You are on page 1of 8

ECONIMIC AND FINANCIAL ANALISYS – DETERMINANT OF BEHAVIOR IN ORGANIZATIONS

MIHAELA BÎRSAN, ALINA BALAN, ŞTEFĂNIŢĂ ŞUŞU “ŞTEFAN CEL MARE” UNIVERSITY OF SUCEAVA, ROMANIA 13 UNIVERSITATII STREET, SUCEAVA, ROMANIA, 720229 mihaelab@seap.usv.ro, alinab@seap.usv.ro, stefanitas@seap.usv.ro Abstract: Essential for business success in this constantly changing world, is not primarily the availability of resources (financial, human, material, information, etc.), is an optimal organization of work , given to priorities and external rigors, enterprise connection to physiognomy and environmental requirements, the attitude towards the problems posed by the market, the ability to mobilize resources to capitalize the potential of domestic and market opportunities. Any economic system is considered to be "closed loop (feedback) [1] and therefore, its operation requires the existence of two factors, namely: a difference between desired value and actual value (current), called deviation, and a policy (strategy) that expresses the actions necessary to ensure a certain desired size for the difference between desired and actual value. Deviations analysis is controlling instrument company (as the enterprise process management), giving it the ability to timely notify the distractions and allowing adjustment of the system, increases shortterm responsiveness of the entrepreneur and gives long-term capacity greater adaptation (it is called "seismograph company). From this perspective it is considered that the strategic approach and diagnostic analysis prior to the decision making and the alternatives they provide, justify it scientifically. Key words: economic analysis, financial analysis, diagnostic JEL classification: B26, C81, D22, M51

Enterprise as a system and analysis implications One of the specific features of enterprise refers to the fact that enterprise is a self-adjusting system that is has the ability to be self regulated [2] by means of awareness of human factors, and incorporating in its structure a decision or control subsystem. Self regulation [3] is characterized by the capacity of systems to respond to internal or external disturbances action and keep composure over different periods of time. In general, programmed outputs from enterprise system are based on market demand and profitability objectives and predetermined efficiency. In practice results have always tended to turn to the objectives, because company must face in its business environment a set of socio-economic agents which, in turn, pursuing their own objectives. Of course, it tries to anticipate the decisions of these agents (often competitors) predictions translated into budgets in order to prevent situations which might lead to bankruptcy [4]. In these circumstances, it is necessary for enterprise system to be organized that manages to be self-regulating. For this the system includes a self regulation internal structure, with two major components: - Comparison - considers the deviations of actual output port with the programmed;

778

a profound shift in scope and the general management department of companies. In author’s vision knowledge is changing and cause changes. For any business. Diagnostic analysis is the management tool that helps enterprise management in understanding the past and present. and quantitative and qualitative changes occurring within it. which must be exploited for competitive aims because now knowledge are sources of productivity growth and creative ideas and innovative thinking are essential to achieve success in a rapidly changing market [8] . These factors determine a continuous adaptation to changing dynamic business environment.particularly psychology and sociology that were taken fundamental ideas and concepts. In fact. regulatory and technological. psychology. ignoring how serious manifestation of it causing disruptions. Managers see the current knowledge a key asset of the company. enterprise performance management. physiognomy and its operating mechanism analysis. to master the situation. Therefore it is absolutely necessary knowledge the content and environmental requirements. the analysis also subject to internal concerns of economic and financial partners . knowledge and environment. a revised and managerial behavior. business functions are no longer the same.Control . social. from this perspective. is the point where start identifying opportunities. in fact. Knowledge has become a resource and a necessity of social existence. the only resource really relevant today. System is developing strategies for cooperation with some elements of its environment that are dependent on its ability to organize and control their own behavior. Today we are witnessing to rapid changes and frequent extreme political factors. Economic behavior through knowledge Increasing complexity of economic life led to necessity of knowing the human economic behavior mechanism which is becoming larger and more complicated. in order to obtain a new competitive advantage. it became clear that investigation of behavior requires a multidisciplinary approach where an essential role returns to behavioral sciences . - 779 . implementing a control system able to bring significant deviations that arise between forecasts and achievements. surpassing both capital and labor [7].banking interested in making cooperation with undertaking actions [6]. It is necessary. requiring a separate study of the two intrinsic components: human behavior as a producer of goods and services and the consumer's behavior.initiated corrections in the system based on input signals from outputs. which implies the existence of a control loop caused by reverse connection (feedback). economic. System survival in its environment depends. etc. new ones appear. to take necessary corrective decisions. some merge or disappear. experts estimate that political economy. but also the dangers. in order to substantiate future strategic objectives of maintaining and developing the company in a competitive environment. even anticipating the future evolution of the environment so that enterprises can adapt to his new structure [5]. giving another dimension of market competition. sociology and anthropology have made the conceptual foundations of current knowledge in this field. As research has progressed in this area.. such as knowledge management company seeking a better selection of information and knowledge within the firm. and environment quality estimating variables that characterize disturbed. on behavioral strategies adopted and the nature of the environment. the looming threats against him.

First define and analyze the company’ competitive context preparing. the firm's strategic responses to the constraints of its external environment and foreshadowed its efforts to adapt to structural changes of environment and positioning efforts appropriate to the competition. through what is known as SWOT analysis. internal resources and investor pressure to succeed. 780 . modern perception is to integrate the concepts mentioned in addition to financial diagnosis and articulate its findings with the diagnosis and strategic.passive . Without innovation. Andrews. . initiating change and possible market-making right decisions before the changes actually occur.adaptive . the company merely imitative processes. by giving them practical matter. autonomy and financial flexibility the analyst uses a series of specific techniques and tools that enable them to make relevant assessments on the one hand the performance and dynamics of this indicator for the activity studied and secondly on the level of risk to which it is located. Scientists have developed a number of models of strategic approach to our attention heading towards the model school at Harvard [11]. But in assessing how the analyzed company manages to benefit from its environment opportunities. .which is achieved by continuous and systematic exploration of the market and exploit opportunities. depending on investigation results. If financial analysis is traditionally focus on indicators of solvency calculation and analysis. Learned. Conduct business under analysis and diagnosis sign In relation to the situation where the firm can adopt behaviors are different strategically competitive. Because of this analysis and diagnosis acquire new valences. social or organizational for view a complex and fair image of competitive and organizational business’ behavior. especially financial. Similarly. commercial. Thus. Guth) equates it to the organization's internal and external analysis. identified through the tests performed. marked by resistance to change. environmental front. conversely. innovative. J. launch new products and/or abandonment of construction products whose demand is declining. integrating the national plan of its potential performance constraints. N. named after its authors (A.decisions involving adaptation to changes occurring in the environment. Adapting to change is accompanied by operational active conduct of market developments as a result of the attitude adopted by the enterprise.innovative .proactive. This paper refers in particular to the complementarities existing between the finance and strategic analysis. entrepreneurial. the company's flexible or. can be characterized as [10]: . etc. technological. This model. firm response to the pressures of its external environment is limited by internal resources available and management decisions. and S. a business transformation skill in competitive advantage is achievable only if they are identified or can be built into business opportunities. which can print an adaptive behavior. to create value is critical to its success and sustainability. in light of the attitude towards risk. Dynamic behavior of the system. known LCAG formulation. Christensen. financial.active . maintaining a potential reserve capacity."There is no sustainable advantage other than what a company knows how to use what they know and how quickly can learn something new" [9]. An organization's ability to integrate environmental pressures. balance and performance. at each financial year. witch need to develop forecasts of cyclical risks involved and.

and the correct response is to incorporate the potential for exploitation. The easiest solution in this situation is to detect abandonment opportunities for competitors.The results of environmental analysis and diagnosis of internal evaluation can determine possible ways of action. but lacks the ability to assert their own interests.threats" W/T Threats (T) Firm behavior. opportunities and threats on the other side present in the external environment. organizational leadership in developing long term and its performance. Taking into account the strengths. based on these benchmarks will be reflected in the strategies may be adopted: 1. 781 . The combination of those four positions mentioned. weaknesses of the company. either through mergers (acquisitions). Strategy W/A (weaknesses/opportunities) appear virtually certain occasions when the company perceives its environment environmental development. 1 Combination of Strengths. 2. This type of behavior is framed in what experts call the strategic behavior. Strategy W/A (weaknesses/threats) is the most unfavorable situation for the company. 4. implementation and assessment of appropriate strategy set. 3. and avoid dangers in its competitive environment. Threats Internal factors External factors Opportunities (O) Strengths (S) STRATEGY – “strengths opportunities" S/O STRATEGY – “strengths . Strategy S/A (strengths/threats) is to use internal strengths to eliminate or avoid threats in the external environment of business. the above model is best known as the SWOT. Weaknesses. Practical utility of this approach is developed in the next paragraph. considering the advantages and disadvantages of each. emblematic of internal and external analysis. Opportunities. it is necessary to reduce both internal company elements of weakness. Strategy S/O (strengths/opportunities) is the most advantageous positions of the wheels on the grid for analysis and is as consistent use of potential internal strengths and exploit opportunities for environmental detection. providing rigorous formulation. The strategic behavior. strategic behavior results in the following possible: Table no. The strategic guidelines can not refer only to abandon those activities or maneuvers to safeguard restricting assignment or activity.threats" S/T Weaknesses (W) STRATEGY –“ Weaknesses opportunities" W/O STRATEGY –“ Weaknesses . or through strategic alliances with other firms. learned from internal potential diagnosis.

254.mecanicaceahlau.134 merchandise 2 Operating results 4.2009 material) Table no.domestic sales 23.301 3.628 15.651.394.234.798 Average number of 4 388 366 210 * employees 5 Current liquidity 1.703.48 0. Environmental analysis reveals that domestic agricultural machinery and equipment has a considerable growth potential due to the fact that agriculture is a strategic sector with huge untapped potential in the endowment and scarcity of agricultural equipment to Romanian farmers.397. 2 Indicators of general characterization Item No.Analysis and diagnosis: determining the behavior in the enterprise .12 * * action (RON / share) Source: Financial Statements and management report 2008. 2009.451 Production sold.provider Basic earnings per 8 0.031 (5.168.313.137.090.270.306.Study on CEAHLAU STONE MECHANICAL NEAMT http://www.php (AGEA 05.874 * markets Income from sales of 1. but also because of the lack of a real market for agricultural products.A.43 1.095.30 1. associated with lack of government programs encouraging them to equip with machinery and specialized equipment. preliminary 2010 [12] * data were not available at time of study Since 2008 Mecanica Ceahlău S.859.02 (0.064.0321) (0.735) (7. the terms of the degree of mechanization of agriculture.754) (5.322 1.1. 8.491 17.391.011 * .267.441.ro/actionariat. which ranks Romania.570 22.sales on foreign 5.clients Rotational speed of the 7 75 days 91 days 108 days 69 days loans .169 16.382 23.302 31.043. This led to a drastic drop in demand for agricultural machinery which resulted as shown in Table no.937.981) 2. has worked on a domestic market with poor liquidity due to lack of support agriculture with budgetary funds or EU structural funds. 782 . a decrease in all indicators of efficiency and enterprise entry in the area non rentable.325) 4.505.143.09.619 5.541 1.201.571 (1. 0 1 Made Made Made Preliminary Indicators 2007 2008 2009 2010 1 2 Turnover 37. the reduction of turnover compared with the achievements of the previous year. A crucial element is that the absorption power of the internal market of agricultural machinery has been so far limited by the lack or insufficiency of subsidies to farmers.159.0327) * share The market price 9 0.317 which: .001 28. of 1. condition to increase efficiency in agriculture.2. 29.264.01 Rotational speed of 6 the 171 days 198 days 287 days 159 days flow .885 19.923 3 Net profit 2. far below the EU average. 2.72 2.397.685 2.

In recent years. the company can not secure the funds necessary to cover the tip of the payment in 2009. . NRDP (the National Rural Development Programme) has not yet reached the level of maturity that will materialize in significant allocation of EU funds for farmers in 2008 and 2009.restructuring program initiated in 2008 in which 110 people were made redundant. could relieve the company of a number of costs. in conjunction with debt relief for the leasing. since 2007. But overall analysis reveals the following aspects of society. In this context. .excess production facilities and equipment. Cash shortfalls in 2009. at the company for all shareholders registered in the shareholders register by the end of 21. 783 .2009. Considering the above elements of Mecanica Ceahlău S. . b) obtaining a working and investment loan (refinancing). with penalties of default with high interest rates. According to estimates. Since then farmers have had only two choices: SAPARD and National Rural Development Programme (NRDP).produced in accordance with national and international quality standards. which will form the basis for substantiation strategy for the coming years: . 2. regarded as strengths.great capacity for innovation of new products.Stable market share of machinery and agricultural machinery in Romania. based on the analysis of economic and financial situation of the company. the company has completed arrangements to sell in traditional retail and lease rates.2009. resulting from the rescheduling lease rates and other liabilities incurred. in partnership with some banks.08. implemented by the team specializes in research and development. Piatra Neamt board. decided to convene the Extraordinary General Meeting on 04. which is not by accident. the Ministry of Agriculture has not given any support for agricultural machinery. which would provide about obtaining an alternative other than income from selling agricultural machinery.A. and even created additional problems of society. . although productivity growth in agriculture was a priority of government mentioned in the programs. . Grants were given only in the period 20002004 for local farmers for buying agricultural machinery.wide range of products in accordance with the typology of domestic demand. . .Technology upgrades financed by structural funds and government access. but expectations are very high for future years taking into account the amount of 8 billion available for rural areas and agriculture would be far an unprecedented infusion of capital after 1990. in which were discussed: 1.modern manufacturing technologies.09. in 2004 has resulted in the highest turnover of Mecanica Ceahlău (equivalent to 10 million euros). c) capital increasing. Proposal for the amendment the company status for expand the scope of business through the implementation of the second profile of activity in non-conventional energy equipment and mechatronics to medical applications. Measures to improve the liquidity of the company by: a) assets capitalization. Actions taken in support of farmers by boosting sales in recent years and lease rates could not compensate for insufficient support given to agriculture and farmers in the structural funds. with the possibility of obtaining good results since 2010.

amounting to eight million RON. . 3.2009 by contribution in cash.is a chain of rational action in which.manufacture of new products to meet production capacities. 2. and the rate of 0. where it bends to the study of a company at the financial diagnosis coordinated strategic vision for a global view. Conclusions Any visionary entrepreneurial behavior must be.helps prevent events / problems before they turn into crises.continuous improvement of product quality and services. maintaining market share on market and external economic and financial recovery situation in the crisis that has made its mark this year. . . deciding what should be done in each particular case in hand. To create the necessary financial resources to cover cash shortages and development company providing necessary funds. by issuing a number of 80 million common shares. coherent over the 784 . and implementation start of the second profile of activity in non-conventional energy equipment and mechatronics to medical applications Extraordinary General Meeting of Shareholders approved the capital increase on 04. sales agents to employment. the nominal value of 0. upgrading machinery and agricultural equipment and products through the implementation of the second profile of activity.helping the firm to evaluate decisions to be taken on the allocation and use of resources.Promote stronger export company.Increase sales force by setting up their own regional distribution centers.09. Strategic behavior: . 2) all indicators show an improvement to the increased sales. . . In order to ensure product sales and valuation of stocks. the issue is equal to nominal value. in proportion to the number of shares they hold.completion of the scope of business by implementing non-conventional energy projects and mechatronic devices with medical applications to create an alternative to the obtaining of revenue other than the sale of agricultural machinery.optimize raw materials costs. Strategic measures implemented have had a favorable preliminary data for 2010 (table no. The analyst must combine. strategic behavior. Retail market development: .focus on target sales activities developed domestic and foreign markets. dematerialized and evidenced by entry in the account. materials. Company actions made in 2010 in order to continue the company's activity. the company will address a new formula by establishing a direct contract between the client and the agency leasing. . necessarily.The strategic directions of activity and social development.Facilitating access to EU structural funds for company. as was communicated to the National Securities Commission in November 2011 [13] are: 1. posting a profit of 11% rate of return. energy resources.minimization of costs to maintain competitive prices.10 lei each.choose between alternatives that is offered and determine its long-term behavior.Structural fundraising projects by participating company with technological modernization. . the company managed to get out of the loss. have resulted in achieving the following objectives: . . registered. . .5 subscription right to subscribe new shares issued to shareholders registered with the Register's shareholders by the end of September 2009. by evaluating the results expected from various activities. .

Editor “Tribuna economică”. REFERENCES 1. Ed. the analysis and assessment of the situation and the general features of the activity. 3. http://www. Strategic Management in „Harward Business Review”. 4. A. Christensen. which is both an essential process for following up and evaluating permanent off of shares and a global one. Quarterly Report for the third quarter of 2009. 24. 10. 1990.. Oradea. Studia Universitatis "Vasile Goldis din Arad". control and evaluate the effects of applying the decisions taken. Image. quote by acad. 2. Georges Lavalette. 1994. Why Knowledge. pg. or to correct unfavorable symptoms observed or in crisis situations. 12.theorie et pratique de la gestion des connaissances. 9. no. 1999. prepared in accordance with Regulation no.php. Bucureşti. Boston. 1998.mecanicaceahlau. 1999. Learned. J. 3. 15. Strategii de creştere. 8. Racoviţan D. Analiza sistemelor economice. 13. final stage. ALL. Managementul sistemelor dinamice. R. seria Stiinţe Economice. Why now? The Economic Impact of knowledge . Bucureşti.. Camelia Raţiu-Suciu./Soc%20info%20si%20a%20cunoasterii %20%20vectorii%20cunoasterii . Romanian Academy. Informatică de gestiune şi managerială.firm. concrete stage management and strategic decisions and putting them into practice based on prior diagnosis made previously.ro/actionariat. S.. Sica Stanciu.htmș Bîrsan Mihaela. Maria Niculescu. Bucureşti. Mircea Boulescu ş.ro/studia/economice/docs/vol-II-IV-2009.pdfș Peter Drucker.ro/. Mihai Păun. Controlul financiar de gestiune al agenţilor economici. Dimensiuni calitative ale managementului prin analiză şi diagnostic economico-financiar”. Balan Alina. 435. Knowledge Management. 1 / 2006 on issuers and securities transactions. Economică. Ed. Ed.ro/actionariat. Economică. 2009. These decisions will either go further guidelines for the purposes of the current activity due to the favorable elements determined by the diagnostic analysis. Bazele generale ale marketingului.. HERMES Science Publications. The two axes of analysis. 5. the activity observed and predicted parameters. available on the website http://www.php 7. and further training of future projects and development activities. 2. Societatea postcapitalistă.ro/StiinteADM/sica/3. achieving a prior diagnosis of the activity. http://www. the final analysis to calculate the carts from detected targets.unibuc. Tisseyre. Eurounion. Guth. Laurence Prusak.mecanicaceahlau. http://ebooks.uvvg. Butterworth-Heinemann. Part II. 14. any rational process of business management company will be organized taking into account three basic steps namely: 1. N. Ed.a. 6. Mihai Draganescu in Information and Knowledge Society. 785 . Paris. Bucureşti.-Ch. 1999. 1997. Andrews. Oprean V.pdf Oprean D. 2000. ro-gateway.. Therefore. Ed. financial and strategic make or should fail to do the way the investigation process. 2001 . 11. even the reorientation/restricted/total or partial liquidation of the business analysis.M. Bucureşti..