Karel Havlíček An Impact of Institutional Environment on the Corporate Sector

Ing.Karel Havlíček, Ph.D, MBA Dean Faculty of Economic Studies University of Finace and Administartion Dean Faculty of Economic Studies University of Finace and Administartion President of the Czech Association of SME´s (AMSP) Vice-President of the European Association of SME´s (UEAPME) Business investor in the fields of industry, nanotechnology, biotechnology

3 World changes in the last 20 Years New economic superpowers New economic superpowers World economic crisis World economic crisis Tourism developement Tourism developement IS/IT developement IS/IT developement Adaptation life style/business/public/ activities Adaptation life style/business/public/ activities Different role of business management Different role of business management New challenges New challenges New threats New threats

4 Key players of the business environment Enterpreneurs Banks State Employees SME´s Association Lobbyists Government Municipalities Banking AssociationTrade Unions

5 European Business Environment Strengths Stable environment Technological facilities Tradition of business conduct High level of education Strengths Stable environment Technological facilities Tradition of business conduct High level of education Weaknesses EU=social and expensive state Different territories Low level of mobility of labour Weaknesses EU=social and expensive state Different territories Low level of mobility of labour Opportunities New world-wide territories: trade and investment Brand products and applications Open resources of workforce Opportunities New world-wide territories: trade and investment Brand products and applications Open resources of workforce Threats New competitors Steady rise of costs High level of bureaucracy Threats New competitors Steady rise of costs High level of bureaucracy

6 Key factors in the business management PEOPLE HR management PEOPLE HR management IDEAS Innovation management IDEAS Innovation management MARKETS Marketing - Sales MARKETS Marketing - Sales PRODUCT Quality management PRODUCT Quality management MONEY Financial management MONEY Financial management INFRASTRUCTURE Institutional management INFRASTRUCTURE Institutional management

7 Role of government: playground and rules architect …………. arbiter Role of business: players………….results Appetite to invest Appetite to invest Institutional environment vs Business Government should want Appetite to employ Appetite to employ Appetite to pay taxes Appetite to pay taxes Investment incentives Investment incentives Flexible labor market Flexible labor market Tax policy Tax policy

8 Role of management in hypercompetitive environment knowledge experience recognition Practical management Practical management Knowledge management Knowledge management Relationships management Relationships management Threat: Academic manager (teacher) Threat: Academic manager (teacher) Threat: Intuitive manager (practicien) Threat: Intuitive manager (practicien) Threat: Social manager (philosopher) Threat: Social manager (philosopher)

9 Management – Controlling ( M-C MODEL) Strategic plans Operative plans Strategic controlling Operative controlling Risk management Strategic goals Operative goals MANAGEMENTCONTROLLING

10 The basic pillars of the M-C model Management theory Management theory Management Accouting Management Accouting Personnel management Personnel management P/L C/F Balance sheet P/L C/F Balance sheet Mision Vision Research Plans Mision Vision Research Plans Right people in the right place Right people in the right place

for your attention Thank you