Management nowadays

Management is a system of conducting people in a company. It is not an easy job at all. It requires much effort. Management is an art, and at the same time it is a science. Only combining the art with the science the manager will be successful.

The art part of management consists of the ability of conducting people. The manager should be flexible, communicative, sociable, able to motivate the people and take quick decisions. These qualities will help the manager to be a good one. In order to be a successful manager he should use the science part here which consists of the ability of applying the ideas using different methods and techniques.

Management consists of four main components: Plan, Organize, Direct and Monitor. These four components are facts not skills which will help the manager to achieve his goal.

Nowadays management is known to have more structures: functional structure, pyramidal structure, line authority and matrix structure. The company and the manager can choose which structure to use so that the company could get more profit.

As a conclusion I can say that managers are many but not all of them are professional managers. A good manager is hard to find nowadays. A successful manager should always be informed and grow in performance. The different techniques used by the managers in different countries have lead to the appearance of the cultural management. This means that every manager should know different cultures and especially the culture of the country where his company is in order to produce the products according to local culture and people’s needs. Thus, I must say that management is not easy at all but it is an interesting job.

Imagine you are the owner of a famous company. Write about it talking about: background, problems, brand, possible solutions, advertising, multiple brands, a new product.

Nowadays „Hanzo Shoes Company” is one of the most successful in the world. It was founded 14 years ago. The idea of making a shoes company came one day to my best friend who has a degree in designer field and showed me some amazing of her works (shoes) and she told me that she wanted to make real all those sketches. I liked the idea so we began to think of a business plan.

The initial investment was about $ 35 000 and the one who helped us with money was her dad. Now the company has its subsidiaries in 25 countries and about 3500 workers. Due to the original and beautiful models of shoes the company began to feel the success very soon after its foundation. The shoes were also well known for their good quality.

If I say that our company has no problems then it will seem too good to be true because no matter how successful the company is, it still has some problems. One of them is the huge competition, but the biggest problem is the negative effect of the economic crises. Thus, the number of customers has reduced with 16%. Also the prices of raw materials increased with 2%. All these mean a lower profit than the previous years and more expensive raw materials for the shoes.

But there are no problems without solutions. Thus, in order to increase again the number of our customers we will improve our shoes quality. Also we will make a survey and will try to find out this way people’s taste and how they would like to be their shoes. There will be some promotions with a surprise for every bought pair of shoes and a 25% price cut for those who buy two pair of shoes.

On advertising we pay a big attention. Thus, we spend about $ 125 000 yearly. But it helps us a lot. You can find the advertisement of our company in most of fashion magazines and also on TV. The slogan of our company is „Never take off the Hanzo Shoes”.

Unfortunately we are not the only ones who produce shoes. Thus, we face with many other good and well-known competitors such as „Salamander”, „Valentino”, „Enrico Coveri”, „Jimmy Choo”, etc. But we always try to please our customers and try to satisfy all their needs and make it as comfortable as possible.

We also want to fill with joy our customers by introducing a new product, in fact, more new products. We will produce jewelry for women and purses. And we think that all our customers will be glad hearing this.

Money

Money is used for buying or selling goods, for measuring value and for storing wealth.  Almost every country now has a money economy based on coins and paper notes of one kind or another. However this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be of equal value. Barter, however, was a very unsatisfactory system because people’s precise needs seldom coincided. People needed a more practical system of exchange, and various money systems developed based on goods, which the members of a society recognized as having value. Cattle, grain, teeth, shells, feathers, skulls, salt, elephant tasks and tobacco have all been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recognizable and divisible into larger or smaller units of value.

A coin is a piece of metal, usually disk shaped, which bears lettering, designs or numbers showing its value. Until 18^th century coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value that governments choose to give them, irrespective of the actual metal content. Coins have been made of gold, silver, copper, aluminum, nickel, lead, zinc, plastic, and in China even from pressed tealeaves. Most governments now issue paper money in the form of notes, which are really promises to pay. Paper money is obviously easier to handle and much more convenient in the modern world. Cheques, bankers’ cards, and credit cards are being used increasingly and it is possible to imagine a world were money in the form of coins and paper currency will no longer be used. Even today, the USA, many places – especially filling stations – will not accept cash at night for security reasons.

Management – an art or a science?

There is a big question in the field of management that concerns many people who has deal with it. What is management? Is it an art or a science? Webster’s College Dictionary defines an art as „skill in conducting human activity” and science as „any skill or technique that reflects a precise application of facts or a principle”. Taking a look at these two definitions we make the conclusion that management is both art and science.

It is an art because we have to be creative, flexible, communicative with people, able to make quick decisions. Thus, we use ourselves and our abilities to motivate and inspire and manage people. At the same time management is also a science because in management we need to use different theories and techniques for application. Here comes the rational, logical and analytical thinking that we use to organize the resources and plan our activities for meeting specified objectives. It is a science as it has some principles in managing human resources. This science consists of four components: Plan, Organize, Direct and Monitor. These four things are facts and not skills. We may need the skills to apply them so we make the performance of the human resources more efficient and effective, so here where we combine the art with science in management.

Science of management without the skills cannot be applied. We need the skills where we can convince the human resources to apply our principle and work on the instructions of the management in a proper way where the company will meet its target.

As a conclusion I can say that the successful management requires both art and science as the structure applied very well throughout the process to ensure the ability and capacity of the company has been met with the extreme clarity and defined tasks that will split responsibility in a way that the company with the appropriate management will get the maximum from every factor and component of the company. This will never be achieved without the skill in applying the science of management.

Future changes in the banking industry

The banking industry is one of the most important parts of the financial services sphere because the economy of a country depends in a way of it as money are considered „the blood” of an economy and all the transactions are made through banks. Thus the bank is responsible for the regulation of the money circulation in  a country. It also renders various services to the economical agents making a profit on a hand and on the other hand helping on the development of economy of the country.

But as every industry, banking sector also has ups and downs (called financial crisis). As we can see nowadays the banking industry suffers a world financial crises which will have a bad effect not only on banking industry, but also on other spheres of the economy as well. Thus, the small, weak or new banking institutions will not be able to face these challenges, or continue to hold their current positions, unless they decisively establish entities that have the ability to maintain their existence.

Due to this world financial crises banks will lose many clients, will not be able to give easily loans and it will take some time until they recover. Another negative result for borrowers will be the increasing interest rate and security conditions. This will influence very negatively the ones who want to borrow because not everyone will agree with this conditions or will not have the possibility to take such an expensive loan.

Additionally, banks will have to enhance their policies concerning the managing and supervising of various banking risks, because of the increasing use of advanced systems of electronic banking operations and applications in areas of information technology. Banking management can thus achieve an optimum use of their financial resources, improve their services and products and strengthen their systems of internal supervision over all aspects of banking activities.

An advice to a foreign business person coming to Moldova to negotiate with local companies

The Republic of Moldova is considered more and more to be a safe and positive destination for investments. It is a country that trully implements different reforms for making the economical and capital investments grow.

In order to negotiate with our country a foreign businessman should know that the RM has privileged relations with Romania, sister-country, that has the same history and language. It develops the economic integration and consolidates the common cultural and European space. Romania supports by all means the efforts of integration of the RM in european structures at international level. Also he should know that the attraction of direct foreign investments has a great importance for the economy of RM, as it is for each country. It has benefited of many loans from intrenational financial-banking structures, as well as from states like the USA, Germany, China, Japan, Romania and other countries.

To negotiate with companies from RM the foreign business person should have a presentation showing the profile of the company and how great its performances are. the presentation should not be too long. Will be better if the presentation is consisted of more short presentations where should be included realistic exercises that will keep the other persons participating at negociation focused on program objectives. Thus, the heavily interactive nature of the presentation will give participants lots of opportunities to practice and refine the negotiation skills.

The foreign businessman should emphasise how experienced they are in their field. Also he should demonstrate the benefits of the others from such a cooperation. Very important are self-confidence and good appearance.

Following these simple rules, the businessman might get the right to invest in our country.

Possible reasons for saving money, importing goods, and taxation

Everyone has asked himself at least once in his life should I save money or no and why? There are many reasons to begin saving money because this makes you a happier person and more sure about your future, and your children’s future.

There is no question that our relationship with money affects our happiness in a big way. How we feel about money affects all aspects of our lives: our sense of peace, freedom, security, satisfaction and even love. Not money should control us but we should control the money. Being a sensible and successful saver of money can enhance our self-esteem and increase our happiness. So here are some reasons why saving money will help us feel good:

• You can expect the unexpected without fear. Emergencies happen to all of us – from job loss to a whole in the roof. Having an emergency fund brings peace of mind.
• You can be ready when opportunity knocks. Your savings can give you a precious sense of freedom and independence. If an opportunity comes your way, you will have choices and chances – to change jobs, to move, to start a business, to invest. The feeling that you have choices can give u a sense of abundance and well-being.
• You can make your dreams come true. One of the best reasons for saving is the exciting, confidence-building experience of setting financial goals and achieving them. When you achieve a goal, you prove to yourself how capable and competent you really are. you also become a good role model for your children who look to you for assurance that life is good and that dreams come true.

And the list why we should save money may continue. Another question that might arise is why should we import goods? There are a number of benefits to be gained by opting for an overseas supplier like:

1)      Lower priced goods – lower labor costs or a different tax regime may mean one country’s prices for a particular product are significantly lower than those in our country, for example.

2)      Higher quality finished products. Every country has its specialties and strengths. If you want the very best, it could be to your advantage to import from a particular country.

3)      Traditional skills and raw-materials. It makes sense to take advantage of traditional crafts and skills that have been carried on for generations in some cultures.

4)      Original products. Originality and authenticity are important in some markets if you want to keep ahead of your competitors.

These are the reasons for importing goods.

But why is taxation important? Here are some answers at this questions:

a)      Raising money. All governments need to raise money to pay for their expenditures.

b)      An instrument of social and economic policy. Governments can use taxes to promote certain social or economic policies by imposing higher or lower taxes on different activities.

c)      Control sector development. Because taxation influences the behavior of individuals and corporations, governments can use tax policy to influence the development of selected sectors of the economy.

Thus, I can say that taxation is very important because no state in the world would be able to exist without taxation.

Some problems faced by financiers who invest in large projects in developing countries

Investors are persons or organizations who invest their money in different projects in order to have profit. Being an investor is a very big risk because you can never be sure 100% that you will have profit and will not lose your money.

While investing, there might appear some problems. One of them is misrepresentation which can occur when a broker purposefully makes untrue representations of material facts or omits material information. This can happen in any security in any account, but this problem is commonly found with low – priced, speculative securities because of their increased risk. As a result the investor loses money on investment and has trouble liquidating or selling it.

Another problem is high-pressure sales-calls that occur when an investor receives unsolicited or unwanted phone calls – using high-pressure, persistent tactics – soliciting the purchase of securities.

A suitability problem can involve any security and occurs when an investment made by a broker is inconsistent with the investor’s objectives and investing profile. For instance, the broker encourages an investor to purchase an investment that the broker wants versus an investment that may be best suited to the investor. Unauthorized trading is another problem which involves the purchase or sale of securities in a customer’s account without the customer’s prior knowledge and authorization. This can occur with any security. For example, the broker may believe a transaction is in the investor’s best interest but cannot or doesn’t contact the investor, and then makes the trade anyway. Or, the broker attempts to convince the investor of the benefits of the transactions in the hope that the investor ratifies trades after the fact.

As we can see, an investor may be faced with many problems but in order to avoid them he should investigate thoroughly any potential investment before he makes it, as well as the broker and securities firm that are recommending it to him. The investor should get to know the firm and the individual he is dealing with.