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 economicsuperpowers

New economicsuperpowers

Worldeconomic crisis

Worldeconomic crisis

Tourismdevelopement

Tourismdevelopement

IS/ITdevelopement

IS/ITdevelopement

Adaptation life style/business/public/

activities

Adaptation life style/business/public/

activities

Different roleof business

management

Different roleof business

management

Newchallenges

Newchallenges

NewthreatsNew

threats

4

Key players of the business environment

Enterpreneurs

Banks

State

Employees

SME´s Association

Lobbyists

Government

Municipalities

Banking Association Trade 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

PEOPLEHR management

PEOPLEHR management

IDEASInnovation management

IDEASInnovation management

MARKETSMarketing - SalesMARKETS

Marketing - Sales

PRODUCTQuality management

PRODUCTQuality management

MONEYFinancial management

MONEYFinancial management

INFRASTRUCTUREInstitutional managementINFRASTRUCTUREInstitutional management

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Role of government: playground and rules architect …………. arbiter

Role of business: players………….results

Appetite to invest

Appetite to invest

Institutional environment vs BusinessGovernment should want

Appetite to employAppetite to employ

Appetite to pay taxes Appetite

to pay taxes

Investmentincentives

Investmentincentives

Flexiblelabor market

Flexiblelabor market

TaxpolicyTax

policy

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Role of management in hypercompetitive environment

knowledgeknowledge experienceexperience recognitionrecognition

Practicalmanagement

Practicalmanagement

KnowledgemanagementKnowledge

management

RelationshipsmanagementRelationshipsmanagement

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)

Strategicplans

Operativeplans

Strategiccontrolling

Operativecontrolling

Risk management

Strategicgoals

Operativegoals

MANAGEMENT CONTROLLING

10

The basic pillars of the M-C model

Managementtheory

Managementtheory

ManagementAccouting

ManagementAccouting

Personnelmanagement

Personnelmanagement

P/LC/F

Balance sheet

P/LC/F

Balance sheet

MisionVision

ResearchPlans

MisionVision

ResearchPlans

Right peoplein the

right place

Right peoplein the

right place

for your attentionThank you