, task value, interest, processes, such as self-monitoring, and outcome expectation and goal orientation. self-regulatory strategies, such as record- keeping, which are meant to optimize self- Performance phase consists of two key regulatory processes. elements, which are self-observation and self-control. Self-observation refers to the The structure of self-regulatory systems individuals’ ability to observe thought Zimmerman (2000) differs between processes and emotional reactions, while efficient and inefficient self-regulation, self-control includes processes that can where the quality of self-regulation help focus, improve concentration and depends on self-regulatory processes improve performance, such as self- within the individual. We speak of three instruction, imagery, time management, cyclical phases of self-regulation: help-seeking or task-strategies.
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Self-reflection also includes two processes, (4) Monitoring outcomes and refining self-judgement and self-reaction. During strategies: the learner decides whether the process of self-judgement the learner applied strategies were appropriate in assesses his or her work, and finds reasons relation to his or her results. for success or failure. In the process of The research self-reaction, the individual reacts to self- judgement in the form of cognitive and Our research aimed at finding out how a affective responses and considers group of elementary school students learns. performing the task in the future by More specifically, we were interested in activating learning strategies. which elements of self-regulation the students applied in the process of learning, Self-regulation of learning whether they are familiar with their Research into learning strategies and their learning styles, which learning strategies effect on academic success has shown that they usually opt for, how they plan their learners who were equipped with the learning, where and when they learn and knowledge of various learning strategies whether they are able to reflect on their improved their learning achievements learning and find reasons for success or significantly (Radovan, 2010). Self- failure. The interviews with 9 students (5 regulated learning is characterized by a boys, 4 girls), aged 14, took place in systematic goal orientation. Students who February 2017. We conducted individual self-regulate their learning are confident in semi-structured interviews where the their efficiency and abilities, and are participants were asked a series of intrinsically motivated to learn (Pintrich & questions imbedded in a conversation De Groot, 1990). Self-regulated students about their learning; their answers were are often described as decisive, strategic recorded. After individual interviews, the and persistent; they are able to monitor students participated in a group discussion their progress and are goal oriented (Doria, where we presented them with the idea of 2011). self-regulatory learning, learning strategies Zimmerman, Bonner and Kovach (1996) and learning styles. suggest a model of self-regulatory Results and interpretation learning, consisting of four stages: (1) Self-evaluation and monitoring: the When do you learn? learner assesses his or her success based on All of the students explained that they previous results by making notes on the learn in the afternoon, with one adding she performance of the task or feedback from learns in the morning before school as the teacher, parents or peers. well. In terms of planning their learning (2) Goal-setting and strategic planning: the ahead of formal assessment (test, written learner analyses learning goals and plans exam, etc.), all of the students learn improvements in existing learning beforehand, however, 2 of them answered strategies. they learn at least a week ahead of the (3) Putting a plan into action and assessment, while 7 explained they learn monitoring it: the learner applies known the day or sometimes two before being learning strategies to perform a task. assessed.
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In case of oral exams, all of the students times, and another student answered she answered they learn the afternoon before likes learning English because it is her oral exams. None of the students answered favourite subject. The rest of the students they think about the time they will spend did not express any particular liking of learning in terms of planning ahead. individual subjects. Where do you learn? Self-reflection All of the students answered they learn in All of the students answered they are their rooms, 5 of them on their bed and 4 happy when they study a lot and get a good sitting at their desks. Two of the students grade. When asked how they feel when said they sometimes learn in the kitchen or they do not study and get a bad grade, all in the living room because their parents of them feel bad or angry with the subject, want to see them learn. Most of the the teacher, or themselves. When asked students prefer learning in a quiet how they feel when they do study and still environment. One of them likes to practice get a bad grade, all of them said they feel before exams with the help of his sister bad or angry with the teacher (“the test was who asks him questions. too difficult”). Learning aids Conclusions All of the students explained they learn In teaching practice, we can often notice from textbooks and the notes they write that many students find great motivation in down during lessons. These notes are what grades. On the other hand, we are faced the teacher tells them to write down. Only with students who do not like to learn and one of the students said she likes to make are not motivated for schoolwork. Of her own notes at home, including using course, there are those, who are curious charts, different colours, etc. about learning new things and are Learning styles intrinsically motivated when it comes to learning. One thing all these students have Eight of the students learn by silently in common is that they can improve their reading from their textbooks, which points academic outcomes if they approach the to verbal learning style. Three also learning process more systematically. This answered they like to underline what they can happen only if the students think about read in different colours or draw charts and the learning process, i.e. learn how to sketches (visual learning style). One of the learn. One of the most important qualities students explained he likes having his of self-regulatory learning is a proactive sister read from his textbook for him, view of learning as an individual-oriented which is typical of aural learning style. approach in which the learner is able to Motivation transform cognitive abilities into academic skills (Lončarić & Peklaj, 2008). However, When asked what motivates them to learn, not all children are able to understand this, all of the student answered “grades”. When which can be explained through asked what subjects they enjoy learning, metacognitive development. one of the students answered she likes to learn Geography and History because she likes imagining about other places and
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Namely, as children develop, they can References approach learning more strategically and use more complex cognitive and Behncke, L. (2002). Self-regulation: A metacognitive strategies (Pintrich & brief overview. Athletic Insight: The Zusho, 2002), and self-regulate their online journal of sport psychology, 14 (1), learning more efficiently (Pressley & 313–325. Ghatala, 1990). Clark, N. M., & Zimmerman, B.J. (2014). A Social Cognitive View of Self- Exploring the learning habits of the Regulated Learning About Health. Health students in the research exposes an absence Education & Behavior, 41(5), 485–491. of self-regulation, as the students do not DOI: 10.1177/1090198114547512 approach learning systematically and DOI : rather see it as something they have to do http://dx.doi.org/10.1207/s15326985ep250 before assessment. They do not distribute 1_3 school tasks across their time and Doria, J. (2011). Samoregulacija in učenje. sometimes find themselves overwhelmed Ljubljana: Atelje Doria. with the amount of things they have to do Lončarić, D., & Peklaj, C. (2008). for school. We can imagine that affective Proaktivna in defenzivna samoregulacija responses in such situations additionally pri učenju. Psihološka obzorja, 17 (4), burden the students’ well-being, bringing 73–88. them in stressful situations. The students in Pintrich, P. R., & de Groot, E. V. (1990). the research tend not to think about their Motivational and self-regulated learning learning and see it as reproduction of facts components of classroom academic performance. Journal of Educational they have memorized. On a more positive Psychology, 82(1), 33-40. DOI: note, the students were interested in http://dx.doi.org/10.1037/0022- learning about their own learning styles 0663.82.1.33 and what works for them. We believe all Pinrich, P. R., & Zusho, A. (2002). The students should be taught how to approach development of academic self-regulation: learning in practical ways in order to The role of cognitive and motivational improve the quality of knowledge and factors. In A. Wigfield & J. S. Eccles motivation of the students by introducing (Eds.), A Vol. in the educational psychology series. Development of them to the model of self-regulatory achievement motivation (249–284). San learning (Zimmerman, Bonner, & Kovach, Diego, CA, US: Academic Press. DOI: 1996). This requires the involvement and http://dx.doi.org/10.1016/B978- cooperation of the teachers who can 012750053-9/50012-7 demonstrate learning specific subjects Pressley, M., & Ghatala, E. S. (1990). using various strategies and approaches - Self-regulated learning: Monitoring however, the teachers should cooperate learning from text. Educational Psychologist, 25(1), 19–33. and help the students realize that same strategies and approaches can be applied Radovan, M. (2010). Vpliv dejavnikov across a range of topics and subjects. samoregulativnega učenja in starosti na uspešnost pri študiju. Sodobna pedagogika, 5, 94–115.
Zimmerman, B. J. (2000). Attaining self- regulation: A social cognitive perspective. 83 www.japmnt.com
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In M. Boekaerts, P. R. Pintrich, & M. DOI: http://dx.doi.org/10.1037/0022- Zeidner (Eds.), Handbook of self- 0663.81.3.329 regulation (13-39). San Diego, CA, US: Zimmerman, B. J., Bonner, S., & Kovach, Academic Press. DOI: R. (1996). Psychology in the classroom: A http://dx.doi.org/10.1016/B978- series on applied educational psychology. 012109890-2/50031-7 Developing self-regulated learners: Zimmermann, B. J. (1989). A Social Beyond achievement to self-efficacy. Cognitive View of Self-Regulated Washington, DC, US: American Academic Learning. Journal of Psychological Association. DOI: Educational Psychology,81(3), 329-339. http://dx.doi.org/10.1037/10213-000
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DOES IT MATTER HOW THE STUDENTS FEEL? PRACTICAL IMPLICATIONS OF SOCIAL RELATIONSHIPS IN SCHOOL
Maja Matric University of Maribor, Faculty of Education, Slovenia [email protected]
Professional Paper doi:10.5937/jouproman6-19337
Abstract: School cannot be merely defined as a relation to their participation in school. In content-learning environment, but also a context in fact, I was interested in how their social which pupils learn social behaviour (Košir, 2013), status among their peers reflects on the which brings into question the role of social relationships in school. This is reflected in a learning process. As a teacher, I spend a growing number of research in the area of lot of time with the students and have the educational psychology examining the learning opportunity to observe their behavioural process beyond the cognitive scope, by establishing patterns and social interactions. With this the role of peer relationships, social acceptance and in mind, I write about the learning context other elements of social relationships in education (Pellegrini, & Blatchford, 2000). Because of this, and the students beyond the academic we cannot simply overlook the importance of social scope with the aim of exposing the social relationships children form within their peer aspect of education. groups. In the article, we include an overview of theoretical approaches which firmly place social School as a social context relations in the learning process, and support these notions with relevant research literature. We also Vygotsky (1978) claimed, that one of the include practical guidelines and approaches which main functions of learning is to create the should prioritize social relationships in the making zone of proximal development, i.e. an of positive school climate. environment in which the learner activates
numerous internal processes which lead to Keywords: social relationships, relatedness, peer support, EFL learning, peer relationships learning, provided there is an interaction with adults (teachers, parents) and peers. Introduction The author explains that participating in I believe we often draw a line between the intellectual activities results from social quality of our time at work and the and cultural influences and relationships relationships we have with our co-workers. with key persons from the educational The experience can be pleasant, we can contexts - the teachers and the peers. even extend our relationships beyond the Therefore, defining school as a social workplace. On the other hand, our time at context in which an individual learns work can be plagued with poor academic content is not enough, as it is relationships which affect our performance also the place where individuals learn and well-being at the workplace. This led social behaviours (Košir, 2013). me to reconsider the importance of my students’ well-being in the classroom in 85 www.japmnt.com
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Different ways in which the social context effort and engagement (King, McInerney, influences the actions and decisions of & Watkins, 2012), as well as the students’ individuals are described by Bandura and higher social acceptance and lower peer Walters (1963) in the social learning rejection (Mouratidis & Sideridis, 2009) theory from the standpoint of behavioural- and prosocial behaviours (Ojanen, Smith- cognitive theory. According to them, Schrandt, & Gesten, 2012). From this, we learning takes place within a specific can conclude that the educational social context by imitating and reinforcing context is a relevant aspect of the learning behaviours. Goodenow (1992) also process, which I will further explore in supports the idea that learning is terms of the need for relatedness as an fundamentally a social process where the indicator of quality of social relationships. understanding of social context and mutual interpersonal and group processes typical The need for relatedness in an educational setting is vital. In other words, we gain a lot of our knowledge Self-determination theory focuses on individually, by observing our different aspects of individual’s surroundings, experimenting, experiencing functioning, such as personal or reading. For the better part of this, we development, self-regulation, universal are accompanied by others - also in school, psychological needs, energy, vitality, where personal relationships and motivation and well-being, while keeping interactions which occur in an educational in mind the role of social surroundings context significantly influence the learning (Deci & Ryan, 2008). Of particular interest process. Goodenow (1992) also believes for this article is the effect of basic that understanding the student's psychological needs for competence, psychological attachment to the social and autonomy and relatedness, defined by the interpersonal networks can improve self-determination theory as desirable motivational and learning aspirations of conditions for an individual’s performance the student. Such views are creating a shift (Deci & Ryan, 2000). Competence in the field of educational psychology determines an individual’s belief in having from the research into cognitive aspects of the ability to influence important education towards the understanding of outcomes, autonomy relates to feelings of social aspects of learning, i.e. by exploring choice and self-regulation, while the place of peer relationships, need for relatedness refers to having satisfying relatedness, group belonging, teacher- social relationships - which is the theme of student relationships, etc. (Pellegrini, & this article. The need for relatedness is Blatchford, 2000). Therefore, achieving reflected in the social aspect of learning social goals in school is equally as and the students should have the important as academic goals and opportunity to develop positive social considering both can help explain relationships with their teachers and peers, differences in students’ academic hence reducing the feelings of rejectedness performance (Wentzel, 1996). A number and boosting students' motivation of authors have linked social goals to (Niemiec & Ryan, 2009). students’ academic and social performance (Liem, 2016), long-lasting knowledge,
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In educational contexts, research has negative assessment and tests in classes. linked basic psychological needs to better This supports the idea that peers can make academic outcomes (Bialis-White, 2013), lessons more enjoyable for those students increased self-regulation and well-being who feel anxious, even though the key (Niemiec & Ryan, 2009), higher moderator of an appropriate peer context is motivation (Chirkov & Ryan, 2001), and still the teacher. Clearly, social aspects of higher engagement and a more positive education should not be neglected when experience of the school setting (Klassen, learning a foreign language, as they can Perry, & Frenzel, 2012). In terms of social benefit the student significantly. relationships in school, the need for relatedness can be defined as perceived Putting the theory into practice peer personal and academic support and We have established that social social acceptance, with both dimensions relationships are an important part of the significantly affecting the students’ active learning process and effort should be made engagement in EFL (English as a foreign to consciously implement approaches language) learning, as Matrić (2018) which raise awareness of the social aspects reveals that higher academic peer support of learning. Each learning institution results in higher motivation and more should pride itself on the social climate of desirable behaviour in school, while higher the school and not only academic personal peer support encourages the achievements of the students (Vogrinc, students to participate and engage in 2014; Ryan & Brown, 2005; Ryan & learning activities more. The author also Weinstein, 2009). This can be achieved by reveals that socially accepted students who fostering a positive attitude towards experience higher peer support feel less including social goals in the learning anxious in an EFL context, therefore process and accepting social relationships experiencing less fear of communication, as an indicator of quality of the learning negative assessment and tests. These organization. In theory, this is the case in suggestions could help increase the role of Slovenia, as the social and emotional social goals in education and this research development of the children and acquiring does support the idea that social goals are social skills in an integral part of the an important part of active learning. The curriculum (Krek & Metljak, 2011). author concludes that higher perceived However, in teaching practice, Pompe academic peer support, noticed by a (2016) finds that the curricula for the first student as the classmates wish that he/she three grades of elementary school do not does well at schoolwork, increases the include enough contents, related to social students' motivation and improves their learning and children’s psychosocial behaviour in school through higher needs. We believe this shows a lack of emotional and behavioural engagement. experts from the areas of developmental This introduces more interest and higher and educational psychology actively participation in classes. Higher perceived engaged in the making of curricula. In personal support, when the student feels addition, the schools should equip the loved and cared for by his/her classmates, teachers with the knowledge necessary for reduces anxiety which consequently the development of the students’ social reduces the fear of communicating, skills. 87 www.japmnt.com
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Unfortunately, this might not always be a ● Crider, A. B., Goethals, G. R., priority for those offering various courses Kavanaugh, R. D., & Solomon, P. R. (1989). Psychology. Boston: Scott, and workshops for teachers. The National Foresman and Company. Educational Institute of Slovenia, for ● Deci, E. L., & Ryan, R. M. (2000). The example, offers a wide variety of content »what« and »why« of goal pursuits: intended for the professional development human needs in the self–determination of of teachers in the areas of life-long behaviour. Pshychological Inquiry, 11(4), 227–268. learning, language competences of ● Deci, E. L., & Ryan, R. M. (2008). Self– teachers, work with students with learning determination theory: A macrotheory of difficulties, implementing innovative human motivation, development, and learning approaches, the use of ICT, etc. health. Canadian Psychology/Psychologie (ZRSS, 2017; Katis, 2016/2017). Canadienne, 49(3), 182–185. ● Goodenow, C. (1992). Strengthening the However, we can notice a lack of contents links between educational psychology and related to social relations, peer support or the study of social contexts. Educational social acceptance, which can hider or Psychologist, 27(2), 177–197. boost the students' motivation and interest ● Katis 2016/2017. Pridobljeno 2.8.2017 na in schoolwork and improve their emotional https://lim3.mss.edus.si/katis/Katalogi/KA TALOG1617.pdf. well-being. Once the teachers are educated ● King, R. B., McInerney, D. M., & in this area, they can included achieving Watkins, D. A. (2012). Studying for the social goals into their daily lesson plans, sake of others: The Role of social goals on thus encouraging their students to accept academic engagement. Educational their peers and speak of the quality of the Psychology, 32(6), 749-776. http://dx.doi.org/10.1080/01443410.2012. relations they have with their classmates, 730479 as well as educating them that the way ● Klassen, R. M., Perry, N. E., & Frenzel, they are imbedded in the social network A. C. (2012). Teachers' relatedness with influences their schoolwork and students: An underemphasized component achievements. of teachers' basic psychological needs. Journal of Educational Psychology,
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Pedagoška fakulteta, Univerza v perspective on high-stakes testing. Theory Mariboru. and Research in Education, 7(2), 224– ● McCroskey, J. C. (1970). Measures of 233. communication–bound anxiety. Speech ● Sarason, I. G. (1978). The Test Anxiety Monographs, 37(4), 269–277. Scale: Concept and research. In C. D. ● Mouratidis, A. A., & Sideridis, G. D. Spielberger & I. G. Sarason (Eds.), Stress (2009). On social achievement goals: and Anxiety, Vol. 5. (193–216). Their relations with peer acceptance, Washington, D. C.: Hemisphere classroom belongingness, and perceptions Publishing Corporation. of loneliness. Journal of Experimental ● Svet Evrope (2011). Skupni evropski Education, 77(3), 285-307. jezikovni okvir: učenje, poučevanje, https://doi.org/10.3200/JEXE.77.3.285- ocenjevanje. Ljubljana: Ministrstvo RS za 308. šolstvo in šport. (Prevod dela Common ● Niemiec, C. P., & Ryan, R. M. (2009). European Framework of Reference for Autonomy, competence, and relatedness Languages: Learning, teaching, in the classroom: Applying self- assessment, 2001. Cambridge: CUP.) determination theory to educational ● Vogrinc, J. (2014). Dopis Državne practice. Theory and Research in komisije za vodenje NPZ. Pogledi, 6 (23). Education, 7(2), 133-144. Pridobljeno 2.8.2017 na http://dx.doi.org/10.1177/1477878509104 http://pogledi.delo.si/druzba/dopis- 318 drzavne-komisije-za-vodenje-npz. ● Ojanen, T., Smith-Schrandt, H. L., & ● Vygotsky, L. S. (1978). Mind in Society: Gesten, E. (2012). Associations among The Development of Higher Psychological children's social goals, responses to peer Processes. Cambridge, Mass.: Harvard conflict, and teacher-reported behavioral University Press. and academic adjustment at school. ● Watson, D., & Friend, R. (1969). Journal of Experimental Education, 81(1), Measurement of Social–Evaluative 68-83. Anxiety: Erratum. Journal of Consulting https://doi.org/10.1080/00220973.2011.63 and Clinical Psychology, 33(4), 448–457. 5167 ● Wentzel, K. R. (1996). Social and ● Ormrod, J. E. (2008). Human Learning academic motivation in middle school: (5th ed.). Upper Saddle River, NJ: Pearson Concurrent and longterm relations to Merrill Prentice Hall. academic effort. Journal of Early ● Pellegrini, A. D. in Blatchford, P. (2000). Adolescence, 16(4), 390-406. The Child at School: Interactions with http://dx.doi.org/10.1177/0272431696016 Peers and Teachers. Texts in 004002 Developmental Psychology. London: ● Wilson, V. A. (1999). Reducing Statistics Arnold. Anxiety: A Ranking of Sixteen Specific ● Pompe, K. (2016). Socialno učenje v Strategies. Predstavljeno na Mid–South slovenski osnovni šoli (Diploma thesis). Educational Research Association. Point Dostopno na Dela FDV. Pridobljeno Clear, Alabama. 2.8.2017 na http://dk.fdv.uni- ● Zavod RS za šolstvo in šport. Pridobljeno lj.si/dela/pompe-katarina.PDF 2.8.2017 na http://www.zrss.si/inovativni- ● Ryan, R. M., & Brown, K. W. (2005). javni-zavod/zrss/. Legislating competence: The motivational impact of high-stakes testing as an educational reform. In C. Dweck and A. Elliot (Eds.), Handbook of Competence (354–374). New York: Guilford Press. ● Ryan, R. M., & Weinstein, N. (2009). Undermining quality teaching and learning. A self-determination theory
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Submission of Papers Citation should be given in the text, in parentheses. It should not be formatted as The papers should be submitted to the editorial footnotes. Footnotes should be used, if necessary, office in electronic form (a diskette or e-mail) to for comment and additional text. the address [email protected], [email protected], with a note ’’for the Author's surname in brackets, when using journal’’. Only papers that have not been Harvard style citation , should also be written in previously published or offered for publication the original language and script. Certain words elsewhere can be accepted, as well as those which and phrases can be, for scientific and professional meet the scientific criteria of the Editors. needs, written in the original language and script. The names of foreign authors in the text are listed Writing the Paper in the transcription of the first reference to the author or the source stating the name of the The first page should indicate the title, academic original author in parentheses. In the next degree, the first name, initial(s), and surname of reference to the same author, only a transcription each author followed by his or her department, should be mentioned. Citation within an article institution, city with postcode, and country. The should state the author's name and the year of fax, telephone number and Email address of the publication of the source, for example (Trajkovic, corresponding author should also be provided. 2010). Specifying more than one author in (Font 11); in the middle. If the paper has more brackets should be arranged alphabetically, not than one author, each author should be given all chronologically. If there are two authors, both are the information contained herein. cited in brackets. If there are more than two authors, only the surname of the first author and the abbreviation et al are used in brackets. The title should include the main idea of the paper. It is written in the middle, upper case letters (font size 12) and in bold- face. Tables Abbreviations should not be used in the title. Subtitles are written in the middle, lower-case All tables should be on separate pages and letters, in bold-face and numbered in Arabic accompanied by a title and footnotes where numerals. necessary. They should only illustrate data that are directly relevant to the thesis of the paper. The The abstract should contain from 100 to 250 tables should be numbered consecutively using words (font 10) and should include concisely Arabic numerals. For each table, the title should specified facts, and summarize the illustrated be indicated. The title should reflect the essence procedures and methods of work performance. of the data in the table indicating the given The abstract should not contain any undefined variables or the most significant relations among abbreviations or unspecified references. Citing the data. If it illustrates the published material , its references in the abstract is to be avoided. original source should be given in the form of a reference at the end of the table. Avoid overcrowding the tables and the excessive use of Keywords should specify up to 10 (font 10) in words. Titles, page numbers should be placed italics, and should indicate the main research above the table so that the space under the table problem. for the legend remains. Notes are placed under the table, and the words legend or notes are written in Text Formatting italics. APA follows the rule that vertical lines should be removed from the tables and only the The text should be submitted in MS Word most necessary of the horizontal ones should be formatted in two columns. All pages of the main retained. text should be numbered. The work should not be less than 5 and more than 10 pages of basic text Figures and illustrations on page A4. Figures and illustrations should have legend Papers should be submitted in Serbian and/or captions that accompany the illustration. English.
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They should uphold rather than duplicate the text, of the book (in italics), the place of publication they should be easy to read, easy to understand and the publisher, for example: and they should denote only the essential facts. Trajkovic, P. (2010): Management, Vranje, Mapro The lines should be clean and simple. The curve and line graphs and outside edges of columns An article in a journal should include the last should be thicker than the lines of the coordinate name and initials ot the author, the year of system. The material should be scanned to record publication in parentheses, the title of the paper, at least 300 dpi resolutions, and it is desirable to full name of the journal (in italics), volume (in be of 600-1200 dpi. They should be stored in the italics) and the page. Text Box in Word because it is lighter in page layout when printing. Figures and illustrations are The names of journals in English are written with numbered consecutively by category to which initial capital letters of the words, except for they belong. conjunctions.
Citing references in the text When it comes to the web document, we should write the author's name, year, document title (in According to APA standards, the basic principle italics), the date the site was visited and the of citation in the plain text is ''one author, one Internet address of the website, for example: word''. If there is more than one author, it is enough to mention the first one and point out that If one author is stated several times, the year of the author worked with associates, and then add reference is to be followed. If several papers by the date of publication. With the author's name it the same author in the same year are stated, they is enough to mention only a year, and not the should be marked with letters a, b, c: (1997a, page, if the text is not directly quoted or does not 1997b). include information which should be linked to the page. When a paper has two authors, always cite Acknowledgments both names and years of birth, and surnames with a conjunction between them. If there are three, four or five authors, always first list all the names, This section includes appreciation, recognition of and then just write the name of the first and add a number of people who contributed to the ''et al''. When a paper has six or more authors, cite realization of the paper or the organization that only the first author in the plain text and then add provided financial support for the project. text and'' associates''. Evaluation of submitted papers Reference All the papers having been reviewed and ranked, List of references (font 10) should only contain the editorial staff makes a decision whether they works that are cited in the text, which have been will be published or not. Based on the review, the published or accepted for publication. The list of editor decides on the acceptance and publication references should not contain any source that is of the paper, and then informs the author. not used in the paper. Headlines of foreign Attachments, floppy disks or CDs will not be publications should be given with an initial capital returned or paid for. Papers that are not submitted letter while the rest is in lowercase letters. If the in accordance with these propositions will not be paper has a subtitle, it is separated from the title considered for publication. by two points, and begins with a capital letter. Remark The list of references at the end of the paper is to be given in alphabetical order according to APA The works shall be subject to review and tested standards and follow the principle '' author - for plagiarism. publication year '': In case of non-compliance with ethics publishing, the authors of papers are responsible themselves. The bibliographic unit should contain the last name and initials, the year of publication, the title
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CIP – Каталогизација у публикацији Народна библиотека Србије, Београд
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JOURNAL of Process Management. New Technologies = Menadžment proces. Nove tehnologije: international / glavni urednik Predrag Trajković. – Vol. 1, issue 1 (jan. 2013)- . – Vranje : Mapro, 2013- Vranje : Plutos). – 30 cm Published and printed by:
Tromesečno. – Varijantni naslov: Journal of Process Management. New Technologies International. – Tekst na engl. jeziku ISSN 2334-735X ( Print) ; ISSN 2334 7449 ( Online) ; = Journal of ProcessManagement. New Technologies COBISS.SR-ID 196683532
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