tarptautinis verslastarptautinis verslas: inovacijos, psichologija, ekonomika.2016, t. 7, nr. 1 (11)...

TARPTAUTINIS VERSLAS:

inovacijos, psichologija, ekonomika

ISSN 2029-5774

ISSN 2029-5774

INTERNATIONAL

BUSINESS:Innovations, Psychology,

Economics

2016, Vol. 7, No 1 (11)

r E S E a r c h Pa P E r S

VILNIUS 2016

TARPTAUTINIS

VERSLAS:inovacijos, psichologija,

ekonomika

2016, t. 7, Nr. 1 (11)

M O K S LO D a r B a I

VILNIUS 2016

ISSN 2029-5774

© kūrybiškumo ugdymo centras, 2016

Vyriausioji redaktorė / Editor-in-Chief

Prof. habil. dr. DANGUOLĖ BERESNEVIČIENĖ, Kūrybiškumo ugdymo centras, Lietuva / Center of Creativity Education, Lithuania (edukologija 07 S, psichologija 06 S)

Tarptautinės redaktorių kolegijos nariai / International Editorial BoardProf. dr. CARL-MARTIN ALLWOOD, Geteborgo universitetas, Švedija /

Gothenburg University, Sweden (psichologija 06 S)

Prof. habil. dr. Lietuvos MA akad. ANTANAS BURAČAS, Lietuvos Edukologijos universitetas, Lietuva / Lithuanian University of Education, Lithuania (vadyba ir administravimas, 03 S, ekonomika 04 S)

Prof. habil. dr. PETER FRIEDRICH, Tartu universitetas, Estija / Tartu University, Estonia (ekonomika 04 S)

Prof. habil. dr. LEONAS JOVAIŠA, Vilniaus universitetas, Lietuva / Vilnius University, Lithuania (edukologija 07 S, psichologija 06 S)

Prof. habil. dr. VLADIMIRS MENSHIKOV, Daugpilio universitetas, Latvija / Daugavpils University, Latvia (sociologija 05 S)

Prof. habil. dr. ANITA PIPERE, Daugpilio universitetas, Latvija / Daugavpils University, Latvia (edukologija 07 S, psichologija 06 S)

Prof. (HP) dr. JUOZAS RUŽEVIČIUS, Vilniaus universitetas, Lietuva / Vilnius University, Lithuania (vadyba ir administravimas 03 S, ekonomika 04 S)

Doc. dr. DALIUS SERAFINAS, Vilniaus universitetas, Lietuva / Vilnius University, Lithuania (vadyba ir administravimas 03 S)

Prof. dr. GUNA SVENCE, Rygos Mokytojų ugdymo ir švietimo vadybos akademija, Latvija / Riga Teacher Training and Education Management Academy, Latvia (psichologija 06 S)

Doc. dr. WIESLAW URBAN, Balstogės technologijos universitetas, Lenkija / Białystok University of Technology, Poland (vadyba ir administravimas 03 S, ekonomika 04 S)

Prof. habil. dr. ALEKSEJ VOROBJOVS, Daugpilio universitetas, Latvija / Daugavpils University, Latvia (edukologija 07 S, psichologija 06 S)

Prof. habil. dr. POVILAS ZAKAREVIČIUS, Vytauto Didžiojo universitetas, Lietuva / Vytautas Magnus University, Lithuania (vadyba ir administravimas 03 S )

© KŪRYBIŠKUMO UGDYMO CENTRAS, 2015

R e d a k c i j o s a d r e s a s ( A d d r e s s ) :Kūrybiškumo ugdymo centrasM. Pretorijaus g. 7–16, LT-06227 Vilnius, LietuvaEl. paštas: [email protected]

The journal is abstracted and indexed in international databases:Business Source Complete (EBSCO);Business Source Corporate Plus (EBSCO),Index Copernicus Journal Master List.

Prof. habil. dr. Lietuvos MA akad. PoviLAs ZAkArevičius, vytauto Didžiojo universitetas, Lietuva / vytautas Magnus university, Lithuania (vadyba ir administravimas 03 s)

Tarptautinis verslas:in ovac i jo s , p s i cho log i ja , ekonomika

International Business: In n ovat i o n s , Psych o lo g y, Eco n o m i c s

ISSN 2029-5774

Turinys • Contents

Inovacijos • Innovations

Didier roche. AN APProACH oF THe MosT eFFeCTive MANAGeMeNT For A sALesForCe oF THe Y GeNerATioN? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Požiūris: kokia pati efektyviausia pardavimų vadyba Y kartai?

Vadyba • Management

Philippe rebiere. ouTsourCiNG AND oFFsHoriNG PrACTiCes: A reADiNG FroM Two TexTiLe GrouPs iNDiTex AND H & M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Pasinaudojimo specialistų iš šalies pagalba bei verslo veiklos perkėlimo į kitą šalį su žemesnėmis kainomis praktika: dviejų tekstilės grupių inditex ir H & M palyginimas

Inžinerinė ekonomika • Engineering Economics

erko vallbaum, rein Muoni, Jüri Lavrentjev. The effect of various fuels on engine power . . . . . . . 40 Įvairių kurų įtaka variklio galingumui

Ekonomika • Economics

Marija Zykuvienė, romualdas stankaitis, stanislava stungurienė. BuDGeT PrePArATioN issues AND iMProveMeNTs For CoMPANies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

kompanijos biudžeto kūrimo prielaidos ir jo tobulinimo gairės

olga valauskienė, romualdas stankaitis, stanislava stungurienė. reseArCH oN use oF NoN-FiNANCiAL iNForMATioN For FirM evALuATioN . . . . . . . . . . . . . . . . . . . . 75

Nefinansinės informacijos tyrimai įvertinanat kompanijas

ABouT THe AuTHors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

iNForMATioN For AuTHors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

*

7Gediminas Beresnevičius. Kūrybiniai gebėjimai ir naujų idėjų kūrimo modelis


2016, t. 7, Nr. 1 (11), p. 7–15


2016, Vol. 7, No 1 (11), pp. 7–15

ISSN 2029-5774Inovacijos • Innovations

*An approach of the most effective management for a salesforce of the Y Generation?Didier RocheEcole Supérieure de commerceGroupe Sup de co La rochelle, FranceE-mail: [email protected]

The thematic focus is clearly the management area. and there is little research dealing with salespeople management from the Y Generation. The purpose of this article is to define this concept and to define what type of management can be adapted to the management of this particular generation in the field of the salesforce. In order to better understand this concept, we conducted a qualitative study among managers and managed people to find out their desires in terms of management style. We then led a content analy-sis. The results show that managers, when adapting their management style in a particular way can better manage salespeople from the Y Generation.

JEL codes: M12, M15Key words: Y Generation, salesforce management, managers’s desires, needs of managed people,

qualitative study, content analysis

I. Introduction

if, as suggested by Brillet et al. (2012), the Y Generation seems to be a particular generation to manage. First, it seems important to focus on the management of a particular category of actors of the Y Generation: the salesforce.

so, how can we define this particular gen-eration, and is there a particular style of man-agement needed to manage this generation?

These are the questions that our article proposes to answer. At first, we thought it was necessary to better understand what Generation Y was, and what salespeople management was too. we then analyzed how

employees and managers could define this particular generation, which management style would please them and what they thought of the possible evolution of “all digital” within organizations. For that, a qualitative study was conducted.

II. Literature Review

A. Definition of Generation Y

when trying to define Generation Y, it is im-portant to know precisely what is the concept of such a Generation. invented in 1993 by Ad-vertising Age (us weekly magazine dedicated to advertising) the term “Generation Y” is the

International Business: Innovations, Psychology, Economics. 2016, Vol. 7, No 1 (11)

Tarptautinis verslas: inovacijos, psichologija, ekonomika. 2016, t. 7, Nr. 1 (11)

8 D. Roche. An Approach of the Most Effective Management for a Salesforce of the Y Generation?

next generation after “Generation x”, people born between 1965 and 1977.

Josiam et al. (2009) include young people born between 1979 and 1989 while eisner (2005) is limited to individuals born after 1980. For sullivan and Heitmeyer (2008) and Yeaton (2008) the Generation Y includes individuals born between 1979 and 1994. For Brillet al (2012) who also starts from these three defini-tions adapted from Pichaut and Plers (2010), they admit that Generation Y can include a group of individuals born between 1979 and 1994.

For our part, in agreement with urban et al. (2013) and rindfleich (1994), we will retain persons born between 1977 and 1995. Through the work of these studies, it is possible to un-derstand the contexts in which Generation Y has evolved.

There are six main contexts for this genera-tion: • Demographic context: Generation Y is

born between 1977 and 1995. • Theeconomiccontext: They were born in

a consumer society, a crisis situation, dur-ing globalization and high unemployment.

• The technological context: they experi-enced accelerating innovation technologies of information and communication.

• Traumatic historical events they have ex-perienced are 11 september 2001, the war in Afghanistan and in iraq and the fall of the Berlin wall. They also were “born with AiDs”.

• Social effects: They have experienced changing attitudes toward women, minori-ties, sex, education, government, and all as-pects of social life. They make a difference in the world as a society and communitar-ian movements.

• Socialization: the family and the influence of others: raised in a non-traditional household (children often live with a divorced parent). The woman often works outside the home. They are influenced by their peers and the media (friends, e-friends, celebrities).

B. Efficient managementAs explained Goebel et al. (2013), there is in the literature a model that attempts to identify the communication variables that make a success-ful manager (Deeter-schmelz, kennedy, and Goebel (2008)). According to the salespeople interviewed, three major elements constitute what managed people expect from a manager: communication and listening skills, open com-munication and effective feedback.

For spiro, stanton, and rich (2003), the sales manager must have control dimensions which are monitoring, directing, and evaluating.

others, like Cron and DeCarlo place em-phasis on six core salesmanagement compe-tences, defining sales management competenc-es as “sets of knowledge, skills, behaviors, and attitudes that a person needs to be effective in a wide-range of industries and various kinds of organisms” (2006, p. 12). Their sales manage-ment competency model includes coaching competency (providing feedback, role mode-ling, building trust) and team-building compe-tency (designing teams, Creating a supportive environment, managing team dynamics appro-priately) “ Nigel and al (2012) .

regarding the management of the Y gen-eration, there is to our knowledge only few studies on the subject except those of ellen Bolman and al. These studies are focused on understanding the generational differences.

it therefore seems difficult to refer to a spe-cific model of the ideal management for sales-


9D. Roche. An Approach of the Most Effective Management for a Salesforce of the Y Generation?

forces. it also seems unrealistic to think of find-ing a model suitable to the salespeople from the Y Generation. This is why it was decided to con-duct a qualitative study to try to discover new theories.

III. Empirical Section

The literature review conducted earlier helped to highlight two fundamental points: There is actually a type of Y generation and managers do not necessarily know how to manage this new generation. The aim of this part will be to better understand how to manage this kind of sales-people in a very practical way according to the literature.

A. Methodology:it has been decided to resort to the use of a qualitative study because the direction of our research was to explore a phenomenon in depth because there was little research on this par-ticular salesforce kind of management. we also wanted to understand behaviours in a particular context in which the variety of sources guaran-teed objective results (Yin, 2012). Through this research, we were able to take the point of view of the subject, to describe everyday situations in detail, to understand the actions and meanings in their social context and finally to emphasis on time and process (silverman (1997)).

B. Sample:The sample of employees for this study con-sisted of 3 employees from the Y Generation. Their ages were between 20 and 24. Their func-tions were: a seller in the auto sector, a seller with BMw and a seller in a Fnac store.

Three managers were then interviewed. They were managing employees belonging to

the Y Generation. They were aged between 42-54 years and occupied sales manager positions, director or senior business with features man-agement. They were managing between 5 and 18 people from the Y Generation.

C. Data collection:Data was collected through semi-structured individual interviews. According to Yin (2009), the semi-structured interview allows us to obtain information from the respondent in his own words but also his views on how the events will be held. The sample was represent-ed in part by employees and also by managers. This choice allows us to observe the thought of each person but also permits to reveal similari-ties or differences between the two types of the studied population.

Three main topics were discussed during the talks which refer to literature :

Management in general: it addresses the roles and functions. The aim was to understand what people (managers and managed people) were thinking about management. Moreover, it was also interesting to ask what had caused any disputes or tensions.

ThemanagementofthesalesforcefromtheYGeneration. The aim was to better define this generation and to understand how to man-age it in a better way.

The last theme dealt with the “all-digitalrisk” and the possibility of losing human rela-tionships for the benefit of virtual relationships.

D. Processing and analysis of dataThe interviews were analyzed using a content analysis. As Thiétart said (Thiétart and al., 2003) “it is appropriate” and it has consisted in (after full transcript of the speech) a detailed analysis of the words used and their recur-



rences in order to draw conclusions. Thematic analysis was preferred. The expressions were classified into the categories defined during the coding phase through the interview guide.

Two types of analysis were performed: a vertical and a horizontal analysis.

TaBLE 1. Vertical analysis managers

Senior sellerManager of 18 sellers from the Y Generation

Manager of 8 sellersfrom the Y Generation

Theme1: ManagementTrust, listen, not too much authority

Theme1: ManagementYou have to compose and create working groups with common affinities. The ideal management is the human. We must engage constructively, move forward together

Theme1: Management Not too much pressure on employ-ees. There must be a relationship of trust with young people

Thème 2: Generation Y salesforce managementPeople born between 1980 and 2000. Media and society are very critical to this generation This is not the generation that will change the codes. Management must be adapted to this generation

Theme 2: Generation Y salesforce managementSalesforce managementInternet generation. This generation jostles material habits but it is like the others. Management must be adapted to this generation

Theme 2: Generation Ysalesforce managementconnected, social networks, facebook, twitter, and other. addictive to smartphone,applicationImage rather positive as they use new tools and are very inventive. We simply provide training and tech-nological tools to train them better

Theme 3: all-digital riskIt is not necessary to innovate but simply to better use the tools available. Technology should simply be a support to help salespeople

Theme 3: all-digital risk The central management has nothing to do with technology but with humans.

Theme 3: all-digital risk Use modern technologies: Telephone, Skype, SMS, internet access. access to a basic image to show the products. We can not replace humans with technology

E. Vertical analysis managers and managed peoplein terms of vertical analysis on managers and managed people, it is possible to read in the table the idea that each manager and managed people have about the different topics.



TaBLE 2. Vertical analysis managed people

Seller in the Automotive Sector Seller in BMW Store Seller in Fnac Store

Theme 1: ManagementIt depends on the age difference between managed and manager. There are many points on which we are not on the same wavelength. What worked before will not work for our generation. They put up with a lot of fun activities team work, sales challenges with items to win. There was a reasonable and neces-sary pressure. Proximity to the people who framed. The manager must be available, to listen, to be open to ideas. Must also have authority. Many managers remain locked in the management of yesterday. They refuse to adapt to this new genera-tion, adapting and proposing new tools.

Theme 1: ManagementThere are 2 types of management. a paternal management with real monitoring of trade and more flex-ible management where trade have greater autonomy.Me being accompanied daily was a real development which allowed me to make rapid progress in issues such as negotiation.Management has its limitations, in so far as of the time you can do the job, you do not really need to be managed.Which could improve the manage-ment are social networks that are for me the tools of tomorrow. These are the kinds of Msn Messenger. Once you have a question, for example, you can contact people who are in the area of your question.That famous generation can educate other employees about the benefits of Facebook, for example, by creat-ing an official page of the company. For me, a good management is a management not too overbearing. I think our generation does not like pure authority. It seeks primarily a relationship of trust and are eager to learn. If the manager requires your ideas, it will never work.

Theme 1: Managementa good manager can create value primarily around him and thus find a source of motivation for its teams. It also has a training role. It takes a certain authority. There need to be more dialogue be-tween managers and employees.

similarly, it is possible to observe in the table of vertical the idea that each managed person has about the different topics.



Seller in the Automotive Sector Seller in BMW Store Seller in Fnac Store

Theme 2: Generation Y salesforce managementGeneration Y began in the 80s and 85 and it exploded in the 2000s with the Internet bubble, the phenom-ena of video games, the emergence of social networks. This is a younger generation, very trendy and very connected. They are on the lookout for any news. as soon as something comes out, they relay information.They are too hurried, and they do not take enough time.The positive side is that they happen to be to project full of initiative. Managers should just adapt to them and try to develop with them new tools to advance the business together. If I was manager, I would use social networks like Facebook and Twitter to just talk with different channels to my employees for sales challenges, for example. To develop twitter internally would be for me a great idea.

Theme 2: Generation Y salesforce managementThese are social networks, online games via apps, internet, 3G, web 3.0. They are driven by new technolo-gies. So they have the skills and ex-pertise to implement. For example Facebook, there is way to develop fully the communication and adver-tising your business. This represents a huge potential at your market. you just have to adapt manage-ment. If a business wants to expand inter-nationally must take into account in their strategy social networks and other cSr. The major advantage is that they are free, and this is a sig-nificant advantage.

Theme 2: Generation Y salesforce managementGeneration Y is a generation reso-lutely turned towards the digital environment with internet, smart-phones and social networks (like Facebook and Twitter). There is no need to change man-agement in depth, you just have to adapt. This requires the use and development of new forms of com-munication. It must also be more involved Y business in the company, instill corporate culture. Technology can help boost sales through crM software. Social net-works like Facebook can be used by the company to promote a product or set up a contest with prizes. Suggest to customers new modes of communication (Skype / email / what’s app). Why not develop a cor-porate social network

Theme 3: all-digital risk I think it would be interesting to develop social networks business, it starts to grow much in the United States in particular.Generation c is the connected gen-eration that lives only by new tech-nologies. This is the digital life! It’s nice to talk about social networks conf-call skype but there are es-sential points on which it is neces-sary and vital to see face to face. certainly, it is important to use these new technologies but keep the hu-man hand.

Theme 3: all-digital risk It is possible that there is a risk. What is problematic is that there is any more human side, because in trade you need to see the person in front of you, to see how she reacts to a particular proposal, understand their values, it seeks by coming to consult you, analyzing emotions

Theme 3: all-digital risk Social networks have become very important information well. Yes, there is a risk of an all-digital management. The principal would lose communication between indi-viduals, there is finally over as the Virtual between employees and managers. In some sales process, it would be dangerous.

TaBLE 2 (continuation). Vertical analysis managed people



F. Horizontal analysis managers and managed people

1. Horizontal analysis manager:

For management: not too much authority, pressure of listening, trust, constructive rela-tionship.

ForthegenerationYmanagement : those born between 1980 and 2000. Connected, trendy, social networks, facebook, twitter, ad-dictive to smartphones and other applications. The media are very critical of this generation. This is not this generation that will change the codes. Management must be adapted to this new generation. The picture is rather positive as they use new tools and are very inventive. They must be given training and technological tools to better train.

All-digital risk: technology should be a support to help business. The management has nothing to do with technology but with humans. we can not replace the human with technology but we can use modern technologies.

2. Horizontal analysis Managed people:

Formanagement: what worked before will not work for our generation. we must develop rec-reational activities with great team work. There must be a reasonable and necessary pressure. The manager should be close, listening, open. They must support their salespeople and train them. There is no need for management when the seller knows his job. social networks could improve the management.

For the generation Y management: Generation Y has exploded in the 2000s with the internet bubble, the phenomena of video games, the emergence of social networks. This generation is on the lookout for all the news. As soon as something comes out, they

relay the information. They do not take the time. what is positive is that they can initiate multiple projets. They have skills and know-how. Managers must adapt to them and try to develop with them new tools to advance the business together. social media should be used (Facebook or Twitter) to talk to different channels to employees for the sales challenges for example. it is also possible to develop an internal social network. And besides, it’s free.

Alldigitalrisk: it would be interesting to develop social enterprise networks. However, we must also keep a human hand. in sales, there is a need to see the person in front of you to see how she reacts in order to make her a good proposal.

IV. Conclusion

Themainobjective of this research was to un-derstand how to manage Generation Y’s sellers in a very good way. As we have shown in the study of the existing literature on the subject, if the management of Generation Y is a topic that has been studied, the management of the sales force of this particular generation has been few or untreated.

our work has consisted of questioning with a qualitative study and through semi-struc-tured individual interviews with both manag-ers and managed to understand how to man-age this generation. we have expanded slightly the scope of our research by asking respond-ents of this generation to tell us about man-agement and about the future of “all digital”. Theresultsfirstshow that there would not be much effort required for managers and man-aged to understand each other.

For managed people, there are areas for improvement: the mangers must develop fun



activities and make the Y Generation work in teams. The manager must be close to them, open and listening. There must be a reasonable and necessary pressure on employees. Man-agers should rely on their ability to be on the lookout for the latest news, on their ability to relay information and their ability to develop multiple projects. Managers need to listen to them to encourage them to work with social networks and to encourage them to develop new tools or in-house social networks.

Formanagers, all digital will not replace humans. regarding managers, their goal is to maintain constructive relationships. They do not think that the Y Generation will change the

codes but they must just work with this genera-tion that uses new tools and is inventive. For many managers, they think those sellers must be trained providing them with technological tools. For them, anyway, humans are all irre-placeable.

of course, our study has some limitations. we could have focused on the case of a single company to be more specific about particular industries and could also have work with a larger sample of managers and managed peo-ple. we could have also choose a big sample. However, these weaknesses can be offset by future research that will be more focused on sedentary and itinerant sellers.

References

Brillet Franck, Patricia Coutelle and Annabelle Hulin. 2012. « Quelles trajectoires professionnelles pour la génération Y ? », Gestion 2000, 5 (29) : 69-88.

Caroline urbain, Christine Gonzalez and Marine Le Gall-ely. 2013. “ what does the future hold for giving? An approach using the social representations of Generation”. International Journal of Nonprofit and Voluntary Sector Marketing, 18 (3): 159–171.

Case of Hospitality and Merchandising under-graduate Majors», Journal of services research,

Dawn r. Deeter-schmelz, Daniel J. Goebel and karen Norman kennedy. 2008. “ what are the Characteristics of an effective sales Manager? ” an exploratory study Comparing salesperson and sales Manager Perspectives”, Journal of Personal Selling & Sales Management, 28 (1): 7-20.

eisner, s. 2005. “ Managing Generation Y ”, SAM Advanced Management Journal, 70 (4): 4-15.

Bolman Pullins, elen, Michael L. Mallin, richard e. Buehrer and Deirdre e. Jones (The university of Toledo, Toledo, ohio, usA

Goebel, Daniel J, Dawn r. Deeter-schmelz, karen Norman kennedy. 2013. “effective sales Management: what Do sales People Think?”. Journal of Marketing Development and Competitiveness, 7(2): 11-22.

Josiam, B., Crutsinger, C., reynolds, J., Dotter, T., Thozhur, s., Baum, T., et al. 2009. “An empirical study of the work attitudes of generation Y college students in the usA: The case of hospitality and merchandising undergraduate majors”. Journal of Services Research, 9(1), 5-30.

Thiétart, raymond-Alain. 2003. Méthodes de recherche en management , Dunod

Lane, Nikala, Cravens, David w. and Piercy, Nigel F. (2012). “sales manager behavior-based control and salesperson performance : the effects of manager control competencies and organizational citizenship behavior”. Journal of Marketing Theory and Practice, 20 (1). 7-22.

Pichault, F., Pleyers, M. (2010), «Pour en finir avec la génération Y... Enquête sur une représentation managériale». Congrès de !’AGrH, saint Malo.



rindfleisch, A. 1994. Cohort generational influences on consumer socialization. in Advances in Consumer research, Allen CT, roedder D J (eds.). Association for consumer research: Duluth; 21. 470–476.

silverman, D. (1997), Qualitative Research: Theory, Method and Practice, sAGe Publications Ltd.

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exploring the role of experience and Apparel involvement», International Journal of Consumer Studies. 32(3): 285-295.

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Požiūris: kokia pati efektyviausia pardavimų vadyba Y kartai?

Didier Roche

S a n t r a u k a

Įteikta / submitted: 2016-03-24Priimta / Accepted: 2016-06-28

Yra labai mažai tyrimų, kuriuose būtų nagrinėjama pardavimų vadyba Y kartoje. Šio straipsnio tiks-las – apibrėžti šią koncepciją ir nustatyti, kokio tipo vadyba gali būti pritaikyta šios kartos žmonėms, dirbantiems verslo pardavimų srityje. Tuo tikslu at-liktas kokybinis tyrimas, apklausiant vadybininkus ir jiems pavaldžius pardavėjus, siekiant nustatyti tiriamųjų vadybos stiliaus poreikius ir troškimus.

Tyrimas parodė, kad vadybininkai, pritaikydami savo vadovavimo stilių prie sau pavaldžių darbuo-tojų poreikių, gali geriau vadovauti Y kartos par-davėjams.

Raktiniai žodžiai: Y karta, pardavėjų vadyba, vadybininkų troškimai; vadovaujamųjų žmonių po-reikiai; kokybinė studija.

16 Gediminas Beresnevičius. Kūrybiniai gebėjimai ir naujų idėjų kūrimo modelis

Tarptautinis verslas:inova c i jo s , p s i cho l og i ja , ekonomika

2016, t. 7, Nr. 1 (11), p. 16–39


2016, Vol. 7, No 1 (11), pp. 16–39

ISSN 2029-5774Vadyba • Management

Outsourcing and offshoring practices: a reading from two textile groups Inditex and H & M*Philippe RebiereIcN Business School, FranceEmail: [email protected]

The article shows how, given the geographical dispersion observed in manufacturing (textiles and cloth-ing sector), multinationals are they separate and they coordinate a complex range of activities? how do companies decide to innovatively reconfigure their value chain? In this paper we report the findings of an inductive, interpretative case study of actions instigated by two group in order to accelerate and shape organizational capability. We favored the mode of collection of secondary data. We used information from the following sources: Inditex annual reports of h & M , Press release, economic articles extracted from the Echos Database. The chosen field , the textile industry, enables our opinion the answer to the problem.

The study revealed that global value chains represent a new form of industrial organization that quickly diffused in many industries in different countries . We enjoyed the way in which global corporations realize the configuration of their networks to support their resources and capabilities. The network configuration shows strong differences. companies are developing different networks.This research was seen as an ideal vehicle for investigating how Zara, a leader in the industry, has pioneered an approach to navigate the volatility of fast fashion, offering lessons for any company facing rapidly changing markets.

1. Introduction

Dans l’ère de la mondialisation, l’activité éco-nomique n’est plus seulement de portée inter-nationale mais s’inscrit dans une approche glo-bale. Les environnements changent et les firmes sont contraintes de s’adapter. L’approche glo-bale des organisations se réfère à l’intégration fonctionnelle et à la coordination des activités internationalement dispersées, (Gereffi 2001),

via des réseaux, en ajoutant des chaînes de pro-duction mondiales où des chaînes de valeur globales. La chaîne de valeur décrit la gamme complète des activités qui sont nécessaires pour réaliser un produit ou service, depuis la conception, par l’intermédiaire les phases de production (impliquant une combinaison de transformation physique et l’entrée du pro-ducteur de différents services), la livraison aux consommateurs finals, et l’élimination défi-

*

* The authors wish to acknowledge the assistance in this research of iMs Health – La Défense, which contributed the data for the production of this article and, in particular, the help of stephane sclison, Director of strategy of iMs France, without whose assistance this research would not have been possible.



17Ph. Rebiere. Outsourcing and Offshoring Practices: A Reading from Two Textile Groups Inditex and H & M

nitive après utilisation. (kaplinski 2000). Les firmes développent des avantages compétitifs pour faire face à la dynamique concurrentielle. une firme a un avantage compétitif lorsqu’elle créé plus de valeur économique que ses ri-vales. (Barney and Hestrely, 2008). Des forts changements ont bouleversé les entreprises et ont conduit à nouvelle géographie globale du textile et de l’habillement suite au démantè-lement du contingentement des échanges (et à l’abolition des quotas en 2005 et à la fin de l’accord multi fibre MFA). Plusieurs change-ments ont affecté le secteur du textile habille-ment :- La relocalisation de la production et le repositionnement du produit, la hausse des matières premières1 et des salaires2, l ’évolu-tion globale et les caractéristiques des appro-visionnements régionaux pour l’approvision-nement de l’habillement et du textile, la rapide évolution du secteur de la distribution habil-lement orientée vers le ‘fast victim’. (shaw, D; Hogg, G; wilson, e; shui, e; Hassan, L. 2006), l’évolution des comportements de consomma-tion centrés sur le « fast fashion ». (Cachon and swinney , 2011) , l’élimination effective de toutes les barrières commerciales quan-titatives (quotas) entre membres de l’oMC. Dans le commerce de détail en ‘mode rapide’ , deux acteurs ont retenu notre attention : H & M, est un distributeur réputé comme un détaillant de ‘mode rapide’ attirant plus l’atten-tion de clients soucieux des tendances de la mode. H & M propose des vêtements de mode qui peuvent être proposés à un prix inférieur à celui des vêtements de marque, mais ceux-ci ont l’avantage d’être en adéquation avec les

1 « Forte poussée des salaires dans toute l‘Asie » Les echos, 21 Mars 2012.

2 Libérés par la poussée des coûts de production en Chi-ne, plusieurs pays asiatiques viennent d‘annoncer de fortes hausses des salaires minimums.

tendances actuelles du marché. inditex de son coté, a adopté le « business model » suivant : Fabriquer en europe et vendre dans toutes les nouvelles économies ; et le modèle écono-mique du créateur de Zara est durable3. Les résultats sont performants . Le distributeur ob-tient les résultats d’un développement agressif sur plusieurs marchés émergents à fort poten-tiel de croissance, en Asie notamment4.

Les objectifs du présent article sont doubles. D’une part, il s’agit de décrire et de comprendre le contexte global de l’industrie textile, cerner les opportunités globales et transnationales5

et les menaces (tarifaires, quotas, non trai-faires) auxquelles sont confrontées les firmes et comprendre la façon dont les entreprises les exploitent. D’autre part, à partir d’une lecture de deux groupes européens du textile, nous examinerons les jeux de compétences fonda-mentales et distinctives adoptés par les firmes et la façon dont les entreprises ont structuré l’organisation de leur chaîne de valeur globale.

3 « La bonne martingale » Les echos ,22 Mars 2012.4 Les echos du 22 mars 2012 « Zara défie la récession

en espagne grâce à son essor accéléré en Asie » . Le numéro un mondial de l‘habillement a vu son chiffre d‘affaires progresser de 10 % en 2011, à 13,8 milliards d‘euros. et son bénéfice net de 12 %. son développe-ment en Asie, en particulier en Chine, l‘a aidé à com-penser le ralentissement en europe. il dispose désor-mais de plus de 5.500 points de vente répartis dans 80 pays. Le groupe a élargi son périmètre à cinq nouve-aux pays: l‘Australie, Taiwan, l‘Azerbaïdjan, l‘Afrique du sud et le Pérou, ce qui lui permet d‘être désormais présent sur les cinq continents.

5 Barney (2008) distingue les opportunités globales où les firmes cherchent à optimiser la production, la dis-tribution et d’autres fonctions dans le monde entier, en s’adressant à tous les marchés dans lesquels elles agissent.Les stratégies globales ont l’avantage de loca-liser les opérations dans des positions géographiques qui réduisent les coûts et et maximisent la qualité sur toutes les autres fonctions . Les firmes, exploitant une opportunité transnationale, traitent leurs opérations globales dans un réseau intégré de ressources et de capacités interdépendantes .


18 Ph. Rebiere. Outsourcing and Offshoring Practices: A Reading from Two Textile Groups Inditex and H & M

Des firmes, dans une même industrie, diffèrent dans leurs ressources, dans leur capacités et leurs capacités dynamiques et ce sont ces dif-férences qui expliquent les différentiels de per-formance. Le terrain d’observation retenu est le textile-habillement avec une application sur l’étude du cas de deux acteurs inditex-Zara et H&M. Notre finalité est la suivante : Décrire et expliquer le phénomène de configuration et de reconfiguration de la chaîne de valeur. Nous explorons les stratégies d’externalisation adoptées par les firmes ainsi que les récents changements qui ont affecté les entreprises. Nous cherchons à répondre à la problématique suivante :

Comment face aux dispersions géogra-phiques observées des activités manufac-turières (le secteur textile-habillement) les sociétés multinationales séparent-elles et coordonnent-elles tout un ensemble complexe d’activités ?

Au-delà des phénomènes de globalisation, de mondialisation, les stratégies d’internatio-nalisation des firmes se réalisent en général de

façon concentrique, c’est à dire par tâches géo-graphiques et par diffusion progressive d’activi-tés en dehors du territoire national. (Mucchielli et Puech, 2006). Nous nous attacherons à décrire l’évolution des capacités organisation-nelles des entreprises et comprendre cette évolution au regard des compétences distinc-tives de Zara et de H&M. L’analyse stratégique nous invite à comprendre les compétences dis-tinctives d’une entreprise à partir des sources d’avantages concurrentiels du secteur écono-mique dans lequel celle-ci opère. Pour suivre le déroulement, nous avons utilisé un modèle conceptuel qui sera présenté ci-après. Nous cherchons à mettre en évidence le comporte-ment organisationnel des firmes. Comment les entreprises ont-elles décidé de reconfigurer de façon innovante leur chaîne de valeur ? Quelles ressources, quelles capacités, quelles capacités dynamiques, quelles compétences distinctives les entreprises ont-elles adopté pour atteindre leur performance ?

Notre approche est synthétisée dans le mo-dèle ci-dessous.

1.1.

TaBLEaU 1 : Modèle conceptuel :Ressources, capacités et décisions managériales6

Leadership strategique

Stratégie av. competitif Performance

ressources

capacités

6 Adapté de Carpenter et sanders 2009



1.2 Démarche de recherche

Nous avons privilégié le mode de collecte de données secondaires. Nous avons utilisé des informations issues des sources suivantes : rapports annuels d’inditex de H&M de 2007 à 2011, communiqués de presse , articles écono-miques extraits de la base de données les echos. Le terrain choisi, l’industrie textile, permet à notre avis de répondre à la problématique. L’industrie textile est un secteur d’activités glo-balisé où les différents distributeurs s’affrontent à l’échelle mondiale. inditex est un groupe mon-dial ; un groupe mondial, quelque soit sa natio-nalité, s’efforce de contrôler ses points de levier depuis les économies d’échelle réalisées dans la production transnationale. H&M , suédois, est un groupe mondial de textile. La société mon-diale est structurée par sous-ensembles géogra-phiques. elle est globale car elle reproduit des schémas de gestion d’organisation et de mana-gement dans le but de réaliser des économies d’échelle et d’améliorer sa rentabilité.(Croué C. 2009). Les firmes inditex et H&M développent une approche transnationale. Ces firmes déve-loppent une efficience globale, une flexibilité et un apprentissage mondial. (Carpenter M. and sanders G. 2009). L’analyse des données est qualitative. L’industrie du textile habillement joue un rôle central dans le développement économique des pays émergents. L’article est structuré comme suit : dans une première par-tie, nous examinerons l’importance du secteur du Textile-habillement dans le monde. Nous nous proposons d’expliquer les changements observés dans la dynamique de cette industrie et ses implications pour les firmes et les gouver-nements. (1)-Cerner la nouvelle configuration des échanges et de la production dans le tex-tile habillement. (2)-examiner l’évolution de la

6

géographie des échanges de la production tex-tile-habillement en europe et dans le monde. (3)- examiner l’impact des menaces concur-rentielles en provenance de la Chine. Dans une deuxième partie, nous approfondirons le concept de chaîne de valeur globale dans l’in-dustrie textile et nous procéderons à un exa-men attentif des configurations des principaux acteurs du textile H&M et inditex grâce à une compréhension des approches en analysant les chaînes de valeur globales des firmes.

1 è r e p a r t i e2. LA DYNAMIQUE DE L’INDUTRIE DU TEXTILE HABILLEMENT : SES IMPLICATIONS POUR LES FIRMES

L’industrie textile-habillement est marquée par une intense concurrence globale. La litté-rature managériale sur cette industrie dans les pays développés s’est focalisée principalement sur l’organisation de la supply chain (concep-tualisée à la fois par une chaîne de commodité globale et un réseau de production globale) et sur son impact sur les pays émergents.(Gereffi 1994). Le rôle des firmes d’habillement dans les réseaux de production globaux et la distribution du pouvoir au sein des réseaux ne peuvent être appréciés qu’à partir d’une analyse de la stratégie concurrentielle des firmes et des compétences que celles-ci ont développé. Notre étude exa-mine les jeux de compétences, que ces firmes possèdent et la façon dont celles-ci ont struc-turé leurs chaînes de valeur, en se focalisant sur les relations entre distributeurs et fournisseurs. L’analyse détaillée des firmes centrées sur le tex-tile-habillement sur leur contexte domestique a révélé que les firmes nouaient des relations mixtes de dépendances nationales et d’ambi-



P. (1991) en est le fondateur. L’économie géo-graphique est centrée sur les facteurs de locali-sation d’une activité et leurs conséquences. La nouvelle économie géographique met en évi-dence les phénomènes d’agglomération et ses effets. (Levy D. 2005). Deux approches se com-plètent : La distance ne constitue plus un obs-tacle aux échanges en raison de la diminution des coûts de transport et de l’utilisation inten-sive des nouvelles technologies des télécom-munications. on assiste à une dispersion des activités. en parallèle, des regroupements d’ac-tivités d’agglomération , sous formes de clus-ters, apparaissent ainsi que des phénomènes de relocalisation lorsque l’entreprise réinstalle sa production dans le pays d’origine. Plusieurs changements ont affecté le secteur du textile habillement. Les éléments les plus importants de ces changements incluent :

• le rythme rapide de la transformationde la chaîne de valeur de l’industrie en Amérique du Nord et en europe dû à la relocalisation de la production et au repositionnement du produit.

• La forte concurrence (Lorenzoni andLipparini, 1999).

• L’évolution globale et les caractéris-tiques des approvisionnements régio-naux pour l’approvisionnement de l’ha-billement et du textile.

• Larapideévolutiondusecteurdeladis-tribution habillement caractérisé par une concentration des grands distributeurs et des chaînes de distribution orientées vers le ‘fast victim’. (shaw, D; Hogg, G; wilson, e; shui, e; Hassan 2006).

• L’évolution des comportements deconsommation centrés sur le « fast fashion » (Tokatli and al 2008).

• L’élimination effective de toutes les

tions globales. L’étude des firmes ancrées sur le territoire domestique, montre que l’accent est mis sur les processus de délocalisation et sur le phénomène du « spectre de la Chine » dans l’habillement textile en europe suite au déman-tèlement du contingentement des échanges en 2005. L’accent est mis sur l’europe Centrale et l’europe de l’est parce que cette région a joué un rôle majeur dans la constitution de réseaux à partir des années 1990.

2.1. Les processus de délocalisation Des auteurs (Pickles et smith (2011) ont exa-miné les processus de délocalisation et le phénomène du ‘spectre de la Chine’ dans la confection en europe. De forts changements ont bouleversé les entreprises et ont conduit à une nouvelle géographie globale du textile et de l’habillement suite au démantèlement du contingentement des échanges (et à l’abolition des quotas en 2005 et à la fin de l’accord multi fibre MFA). en termes de recherche des déter-minants de la multinationalisation des entre-prises, deux approches sont complémentaires. (Mucchielli J.L et Puech F. 2006) La première consiste à se demander quels sont les facteurs importants dans l’investissement à l’étranger qui expliquent la sortie du territoire national d’activités économiques ? La seconde approche porte sur les déterminants de la localisation territoriale des unités de production ou de ser-vices implantés à l’étranger. Les analyses de la localisation ont été nourries par la géographie économique ; celle-ci permet d’étudier la locali-sation spatiale des entreprises multinationales. L’économie géographique est un courant rela-tivement récent de la science économique qui consiste à étudier la plupart des phénomènes en terme de localisation productive. krugman



barrières commerciales quantitatives (quotas) entre membres organisation mondiale du commerce.

• l’accroissement de l’accès et de l’utilisa-tion de technologies web, qui appellent à une reconfiguration des business mo-dèles traditionnels orientés vers la tech-nologie.

Les considérations de réapprovisionne-ment certainement restent importantes en par-ticulier dans les segments de la «fast-fashion» des entreprises telles que Zara. (Tokatli 2008). La Chine et l’inde, ainsi que d’autres pays en dehors de la «ceinture dorée» de l’europe, pourraient bientôt avoir les capacités infras-tructurelles et logistiques destinées à four-nir rapidement une partie des produits que les détaillants sur les marchés européens de base achètent actuellement. Pickles et smith mettent l’accent sur les processus de délocalisa-tion dans la période post MFA7 à partir d’une analyse centrée sur la géographie des échanges dans l’industrie du textile-habillement à partir d’un focus sur les caractéristiques de délocali-sation de la production de en europe Centrale et en europe de l’est.

2.2. ‘Globalisation’ et ‘regionalisation’ dans le secteur de l’habillement : Dyna-miques des échanges en Chine, en Asie et en région Médittéranénne

L’appréciation du rôle croissant de la Chine dans les échanges est indispensable à toute compréhension des trajectoires macro-régio-nales dans le commerce de vêtements et de la production. Depuis leurs entrées dans le wTC en 2001, les exportations chinoises vers la Cee

7 MFA Multi Fibre Arrangement.

ont fortement augmenté. Les importations de vêtements à partir de la Chine ont fortement crû en europe et les prix unitaires ont baissé.

Evolution de la géographie des échanges et de la production dans la confection et le textile en Europe

L’industrie textile et habillement sou-ligne la continuité des tendances de l’in-dustrie de la délocalisation. L’industrie textile-habillement a été l’une des plus dynamiques en matière de mobilité géogra-phique. Celle-ci a souvent été l’archétype de la flexibilité de la production et de la supply chain. La délocalisation de la production8

est une stratégie centrale pour les industries à forte intensité de main-d’œuvre telle que l’in-dustrie textile-habillement. Celle-ci implique la fragmentation des tâches et la division du travail à travers l’espace géographique, celle-ci se traduit par un processus de production à des endroits à faible coût; les compétences de base sont supposées être plus flexibles sur le plan spatial (comme la connaissance et le capital in-tellectuel). La délocalisation permet de bénéfi-cier d’avantages compétitifs en termes de coût, d’infrastructure et de débouchés. La multipli-cation des délocalisations a pour conséquence ces dernières années une menace pour l’emploi dans les pays industrialisés. La délocalisation en europe s’est opérée suivant trois étapes :

1ère étape : Au sein des etats-nations, la re-cherche de sites de produit à bas coût a conduit à l’établissement d’usines dans des régions périphériques telles que l’irlande (Hudson r. 2005).

2ème étape : entre des régions au sein de

8 La délocalisation correspond à un processus de trans-fert d’une ou plusieurs activités productives de l’en-treprise en d’autres lieux, sur un territoire national ou au-delà, dans ce cas il s’agit du « offshoring ».



l’europe occidentale, une nouvelle division du travail s’est opérée dans le milieu des années 1970 avec une activité à forte main d’oeuvre qui était relocalisée en europe du sud, au Portugal, en Grèce, en espagne (Liepetz A. 1987).

3ème étape : au sein de l’europe, en région méditerranéenne, des accords ont permis le développement de réseaux et d’unités d’assem-blage en europe centrale dans les années 1980. (Pellegrin J 2001. Graziani G. 1998).

2.3. Expansion des échanges de la Chine et de l’Inde : Menaces ou opportunités ?

Ces dernières années, la Chine et l’inde ont connu un développement économique sans précédent. Pendant la dernière décennie, l’éco-nomie de la Chine a cru de 10% par an et celle de l’inde de 6%.

2.4. Les faits stylisés : Délocalisation des producteurs européens

Les producteurs européens9, autrefois sans concurrence, se sont massivement délocalisés, essentiellement en Tunisie ou dans les pays de l’est. Le mouvement s’est amorcé depuis les années 2000, et s’est amplifié par la baisse des prix. Lobjectif est de maîtriser l’outil de pro-duction10. Les producteurs, à l’instar de Lise Charmel, possèdent toutes leurs usines, afin de contrôler la qualité, (essentielle dans ce niveau de gamme), et pouvoir réagir rapidement aux changements de mode, avec des séries courtes.

9 « Délocalisations, lingerie et vieille dentelle » Les echos 25 Janvier 2012 .La montée en gamme n‘a pas évité la fermeture d‘usines.

10 Pour Lise Charmel, c‘est la Bulgarie, pour Chantelle plutôt la Tunisie. Mais ces entreprises ont profité des périodes de croissance pour basculer progressivement les opérations d‘assemblage vers l‘étranger.

Les producteurs orientent leurs choix vers l’europe ou les pays du Maghreb par rapport à l’Asie.

2.5. Industrie du textile-habillement dans les pays émergents

La majeure partie des pays émergents sont de-venus des partenaires actifs dans les réseaux de production globale de l’industrie textile habil-lement. Leurs part de marché dans la fabrica-tion du textile a cru de 23% en 1985 à 40% en 2011. La plupart des pays émergents accusent un retard par rapport aux pays dévelop-pés dans la productivité du travail. Parmi les pays émergents, seuls le Chili, Hong kong et singapour ont des taux de productivité du tra-vail plus proches de ceux des pays industriali-sés. L’existence d’un différentiel de productivité est partiellement attribué à une infrastructure obsolète en matière de services, les ports, les té-lécommunications et à un cadre réglementaire inefficient qui décourage les investissements en équipement.

L’emploi dans le textile au sein des pays en développement n’affiche pas une caractéris-tique pertinente.il apparaît que seule un petit nombre de régions montre une croissance significative dans le secteur textile la Turquie, Mexico et l’indonésie. L’industrie du vêtement est encore largement caractérisée par une pro-duction utilisant une forte main-d’œuvre, des salaires bas et une production de masse. Ces éléments expliquent les tendances distinctes en matière d’emploi dans les deux secteurs.. Dans le cas des pays nouvellement industrialisés, l’industrie Textile a suivi la trajectoire structu-relle des autres industries manufacturières. Ces pays ont connu des hausses spectaculaires dans le travail. Au fur et à mesure que le travail et



les coûts de production augmentaient, ces pays se sont déplacés des industries à faible valeur ajoutée employant une main d’oeuvre non qua-lifiée vers des industries à haute valeur ajoutée et à forte intensité à capital intellectuel élevé. Ces pays ont commencé à relocaliser leurs in-dustries à main d’oeuvre forte vers la Chine et d’autres régions en voie de développement où le coût du travail était faible et abondant. Dans le secteur textile les nouvelles régions en cours d’industrialisation ont davantage mis l’accent sur la production. Dans le secteur du textile, les NCis mettent davantage l’accent sur la pro-duction de la marchandise haut de gamme et sensible à la mode. ils ont également délocalisé certaines parties de la chaîne de valeur vers la Chine et d’autres pays asiatiques.

Les pays développés continuent à dominer les échanges dans le secteur. Les etats-unis, l’union européenne, le Japon, le Canada réa-lisent la majeure partie des échanges.

il y a une augmentation rapide des expor-tations des pays en développement sur les mar-chés américains. L’avantage comparatif le plus prononcé semble avoir émergé dans les vête-ments principalement en raison de la nature de main-d’œuvre.

Même dans les textiles qui requièrent une production intensive en capital pour fabriquer des tissus de haute qualité, de nombreux pays en développement, notamment le Mexique, la Chine, l’inde ont accru leur part de mar-ché américaine. Les etats-unis sont membres de plusieurs accords commerciaux régionaux. D’autre part, de nombreux pays en développe-ment ont attiré des investissements étrangers principalement des pays asiatiques.

2 è m e p a r t i e 3. CONSIDERATIONS THEORIQUES : LA CHAINE DE VALEUR GLOBALE

3.1. L’approche fondée sur les compétences en management stratégique

Pour obtenir un avantage compétitif, les diri-geants développent des compétences/capaci-tés qui facilitent non seulement les réponses innovantes organisationnelles ou technolo-giques mais aussi qui permettent une adapta-tion flexible face aux changements de marché rapides.

Les compétences et les capacités ont été définies mais la plupart des auteurs mettent l’accent sur le développement et la combinai-son de différents types de connaissance, qui imbriqués dans les produits, sont difficiles à imiter par les concurrents et ainsi assurent à la firme un avantage compétitif. (wheelen and Hunger 2010) De telles compétences généra-trices de valeur varient entre les industries et peuvent être connectées à un développement ‘High Tech’ ou être relativement plus banales telle que la capacité de réponse rapide mise en oeuvre par les fabricants de vêtements. La stratégie concurrentielle adoptée par les diri-geants doit être déterminée par les capacités fondamentales et non fondamentales. Les managers doivent distinguer les capacités, qui sont uniques à la firme et fondamentales, pour maintenir leur avantage compétitif et celles qui peuvent être externalisées. De façon addi-tionnelle, une coordination efficace de compé-tences internes et externes peut être considé-rée comme une capacité managériale rare. La stratégie concurrentielle doit déterminer des capacités fondamentales et non fondamentales (schreyogg 2007). elles doivent se distinguer



des capacités uniques propres à la firme et fondamentales pour leur avantage compétitif et celles qui sont externalisées, acquises soit à partir de liens ou par des réseaux.

3.2. Compétences et organisation de la chaîne de valeur

L’examen des étapes suivantes dans la chaîne de valeur et les compétences requises pour les

exécuter efficacement formeront la base d’une délimitation des différents types d’entreprises de vêtements en fonction des capacités de base developpées par les firmes.

La chaîne de valeur?? dans le secteur du tex-tile-habillement embrasse différents jeux d’ac-tivités, rôles et les caractéristiques de celles-ci façonnent le profil du secteur. une analyse sty-lisée de la chaîne de valeur identifie les étapes suivantes :

Planification design design prod fabrication marketing distribution retailing

1 2 3 4 5 6 7

FIGUrE 1. Etapes de la chaîne de valeur de l’habillement (Lane and Probert 2004)

Dans la première étape, le développement et la planification de la collection impliquent un grand nombre d’activités spécialisées. Celles-ci incluent la connaissance des ten-dances du marché, l’intégration à la fois dans le développement des lignes de produit et le coût de la collection planifiée.

La seconde étape englobe le design et le prototype des nouveaux modèles. Au- delà de la compréhension de la demande du marché et de la structure des coûts, celle-ci nécessite une aptitude à la créativité et à la technicité.

une troisième étape regroupe la conception et la fonction de fabrication d’échantillons. Les décisions sur le lieu de fabrication sont éga-lement prises en considération. Cette étapes trois s’appuie donc sur des métiers hautement qualifiés, impliquant des capacités techniques, créatives et financières combinées.

• laquatrièmeétapeestdédiéeàlafabri-cation et à l’assemblage.

• il s’agit principalement de la fonction

d’assemblage effectuée à l’aide d’opéra-tions réalisées par des machines simples et exigeant des compétences élémen-taires.

• la cinquième étape est centrée sur lemarketing.

La sixième étape distribution met l’accent sur les opérations sophistiquées de logistique basée sur le suivi des commandes et sur les sys-tèmes de contrôle de gestion des stocks.

Le septième étape concerne la vente sur le point de vente. Ces sept étapes impliquent d’une part, différents jeux de capacités et de rôles, et d’autre part identifient des coûts qui en principe peuvent être séparés les uns des autres et être réalisés dans différents endroits.

11 La chaîne de valeur est un jeu d’activités créatrices de valeur qui démarre avec les matières premières et qui se déplace le long d’une série d’ activités créatrices de valeur impliquées dans la production et le marketing d’un produit ou d’un service. voir wheelen and Hun-ger Concepts in Strategic Management tweefth edition Pearson, 2010.



Le processus de fragmentation de la chaîne de valeur et la distribution effectuée à différents endroits peuvent se produire de différentes manières. L’approche adoptée dépend des com-pétences disponibles de la firme, des considé-rations de coûts et de la nature du produit fini. il est possible de retenir cinq façons d’organi-ser la chaîne de valeur dans l’habillement qui résultent de cinq différents types d’entreprise d’habillement. Ceux-ci sont présentés dans le tableau 2.

3.3. Les différentes combinaisons d’étapes de chaînes de valeur

il est évident que ces cinq types d’entreprise de textile-habillement diffèrent dans les capacités et le capital investi et dans les produits et les marchés desservis.

Conséquemment, chaque type d’entreprise développe un degré d’autonomie et un pouvoir de réseau. Les relations de pouvoir ne sont pas l’objet du management stratégique qui est prin-cipalement centré sur la firme.(Gereffi 1999).

TaBLEaU 2 : Illustration empirique de cinq types d’entreprises de textile habillement, basés sur différentes combinaisons d’étapes de chaînes de valeur.

Exemple Type de firmes Combinaison des étapes

Types de produit et marché

Compétences utilisées

Coûts induits

Type 1 Merchandiser de marque

accent sur les étapes 1-3 et 5-7

Marques de haute qualité , collections coordonnées

Design créatif et technique

élevé

Type2 Fournisseurs Même étapes que el type 1 mais les étapes 1, 2 et 5 reçoivent peu d’accent

Standardisé, Design faible, faibles

Type3 Fournisseurs Etape 4 Tous types Coordination managériale d’opérateurs semi spécialisés

Medium

Type4Ex ZARA

Merchandiser de marque de mode

A. Etapes 1-3, 5-7B. B. etapes 1-7

Même que type 1 a. compétences combinées du type 1 avec une capacité de distribution B. comme a plus une fabrication

Très élevés

Type5 Ex H&M

Distributeurs avec une intégration en amont dans le design et l’organisation de la chaine de valeur

Etapes 1, 2 et 7 Vêtement standard Principalement des compétences de distribution , combinées avec du design

Médium

Note : les étapes dans la chaîne de valeur incluent : 1 le développement des collections , 2 le design, 3 le prototype de modèles , 4 la fabrication 5 marketing 6 la distribution /logistique 7 le retailing.



3.4. Les Chaînes de Valeur

Globales (CVG)

L’approche chaîne de valeur globale (CvG) a montré récemment comment les liens interna-tionaux peuvent jouer un rôle crucial dans l’ac-cès au savoir technologique et l’amélioration de l’apprentissage et de l’innovation.(Altenburg, 2006, Gereffi, 1994, 1999 Gereffi and kaplinski, 2001, Pietrobelli & rabelloti, 2007 , Morrison and Pietrobelli and rabellotti , 2008)

La recherche sur la chaîne de valeur globale se concentre explicitement sur la nature des relations entre les différents acteurs impliqués dans la chaîne soulignant le rôle que les ache-teurs mondiaux et les producteurs peuvent jouer. Le cadre d’analyse des chaînes de valeur globale apporte un guide utile pour chercher à répondre aux questions au sujet de la dyna-mique de politique économique des industries. L’analyse des CvG met en lumière trois carac-téristiques de l’industrie.

1 La géographie et la nature des liens entre les tâches, les étapes dans les acti-vités de la chaîne de valeur.

2 La façon dont le pouvoir est réparti par-mi les firmes et les autres acteurs de la chaîne.

3 Le rôle joué par les institutions dans la structuration des relations d’affaires.

Ces éléments peuvent expliquer comment les industries évoluent et offrent des éléments sur les changements futurs.

Le principe de la chaîne est simple :Celle-ci est focalisée sur la localisation du

facteur travail et les liens entre les tâches sur la réalisation depuis la conception jusqu’à l’utili-sation d’un simple produit ou service.

L’analyse de CvG identifie de nouveaux

acteurs dans l’économie globale c’est à dire les acheteurs globaux et les fournisseurs globaux et montre comment leur émergence a altéré la façon dont les industries sont organisées et gouvernées au-delà des frontières. (Gereffi 2005).

3.5. Les relations de pouvoir dans le réseau chaîne de communauté globale / Production

Les travaux de Gereffi 1994 sur les GCC12 sont construits autour d’une dichotomie de conducteurs de la chaîne et sont ainsi centrés sur l’analyse du pouvoir. Plusieurs auteurs sont d’accord avec Gereffi sur le fait que, dans de nombreux pays développés, les grands détaillants sont des acteurs importants dans le réseau de relation et de l’évolution actuelle tendant vers une augmentation de leur pou-voir. L’existence de clusters n’empêche pas la dispersion au niveau international des activi-tés. Les délocalisations observées au xxième siècle sont spécifiques. Au cours de ces der-nières décennies, aux etas unis et en europe, des branches requérant un travail peu qualifié comme l’industrie de la chaussure ou l’habille-ment ont connu un déclin très net. A la fin des années 1970, des observateurs avaient attiré l’attention sur une nouvelle tendance à savoir la dissociation et la dispersion géographique des activités manufacturières au sein d’un secteur particulier.Le principal levier de cette forme de délocalisation est la capacité organi-sationnelle et technologique des entreprises en particulier des multinationales à séparer et à coordonner tout un semble complexe d’acti-

12 Global Commodity Chain littéralement Chaîne de Communauté Globale.



vités. Les systèmes d’information permettent la transmission instantanée et à faible coûts des données. La capacité organisationnelle à intégrer des activités géographiquement dis-persées est cruciale pour les entreprises. Celle-ci a permis par le passé le développement, la sous-traitance internationale et est à l’origine de la diffusion internationale du système de production ‘au plus juste’ le lean production (Levy 1997).

Même si la dispersion de la chaîne de va-leur impose des coûts significatifs, l’application des méthodes de la production ‘au plus juste’ pourrait effectivement faciliter la production offshore, en minimisant les problèmes de qua-lité et d’approvisionnement, en standardisant la production et en limitant la nécessité des inte-ractions en face à face.

inditex- Zara et surtout H&M ont la capa-cité d’appliquer les principes de la production au ‘plus juste’ à un réseau dispersé d’activités. Ces entreprises ont développé une expertise dans la mise en place de relations débouchant sur une élaboration de systèmes de conception, de logistique et de données en collaboration avec des partenaires dans le monde entier.

3.6. L’internationalisation

de la chaîne de valeur

Le nouveau phénomène de délocalisation doit être appréhendé dans le contexte de change-ments radicaux de stratégie des firmes et de l’évolution de l’économie politique globale. De récents travaux sur les chaînes globales de valeur Global Commodity Chains (GCC) Gereffi, G. and korzeniewicz, M. 1994) offrent un cadre conceptuel approprié pour établir ces liens. (Gereffi 1994). Les GCC reposent sur

l’approche stratégique classique des cinq forces développées par Porter 13 et soulignent les sources de pouvoir de marché comme le choix d’une marque, ou d’une technologie, donnant lieu à des profits supérieurs à la moyenne.

L’analyse en termes de GCC fournit une série d’études de cas riches centrées sur les dy-namiques permettant aux firmes de maintenir des barrières à l’entrée face aux tentatives inces-santes d’éléments visant à éroder leur pouvoir de marché. L’approche par les GCC démontre que les profits proviennent essentiellement d’un pouvoir de marché dérivé de l’acquisition et de la protection d’actifs et de compétences spécifiques.

un avantage concurrentiel externe donne à l’entreprise un pouvoir de marché accru en ce sens que celle-ci est à même de faire accepter par le marché un prix de vente supérieur à celui du concurrent prioritaire (Lambin 2005). Les délocalisations modifient l’équilibre de pouvoir de marché entre les firmes.

Tandis qu’un groupe privilégié de four-nisseurs spécifiques de première importance peut tirer profit des relations avec les grandes entreprises , de nombreuses firmes en particu-lier dans les pays émergents sont susceptibles de subir une perte de pouvoir de marché. (Humfrey 2000)

Les délocalisations impliquent des liens entre les partenaires et la codification d’une information auparavant tacite. Les grandes entreprises, qui orchestrent et coordonnent les chaînes de valeur complexes comme inditex, H&M gagnent en pouvoir de marché grâce à leur expertise exclusive dans la gestion de réseaux et au contrôle de noms de marque et 13 Porter M. e (1985) Competitive advantage : creating

and sustaining superior performance, Free Press



de technologies. (kaplinsky 2000). Le groupe inditex Zara s’inscrit également dans cette lo-gique car Zara cherche à créer une image de marque globale en diversifiant son offre.

L’impact sur les pays émergents

Les défenseurs des délocalisations attirent l’at-tention sur leur impact supposé positif pour les pays en développement. Les classes moyennes, en plein essor en Chine ou en inde, sont peut-être les signes les plus évidents de la prospé-rité que connaissent actuellement les profes-sionnels de l’informatique et les entreprises de service. La convergence de salaires et la diffusion des compétences d’entreprise devrait constituer un bénéfice non équivoque pour les pays en développement. La littérature sur le management suggère toutefois que malgré des gains obtenus dans les pays ciblés, l’impact de la production ‘offshore’ est incertaine et non systématique.(Bair et Gereffi 2003)

3.7. Synthèse : Les industries

nationales et les firmes dans leur

contexte domestique

L’industrie du textile-habillement des pays déve-loppés a été parmi les premières à adopter une approche globale et aujourd’ hui celle-ci est dispersée dans le monde entier. en raison des énormes écarts de salaires entre pays en déve-loppement et développés, les firmes dans ce der-nier cas ont dû réorganiser leur chaîne de valeur. Le résultat s’est traduit par la sous-traitance et l’externalisation des activités en augmentation constante (dans des régions européennes mais pas en totalité) des opérations de production dans les pays en développement à bas salaires. voir figure 2

Euro 0, 5 allemagne

Euros 0, 25 Plupart des pays industrialisés

Euros à, 10 Pays émergents

FIGUrE 2 : Les coûts dans l’industrie du textile par

minute de travail dans différentes régions14.

Cette forte externalisation a provoqué des réductions d’emploi drastiques dans les pays développés. Pendant ce temps, l’industrie textile constitue un bassin d’emplois signi-ficatif.Plusieurs accords tels que Agreement on Textile and Clothing (ATC) et Multifibre Aarrangement (MFA) ont façonné les échanges globaux dans le textile habillement. L’abolition des quotas a significativement réduit les coûts de transaction dans les opérations entre four-nisseurs dans les pays émergents.

3.8. Développement des réseaux de production globaux

suite à des pressions concurrentielles en prove-nance des pays à bas coût, la fonction de fabri-cation s’est déplacée vers des régions en Asie-Pacifique, Afrique du nord, et europe Centrale et europe de l’est. Dans les pays comme la France, l’Allemagne et le royaume uni, les décisions de relocalisation ont été influencées non seulement à partir de considérations liées au coût du travail mais également à partir des coûts liés aux quotas et aux barrières tarifaires. Plus récemment, avec l’accélération des cycles de la mode, l’externalisation a renforcé la flexi-bilité des firmes acheteuses. Le système de « ré-ponse rapide » performante de firme adopté par

14 source vr 2003



des firmes comme inditex/ Zara, reposant sur le système de l’intégration verticale, a modifié la dynamique.

3.9. L’approche du « fast fashion »

L’impressionnante performance financière récente du groupe espagnol inditex montre la promesse gagnante du modèle « fast-fashion » adoptée par la marque phare Zara; parmi les autres détaillants rapides de la mode figurent H & M basé en suède, world and Co. basée au Japon, et Mango basée en espagne. L’écart de performance des entreprises de la mode est fonction de la capacité de l’entreprise à déve-lopper de nouvelles compétences en interne, mais elle est aussi largement tributaire de la capacité de l’entreprise à tirer parti du réseau d’approvisionnement en tant que source im-portante d’innovations de produits et de pro-cessus.

La caractéristique essentielle de ce nou-veau modèle de vente au détail se trouve dans de nouveaux procédés de développement de produits et des architectures de chaîne d’ap-provisionnement (supply chain) s’appuyant plus sur la coupe locale, la teinture, et / ou la couture, en contraste avec la sous-traitance traditionnelle de ces activités aux pays en dé-veloppement. Bien que cette production locale augmente les coûts de main-d’œuvre, celle-ci offre également une plus grande flexibilité d’approvisionnement et de réponse.

Les fast-fashion détaillants offrent à chaque saison un plus grand nombre d’articles pro-duits en petites séries, en constante évolution de l’assortiment de produits affichés dans leurs magasins: Ghemawat et Nueno (2003) signa-lent que Zara propose en moyenne 11.000

articles dans une saison donnée, comparative-ment à seulement 2000-4000 articles pour les principaux concurrents. Cela augmente l’at-tractivité de Zara pour les clients: un dirigeant de Zara cité dans Fraiman et al. (2002) affirme que les clients visitent le magasin Zara 17 fois en moyenne par année, comparativement à 3 à 4 visites par an pour soutenir la concurrence (non-fast-fashion) des chaînes.

en outre, les produits offerts par les détail-lants de mode rapide peuvent résulter de mo-difications de conception décidées en réponse aux informations de vente réelles au cours de la saison, ce qui facilite considérablement l’adé-quation de l’offre avec la demande: Ghemawat et Nueno (2003) L’industrie de la mode, re-présentée par des enseignes telles que Zara-, H & M, Benetton adopte de plus en plus la phi-losophie de la «fast fashion» de vente au détail (Passariello 2007). Généralement , un système de fast fashion combine au moins deux com-posantes:

1. Des délais de production courts et des délais de distribution réduits, per-mettant une mise en correspondance étroite de l’offre et la demande qui est incertaine (ce que nous appelons une réponse rapide technique);

2. un système de de conception de pro-duits («tendance») très à la mode Le premier composant, ‘les délais courts’ sont réalisés grâce à une combinaison de la production localisée, des systèmes d’information de pointe qui facilitent l’inventaire , un suivi fréquent de la dis-tribution et du réapprovisionnement, l’ensemble accéléré par des méthodes spécifiques.



Par exemple, Zara, principalement distri-buteur textile européen, produit la majorité de ses modèles dans de coûteuses usines euro-péennes et nord-africaines (plutôt que de pra-tiquer l’externalisation vers des installations moins coûteuses d’Asie), et surveille en perma-nence les niveaux de stocks dans les magasins de façon à mettre en adéquation l’offre et la demande (Ghemawat et Nueno 2003, Ferdows et al. 2004, Cachon and swinney r. 2011).

Le second composant (conception du pro-duit à la mode) est rendu possible grâce à une surveillance attentive des consommateurs. H&M, par exemple, utilise un réseau d’ «obser-vateurs de tendance» et des concepteurs à tra-vers l’europe et en Asie, et accorde également une attention à la saison et aux défilés de mode en europe (Meichtry 2007).

D’un point de vue opérationnel, des stra-tégies ‘réponse rapide’ ont été relativement

bien étudiées. Le deuxième volet du système de « fast fashion » a reçu beaucoup moins d’atten-tion. en effet, Meichtry (2007) décrit comment certaines entreprises tentent de se concen-trer sur la conception et le développement de « produits branchés » sans pour autant réduire leurs délais de production en raison des diffi-cultés (à la fois logistiques et culturelles). Les caractéristiques de ces systèmes sont résumées dans le Tableau 2.

Dans chaque système possible repré-senté dans le tableau 2, nous analysons le jeu entre une entreprise et ses consommateurs. L’entreprise choisit le prix de vente et le niveau des stocks, tandis que les consommateurs choi-sissent d’acheter au « prix élevé » ou attendre une vente de liquidation potentielle (en accep-tant de courir le risque que le produit pourrait manquer).

Entreprise : design finalisé et niveau du

stock initial choisi

Entreprise : approvisionnement en stock additionnel

autorisé

Entreprise : prix de vente déterminé

Entreprise : reste un stock disponible

consommateurs : arrivent et choisissent d’acheter maintenant ou d’attendre

Avant la saison de vente saison de vente

TaBLEaU 3 : « Réponse rapide »



Dans le système de « réponse rapide », les capacités de conception sont standards et la phase de production est rapide ; La séquence des événements est représentée dans le ta-bleau 2. en résumé, une réponse rapide apporte de la valeur à l’entreprise15 par l’intermédiaire de deux effets distincts:

• L’effetdesventes: Toutes choses étant égales, l’effet des

ventes est la réduction des pertes de ventes, lorsque la réponse rapide est mise en oeuvre.

• L’effetducomportement: L’effet comportemental est l’augmenta-

tion du prix de vente lorsque la réponse rapide est mise en œuvre parce que les consommateurs anticipent une proba-bilité plus faible d’une vente de sorte qu’ils sont prêts à payer un prix plus elevé.

3.10. Les leçons du « Fast Fashion »

sull and Turconi (2008) ont montré comment inditex, leader dans l’industrie textile habille-ment, et Benetton, ont été les pionniers dans l’approche consistant à naviguer sur les aspects de la volatilité de la « fast fashion » et proposent des leçons à toute firme confrontée à des chan-gements brutaux liés à la demande.

15 Dans la recherche d’un élément d’unicité sur lequel baser une stratégie de différenciatio deux ecueils doi-vent être évités : • Identifier un élément d’unicité apprécie par les

acheteurs mais que l’entreprise est incapable d’offrir

• Identifier un élément d’unicité que l’entreprisepeut offrir mais qui n’est pas apprécié par les ache-teurs.

voir Lambin J.J. Marketing stratégique et opéra-tionnel , 2010, 6eme édition.

4. CONFIGURATION DES ACTIVITES/ APPROCHE COMPAREE D’INDITEX ET DE H&M

4.1. L’approche de Zara-Inditex

La production

Zara possède 65% de ses usines en espagne. Grâce au « sourcing continuel » effectué au-près des boutiques, les envois de stocks sont ajustés, réévalués, afin de fonctionner ‘en flux tendu’. Les possibles erreurs d’appréciations des tendances sont palliées par le fait que chaque pièce n’est produite qu’une fois. Ces petites quantités non renouvelables ont deux avantages : elles créent le sentiment d’exclusi-vité chez la cliente et obligent Zara à sortir des nouveautés continuellement. Pour inditex, le principal avantage concurrentiel réside dans sa capacité à adapter rapidement son offre de façon à conserver l’unicité de celle ci , avec de nouveaux articles reçus par les magasins jusqu’à deux fois en une semaine, ce qui lui donne un avantage sur H & M. Les opérations d’inditex sont caractérisées par un niveau éle-vé d’intégration verticale, avec une firme pro-priétaire des sites de production en europe, principalement en espagne.

La conception : ce sont des milliers de mains qui s’activent chaque jour à Arteixo, le siège d’inditex situé toujours à quelques kilo-mètres de La Corogne, pour dessiner, produire et distribuer annuellement quelque 30.000 modèles envoyés dans le monde entier (plus de 5.100 boutiques réparties dans 78 pays).

Le marketing

Le client est au coeur du système. Le client, dont les avis, envies et « coups de cœur » sont directement transmis au quartier général,



sous forme de chiffres de ventes journaliers ou de « feed-back » des boutiques représente l’élément clé du système. Cette extrême réac-tivité est couplée à un résultat : il peut ne s’écouler qu’une quinzaine de jours entre le moment où le styliste ébauche les premiers croquis et celui où une cliente décroche du cintre le vêtement en question. Chaque article n’est produit qu’en faible quantité. « si vous ne l’achetez pas aujourd’hui, il n’en restera plus demain... »

Stratégie multi-format

Le groupe dispose de huit formats/ concepts qui sont axés vers la même orientation client et privilégie l’intégration verticale de toutes les phases de l’activité de création de produits de mode, depuis le design, la fabrication et la logistique jusqu’ à la vente dans ses propres magasins. selon inditex, cette approche sur-passe le rapport coût / bénéfice de la produc-tion en sous-traitance dans les marchés du travail à faible coût. Le groupe met fortement l’accent sur la participation des consomma-teurs dans le développement de son offre pro-duit, avec des magasins chargées de collecter l’information et envoyer celle-ci à ses centres de design et à ses services commerciaux. Les installations de fabrication d’inditex restent centrées sur son marché domestique. Face à son expansion commerciale, le groupe a forte-ment investi le développement de son infras-tructure logistique. Les résultats obtenus par le groupe inditex sont la confirmation que l’adop-tion de la stratégie de croissance internationale multi-format dans une année d’accroissement de l’efficience est réussie et a mis en lumière les forces du « business model»

Le lifestyle zaraL’évolution de Zara se traduit par la diversifica-tion de son offre. Zara cherche ainsi à s’éloigner peu à peu du concept qui a fait son succès, basé sur la démocratisation des produits luxueux fortement inspirés du marché haut de gamme, mais qui doit être dépassé afin de pouvoir évo-luer. Cette politique d’élargissement de l’offre , allant du produit cosmétique au mobilier hype de Zara Home, va permettre à Zara de dévelop-per une réelle image de marque.

Zara, groupe inditex, a construit un réseau de chaîne d’approvisionnement et de produc-tion qui ressemble à Benetton tout en ajoutant quelques améliorations qui lui sont propres. Zara a maintenu dans la sa région d’origine les activités à forte intensité capitalistique, des activités « complexes », les opérations (comme la découpe du tissu guidé par ordinateur) ; le groupe externalise des opérations de main-d’œuvre.(telles que la couture de vêtements) à un réseau de sous-traitants locaux tel que les coopératives de couturières en Galice.

L’enseigne, filiale du groupe espagnol inditex, vient d’ouvrir un point de vente sur la 5e Avenue, à New York, qui signe une nou-velle étape dans sa stratégie16. La création reste

16 Zara plus vert et plus luxueux série 11 Mai 2012 Tout ce qui a fait le succès de Zara dans le monde reste

la règle ici, avec des arrivages deux fois par semaine qui renouvellent 20 % de l’offre. Chaque soir, l’ensei-gne identifie ce qui s’est le plus vendu. L’information est réceptionnée au siège de l’entreprise par 300 desi-gners. Trente-six heures plus tard (quarante-huit pour les États-unis), les magasins sont livrés grâce à un sourcing qui s’effectue à 49 % en espagne, Portugal et Maroc, et à 14 % en italie, Turquie et roumanie. sans cette proximité de ses fournisseurs, Zara ne tiendrait pas sa promesse. Le solde concerne les basiques de la marque fabriqués en inde, au Bangladesh, en Chine et au Cambodge. Avec une telle organisation réglée sur les seuls coups de coeur de ses clients, Zara a effacé les saisons, mais pas les envies, à en juger par les 8 mil-liards d’euros de chiffre d’affaires encaissés en 2011.



en espagne17au siège de Zara, 300 designers, des spécialistes du marché et les acheteurs tra-vaillent en équipes étroitement synchronisés.une partie de la production du groupe reste en espagne, notamment toute la partie créative. inditex prévoit d’agrandir son siège à Arteixo, en Galice (nord-ouest), en ajoutant 70.000 mètres carrés aux 90.000 existants.

inditex a compris qu’une présence globale

17 « Bénéfice en hausse de 30 % pour le propriétaire de Zara »Les echos 13 juin 2012

pouvait créer une valeur significative : Pour le distributeur, en adoptant une centralisation de sa production permettant la réalisation d’éco-nomies d’échelle. Pour le consommateur, en répondant à ses désirs, en développant et dif-fusant un concept attractif ‘mode à petits prix’.

Zara produit plus de la moitié de sa mar-chandise à proximité de la demande du marché de la mode spécialement afin de raccourcir les délais et maintenir la souplesse.

Les entreprises de vêtements de marque ont traditionnellement mis l’accent sur la ges-

TABLEAU 4 : Approche comparée de deux modèles d’organisation Inditex et H&M.

Modèle Zara Inditex Modèle H&M

Logistique centralisation de la logistique chaque étape est contrôlée

Production centralisation de la production.Indetex est propriétaire de ses sitesLa production etst intégrée verticalement

Externalisation de la productionLa production est réalisée dans un réseau de firmes désintégrées verticalement ou chaque firme est spécialisée dans le process de production

Choix des produits arrivages deux fois par semaine qui renouvellent 20 % de l’offre.MarketingL’accent sur la participation des consommateurs dans le développement de son offre produit, avec des magasins chargés de collecter l’information et envoyer celle-ci à ses centres de design et à ses services commerciaux..

2 collections/an

Choix des marchés 1er temps :Europe de l’Ouest et 2ème temps : asie

Europe et asie

Modes d’entrée • Nom propre• Acquistion• Joint venture

alliances stratégiques internationales

Stratégie de distribution Stratégie multi-format Stratégie mono-format

Mode d’organisation Organisation puissante avec une priorité accordée aux process :systèmes d’information et à la centralisationMise en place d’une chaine ‘hyperfast’Structure supranationale de coordinationaccent fort sur le management du risque :réduction du temps de cycle

Organisation flexible, souple et réactivePriorité accordée à la décentralisation

Structure internationale de coopération axée sur le partage des ressourcesrespect des identitésaccent fort sur les coûts



tion des coûts en organisant leur approvision-nement, leur production et leur distribution de façon aussi efficace que possible. Gorotra and Netessine 2011. en conséquence, ces entre-prises peuvent 12 à 18 mois sont nécessaires pour concevoir, produire et livrer une nouvelle ligne de vêtements. Cela signifie que ces entre-prises doivent faire de gros paris sur les préfé-rences des consommateurs et sur la demande future. Ce risque a des conséquences sur la gestion des stocks. Zara réduit la probabilité de ces conséquences en concevant une chaîne d’approvisionnement ‘Hyperfast’ qui s’articule autour d’une nouvelle ligne de deux à quatre semaines, ce qui facilite le suivi du rythme des préférences des consommateurs. cette oragni-sation est coûteuse : La société réalise la plu-part de ses produits dans un endroit où le coût du travail est élevé (europe du sud), les expé-die aux magasins souvent de faç on hebdoma-daire), et utilise un mode coûteux de transport (air). Mais le succès de Zara démontre claire-ment que l’accent mis sur la gestion des risques peut l’emporter sur la demande d’un fort accent sur les coûts.

4.2. L’approche H&M

H&M a choisi d’adopter la production de vête-ments par des travailleurs peu qualifiés dans les pays émergents et le groupe, comme d’autres detaillants, a abaissé les coûts grâce à l’externa-lisation18 sur pratiquement toute la production qui s’est faite vers l’Asie ou vers l’ Amérique

18 L’externalisation consiste pour une entreprise à con-fier à un autre établissement l’une ou plusieurs de ses activités lorsque celles-ci ne constituent pas le coeur de son métier ou lorsque l’entreprise doit faire face à un surcroît de production. on dit dans ce cas que l’en-treprise « externalise » outsourcing en langage anglo-saxon.

du sud. en « mode rapide », la situation est particulièrement critique dans la fonction de conception, qui doit anticiper les tendances de la mode et l’évolution des préférences des consommateurs pour éviter les ventes perdues, surstocks et les démarques d’articles non dési-rés.

Le défi majeur dans l’industrie de la mode est la nécessité de lancer des milliers de nou-veaux modèles à chaque saison , de renouveler, en moyenne, plus de 80% de leurs collections. La nature du processus de production de la mode offre de multiples possibilités de variété dans l’organisation de la production et de la di-vision du travail (Cerruti et Delbufalo, 2012). Fréquemment, la production est réalisée dans un réseau de sociétés désintégrées verticale-ment, où chaque entreprise se spécialise dans une phase du processus de production. La dé-sintégration verticale se traduit généralement en une flexibilité supérieure et est très efficace pour la production de petits lots avec sou-vent différentes spécifications de conception. H & M ne possède pas de site de production et les achats représentent plus de 60 pour cent de ses produits sur les marchés à faible coût en Asie.

Les menaces : hausse des matières premières

La hausse du prix des matières premières est une source d’inquiétude pour H&M, comme pour l’ensemble des entreprises textile en 201119, ainsi que les coûts de production en Chine, où H&M a localisé une majorité de ses 700 sous-traitants20. Cette progression a d’ail-leurs pesé sur la rentabilité du groupe. La dif-ficulté pour le suédois est liée à son position-19 Le prix du coton a presque doublé en 201020 « La flambée des matières premières, un casse-tête

pour H&M « Les echos 27 janvier 2011



nement sur une mode -à petits prix- qui rend difficile une répercussion de ses hausses sur sa clientèle.

Génération d’idées et de conception21

Production

initialement, toutes les activités de produc-tion de H & M avaient lieu en suède. Dans les années 1960, la production a été réalisée dans d’autres pays scandinaves et au royaume-uni. Quelques-unes des activités de production ont été transférées dans des pays d’europe du sud comme l’italie et le Portugal. en début des années 1970, H & M a également assuré la production en Hongrie, en Pologne et dans l’ancienne Yougoslavie. en 1978, H & M s’est aventurée dans les pays d’extrême-orient avec un bureau de production à Hong kong. en 2000, H & M comptait 21 bureaux de produc-tion, dont 10 étaient en europe, 10 en extrême-orient, et un en Afrique.

Partenariats commerciaux avec les fournisseurs

Pour apporter des améliorations durables, H & M s’efforce d’établir des partenariats com-merciaux à long terme avec les fournisseurs, , H&M achète ses produits provenant de four-nisseurs, principalementen Asie et en europe.

1 Plate-forme Technolgie de l’Information. Celle-ci permet à la fois à l’entreprise de réa-gir rapidement lorsque les nouvelles tendances sont identifiées et d’éviter l’achat de biens qui ne sont pas appréciés par le marché. H & M s’appuie également sur des systèmes efficaces et

21 sources et références : Les articles et les rapports annuels de H & M

intégrés pour la gestion des stocks qui ont été en mesure de réduire les délais tout en assurant la gestion des stocks adéquats.

Activités

H & M vend des vêtements et des cosmétiques dans environ 950 magasins dans 19 pays. Le groupe compte plus de 40.000 employés. Les fonctions centrales sont basées en suède, mais il y a un bureau national dans la plupart des pays de vente.

Achat et la production

H & M s’appuye sur un réseau de fournisseurs externes gérés par deux entités: Achat et la pro-duction.

La fonction d’achat se concentre sur les clients, la mode et la composition de la gamme. Les collections de vêtements de la société sont créées en suède par près de 100 designers in-ternes, 50 modélistes et près de 100 acheteurs. La méthode de H & M de la production est axée sur le client. La société consacre des ef-forts dans la recherche et la prévision des ten-dances émergentes, à la fois par des moyens de recherche traditionnels et ceux innovants tels que l’analyse des tendances de la rue. Cette ac-tivité est réalisée par le personnel central et par les bureaux nationaux qui ont la responsabilité de détecter les nouvelles tendances.

La fonction de production est composé de 21 bureaux de production. H&M totalise 750 fournisseurs: 60% de la production a lieu en Asie et le reste principalement en europe. Les bureaux de production ont une fonction de médiation entre l’entité achat interne et les fournisseurs externes.

en termes techniques, H & M fonctionne avec deux principales collections par an, une



au printemps et en automne. Au sein de chaque saison, cependant, il y a un certain nombre de sous-collections de telle sorte que les clients peuvent toujours trouver de nouveaux pro-duits dans les magasins. L’objectif de la société est de trouver le temps optimal (et fournisseur) pour commander chaque article.

Logistique

Chaque étape de la chaîne logistique est contrô-lée par H & M, agissant en tant qu’importateur et grossiste, ainsi que d’un détaillant. Le déve-loppement informatique continu apporte son soutien à la logistique de H & M. Bien que la gestion des stocks soit principalement trai-tée au sein de l’organisation H & M, a confié le transport à des tiers. une grande partie de la circulation des marchandises est acheminé à partir de sites de production par l’intermé-diaire d’un terminal de transit en Allemagne. Dans chaque pays, il y a un centre de distribu-tion. À l’arrivée, les marchandises sont inspec-tées et attribuées soit dans un magasin ou dans la salle de stock centralisé, dénommé «Call off entrepôt».Les raisons qui expliquent le succès de H & M sont les suivants:

• Une organisation de la production etl’intégration de la chaîne d’approvision-nement;

• L’intégration verticale avec le réseaude distribution permettant un contrôle direct des marchés et des clients;

• Lacollectecontinueetefficacede l’in-formation sur la demande qui permet

de realiser un couple coût/efficacité élevé et le raccourcissement des délais de livraison.

Les propres designers de H & M ont pour mission d’ interpréter les tendances de la mode et de créer des collections qui sont accessibles à tous.

5. CONCLUSION

De forts changements ont affecté l’industrie du textile. Les délocalisations onf fortement incité les firmes à développer des réseaux d’approvi-sionnement sophistiqués. Les chaînes de va-leur globales représentent une nouvelle forme d’organisation industrielle qui s’est rapidement diffusée dans de nombreuses industries dans les différents pays. Nous avons pu apprécier la facon dont les groupes mondiaux réalisent la configuration de leurs réseaux pour soutenir leurs ressources et leurs capacités. La configu-ration des réseaux illustrée présente des diffé-rences contrastées.Les firmes développent dif-férents réseaux :

• Laconstructiondeliensétroitsaveclesfournisseurs clés,

• Lescapacitésàutiliserdespartenaires ,• Les capacités à mettre en œuvre des

innovations stylistiques, • Lesmisesenplacedecollectionsnou-

velles dans le domaine de la mode, • Lesuivietl’interprétationdesconnais-

sances apportées par les consomma-teurs.



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Pasinaudojimo specialistų iš šalies pagalba bei verslo veiklos perkėlimo į kitą šalį su žemesnėmis kainomis praktika: dviejų tekstilės grupių Inditex ir H & M palyginimas

Philippe Rebiere

S a n t r a u k a


straipsnyje atskleidžiamas geografinis pasiskirsty-mas, nustatytas, kaip išdėstoma pramoninė (tekstilės ir drabužių) gamyba tarptautiniu mastu, nagrinėja-ma, kaip tarptautinė kompanija koordinuoja visą kompleksą skirtingų veiklos bei skirtingų interesų sričių. Tyrinėjama, kaip kompanijos priima inova-cinius sprendimus. straipsnyje tyrinėjama atvejo analizė, nustatant, kokių veiksmų ėmėsi dvi grupės,

siekdamos pagreitinti ir išplėsti organizacijos vei-klos sugebėjimus ir galimybes. Tyrime autorius var-tojo antrinių duomenų analizę. Buvo analizuojama informacija, gauta iš inditex bei H & M kompani-jų metinių ataskaitų bei ekonominiai straipsniai iš echos Duomenų bazių. Šie tyrimai padėjo atsakyti į iškeltus tyrimo klausimus.

40 Gediminas Beresnevičius. Kūrybiniai gebėjimai ir naujų idėjų kūrimo modelis


2016, t. 7, Nr. 1 (11), p. 40–54


2016, Vol. 7, No 1 (11), pp. 40–54

ISSN 2029-5774Inžinerinė ekonomika • Engineering economics

*The effect of various fuels on engine powerErko VallbaumTallinn University of TechnologyE-mail: [email protected]

Rein MuoniTallinn University of TechnologyE-mail: [email protected]

Jüri LavrentjevTallinn University of TechnologyE-mail: [email protected]

Fossil diesel fuels and biodiesel fuels are subject to EUrO quality requirements EN 590 and EN 14214, the implementation of which must ensure long term, safe and uninterrupted operation of an engine under various climatic and exploitation conditions. The objective of this paper is to look at options for using first generation biodiesel fuel (Fatty acid methyl ester – FaME) and second generation biodiesel fuel (NExBTL) in diesel engines and compare the results with results for diesel fuel derived from petroleum. The study was conducted at the Department of Machinery of the Faculty of Mechanical Engineering of Tallinn University of Technology during the period from November 2014 to april 2015. 1 cylinder open combustion chamber diesel engine ricardo hydra was used to test liquid fuels. This study determines the physicochemical indicators of fossil diesel fuel and first generation biodiesel fuel (FaME) and second generation biodiesel fuel (NExBTL). all three types of fuel were then used to conduct engine tests, and their effect on the operation of an engine was determined.

Problems with biodiesel fuel of two different generations

Diesel engines can be fuelled with liquid diesel fuel, biofuel or fuel gas. Pursuant to the direc-tives implemented in the european union (3), the use of fossil fuels in powered mechanisms must be reduced if it is possible to replace it fully or partially with first or second genera-tion biodiesel fuel.

scientists have developed a technology for manufacturing first and second generation

biodiesel fuels. Because diesel engines are used in transport, agriculture and forestry, the ma-chines operate at different loads and in differ-ent climatic conditions.

Fuels must ensure quick formation of the mixture necessary for the operation of the en-gine, ignition, even combustion, minimal wear and corrosion of engine details, and minimal formation of soot and sediments at different operation modes and temperatures.

earlier studies have shown that first genera-tion biodiesel fuel (FAMe) cannot be used in


41E. Vallbaum, R. Muoni, J. Lavrentjev. The Effect of Various Fuels on Engine Power


all engines in its pure form, but it may be used if mixed with up to 10% of fossil diesel fuel.

using biodiesel fuel damages the rubber details and seals used in the feed apparatus of older engines. The rubber details swell and be-come soft when coming into contact with pure biodiesel fuel. in newer engines where the feed apparatus uses details made of special plastic mixtures and biodiesel fuel (FAMe) does not have any effect on the details, first generation biodiesel fuel may be used in its pure form.

use of second generation biodiesel fuel (NexBTL) in diesel engines has not been studied. The objective of this paper is to study the properties and physicochemical indicators of first and second generation biodiesel fuel and determine their use in various diesel engines. The results are compared to fossil diesel fuel derived from petroleum.

Experimental part

The objective of this study is the trend to re-duce air pollution, extend the life of an engine and increase the general share of biofuel. it is important that biodiesel fuels are suitable for use in any diesel engine at different operating and climatic conditions. For this, laboratory tests were conducted with first generation bio-diesel fuel (FAMe), second generation biodies-el fuel (NexBTL) and fossil diesel fuel derived from petroleum, and physicochemical indica-tors were determined for fuels.

engine bench tests were conducted with the three different types of fuels. Properties of the different fuels were then compared to one another. 1 cylinder open combustion chamber diesel engine ricardo Hydra was used as a test engine. The technical specifications of the test engine are presented in table 1.

TaBLE 1. Technical specifications of the Ricardo Hydra test engine

Engine type Ricardo Hydra DIStrokes 4 strokesrunning cycle DieselNumber of cylinders/valves in the block cover 1/2cylinder diameter, mm 80.26Stroke, mm 88.9Engine work load, cm3 449.8Pressure ratio 20.0:1Fuel system Bosch in line high pressure pumpMaximum torque, Nm/min 1 27/2500Maximum capacity, kW/min 1 01.08.00

Diesel fuel consumption was measured with a measuring device AvL PLu 401 108 for liquid fuel. The liquid fuel flow meter was con-nected to a computer, and all fuel consumption readings were recorded in the computer. The duration of all tests was 120 seconds.

The composition of exhaust emissions was measured using the Bosch BeA250 emissions analyser connected to the exhaust emission pipeline, which was connected to a computer.

All test results were recorded electronically. Test results are shown in the figures (1–9).

Analysis of test results

in order to conduct engine tests, physicochemi-cal indicators were determined for diesel fuel derived from petroleum, first generation bio-diesel fuel (FAMe) and second generation bio-diesel fuel (NexBTL). results of laboratory tests

42 E. Vallbaum, R. Muoni, J. Lavrentjev. The Effect of Various Fuels on Engine Power


TaBLE 2. Physicochemical indicators of diesel fuel and biodiesel fuel (FAME) and mixtures thereof

Property UnitTest

methodD100 2B5 2B10 2B20 2B30 2B50 2B70 2B100

Density at 15 oc kg/m3 EN ISO3675

840.1 843.0 845.0 848.9 853.9 863.2 872.6 886.5

Kinematic viscosity at40 oc

mm2/sEN ISO3104

2.6 2.8 2.8 3.1 3.3 3.9 4.6 5.7

Sulphur content mg/kgEN ISO20846

9.0 8.8 8.6 8.2 7.8 6.9 6.1 4.8

Flash point ocEN ISO2179

58.5 57.5 57.5 58.0 59.5 65.0 75.5 120.0

Distillation characteristics

EN ISO3405

10% (V/V)recovered at

oc 197.5 200.5 203.5 209.0 313.5 231.5 262.5 327.5


oc 270.0 274.0 280.0 295.0 305.0 322.0 335.0 338.0


oc 340.0 343.5 346.0 349.5 348.5 353.0 354.5 348.5


oc 359.0 358.5 358.5 360.5 360.5 361.5 359.5 351.0

% (V/V)recovered at 250 oc

oc 38.5 35.8 35.3 29.8 25.3 15.5 7.5 0.0


oc 93.5 92.8 92.0 90.8 90.8 89.5 87.3 95.0

Distilled

calorific value MJ/kgaSTM D24084

45.27845.27

144.06 44.342 43.763 42.282

41.272

39.641

cetane indexEVS EN ISO

426449.9 49.7 50.1 51.2 50.5 - - -

are presented in tables 2 and 3. Test results show that diesel fuel complies with the european standard eN 590:2014 and that first generation biodiesel fuel complies with the european stan-dard eN14214. There was no standard for the second generation biodiesel fuel.

Physicochemical indicators of diesel fuel derived from petroleum were compared to physicochemical indicators of first generation biodiesel fuel (FAMe) derived from rapeseed (table 2) and second generation biodiesel fuel (NexBTL) (table 3) and the differences of physicochemical indicators of various mix-tures thereof.

Cetane index for both diesel fuel derived from petroleum and first generation biodiesel

fuel (FAMe) is 54. Cetane index for second generation biodiesel fuel (NexBTL) is 88.2. Combustion in engine is therefore normal for the first two fuels, and there is no detonation in the engine. Combustion in the engine is rapid for second generation biodiesel fuel. Noise lev-el in the engine is greater, but there is no deto-nation in the engine with this particular cetane index, because the rotational speed of new en-gines is greater and pressures in the engine are stronger, which requires a higher cetane index than in the event of fuel derived from petro-leum and first generation biodiesel fuel. Cetane index is not measured for biodiesel fuels. Ce-tane index for diesel fuel derived from petro-leum corresponds to the standard 49.9.



TaBLE 3. Physicochemical indicators of diesel fuel and second generation biodiesel fuel (NExBTL) and mixtures thereof.

Property UnitTest

methodD100 2B5 2B10 2B20 2B30 2B50 2B70 2B100


840.1 837.1 834.2 828.2 822.3 810.9 796.9 779.9


mm2/sEN ISO3104

2.64 2.66 2.68 2.70 2.73 2.82 2.88 2.985


9.01 8.42 8.33 7.46 7.12 5.51 3.83 1.68


58.5 59.0 59.5 60.5 63.3 68.5 74.0 88.0


EN ISO3405


oc 197.5 200.0 202.5 207.5 213.0 225.5 240.0 263.0


oc 270.0 270.0 270.0 273.0 276.0 278.0 280.0 281.5


oc 340.0 341.0 339.0 335.0 329.0 316.0 305.0 293.5


oc 359.0 360.5 359.0 355.0 351.0 343.0 323.5 298.5


% vol 38.5 35.8 36.0 32.5 30.5 23.0 15.5 4.0


% vol 93.5 92.5 93.5 94.0 94.5 96.0 98.5

calorific value MJ/kgaSTM D

24045.278

45.561

45.64 45.799 45.957 46.27546.59

247.068


426449.9 51.3 52.7 56.2 60.1 67.8 78.6

Density at the temperature 15 °C for die-sel fuel derived from petroleum is 840.1 kg/m3, for first generation biodiesel fuel (FAMe) 886.5 kg/m3 and for second generation biodies-el fuel (NexBTL) 779.9 kg/m3. There are light fractions in the second generation biodiesel fuel. The fuel is volatile and vaporises com-pletely, and the engine starts easily at different temperatures.

viscosity at the temperature 40 °C for diesel fuel derived from petroleum is 2.64 mm2/s, first generation biodiesel fuel (FAMe) 4.05 mm2/s and for second generation biodiesel fuel (Nex-

BTL) 2.985 mm2/s. in the event of larger vis-cosity and density, more pressure is needed to spray fuel in order to spray the fuel into super-fine particulates to ensure that the fuel mixes with the air better and combustion is complete. High pressure fuel nozzles of diesel engines are regulated to operate at the pressure 110–120 bars; when working with first generation bio-diesel fuel, the nozzle pressure must be adjust-ed to 140–150 bars in order to spray the fuel into superfine particles.

sulphur content in diesel fuel derived from petroleum is 9.0 mg/kg, sulphur content in

TaBLE 2. Physicochemical indicators of diesel fuel and biodiesel fuel (FAME) and mixtures thereof

Property UnitTest

methodD100 2B5 2B10 2B20 2B30 2B50 2B70 2B100


840.1 843.0 845.0 848.9 853.9 863.2 872.6 886.5


mm2/sEN ISO3104

2.6 2.8 2.8 3.1 3.3 3.9 4.6 5.7


9.0 8.8 8.6 8.2 7.8 6.9 6.1 4.8


58.5 57.5 57.5 58.0 59.5 65.0 75.5 120.0


EN ISO3405


oc 197.5 200.5 203.5 209.0 313.5 231.5 262.5 327.5


oc 270.0 274.0 280.0 295.0 305.0 322.0 335.0 338.0


oc 340.0 343.5 346.0 349.5 348.5 353.0 354.5 348.5


oc 359.0 358.5 358.5 360.5 360.5 361.5 359.5 351.0


oc 38.5 35.8 35.3 29.8 25.3 15.5 7.5 0.0


oc 93.5 92.8 92.0 90.8 90.8 89.5 87.3 95.0

Distilled

calorific value MJ/kgaSTM D24084

45.27845.27

144.06 44.342 43.763 42.282

41.272

39.641


426449.9 49.7 50.1 51.2 50.5 - - -



first generation biodiesel fuel (FAMe) is 4.8 mg/kg and in second generation biodiesel fuel (NexBTL) 1.7 mg/kg. sulphur in fuel improves lubrication properties and reduces the wear and tear of details, but increases corrosion and is harmful to humans in the composition of ex-haust emission. sulphur content in diesel fuel derived from petroleum and first generation biodiesel fuel complies with the standard. The second generation biodiesel fuel however com-plies with the standard developed for the first generation biodiesel fuel.

Flash point for diesel fuel derived from petroleum is 58.5 °C and 120 °C for first gen-eration biodiesel fuel (FAMe). Flash point for second generation biodiesel fuel (NexBTL) is 88 °C. The higher the flash point, the more dif-ficult it is to start the engine in cold conditions, because the lower the flash point, the more there are light fractions in the fuel and the eas-ier the fuel ignites. This is particularly impor-tant in minus degrees. starting the engine in the winter is therefore more difficult, particu-larly when using first generation biodiesel fuel.

The study reveals that diesel fuel contains 6% by volume of polycyclic aromatic hydrocar-bons. Polycyclic aromatic hydrocarbons form rust on the engine pistons, combustion cham-bers and high pressure nozzles. The higher the content of polycyclic aromatic hydrocarbons in diesel fuel, the higher the likelihood of rust formation. rust is formed the most when op-erating with first generation biodiesel fuel. studies reveal that ash content in diesel fuel is 000.5% by volume, sulphur ash content in first generation biodiesel fuel (FAMe) is 0.015% by volume and ash content in second generation biodiesel fuel (NexBTL) is 0.001% by volume. Combustion of fuel forms ash in the engine, which contains metallic oxide and pollutants.

Ash increases engine wear. The more ash is produced during combustion of fuel, the more significantly the engine wears. The engine is subject to the most intense wear when operat-ing with first generation biodiesel fuel.

The fewer residues generated during com-bustion, the better the properties of fuel. Prop-erties of fuel are measured using carbon residue on 10% bottoms. Carbon residue for diesel fuel used in this study was 0.24% by volume. Car-bon residue for first generation biodiesel fuel (FAMe) and carbon residue on 10% bottoms for second generation biodiesel fuel (NexBTL) is 0.01% by volume. Carbon residue charac-terises the purification of petroleum products from asphaltenes. The smaller the carbon resi-due, the better the fuel.

The better the diesel fuel is purified, the less carbon residue is formed on spraying nozzles. The majority of carbon residue is formed upon heating at a high temperature on 10% bottoms.

upon transporting and storing fuel and during the working process, particulates enter the fuel. These ruin the engine’s feed apparatus and increase the blackening and abrasive wear of the engine. The content of particulates in the studied diesel fuel was 9 mg/kg and the content of particulates in first generation biodiesel fuel (FAMe) was 21 mg/kg. The content of particu-lates in second generation biodiesel fuel (Nex-BTL) was 2 mg/kg. engine wear as a result of a malfunction in the feed apparatus is therefore the most frequent when operating with first generation biodiesel fuel. The composition of fuel also includes water, which is present in fuel as an azeotropic mixture. The composition of fuel must not include water. water damages and blocks the feed apparatus of the engine. water content present in the studied diesel fuel as an azeotropic mixture was 130 mg/kg. water



content as an azeotropic mixture in first gener-ation biodiesel fuel (FAMe) is 310 mg/kg and in second generation biodiesel fuel (NexBTL) 20 mg/kg.

All fuels contain sulphur compounds and organic acids to some extent. The fewer sul-phur compounds and organic acids there are in fuel, the better the properties of the fuel. sul-phur compounds and organic acids further the corrosion in the feed apparatus and reduce the service life of the feed apparatus and the en-gine. Corrosiveness is divided into classes, and fuel with the best properties is fuel that falls under the first class.

Different changes start to take place in die-sel fuel if fuel is stored long term in different weather conditions. Brown patches start form-ing on the surface of fuel, and fuel becomes cloudy. reactions are taking place in fuel, and the properties of fuel change. The better the properties the diesel fuel and the longer the oxidation resistance, the longer the service life of diesel fuel is. if first and second generation biodiesel fuel (FAMe) and (NexBTL) are not used for a long time, changes start taking place in fuel and harder lumps form in fuel. An oxi-dation process is taking place in fuel. The three different types of fuel remain without changes for six months, provided that there are no great temperature differences.

Diesel fuel must have lubricating properties in order to lubricate the high pressure pump and nozzles in the feed apparatus. The better the lu-bricating properties of diesel fuel, the quieter the engine’s operation is. Lubricating proper-ties for the studied diesel fuel were 340 µm. Lubricating properties were not determined for first generation biodiesel fuel (FAMe). Lu-bricating properties for second generation bio-diesel fuel (NexBTL) were 351 µm.

The pumpability of diesel fuel through fil-ters and the feed apparatus of the engine de-pends on the viscosity of fuel. Fuel with higher viscosity has a greater fluid resistance in the system and spraying fuel through nozzles is more difficult. Fuel with low viscosity does not ensure lubricating conditions necessary for the friction pairs in the fuel pump or sufficient fuel volume, which reduces the engine power. The optimal viscosity for diesel fuel derived from petroleum and biodiesel fuel of the two differ-ent generations is 1.5–6 mm2/s.

Corrosion in fuel is characterised by the presence of surplus water in fuel. The pres-ence of water in fuel is strictly limited. No fuel may contain acids (sulphuric acid, hydrochlo-ric acid, nitric acid) or alkalis (potassium and sodium) soluble in water. All these cause ex-tensive corrosion in metals. sodium and po-tassium content in first generation biodiesel fuel (FAMe) was 3 mg/kg and 0.54 mg/kg re-spectively. Calcium and magnesium content is 1.5 mg/kg and phosphorus content 2.3 mg/kg. There is no sodium, potassium, calcium, mag-nesium or phosphorus in the content of diesel fuel derived from petroleum and second gen-eration biodiesel fuel (NexBTL).

Fractional composition of the three differ-ent diesel fuels is characterised using 50% and 96% fuel distillation temperature. The increase of the content of lighter fractions in fuel causes the viscosity of fuel to decrease, increases the spontaneous ignition of fuel and rigid op-eration in the engine. Heavy fractions in fuel make it more difficult to start the engine, fuel does not burn completely in the cylinder and the formation of rust and wear and tear of en-gine details increases. Diesel fuels are distilled in the temperature range of 160–360 °C.

Pursuant to the european standard eN



590:2013, it is permitted to add 7% by vol-ume of biodiesel to diesel fuel. Biodiesel fuel improves the lubricating properties of diesel fuel derived from petroleum. Biodiesel fuels (FAMe) and (NexBTL) contain organic acids. The content of organic acids is standardised according to the standard eN 14214:2012. organic acids do not cause corrosion in fer-rous metals, but they do corrode in non ferrous

metals and produce soot in the engine. iodine number characterises olefins in fuel, which are capable of polymerising. iodine content in first generation biodiesel fuel (FAMe) is 112.5 g/J100 g. Diesel fuel derived from pe-troleum and second generation biodiesel fuel do not contain any iodine. iodine number in biodiesel is limited with the standard eN 14214:2012.

FIGUrE 1. Changes in the specific fuel consump-tion depending on the mean effective pressu-re upon using different liquid fuels (diesel fuel, FAME, NExBTL) at diffe-rent engine loads and crankshaft’s rotational speed n = 1,500 min– 1.

FIGUrE 2. Changes in the specific fuel consump-tion depending on the mean effective pressu-re upon using different liquid fuels (diesel fuel, FAME, NExBTL) at diffe-rent engine loads and crankshaft’s rotational speed n = 2,100 min– 1.



Diesel fuel derived from petroleum and first generation biodiesel fuel (FAMe) and second generation biodiesel fuel (NexBTL) were compared at engine’s different rotational speeds. The study reveals that specific fuel consumption is the smallest when using sec-ond generation biodiesel fuel (NexBTL). Be-cause the calorific value of second generation biodiesel fuel is the highest in comparison to diesel fuel derived from petroleum and first generation biodiesel fuel (FAMe), the engine consumes the least amount of fuel for perform-ing the same work.

Calorific value is the highest for second gen-eration biodiesel fuel (NexBTL). To achieve the same capacity and rotational speed, the engine therefore consumes the least amount of fuel in comparison to diesel fuel derived from petro-leum and first generation biodiesel fuel (FAMe). Calorific value is the smallest for first genera-tion biodiesel fuel (FAMe), so in comparison

to other fuels, less fuel is consumed to achieve the same capacity and rotational speed, and the content of carbon monoxide in exhaust emis-sion at different rotational speeds and load is the highest for second generation biodiesel fuel.

Fuel burns in the during in three stages. During the first stage, fuel is prepared chemi-cally for burning. During the second stage, fuel burns rapidly throughout the combustion chamber. During the third stage, fuel burns slowly and continuously, and the fuel mixture burns up until the maximum pressure of gas-es. During the fourth stage, post combustion of fuel takes place at strokes. Post combustion depends on the spraying of fuel, injection ad-vance of fuel and the quality of fuel. During the first stage, fuel is sprayed inside the cylinder and pressure increases rapidly. During the sec-ond stage, fuel burns intensely throughout the combustion chamber. Heat separates intensely and pressure increases rapidly.

FIGUrE 3. Changes in the specific fuel consumption depending on the mean effective pressure upon using different liquid fuels (diesel fuel, FAME, NExBTL) at different engine loads and crankshaft’s rotational speed n = 2,700 min – 1.



FIGUrE 4. Change in the engine power at various rotational speeds when ope-rating with fossil diesel fuel and 5% by volume mixtures of first generation (FAME) and second generation (NExBTL) biodiesel fuel.

FIGUrE 5. Changes in the engine power at various rotational speeds when operating with fossil diesel fuel and 10% by volume mixtures of first genera-tion (FAME) and second generation (NExBTL) biodiesel fuel.



During the third stage, fuel burns through-out the combustion chamber. The better the fuel has mixed with oxygen, the more intense and complete the combustion is. During the fourth stage, post combustion of fuel takes place. The intensity and duration of post-combustion depends on how much fuel mix-ture was burnt during the third stage. if fuel is in compliance with the standard and is sprayed into superfine particles and mixing with oxy-gen is optimal, there is no post combustion during the fourth stage and the temperature of exhaust gases and the quantity of harmful ad-ditives in the exhaust gases decreases.

studies reveal that when adding 5 to 70% by volume of first (FAMe) and second genera-tion (NexBTL) biodiesel fuel to fossil diesel fuel and carrying out engine tests with differ-ent mixtures and pure fossil fuel, the engine capacity increases the most in the event of mix-ing second generation biodiesel fuel with die-

sel fuel. engine capacity is the smallest when operating with first generation biodiesel fuel mixtures. The more first generation biodiesel fuel is added to fossil diesel fuel, the more the engine capacity decreases.

Figure 10 reveals that the engine capacity increased the most when using second genera-tion pure biodiesel fuel, and the capacity was the smallest when operating with first genera-tion (FAMe) biodiesel fuel.

The studies reveal that the viscosity of fos-sil diesel fuel differs from the viscosity of first generation biodiesel fuel. viscosity is the great-est for first generation biodiesel fuel and small-est for second generation biodiesel fuel when comparing diesel fuel derived from petroleum to first generation biodiesel fuel. The more there are light fractions in the fuel, the better and quicker the combustion.

studies reveal that calorific value for diesel fuel derived from petroleum is 45.278 MJ/kg,

FIGUrE 10. Changes in the engine power at various rotational speeds when operating with fossil diesel fuel, first generation (FAME) and second genera-tion (NExBTL) biodiesel fuel.



calorific value for first generation biodiesel fuel is 39.641 MJ/kg and calorific value for second generation biodiesel fuel is 47.068 MJ/kg.

Therefore, the higher the calorific value of the motor fuel, the less fuel the engine con-sumes to achieve the same capacity. when comparing the three types of fuel at equal con-sumption of fuel, the engine capacity is the highest when operating with second genera-tion biodiesel fuel.

Figures 4, 5, 6, 7, 8, 9 and 10 reveal that the more second generation biodiesel fuel is mixed with fossil diesel fuel, the more the engine ca-pacity increases and less fuel is consumed by the engine. when mixing second generation biodiesel fuel with fossil diesel fuel, the calo-rific value of fuel increases and the engine ca-pacity also increases when operating with this mixture.

Conclusions

A study was conducted on fossil diesel fuel that complies with the european standard eN 590:2009, first generation biodiesel fuel (FAMe) that complies with the european stan-dard eN 14214:2012 and second generation biodiesel fuel (NexBTL) that does not have any standards. Physicochemical indicators were determined and the operation of all three fuels in the engine was compared.

The study reveals that the cetane index of fossil diesel fuel derived from petroleum is 54, flash point is 58.4 °C and calorific value is 45.48 MJ/kg. Cetane index of first genera-tion biodiesel fuel (FAMe) is 54, flash point is 120 °C and calorific value is 36.641 MJ/kg. Cetane index of second generation biodiesel

fuel (NexBTL) is 88.2, flash point is 88 °C and calorific value is 47.06 MJ/kg. Because calorific value is the highest for second generation bio-diesel fuel, less fuel is needed to do the same work than diesel fuel derived from petroleum and first generation biodiesel fuel. Cetane in-dex of second generation biodiesel fuel (Nex-BTL) is also higher compared to fossil diesel fuel derived from petroleum and first gen-eration biodiesel. second generation biodiesel fuel is therefore suitable to use in fast speed and forced induction diesel engines.

Flashpoint is the lowest for first generation biodiesel fuel (FAMe), so starting the engine in cold conditions is therefore more difficult, because fuel ignites at the temperature 120 °C. Figures for different rotational speeds and ef-fective pressures (fig. 2–3) indicate that the specific fuel consumption is the smallest when working with second generation biodiesel fuel (NexBTL).

when comparing first generation biodiesel fuel to diesel fuel derived from petroleum, the calorific value of diesel fuel is 12.8% higher and the calorific value of second generation biodiesel fuel is 3.4% higher than the calorific value of diesel fuel derived from petroleum.

First and generation biodiesel fuels are suit-able for use in all different diesel engines. The engine ran silently at different loads and rota-tional speeds. second generation biodiesel fuel is particularly suitable for use in forced induc-tion engines.

in the event that there are 20% by volume of first and second generation biodiesel fuel mixtures in fossil diesel fuel, the fuel ensures impeccable operation at various weather con-ditions and various modes of operation.



Bibliography

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namic der vebrennugskraftmaschine springer, verlag. 1989, pp. 99 115. Deutschland.

Įvairių kurų įtaka variklio galingumui

Erko Vallbaum, Rein Muoni, Jüri Lavrentjev

S a n t r a u k a

Fosilinis dyzelinis kuras ir biodyzelinis kuras yra būtina europos kokybės reikalavimų eN 590 ir eN 14214 sąlyga, kurią įdiegus privalu laiduoti ilgą, saugų ir nenutrūkstamą variklio veikimą įvairiomis klimato ir jo eksploatavimo sąlygomis.

Šio tyrimo tikslas – ištirti pirmos kartos biody-zelio kuro (metilo esterio riebiųjų rūgščių – FAMe) ir antros kartos biodyzelio kuro (NexBTL) panau-dojimą dyzeliniuose varikliuose ir palyginti su re-zultatais, kai dyzelinis kuras yra išgautas iš naftos. Tyrimas atliktas Talino technologijos universiteto


Mechaninės inžinerijos fakultete, Mašininės įran-gos katedroje 2014 metų lapkričio – 2015 metų balandžio mėnesiais. Norint išbandyti skystą kurą buvo naudojamas vieno cilindro atviras dyzelinis degimo variklis „ricardo Hydra“. studijoje atskleis-ta fosilinio dyzelio ir pirmos kartos biodyzelinio kuro (FAMe) bei antros kartos biodyzelinio kuro (NexBTL) fizikiniai ir cheminiai rodikliai. variklio testai buvo atliekami su visų trijų rūšių kuru, nusta-tyta įvairių kurų įtaka variklio galingumui.

55Gediminas Beresnevičius. Kūrybiniai gebėjimai ir naujų idėjų kūrimo modelis


2016, t. 7, Nr. 1 (11), p. 55–74


2016, Vol. 7, No 1 (11), pp. 55–74

ISSN 2029-5774Ekonomika • Economics

*

Introduction

Active research on the subject of budgeting was started only in the second half of the 20th century, in order to determine the reasons on why the companies are not satisfied with their budgeting systems. The purpose was to deter-mine methods on how to make budgeting an effective management tool. The study revealed

Budget preparation issues and improvements for companiesMarija ZykuvienėInternational Business School at Vilnius UniversityE-mail: [email protected]

Romualdas StankaitisLithuanian University of Educational Sciences E-mail: [email protected]

Stanislava StungurienėLithuanian University of Educational SciencesE-mail: [email protected]

In the era of globalization budget system must ensure quick reaction to the changes of business and eco-nomic environment. Experience proves that traditional budgeting methods fails to reflect real situation during the very first month in case of unexpected events. Successful budgeting system shall be considered to be a system that would help the company to identify tactical goals and measures for achieving these goals by optimally exploiting resources. This article presents detailed analysis of budgeting methodology made by using different researches published in various scientific works. after research and analyse of dif-ferent budgeting systems, new non-traditional budgeting model was prepared, which reflects the efficien-cy of the processes, formulate financial and non-financial goals of the company, but also would consider organizational structure of the company, its size and production proportions.

Key words: company budgets, budgeting methods, non-financial goals, non-traditional budgeting model.

two main issues. First, companies preparing budgets fail to include strategic actions, thus, sometimes they find themselves in situations, when budget contradicts strategic plans of the company. second, budget prepared fails to adapt to changing business environment.

Budgeting itself is a planning tool, which helps to identify company’s strategic goals, ac-tivity forecast and characteristics. Budget is ef-



56 M. Zykuvienė, R. Stankaitis, S. Stungurienė. Budget Preparation Issues and Improvements for Companies

fective, when using it for allocation of company’s resources and assets, which is why a successful budgeting system shall be considered to be a system that would help the company to identify tactical goals and measures for achieving these goals by optimally exploiting resources. Af-ter research and analyse of different budgeting systems, new non-traditional budgeting model was prepared, which reflects the efficiency of the processes, formulate financial and non-financial goals of the company, but also would consider organizational structure of the company, its size and production proportions.

Key words: company budgets, budgeting methods, non-financial goals, non-traditional budgeting model, flexible budget.

Object of the thesis: budgeting system preparation methodology of companies and practical application.

Objective of the thesis: research of the methodology of budgeting in the companies and analyses of results received, preparation of new budgeting methodology and application in specific company.

Goals:1. Analysis of the significance and relevance

of budgets for business enterprises.2. Preparation of non-traditional budgeting

methodology in the companies with hier-archical structure.

3. Application of new budgeting model in the company with hierarchical structure, as-sessment of results.Hypothesis:Budget of the company prepared accord-

ing to non-traditional budgeting model shall reflect business activity of the company more accurately and shall be coordinated with stra-tegic goals of the company.

Research methods: Analysis of scientific works was used, comparative analysis was done.

Peculiarities of budgeting system

Budget system is a continuity that connects the past, the future and the present of the com-pany through control and planning. (williams, 1981) . Budgeting itself is a planning tool com-bining plans of all company subdivisions and taking into account strategic goals, analysis and implementation thereof. sometimes sub-divisions of the company do not consolidate between themselves and fail to include infor-mation received from production, marketing, and accounting subdivisions into the budget, do not coordinate strategic goals of the compa-ny established by the management (Hope and Fraser, 1999; vaznonienė and stončiuvienė, 2012). Харитонова, 2002 emphasizes the im-portance to coordinate the budget and consoli-date it with methodology of accounting. one of the main problems of budgeting is the fact that even though budgeting is the first step in implementation of strategic plans of the com-pany, it is often isolated from strategic goals of the company (korneva, 2007; Hansen and etc, 2003). when the budget implementation is ini-tiated, often, the budget is already “outdated”, because business environment changes more rapidly as compared to updating of the budget by the companies. This significantly reduces the value of the budget (Juozapavičiūtė, 2008; Libby and Lindsey, 2010; vaznonienė and stončiuvienė, 2012). Budget critics argue that the budget will never reflect relevant informa-tion as the market changes rapidly (wallender, 1999). Therefore, if business environment the company operates in changes often, plans and budgets need to be corrected accordingly in timely manner (Jehle, 1999). Thus, it is impor-tant to improve methodologies for budgeting that would allow to plan and coordinate results


57M. Zykuvienė, R. Stankaitis, S. Stungurienė. Budget Preparation Issues and Improvements for Companies

of economic activity of the company by com-bining information received from accounting, marketing and long-term strategic actions.

in general, budget system is defined as a combination of goal-setting and goal-achiev-ing (Dunbar, 1971; stedry, 1960; Burton and obel, 1980; vaznonienė and stončiuvienė, 2012; Lewis, 2001).

Budget system is a combination of hierar-chical structure of the company by setting and achieving goal that should increase the profit of the company (Dunbar, 1971; shih, 1998; Chalos and Poon, 2000). we live in the era of globalization where merging of the companies and relevant, therefore, budget system must ensure quick reaction to the changes of busi-ness and economic environment (vaznonienė and stončiuvienė, 2012; korneva, 2007). ex-perience proves that budget fails to reflect real situation during the very first month in case of unexpected events (Jehle, 1999). Hansen, s., otley, D., and van der stede, w. (2003) agree

that budget needs amendments from the mo-ment of its execution. one of the main condi-tions for good budget preparation is clear or-ganizational and informative structure of the company and competent employees actively participating in the process (vaznonienė and stončiuvienė, 2012; korneva, 2007; Jensen, 2003; Hansen and etc.,2003; Libby and Lindsay, 2007; Neumann, 2001; Jehle, 1999; Atrill and McLaney, 2007). budgets are helpful to manag-ers in perception of the origin of the problem and in creation of the structure of the solution for the problem. (Alino schneider, 2012; Baker and etct., 1976;williams, 1981).

researches emphasize common drawbacks of budgeting – it is time and finance consum-ing, but agree, that if the budget is used and drawn up efficiently, it reflects the efficiency of business activity, helps to properly allocate resources and guarantees the accountability of managers before the management for decisions made.

TaBLE 1. Budget related issues and advantages

Budget related issuesAuthor Problem

Korneva, 2007;Vaznonienė and Stončiuvienė, 2012 Non-flexible budgets;Budgets prepared do not reflect the dynamics of the company.

Jehle, 1999; Hansen et al., 2003 Budgets must be updated regularly.Балабанова, 2010; Vaznonienė and Stončiuvienė, 2012

Improper organization of the work in the company, incompetent employees.

Vaznonienė and Stončiuvienė, 2012 Budget preparation does not motivate employees.Харитонова, 2002; Jensen, 2003; hansen et al., 2003; Korneva, 2007;

Budgeting is time and finance consuming.

Харитонова, 2002; Jensen, 2003; hansen et al., 2003; Libby and Lindsay, 2007;

Managers tend to draw up budgets that are far from reality.

Харитонова, 2002; Vaznonienė and Stončiuvienė, 2012;

Budgets prepared do not reflect the strategy of the company.

Гриценко, 2005; Korneva, 2007; Vaznonienė and Stončiuvienė, 2012

Managers take only short-term tactical goals of the company into account.



Despite all problems arising from the budget, it remains relevant for the company. Budgets are one of the basic stabilization processes used by organizations through many years of historical evolution. when eliminating drawbacks of the budget discussed above and developing effective planning systems between the companies by us-ing newest planning methods and involving all subdivisions of the company into the process, it is possible for the management to increase the effectiveness of the business.

scientific literature discusses a large variety of budgets. each budget emphasizes and plans different functions and funding of economic subjects. in practise, there are lots of budgets created and used, each of them have their spe-cific advantages and disadvantages, individual characteristics according to which the compa-ny selects budget type most appropriate for it.

Chracteristics of mostly used budgeting methods

Following budget types are distinguished in scientific literature: fixed (traditional), flexible, zero-based, activity-based budget (ABB), etc. (vaznonienė and stončiuvienė, 2012), beyond budgeting. Many different types of budgets were developed, used and tested throughout the years. According to research made by authors of this article, after analysing peculiarities, dif-ferent advantages and disadvantages of budgets, below there are conclusions made, about suit-ability of each model to be used in companies with hierarchical structure (2, 3, 4, 5, 6 tables).

Traditional budget is a budget prepared once a year usually for the following year by indicating fixed expenses and income that are not being reviewed or changed during the year.

Budget related advantagesAuthor Advantages

hansen et al., 2003Гриценко , 2005;Балабанова, 2010

Budgets prepared reflect strategic goals of the company.

Williams, 1981Jehle, 1999Vaznonienė and Stončiuvienė, 2012

Business goals of the company are reflected in the budget, past and future results of the company are combined.

Vaznonienė and Stončiuvienė, 2012 Budget reflects effectiveness of business goals.hansen et al., 2003;Харитонова, 2002;Neumann, 2001

Budget is a tool for proper allocation of resources.

Jehle, 1999; atrill, McLaney, 2007

Indicators presented in budget reflect the position of the company in the market.

Vaznonienė and Stončiuvienė, 2012 Budgets prepared help the management to control work results of employees.

Гриценко, 2005Korneva, 2007

Budget preparation motivates communication processes between company’s departments/divisions.

Jehle, 1999alino and Schneider , 2012

When comparing achieved goals with those provided for in the budget, employees may assess their work themselves.

Williams, 1981Baker et al., 1976

Budget planning and execution ensure accountability and responsibility of executives before the management.

alino and Schneider, 2012 allows for alternative actions in case of poor economic situation.

source: Prepared by the authors

TaBLE 1 (continuation). Budget related issues and advantages



TaBLE 2. Suitability of traditional budgeting model to companies with hierarchical structure

Advantages Disadvantages Conclusion1. Prepared once per year, no

revisions (Vazonienė and Stončiuvienė, 2012; De With and Dijkman, 2008; hansen, S. et al., 2003);

2. Limited number of individuals are involved in planning process (Vazonienė and Stončiuvienė, 2012; De With ir Dijkman, 2008);

3. No need for considerable financial investment (hansen, S. et al., 2003).

1. Time-consuming (Vazonienė and Stončiuvienė, 2012; De With and Dijkman, 2008);

2. Limits creativity (De With and Dijkman, 2008);3. Motivates manipulations by managers (De With and

Dijkman, 2008);4. Non-flexible (Vazonienė and Stončiuvienė, 2012; De

With and Dijkman, 2008);5. Indicators from previous years are used in planning

process (Marcino, 2000; Steven, 2007);6. Projects are rated according to previous indicators

instead of potential profitability (Wetherbe and Montanari, 2007);

7. resource allocation of the company is not reviewed during the year (hansen, S. et al., 2003);

8. When reducing costs, new projects that have not been initiated yet are eliminated (Marcino, 2000);

9. Financial goal of the company is emphasized to managers, responsibility for work done is not encouraged (De With and Dijkman, 2008; hansen, S. et al., 2003).

The model is too primitive and outdated, more suitable in social-economic environment with the emphasis on cooperation rather than competition. Model does not reflect changes in market, decisions made according to budget prepared and approved cannot be considered to be most profitable under changed circumstance.


TaBLE 3. Suitability of activity-based budgeting model to companies with hierarchical structure

Advantages Disadvantages Conclusion1. assessment and collection of financial and non-

financial data of the company (Bengu, 2010; Korneva, 2007);

2. Planning and assessment of both financial goals and activity and processes of the company (ac-knowledgment of expectations of customers, search for new customers) (Neumann, 2001, hansen et al., 2003; Korneva, 2007; Bengu, 2010);

3. Managers find this budget convenient to work with (Neumann, 2001; hansen et al., 2003; Vaznonienė and Stončiuvienė, 2012);

4. Plans the demand for the product or service, draws up production plan on the basis of this data, accounts for resources (hansen et al., 2003; Vaznonienė and Stončiuvienė, 2012);

5. Emphasis on participation of personnel in prepa-ration and execution of budget, clear require-ments by the management to personnel (Korneva, 2007; Vazonienė and Stončiuvienė, 2012);

6. Orientation to value model of organization in-stead of reduction of costs (Marcino, 2000; han-sen et al., 2003);

7. Measures the fair value of the product or service, employees classify processes of the company as valuable or non-valuable, while management al-locates resources (Marcino, 2000; Libby and Lind-sey, 2007, 2010; Vaznonienė and Stončiuvienė, 2012; Bengu, 2010; hansen et al., 2003).

1. rating of valuable and non-valuable works done by employees can be subjective (Marcino, 2000);

2. Time-consuming (Libby and Lindsey, 2007, 2010; Vaznonienė and Stončiuvienė, 2012);

3. Non-flexible, difficult to adapt to changing mar-ket environment (Libby and Lindsey, 2007, 2010; Vaznonienė and Stončiuvienė, 2012);

4. Needs considerable financial investments (Libby and Lindsey, 2007, 2010; Vaznonienė and Stončiuvienė, 2012; Гриценко, 2005).

Model can be applied in com-panies with hierarchical struc-ture as it emphasizes not only financial aspect of the company, but also assesses processes of the company by rating them as well as by planning the demand for the product (in other words, presents clear position of the company in competitive envi-ronment). Model is universal: analysis of company’s activity is presented by planning financial indicators. however, budgeting model for hierarchical system should be flexible, indicators should be regularly updated, demand should be constantly monitored. This model is orien-tated towards strategic goals of the company and fails to con-sider short-term goals. This is the reason for non-flexibility, there-fore, it is recommended to apply this model together with other budgeting types in companies with hierarchical structure.




De with, e. and Dijkman conducted a re-search in Holland in 2008. They asked largest companies whether they were satisfied with widely criticized traditional budget. research results showed that 70.7% of the companies were satisfied, 2.4% were very satisfied, and, 17.1% refused to answer. However, the authors think that the only reason for high satisfaction with traditional budgeting system by compa-nies is the integration of traditional budget into control processes by the managements of com-panies. Authors also agree with the opinion of their contemporaries that preparation of tradi-tional budget is time-consuming, limits creativ-ity, and motivates manipulations by managers.

The conception of activity-based budget-ing (Activity Based Budgeting or ABB) was developed in usA by raffish in 1991 (Bengu, 2010). robert kaplan and robin Cooper con-tributed to the conception on the basis of cost accounting according to business activity areas of the company (korneva, 2007). Cost related

TaBLE 4. Suitability of flexible budgeting model to companies with hierarchical structure

Advantages Disadvantages Conclusion1. costs and income are divided as to actual and

planned; planned for long-term and short-term (Kaplan and cooper, 1992);

2. activity and product costs are distinguished, financial and non-financial information is used and included (Kaplan and cooper, 1992);

3. Following indicators are planned: used and unused available resources of the company (Kaplan, 1994);

4. Employees do not have to manipulate indicators because company’s strategy allows for partial utilization of available resources;

5. Some costs can be further classified: mixed, variable and fixed (Tucker, 1982; Mak and roush, 1996);

6. costs are planned for each activity and allows the management to make both strategic and operative decisions (Korneva, 2007);

7. responsible person is assigned to each process for control;

8. Flexible budget is regularly reviewed and updated (Tucker, 1982).

1. Fails to analyze characteristics of processes or resources (Mak and Melvin, 1996);

2. risk for manipulations by managers, managers can make unnecessary acquisitions in order to use available resources (Mak and Melvin, 1996);

3. Fails to emphasize strategic plans of the company (Гриценко, 2005);

4. Each employee plans separate activity (process) and is responsible for it without considering common goal of the company (Гриценко, 2005);

5. Time-consuming (Tucker, 1982; Гриценко, 2005).

Flexible budgeting model mostly emphasizes and analyses costs and cost types. Fails to analyze company’s activity and processes. can be used in companies with hierarchical structure by integrating it into other budgeting system as additional model.


to products and services is determined in a more accurate way as it is easier to record cost of products by ignoring the indicator of sales volume (Bengu, 2010).

Discerning characteristic of application of activity-based budget (ABB) is consideration of both financial and non-financial data about the resources, activities and process assessment of the company by transforming this data into information.

Next budgeting method is flexible budget. Most authors kitas biudžto planavimo įrankis yra lankstus biudžetas. Many authors believe that flexible budget may be used only together with budget prepared according to ABB model.

robert kaplan and robin Cooper (1992) emphasized the importance of distinguishing operating expenses and product costs in long-term period as well as actual prices of short-term period. use of flexible budget together with ABB has obvious advantages. Best fea-tures of both models are used. ABB analyzes



processes, activities, focuses on strategic plans of the company, however, it is not regularly reviewed. Flexible budget analyzes costs by attaching them to certain activity or process, is regularly updated and changed. use of two budgets would be more effective and informa-tive for the organization.

Zero based budgeting (ZBB), or in other words, “from zero” is budgeting model with the focus on future instead on the past. Main discerning feature of this model is efficiency of each existing activity and comparison with fu-ture needs (stevens, 2007).

At the beginning of application of ZBB, all requests of organization are formulated in so called decision packages separately in each department (williams, 1981; wetherbe and Montanari, 2007; ogden, 1978). Mostly mini-mum packages are formed covering all exist-ing operations at minimum required amount and additional packages that require larger investments with the anticipation for higher

TaBLE 5. Suitability of zero-based budgeting model to companies with hierarchical structure

Advantages Disadvantages Conclusion1. Orientation to future indicators (Stevens, 2007);2. Decision packages are formed. These packages can

include everything that is important to the company (functions, activity, subdivisions). (Draper, 1981);

3. Differentiation of activities (Williams, 1981);4. Each subdivision justifies planned expenditure

(Williams, 1981; Wetherbe and Montanari, 2007);5. Each operation carried out in the company as well as

its profitability is analyzed (Ogden, 1978);6. Non-profitable processes are eliminated (Draper, 1981;

Wetherbe and Montanari, 2007);7. Departments of organization are rated according to

customer demand (Wetherbe and Montanari, 2007);8. results are compared to expectations applied to the

department instead of past results (Wetherbe and Montanari, 2007);

9. reveals alternative financing methods (Draper, 1981; Ogden, 1978).

1. Expensive and time consuming method (Stevens, 2007; Ogden, 1978);

2. Planning process engage many individuals (Draper, 1981);

3. Each subdivision plans resources separately without taking common goal of the company into account (Draper, 1981; Ogden, 1978).

Model can be used in the company with hierarchical structure as it differentiates and rates activities as well as subdivisions, On the other hand, this model in large corporation with several production lines would be time-consuming and expensive, as demand of each product and efficiency of the activity or the performance of subdivision should be analyzed in order to assign ratings.


return from the activity (ogden, 1978). As de-cision packages available to ZBB can include anything the organization deems necessary, e.g., organizational functions, activity, subdivi-sions, therefore, ZBB is easily adaptable to any budgeting system (Draper, 1981).

ZBB model is a great method analyzing each external and internal process of the com-pany. Thus, the company can be flexible and apply the most effective competitive strategies, analyze the demand of manufactured products, to present innovations to customers on time. on the other hand, this model can be used only in large companies having strong market positions with sufficient financial capacities to analyze, receive and collect information, which is why this model is not suitable for small or medium size companies.

Budget preparation difficulties and chal-lenges led to idea to completely abandon budg-eting, or in other words, apply BB planning method in companies (wallender, 1999). Ap-



plication of BB method emphasizes the pro-cess without budgets by assigning planning of financial indicators to finance division and decreasing the number of indicators as well as relying on and emphasising the significance of competent employees.

BB method, above all, is praised for its flexibility as the budget is prepared for spe-cific periods, usually quarterly budgets. Budget contains low number of indicators of planned activity, therefore, planning process becomes easier and faster. Accountants continue to pre-pare budgets with the goal to plan financial needs of the organization, however, these plans are not submitted to managers for analysis and work.

To sum up the opinions of authors, BB ap-plication is attractive idea that is difficult to be implemented. This model fails to achieve main budgeting goal, i.e., control function, possibil-ity to assess previous indicators by comparing them with current indicators in order to pre-

dict the change in company’s dynamics. This model does not cover the analysis of indicators that is necessary in order to have a clear view of current and potential situation of the company.

rationally developed budgeting system would allow for effective activity planning in the company and allocation of available lim-ited resources developed rationally. This would optimize the costs of the company and would maximize the benefit from them. effective use of budgets would give advantage in the market as compared to competitors that do not use any budgeting system (kalčinskaitė, 2009).

To sum up, the lack of standard methodol-ogy that could be used for all company types is the main budgeting problem. Thus, each com-pany should analyze benefits of budgets and types thereof and upon assessing specifics and characteristics of activity, volume of processes and dynamics in the company should apply the most suitable model by improving it and ad-justing according to needs.

TaBLE 6. Suitability of beyond budgeting model to companies with hierarchical structure

Advantages Disadvantages Conclusion

1. Preparation takes less time and finances (Vazonienė and Stončiuvienė, 2012);

2. Managers do not need to analyze financial indicators (Draper, 1981);

3. assessment of work quality of employees (Draper, 1981);

4. resources are not planned in advance, if necessary, adjustment can be made (Draper, 1981; Vazonienė and Stončiuvienė, 2012);

5. Flexible (Draper, 1981; Wallender, 1999; Vazonienė and Stončiuvienė, 2012);

6. allows avoiding manipulations with indica-tors by managers (Draper, 1981; Vazonienė and Stončiuvienė, 2012);

7. Orientation to missions and values of organi-zation (Draper, 1981; Wallender, 1999).

1. Management does not have a tool for personnel control (Vazonienė and Stončiuvienė, 2012; rickards, 2006);

2. Not suitable for resource and reserves planning (Vazonienė and Stončiuvienė, 2012);

3. Investments in employee train-ing are necessary (Vazonienė and Stončiuvienė, 2012);

4. additional annual (traditional) budget has to be prepared if re-quired by the banks (Vazonienė and Stončiuvienė,2012).

Since companies with hierarchical structure require control, strict resource planning, central-ized resource allocation and result assessment, this method does not meet any of the criteria. Therefore, it is not suitable. On the other hand, the advantage of the method to focus not only on financial goals but also on work quality and cus-tomer satisfaction could be used by integrating it into new model developed.




Non-traditional budget preparation model in companies with hierarchical structure

upon analysing theoretical and practical budg-eting aspects, unified budget planning model applicable in companies with hierarchical structure is prepared. The prepared model is orientated to company’s goal, while any further assessment of factors and indicators is made taking common goal of the company into con-sideration. This makes the model identical to the advantages of beyond budgeting system.

Contrary to other models analysed, this model assesses company’s chances to achieve goal set by considering not only controlled in-ternal factors but also uncontrolled macroeco-nomic indicators and the impact on strategic goal of the company. Company operates under conditions of open economy; many processes of the company are caused by external environ-ment, macroeconomic factors that have im-

pact on activity processes of the company that change financial budget. Financial and activi-ty-based budget consist of internal indicators of the company and are interrelated. None of models examined above included detailed and exhaustive analysis of market the company op-erates in or economic situation of the country. Disregard of external factors causes the risk of inaccurate projections. upon analysing chang-es and dynamics of macroeconomic indica-tors, the developed model allows for projecting their impact expressed in per cent on the goal of the company.

As with ABB model, this model includes projections for the consumer demand as it is directly affected by sales volume. it is an im-portant factor when determining pricing pol-icy of the company. indicators can be changed depending on the specifics and needs of the company. Macroeconomic indicators also help in projections of activity-based indicators (1 fig.).

FIGUrE 1. General budget preparation scheme

source: Prepared by the authors.

company’s goal

Budget of macroeconomic factors

activity-based budget

Financial budget

Uncontrolled factors in the company

controlled factors in the company



upon planning scale of production and sales, it is appropriate to plan the budgets for advertising and marketing as well as for direct taxes and administrative affairs. indicators here may increase or decrease depending on rise/decline of production volume.

All income and costs of the company are planned in this way – all sections of profit and loss statement. Projected balance sheet of the company is prepared by using indicator of re-serves taken from activity-based budget as well as cash flow statements. This makes the model identical to traditional budgeting model.

Profit and loss statement in this model is a connecting link between activity-based budget and financial budget. Activity-based indicators are planned and included into financial budget. Financial budget becomes as a summary of all previous projections.

A portion controlled by the budget is di-vided into units. This is one of the advantages when preparing zero-based budgets as it in-creases control by management by dividing company’s activity areas and reviewing and assessing each of them separately as an inde-pendent unit.

FIGUrE 2. Budgeting model for uncontrolled factors of the company


company’s goal

higher sales volume

Impact of external factors on production being sold

Political situations Macroeconomic projections Economic stability

% impact on company’s goal % impact on company’s goal % impact on company’s goal

Economic growth

% impact on company’s goal

Impact of market factors on production being sold

Market size custome demand Number of competitors in

Strength of competitors

% impact on company’s goal % impact on company’s goal % impact on company’s goal

% impact on company’s goal



As in ABB model discussed, new model assesses the activity of each subdivision of the company according to three parameters: effi-ciency of process carried out (how quickly is the process carried out, maybe processes of production or storage are time-consuming), process quality (how is the process carried out,

what is the percentage of production spoilage, what is the percentage of uncontrolled pro-duction spoilage reaching end user), impact on the goal of company expressed as percent-age (low-quality, ineffective processes), how much is the chance to achieve company’s goals reduced.

FIGUrE 3. Budgeting model for controlled factors, activity-based processes, and finances


Income (sales) budget

Reserves budget. Process:1. Quality; 2. Efficiency; 3. % impact on the goal

of the company.

Production budget. Process:1. Quality; 2. Efficiency; 3. % impact

on the goal of the company.

Direct costs budget. Process:1. Quality; 2. Efficiency; 3. % impact on the goal

of the company.

Indirect costs budget. Process:1. Quality; 2. Efficiency; 3. % impact

on the goal of the company.

cost of goods sold

Marketing and advertising budget. Process:1. Quality; 2. Efficiency; 3. % impact on the goal of the company.

Indirect tax budget

Administrative costs budget. Process:1. Quality; 2. Efficiency; 3. % impact on the goal of the company.

INVESTMENT BUDGETProjected profit (loss) statement

Cash budget Projected balance sheetProjected cash flow

statement



As in beyond budgeting systems, the quality and effectiveness of work done by employees are assessed when analysing labour costs budget. in-dicators for assessment of quality and efficiency included in developed model provide not only financial assessment analysis of the company but also non-financial assessment analysis. As with ABB systems, the model helps in assessing quan-titative and qualitative processes of the company.

Model of the budget developed is exhaus-tive and accurate and allows planning available resources for the end of the year, seeing pos-sible shortage or excess of cash funds. Prepara-tion of investment budget on the basis of re-sults of cash reports is one of the key features of this model providing significant benefits to the management of the company.

Assessment of activity-based processes helps the management of the company make assessments on the basis of results of cash re-ports. Assessment of activity-based processes helps the company to assess the indicator hav-

ing the highest impact on the common goal of the company expressed as a percentage as well as see weak (ineffective, low-quality) areas of the company that need additional investments. This budgeting strategy if applied in the com-pany will be able to improve business activity of the company.

The implementation of the budget is as-sessed considering the goal set by the company.

Assessment of budget prepared according to non-traditional budgeting model

when comparing indicators of prepared budg-et and indicators of traditional budget applied previously, significant variances are revealed (Figure 4, 5, 6). Amounts planned according to non-traditional budgeting system reflected in-dicators of the company more reliably and ac-curately. Thus, projections in prepared budget were not at odds with reality.

FIGUrE 4. Variance between actual and planned indicators


Planned indicators, EUr

Planned indicators, according to non-

traditional budgeting model, EUr

Planned indicators, according to traditional

budgeting model, EUr

Sales

cost of sales

Operating costs

1509225,00

1198373,00

285489,00

1567759,00

1217463,00

298630,00

796012,00

622033,00

95996,00



The analysis of literature presented at the beginning of this article showed that limited financial resources of the company forcing the company to project possible changes and tak-ing measures in order to prevent risks, to react in time and control unwanted factors is one of the main issues the application of budgeting models attempts to solve. Traditional budget-ing model used before fails to make accurate projections, thus, business decisions made on the basis of it would be risky. Non-traditional budgeting model applied proved to be reliable: the company was able to get more reliable and accurate planned numbers at the beginning of year using available planned indicators as com-pared to results of traditional budgeting model. Projections for 2013 made by applying suggest-ed budgeting model also proved to be reliable. Management of the company is able to assess results and rely on them when making relevant decisions related to business. The company gets following advantages if this model is used:1. external factors were analyzed by applying

the model. results received are relevant to the company when making strategic plans. Model used before failed to analyse exter-nal factors and did not use them in projec-tions. Planning of external factors allows for timely corrections of sales strategy im-plemented by the company and predicting increase or decline in sales volume.

2. weak areas in the company were deter-mined by applying suggested budgeting model. These areas need strategic changes. Budgeting model used previously failed to analyse external factors and did not use them in planning process.

3. Company has reliable information about the amount of free working capital that could be used for investments at its dis-

posal. Budgeting model used before aimed to plan the amount of working capital for the end of the year, but failed to provide reliable data by 1,43%, while the error of suggested model was 0,17% . reliability of information is relevant in a sense it helps the company to make a decision at the beginning of the year whether additional working capital should be raised, whether there is a risk of lack of resources, it also allows to ensure smooth financial flows of the company, and helps to allocate financial recourses between differed subdivisions of the company.

4. New model assesses the activity of employ-ees with the help of work efficiency and quality indicators. This helps to motivate employees. The result is improved efficien-cy of work and quality control. Traditional budgeting model failed to assess the work done by employees and did not include as-sessment results in projections. New model allows for assessment whether inefficiency of company’s processes is the result of low quality work done by employees. The analysis of literature presented at the

beginning of this article showed that limited financial resources of the company forcing the company to project possible changes and taking measures in order to prevent risks, to react in time and control unwanted factors is one of the main issues the application of budgeting models attempts to solve. Traditional budgeting model used before fails to make accurate projections, thus, business decisions made on the basis of it would be risky. Non-traditional budgeting model applied proved to be reliable: the company was able to get more reliable and accurate planned numbers at the beginning of year using available planned indicators as


68 M. Zykuvienė, r. stankaitis, s. stungurienė. Budget Preparation issues and improvements for Companies



actual indicators, EUr

Profi t/loss

current asset

Tangible asset

Total asset

Planned indicators, according to non-traditional


Planned indicators, according to traditional budgeting model, EUr

compared to results of traditional budgeting model. Projections for 2013 made by applying suggested budgeting model also proved to be reliable. Management of the company is able to assess results and rely on them when making relevant decisions related to business. Th e company gets following advantages if this model is used:1. external factors were analyzed by applying

the model. results received are relevant to the company when making strategic plans. Model used before failed to analyse external factors and did not use them in projections. Planning of external factors allows for time-ly corrections of sales strategy implemented by the company and predicting increase or decline in sales volume.

2. weak areas in the company were deter-mined by applying suggested budgeting model. Th ese areas need strategic changes. Budgeting model used previously failed to analyse external factors and did not use them in planning process.

3. Company has reliable information about the amount of free working capital that could be used for investments at its disposal. Bud-geting model used before aimed to plan the amount of working capital for the end of the year, but failed to provide reliable data by 1,43%, while the error of suggested model was 0,17% . reliability of information is relevant in a sense it helps the company to make a decision at the beginning of the year whether additional working capital should be raised, whether there is a risk of lack of resources, it also allows to ensure smooth fi nancial fl ows of the company, and helps to allocate fi nancial recourses between diff ered subdivisions of the company.

4. New model assesses the activity of employ-ees with the help of work effi ciency and quality indicators. Th is helps to motivate employees. Th e result is improved effi cien-cy of work and quality control. Traditional budgeting model failed to assess the work done by employees and did not include as-

25363,00

372184,78

1229472,08

1601656,86

51666,00

380640,20

1218605,33

1599245,53

77983,00

321845,00

832259,55

1154104,55


69M. Zykuvienė, r. stankaitis, s. stungurienė. Budget Preparation issues and improvements for Companies

885185,53

716470,77

1601656,31

885242,60

712363,10

1597605,70

518158,00

635946,55

1154104,55

sessment results in projections. New model allows for assessment whether ineffi ciency of company’s processes is the result of low quality work done by employees. Planning starts from setting strategic goal

of the company. Higher sales volume is the stra-tegic goal of analysed company. Furthermore, planned indicators were assessed considering their impact on strategic goal. First of all, sales budget was prepared by assessing the company in the context of international markets. Com-petitors of the company as well as external and internal factors were analysed. Countries larg-est customers of the company operate in were analysed separately. Also the impact of changes on sales volume taking place in these countries was assessed. Traditional budgeting model fails to assess these indicators, therefore, the error of the result comparing actual and planned

sales was 47% . upon analysing factors aff ect-ing sales, following result of sales revenue was received: the error between actual and planned sales revenue is only 4%. reserves and pro-duction budgets are prepared on the basis of accurate sales budget. Accurate reserves bud-get allows for accurate planning for purchases and prevent storage of goods freezing available funds. Accurate production budget prepared allows making an assessment whether compa-ny has suffi cient workforce in order to imple-ment planned sales volume. Budgeting model used before failed to present accurate sales vol-ume. Th e application of this model would have resulted in untimely purchasing of compo-nents, thus company would lose certain agree-ments due to delays caused by supplier. when preparing sales budget according to suggested model, macroeconomic and market indicators



Liabilities

Equity

Total liabilities and equity

actual indicators, EUr

Planned indicators, according to non-traditional


Planned indicators, according to traditional budgeting model, EUr



are analysed. These indicators allows for timely adoption of strategic decisions and prevention of possible risks. The goal of analysed company was to increase sales volume, therefore, sales budget allowed for timely correction of sales strategy at the beginning of the year taking market and macroeconomic factors into con-sideration.

The assumption that if sales decline by 20%, administrative costs will also be reduced by 20% is made according to the results of sales budget. Budgets for costs and indirect taxes were prepared, and upon assessing the decline of costs by 20%, the deviation between actual and planned result was only 4,60%. After planning income and costs, costs and income indicators were included in cash flow statement. The company expected to have only 76 858 euro in the account at the end of the year when traditional planning method was used. The company was certain it would have enough resources to cover all company’s expenses. However, this means, it will not have free funds at the beginning of following year for investments, purchases of new technologies or wage raise. But the projections made according to non-traditional method, revealed a different situation. According to these projections, the company would have 219 561 euro at their disposal (error of 0.17% only). This amount exceeds amount planned according to traditional budgeting model by almost three times. Thus, the company will be able to consider investment possibilities. Management of the company is certain that it will have smooth financial year, it won’t have to worry about raising funds.

Budget prepared according to non-tradi-tional method is suitable to be used in business activity of the company and increase the efficien-cy of company’s activity. Traditional budgeting method used before was time-consuming and failed to provide necessary information to the management, management’s expectations were not met. Budget prepared according to suggest-ed budgeting model reveals actual processes and allows for projections for following years. This gives the advantage to company in a competitive environment. The management upon seeing more accurate numbers can make risky business decisions and dispose of greater amounts of free funds. More accurate planning reveals internal reserves which allows for making more rational economic decisions. Accurate planning of com-pany’s financial resources would be relevant also if the situation of the company would become worse. The company upon seeing the shortage of cash funds can consider attracting potential investors at the beginning of year.

As qualitative peculiarities of different areas of the company were assessed and expressed in quantitative expression when planning the budget, the budget revealed areas of the company that need essential reorganization. Main processes taking place in the company were assessed in terms of quality and efficiency.

research conducted proved the signifi-cance of a budgeting methodology reflecting reality. Company operating in non-stable and changing market and macroeconomic envi-ronment needs to be able to adapt and imple-ment strategic goals set. reliable projections may help in predicting possible risk and in gaining competitive advantage.



Conclusions

1. Budgeting system reflects company’s goals for the achievement of which available re-sources are used. Properly working budget-ing system takes peculiarities of company’s business activity and factors affecting it into consideration. Failure to reflect real-ity and company’s strategy, manipulations by employees, use of great deal of time and finances are the most common drawbacks of prepared budgets. Properly prepared and customized budgeting system reveals efficiency of separate processes, the change of company’s results through time (when comparing past and present indicators of the company), ensures the responsibility of executive personnel for actions performed, determines company’s direction in pursuit of strategic goals. Analysis of scientific lit-erature allows for argument that there are five main budgeting types: traditional, activity-based (ABB), flexible, zero-based, and beyond budgeting (BB) models. How-ever, these types are not universal, there-fore, each company should create a model that could reflect its goals, dynamics, and peculiarities.

2. when preparing budgeting methodology,

advantages and disadvantages of budgets were considered. Non-tradition budgeting model prepared and practically applied in a specific company proved to be reliable tool. Company’s indicators were assessed in a more reliable manner when this model was used. if the error of the results between planned and actual numbers is insignifi-cant, company’s management can make risky business decisions and be certain for its financial situation, decide whether fund raising is necessary or whether it has free funds at its disposal, it can also allocate limited recourses more efficiently. More reliable planned indicators attract more investors as they can make more accurate calculations on potential risks.

3. when applying new budgeting model, in-formation about company’s competitive-ness, possible risks and threats are revealed, assessed the activity of different subdivi-sions of the company and the impact of all processes taking place in the company on company’s goal. Non-traditional budget-ing model combined financial and qualita-tive information. information received was converted in quantitative expression and used for projections of profit and loss state-ment.

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Kompanijos biudžeto kūrimo prielaidos ir jo tobulinimo gairės

Marija Zykuvienė, Romualdas Stankaitis, Stanislava Stungurienė

Globalizacijos eroje, biudžeto sudarymo sistema turi užtikrinti greitą reakciją į verslo ir ekonomikos pasikeitimus. Patirtis parodo, kad tradiciniai biu-džeto metodai jau pirmą mėnesį neatspindi realios situacijos. sėkminga biudžeto sistema laikysime to-kią, kuri padės įmonei nustatyti taktinius tikslus ir priemones jiems pasiekti, optimaliai panaudojant išteklius. Šis straipsnis pristato detalią biudžetų me-todologijos analizę, naudojant skirtingų mokslinių

darbų tyrimus. Mūsų atliktas biudžeto sistemų tyri-mas leido parengti naują, netradicinį biudžeto mo-delį, atspindintį procesų efektyvumą bei formuluo-jantį kompanijos finansinius ir nefinansinius tikslus, atsižvelgiant į kompanijos organizacinę struktūrą, dydį ir gamybos proporcijas.

Raktiniai žodžiai: kompanijų biudžetai, biudže-tavimo metodai, nefinansiniai tikslai, netradicinis biudžetavimo modelis.

75Gediminas Beresnevičius. kūrybiniai gebėjimai ir naujų idėjų kūrimo modelis


2016, t. 7, Nr. 1 (11), p. 75–107


2016, Vol. 7, No 1 (11), pp. 75–107

ISSN 2029-5774

*Research on use of non-financial information for firm evaluationOOlga ValauskienėInternational Business School at Vilnius UniversityE-mail: [email protected]

Romualdas StankaitisLithuanian University of Educational SciencesE-mail: [email protected]

Stanislava StungurienėLithuanian University of Educational SciencesE-mail: [email protected]

The findings of the research on the use of non-financial information for firm evaluation have revealed that Lithuanian financial analysts use non-financial information for firm evaluation with a frequency ‘often’. The research has shown that seeking to assess the firm Lithuanian financial analysts collect and use non-finan-cial information about the future opportunities for the firm, expectations about the future growth of the firm, new products launched in the next years, main brands of the firm, research and development pro-grammes, as well as realised acquisitions and innovation. It has also demonstrated that intellectual capital information was used at the lowest extent by the respondents.

having conducted multiple regression analysis of the research data, it has been determined that the use of non-financial information by Lithuanian financial analysts does not depend on the average ratio of long- and short-term debt to total assets of the firms followed by financial analysts, average standard devia-tion in daily stock returns of the firms followed by financial analysts, number of years that financial analyst performs his/her profession, or the number of firms followed by financial analysts.

The comparison of Lithuanian and Belgian research findings has highlighted that Lithuanian financial analysts use relatively more non-financial information to assess the value of the firm than their colleagues in Belgium.

Key words: non-financial information, models of the evaluation of the firm, laws of information use, multiple regression analysis.

Introduction

Relevance of the problem. Lithuania’s integra-tion into the european union has improved the country’s investment environment, as well as

promoted the attraction of foreign investments into business development of the country. Firms that want to stay on the market and attract in-vestment have to create the strategies to en-hance activity efficiency, as well as to seek for the



76 o. valauskienė, r. stankaitis, s. stungurienė. research on use of Non-financial information for Firm evaluation

growth of firm’s profitability. This necessitates for overall evaluation of the firm, the results of the economic-financial performance of its competi-tors, internal and external resources, advantages, drawbacks, as well as future prospects.

Traditional financial reports meant for the evaluation of the firm provide information about the executed operations. However, the past tendencies, for instance, globalisation, development of new technologies and busi-nesses, and transfer to knowledge economy, promote the use of non-financial information alongside with the information obtained from financial reports. The analysis of non-financial information is becoming a part of the evalu-ation models of the firm. investors, financial analysts, stakeholders and the management of the firm consistently analyse and assess the performance of the firm, as well as make deci-sions with reference to the financial informa-tion and its consistence with the non-financial information. researchers continuously explore the preconditions for and peculiarities of the manifestation of the use of non-financial infor-mation for firm evaluation. Non-financial in-formation complements the report of the firm’s evaluation, and provides additional informa-tion about consumers, the quality of products and services, employees’ job satisfaction, inter-nal processes of the firm, as well as future pros-pects, innovations, new launched products, planned purchases and others.

Noveltyoftheresearch. The topic of the use of non-financial information for the evaluation of the firm is not new; however, it does not at-tract considerable attention in scientific litera-ture. There is a lack of clearly defined practice how to use non-financial information for the evaluation of the firm. Moreover, there is a lack of standard models of the evaluation of the firm’s non-financial information.

Research problem.The number of scien-tific works on the use of non-financial infor-mation for the evaluation of the firm is not rich. No exhaustive official research on the use of non-financial information has been carried out in Lithuania. Most authors analyse the pos-sibilities of incorporating non-financial infor-mation into the analysis of firm evaluation; however, they do not define what non-financial information should be used and how it should be related to the quantitative indicators of the firm’s financial and other performance.

Theaimoftheresearchis to investigate the possibilities of the use of non-financial infor-mation to evaluate Lithuanian firms.

Theresearchobjectis the use of non-finan-cial information for the evaluation of firms by financial analysts in Lithuania.

Researchhypotheses:• H1:The use of non-financial information

by financial analysts is positively associated with the average ratio of long- and short-term debt to total assets of the firms that are followed by financial analyst.

• H2:The use of non-financial informationby financial analysts is positively associ-ated with the average standard deviation in daily stock returns of the firms followed by financial analyst.

• H3:The use of non-financial informationby financial analysts is negatively associated with the experience of the financial analyst.

• H4:The use of non-financial informationby financial analysts is associated with the number of firms they follow (evaluate). Theresearchobjectives:

1. to prepare research methodology of the use of non-financial information for firm eval-uation based on scientific research;

2. to investigate the regularities of the use of non-financial information of Lithuanian financial analysts;


77o. valauskienė, r. stankaitis, s. stungurienė. research on use of Non-financial information for Firm evaluation

3. to carry out a critical evaluation of the re-sults of Lithuanian and Belgian research. Research methods. Analysis of scientific

literature; questionnaire survey; comparative analysis.

Practicalsignificanceoftheresearch. The research conducted in Lithuania can encour-age financial analysts to use the systematised non-financial information in practice.

Preconditions for the use of non-financial information for firm evaluation

The use of non-financial information has been explored in scientific literature since 1987: Bouwman et al. (1987), eccles and Crane (1988), watts and Zimmerman (1990), Dhali-wal et al. (1991), Lang and Lundholm (1993), Bouwman et al. (1995), eccles and Mavri-nac (1995), Amir and Lev (1996), Dempsey et al. (1997), Martinkainen (1997), rogers and Grant (1997), Hayes (1998), ittner and Larcker (1998), Das et al. (1998), Amir et al. (1999), epstein and Palepu (1999), Barron et al. (1999), Banker et al. (2000), Hodgson and stevenson-Clarke (2000), Maines and McDan-iel (2000), opdyke (2000), Hong et al. (2000), Depoers (2000), Hirschey et al. (2001), Breton and Taffler (2001), elgers et al. (2001), eccles et al. (2001), ettredge et al. (2002), Maines et al. (2002), Chen et al. (2002), Amir et al. (2003), vanstraelen et al. (2003), kallapur and kwan (2004), Gul and Leung (2004), Bushee and Leuz (2005), Flostrand (2006), orens and Lybaert (2007), Garcia-Meca (2005), Garcia-Meca and Martinez (2007), Ahmed and schneible (2007), Gomes et al. (2007), Petra (2007), Hoff and wood (2008), Barker and imam (2008), skinner (2008), stark (2008) and others.

The analysis of the research conducted by the afore-said authors revealed that quantitative research was not carried out until 1990. The first consistent research, the object of which was the use of non-financial information in the activity of financial analysts, was conducted in 2010 in Belgium. The Belgian researchers orens and Ly-baert (2010) employed the recommendations of AiCPA (American institute of Certified Public Accountants, Jenkins Committee) (1994) and FAsB (Financial Accounting standards Board) (2001) to compile the questionnaire.

AiCPA (1994) recommended including non-financial information that is demanded by users alongside with the firm’s financial infor-mation into reports when making investment decisions.

in 1998 following AiCPA (1994) recom-mendations, FAsB rendered a proposal regard-ing the improvement of firms’ reports. Pursu-ing to achieve the aim, FAsB (2001) extended the list of items on non-financial information of AiCPA (1994) by a sixth category of in-formation. The category includes the data on firms’ intangible-related information. Differ-ently from AiCPA (1994), FAsB (2001) did not provide a consistent list of information items.

The current research focusing on the pos-sibilities of using non-financial information for the evaluation of firms has been conduct-ed using orens and Lybaert (2010) research methodology.

Pursuing overall evaluation, the analysis of the firm’s performance is based not only on financial, but also non-financial information. Financial reports are correct and accurately reflect the performance of the firm (Batrancea et al., 2008; Bagdžiūnienė, 2011). However, the conducted research shows that financial evalu-ation of the firm is not as exhaustive as it could


78 O. Valauskienė, R. Stankaitis, S. Stungurienė. Research on Use of Non-financial Information for Firm Evaluation

be used to evaluate all the functions, resources, factors of the internal environment of the firm, etc. Mere evaluation of financial reports cannot help to make efficient decisions on the man-agement and success of the firm’s performance (Leitonienė and Šapkauskienė, 2004). Financial reports do not reflect the intellectual resources of the firm and their potential. According to a number of authors, it is the initiative, creativity and other characteristics of the firm’s manage-ment and staff that determine its successful per-formance (erhardt et al., 2003; Peel et al., 1986; knight et al., 1999). Non-financial information complements financial information, as well as defines the real situation of the firm more con-sistently. some authors relate non-financial in-dicators of customer satisfaction, employee sat-isfaction, internal organisational processes and innovations to the indicators of the future finan-cial success of the firm (Malgharni et al., 2011). recently, a holistic approach has been increas-ingly employed in the evaluation of the firm that is based financial and non-financial indicators. Curtright et al. (1999) propose a complex model of the firm’s performance, in which financial in-formation is complemented by groups of non-financial information. Non-financial informa-tion about corporate social responsibility forms its reputation (Agrawal, 2012) and is a signifi-cant constituent part of a complex model of a firm’s evaluation.

Another evaluation model, the Bal-anced scorecard (kaplan and Norton, 1996; vidickienė, 2004), is frequently found in scien-tific literature. The authors of this model, kaplan and Norton (1996), acknowledge the signifi-cance of non-financial indicators. According to the authors, it is impossible to define the aims and general outcome of the firm’s performance without financial indicators. However, we as-

sume that the traditional evaluation based solely on financial indicators is insufficient. The model of the Balanced scorecard comprises both fi-nancial and non-financial indicators. Financial indicators are used to evaluate business perfor-mance results in money; whereas, non-financial indicators help to evaluate customer satisfac-tion, internal processes, innovations and re-search activity (kaplan and Norton, 1996).

The Balanced scorecard’s indicators are connected by causative-consecutive relations with each other. This helps to see how the im-provement of one indicator affects the other, and how non-financial indicators are trans-formed into financial. some authors (Neely et al., 2002; Malgarni et al., 2011) maintain that the enhancement of customer satisfaction in-dicator affects the profitability of the firm.

it is noteworthy that the use of non-finan-cial information is especially needed for the firm to evaluate its future performance pros-pects. Therefore, the use of non-financial in-formation is the object of the research of many authors (Chen et al., 2002; Amir et al., 2003; vanstraelen et al., 2003; kallapur and kwan, 2004; Gul and Leung, 2004; Bushee and Leuz (2005); Flostrand (2006); orens and Lybaert (2007); Garcia-Meca (2005); Garcia-Meca and Martinez (2007); Ahmed and schneible (2007); Gomes et al. (2007); Petra (2007); Hoff and wood (2008); Barker and imam (2008); skinner (2008); stark (2008) and others).

Nevertheless, as it was mentioned, a num-ber of authors do not define the concept of non-financial information, but rather provide mere examples of non-financial information to evaluate the firm (said et al., 2003; Juntilla et al., 2005).

in its special report to the FAsB (Financial Accounting standards Board) on business and


79O. Valauskienė, R. Stankaitis, S. Stungurienė. Research on Use of Non-financial Information for Firm Evaluation

financial reporting defined the non-financial in-formation as follows: “non-financial disclosures and metrics include index scores, ratios, counts and other information not presented in the ba-sic financial statements”. A lot of authors apply the same definition in scientific literature (robb et al., 2001, Amir et al., 2003, Flöstrand, 2006). other authors (Amir and Lev, 1996) maintain that non-financial information is “non-account-ing information”, whereas Barker and imam (2008) claim that non-accounting information is all the information drawn from outside the financial statements.

A lot of authors acknowledge that efficient flow of information between capital market participants, such as firms, investors or finan-cial analysts, is very important (Barker, 1998; Holland and Johanson, 2003). Timely, quality and relevant information about the firm en-sures efficient functioning of capital markets.

schipper (1991) states that the primary us-ers of corporate information are financial ana-lysts. As it has been established by the previous research, investors rely on financial analysts’ earnings forecasts, their recommendations and provided information (Hirst et al, 1995; Ackert et al., 1996; womack, 1996). it has been noted that seeking to establish firm value, financial analysts and investors started to rely on the information beyond the financial statements (Amir and Lev, 1996; ittner and Larcker, 1998; Lev and Zarowin, 1999; Graham et al, 2002; Li-ang and Yao, 2005); whereas according to some authors, the usefulness of financial statement has considerably decreased in the eyes of in-vestors over the past few decades.

Different authors have analysed the use of non-financial information to evaluate firms employing historical data (Table 1).

The first group of authors identify what in-formation is used to forecast future earnings or

the market value of the firm. The results of the research conducted by Amir and Lev (1996) reveal that the share prices are related to such non-financial information as “Population in a service area” and “Market penetration”. Hir-schey et al. (2001) maintain that non-financial information about the types of the firm’s actual patents influences the prices of its stocks. Ac-cording to Banker et al. (2000), non-financial information about customer satisfaction is connected to the future financial performance. His opinion coincides with the one of ittner and Larcker (1998). The results of the research conducted by the afore-said authors demon-strate that non-financial information about customer satisfaction is linked to the future results of the firm’s financial performance; yet it has no effect on market returns. The data of the research conducted by kallapur and kwan (2004) reveal that non-financial information as “a well-known (recognised) brands” has an ef-fect on the firm’s value.

The second group of authors explore if the use of non-financial information has an impact on the earnings estimates of financial analysts. vanstraelen et al. (2003) has determined a posi-tive relationship between the accuracy of the forecast of earnings of financial analysts and the analysed firm’s forward-looking information. This confirms the research findings obtained by other scientists that non-financial informa-tion provided by the firm’s management helps financial analysts to better forecast its earnings (Barron et al., 1999). opdyke (2000) assumes that considerable attention of financial analysts to financial data does not yield more accurate earnings forecasts. orens and Lybaert (2007) maintain that the use of non-financial forward-looking information, as well as the information about innovations, scientific research and devel-opment helps financial analysts to avoid errors



in evaluating the future earnings of the firm. This idea is also confirmed by the findings of epstein and Palepu (1999), as well as eccles et al. (2001). They claim that financial statements do not suffice satisfaction of financial analysts’ demands for information.

The third group of authors explore the con-tent of the reports provided by financial ana-lysts. The findings of the research conducted by rogers and Grant (1997), Breton and Taf-fler (2001), García-Meca (2005), Flöstrand (2006), García-Meca and Martinez (2007), as well as orens and Lybaert (2007) demonstrate that non-financial information constitutes a substantial part of the reports of financial ana-lysts. The analysis of the findings obtained by Flöstrand (2006) reveals that the reports of fi-nancial analysts that focus on the companies in the pharmaceutical industry and the telecom-munications industry contain more informa-

tion on the intellectual capital in comparison to the ones focusing on energy companies. By contrast, Barker and imam (2008) claim that the firm’s belonging to a particular industry has no impact on the proportion of financial and non-financial information employed in the re-ports of financial analysts.

García-Meca and Martinez (2007) note that the amount of non-financial information in the reports of financial analysts is increasing due to the increasing profitability and growth opportunities of the firm. According to Bou-wman et al. (1995), financial analysts collect non-financial information so that they can bet-ter understand the reports of the firm and note unusual facts that determine its profitability and other financial indicators.

The findings of Dempsey et al. (1997) dem-onstrate that financial analysts frequently use the data on non-financial performance to eval-

TaBLE 1. Trends of the research on the use of non-financial information (according to authors)

source: compiled by the authors

Group of research Authors Trend of research

Group i

Amir and Lev (1996)Hirschey et al. (2001)Banker et al. (2000)ittner and Larcker (1998)kallapur and kwan (2004)

The research defined what kind of non-financial information ffects the forecast of future earnings and estimation of the market value of the firm

Group ii

Barron et al. (1999)vanstraelen et al. (2003) opdyke (2000)orens and Lybaert (2007)epstein and Palepu (1999)eccles et al. (2001)

The reseach explored what kind of non-financial information affects the quality of the evaluation of the firm’s yield accomplished by financial analysts

Group iii

rogers and Grant (1997)Breton and Taffler (2001) Garcia-Meca (2005)Flostrand (2006)Garcia-Meca and Martinez (2007)Flostrand (2006) orens ir Lybaert (2007)Barker ir imam (2008)Bouwman et al. (1995)Dempsey et al. (1997)

The reseach investigated what kind of non-financial information financial analysts employ in their reports and to what extent



uate the firm. orens and Lybaert (2010) deter-mine that Belgian financial analysts most of-ten employ forward-looking and background information to evaluate the firm; whereas the non-financial information about the manage-ment and shareholders, as well as intellectual capital information is used rather rarely.

There exists a different opinion among scientists: Bart and Clinch (1998), as well as kallapur and kwan (2004) maintain that the information about intellectual capital is useful for the evaluation of the firm.

The majority of the authors of previously published articles state that the models of dis-criminant analysis, which identify the depend-ence between a possible bankruptcy and finan-cial indicators of the firm, are not sufficient to determine the factors of the insolvency risks of the firm (Altman, 2000; Fulmer et al., 1984; Taffler and Tisshaw, 1977; springate, 1978; Za-vgren, 1985).

The analysis of the factors of insolvency risks should be complemented by non-financial qual-itative and quantitative data. resti and omacini (2001) state that the evaluation of a debtor’s in-solvency relying merely on the financial quanti-tative data is overweighed; therefore, the factors of the model of insolvency forecast should be grouped into quantitative and qualitative.

Grunert et al. (2005) also maintains that the analysis of a debtor’s insolvency should in-volve other data, since qualitative invariables enhance the possibilities of fair classification of firms into solvent and insolvent.

when evaluating insolvency risk of the firm, one of most frequently used financial indicators is its age, i.e. the duration of its ac-tive performance from the establishment to the current moment (Bardos, 1998; shumway, 2001). some authors maintain that the longer

the firm exists, the lower the possibility of its insolvency (Bernhardsen, 2001; Lennox, 1999; kaiser, 2001). Makridakis (1991), on the con-trary, states that the longevity of the firm cre-ates preconditions for its failure.

Following the first approach to the firm’s insolvency, it is assumed that in the initial peri-od, which covers the first eight years of perfor-mance, there is some uncertainty regarding the factual costs of production or services. The firm intensively struggles for a market share, and shapes its competitive advantages; the func-tional organisational structure is not well-es-tablished; as well as the managerial skills might be insufficient. Despite that the firm might undergo intensive growth in the first years of its activity, the business is at the risk stage, and the firm can become insolvent due to its un-regulated performance, or it can terminate its performance and go bankrupt (Berndarhsen, 2001). Hence, the risk of insolvency increases in the period of intensive growth. The firm of average age is characterised by a stable risk of insolvency; the older the firm, the smaller the possibility of its insolvency (Lennox, 1999; kaiser, 2001).

The supporters of the opposing opinion claim that a firm can “grow old and die” as a liv-ing organism in nature. The preconditions for the firm’s ageing and disappearance are created by the ageing management of the firm owners and top managers that have been working in the same firm for a number of years. For this reason, they are becoming more bureaucratic and conservative; thus, “organisational arte-riosclerosis” is manifested (Makridakis, 1991). Moreover, after the successful establishment and growth of the business, extensive interest in innovations at any cost and time, i.e. when these innovations are not economically lively,



as well as the firm’s striving to occupy the big-gest possible market share and become market leaders create preconditions for its bankrupt-cy. it is noteworthy that in such industries as information technologies, financial services, Nano technologies and others the tendencies and forms of firm ageing considerably differ from the traditional branches of economy.

one of the significant non-financial indica-tors of the evaluation of insolvency risks is the dimension of market share (Bardos, 1998). The greater the market share of the firm, the higher the sales and the more stable the firm itself. it is difficult to judge about the firm’s profitability from its market share, though. it depends on what type of products or services the firm sells and other factors.

Forecasting the firm’s insolvency, some au-thors refer to additional non-financial indicators that are related to the managing staff (Peel et al., 1986). The research reveals that the indicator of the number of the resignations and appointment of directors is greater in insolvent companies. However, as the authors of the research claim, the resignations and appointments of directors can occur due to a number of reasons, the ma-jority of which cannot be related to the vitality of the firm. Having assessed the afore-said ar-guments, the indicator of management turnover can be employed with regard to the significance of this indicator; for example, the indicator can be included into the analysis of risk factors in case the turnover of management staff involves the resignation and appointment of two or more managers per year.

erhardt et al. (2003) investigate the finan-cial capacity in terms of the diversity of man-agement. The diversity is determined by two demographic factors: gender and age differ-ences. According to the authors of the study,

the diversity of managers provides a competi-tive advantage for the firm, as such a team of managers is characterised by a greater amount of knowledge, creativity and novelty. Having explored two financial indicators, namely the relationship between the turnover of assets and investments and the diversity of managers, a positive correlation has been determined. Therefore, it is assumed that a greater diversity of managers determines better performance results of the firm. Nevertheless, such an ap-proach is criticised, as two financial indicators are not sufficient to evaluate the success of the firm’s performance. knight et al. (1999) claim that the management team of different gen-der members make decisions slowly and with more difficulty, as well as are not able to react quickly to the actions of competitors. There-fore, it is not possible to state that the diversity of management competences determines suc-cessful performance of the firm. Nevertheless, the diversity of the opinions, competences and characters of managers can contribute to the creative and successful decision-making.

According to Pike and Cheng (2001), an important indicator of non-financial evalua-tion of a debtor is frequency of contracts. The authors have determined that more frequent contracts between the seller and customer de-termine the credibility of the firm’s partner. However, it is assumed that such an approach is too narrow, as the frequency of contracts does not reveal the business tendencies in the future. Another author claims that in order to evaluate customer credibility non-financial data on payment timeliness should be consid-ered, i.e. the importance of observing the terms of payment is highlighted (wilson et al., 2000.).

Collection of non-financial information and its employment for the evaluation of firms



are related to various risks, such as: the risk of information supply, the risk of processes, the risk of regulation, as well as the risk of relating a few sources.

The risk of information supply is related to the difficulties of obtaining the necessary information. The risk of processes is caused by the inconsistencies or errors in documents and reports. The risk of regulation occurs due to the complex interpretation of non-financial information. The risk of relating a few sources may occur if the data provided by different subdivisions of the firm is inconsistent.

Despite the risks, non-financial informa-tion is significant in the evaluation of firms. summing up, it is possible to state that non-financial information has an impact on the market value of the firm, forecasting of its fu-ture earnings, evaluation of the factors of in-solvency risk and better understanding of the performance of the firm.

Principles of Non-financial Information Classification

Non-financial information is widely used for the evaluation of firms; however, such infor-mation is difficult to standardise. The difficul-ties are related to the peculiarities of the firm and industry, as well as the cost of obtaining information. skinner (2008) and stark (2008) note that the collection of non-financial in-formation is related to the risk of receiving uninformative data about the firm. Moreover, a great amount of non-financial information indicators are specially developed and applied for a specific firm or branch seeking to comply with its specific features.

one of the opinions provided in scientific literature is that voluntary disclosure of non-

financial information improves the efficiency of capital market functioning (skinner, 2008). eccles and Mavrinac (1995) have conducted a survey of financial analysts, corporate manag-ers and investors, and have established that the respondents do not approve of the standardised requirements for non-financial information. Following the data of the research conducted by Bushee and Leuz (2005); Ahmed and sch-neible (2007); Gomes et al. (2007), it turns out that the managers of small listed firms confirm that they would experience losses if the require-ments were changed and the provision of non-financial information became compulsory. Ac-cording to the afore-said authors, small listed firms would be short of financial resources to provide non-financial information. Currently, firms are offered to provide non-financial in-formation on a voluntary basis.

The Jenkins Committee of the American institute of Certified Public Accountants has drawn a conclusion that users cannot assess the firm traditionally relying on the traditional financial statement information. in its report, the Committee proposes a model of the busi-ness report, which includes non-financial in-formation the firm could publicise on the vol-untary basis (AiCPA, 1994).

FAsB (Financial Accounting standards Board) has extended the afore-said model of the reports on non-financial information. it has included intangible-related information.

Grouping of the items dealing with non-financial information helps to evaluate firms more consistently and objectively. Following AiCPA (1994) and FAsB (2001) recommenda-tions, items providing non-financial informa-tion on the voluntary basis are divided into the categories of non-financial information, which are further subdivided into groups (Fig.



1). The recommended items on non-financial information are meant for the analysis of the performance, internal processes and prospects of the firm. The abundance of items on non-fi-nancial information allows analysing the back-ground information about the firm, its broad objectives and strategy, scope and description of business and properties, future opportuni-ties for the firm, as well as the management’s

analysis of reasons for changes in the financial, operating and performance-related data. Be-sides, it is possible to analyse the information about management and shareholders of the firm, the structure of its intellectual capital, amount of investment into human resources, implementation of innovations, patents and a number of other items that have an impact on its evaluation.

FIG. 1. Categories and groups of non-financial information items

source: compiled by the authors with reference to: orens and Lybaert, 2010.

Broad objectives and strategy

Scope and description of business and properties

Impact of industry structure on the firm

reasons for changes in the financial, operating and

performance related data

The identity and past effect of key

human capital

Internal intellectual capital

External intellectual capital

Background information about the firm

Forward-looking information

Management’s analysis of financial and non-financial

data

Information on management and

shareholders

Intellectual capital information

BI

FWL

aNa

MaN

Ic

caT

EGO

rIES

OF

NO

N-F

INa

NcI

aL

INFO

rMaT

ION



The non-financial information category “Background information about the firm” (BI) consists of three groups.

The analysis of the items on non-financial information comprised in the group “Broad objectives and strategy” helps to evaluate the main goals and strategies of the firm, as well as their compatibility or incompatibility with the main tendencies affecting the business.

The analysis of the data provided in the groups of non-financial information “scope and description of business and properties” helps to define the business branch, performance and other data of the firm that are used to evaluate firms. it is proposed to divide the non-financial information of this group into the following subgroups: industry in which the business par-ticipates; general development of the business; principal products and services; principal mar-kets and market segments; principal processes used to make and render principal products and services; seasonality and cyclicality of the firm; existing laws that have an influence on the busi-ness; macroeconomic activity; major contractu-al relationships with customers and suppliers; as well as location and productive capacity of the firm’s principal plants.

The use of these items of non-financial information highlights the features of the in-dustry in which the business participates, as well as provides additional information about the products and services of the firm, and its market shares and market segments. The com-parative analysis of the obtained results enables evaluating the firm’s performance compared to its competitors.

information about the types of production and services, their amounts, specifics, quality and innovation is related to the sales and earn-ings of the firm.

The use of the information on the principal markets and market segments helps to clear out the firm’s market share, market segments, niches as well as the possibilities of taking over new market segments. The analysis of this kind of information is related to the analysis of the data of the firm’s competitors. For a more consistent evaluation of the firm, it is recom-mended to conduct a comparative analysis of principal market shares and its segments of the competitors.

The use of the data on principal processes used to make and render principal products and services, on the demand for the produc-tion, as well as on the seasonality and cyclical-ity of the firm help to analyse and evaluate the cash flows of the firm more consistently and to forecast them more accurately.

The accomplishment of the analysis of the group “impact of industry structure on the firm” helps to evaluate the continuously chang-ing impact of competition on the firm and its competitive position. To conduct a more con-sistent evaluation, it is recommended to em-ploy the non-financial information of the fol-lowing subgroups: major suppliers of a firm, availability or scarcity of supply of products or services, relative bargaining power of suppliers, dominant customers of the firm, extent that the business is dispersed among its customers, relative bargaining power of customers, major competitors of a firm, intensity of the competi-tion, competitive position, as well as the ability of new firms to enter the business.

in the contemporary conditions of global competition, the managers and analysts of firms largely focus on the non-financial infor-mation of this category. Non-financial infor-mation about the major customers of a firm, as well as major and alternative suppliers of the



firm helps to evaluate the competition capac-ity of the firm. Consistent use of the afore-said items determines objective evaluation of the competitive position and longevity of the firm.

The data of the category “Forward-looking information” (FWL) can be grouped in relation to the future and prospects of the performance of the firm. Analysis of the non-financial infor-mation of this category defines future risks and opportunities of the firm. The following non-financial information is used for a more precise evaluation: future risks for the firm; future op-portunities for the firm; effects of the risks and opportunities on the business’s future earnings and future cash flows; activities and plans to meet the broad objectives and business strate-gy; conditions that must occur within the busi-ness that management believes must be pre-sent to meet the broad objectives and business strategy; conditions that must occur in the ex-ternal environment that management believes must be present to meet the broad objectives and business strategy; comparison of actual business performance to previously disclosed opportunities, risks and plans of the firm; new products launched in the next years; expecta-tions about the future growth of the firm; evo-lution of future macro-economic indicators (e.g. economic climate, exchange rates) and the effect on the firm; as well as future production capacity of the firm.

The analysis of all the non-financial data of category FWL helps the existing or future investors, analysts and firm management to evaluate the future risks of the firm, expecta-tions of its future growth and to make an opti-mal decision.

The data of the risks and opportunities of the firm are frequently employed for the swoT analysis. The ro component (risks/opportu-

nities) influences the future cash flows. if the firm makes timely use of its opportunities, the impact on the cash flows will be positive. if the firm does not evaluate the risks, they can have a highly negative effect.

information about the business strategy of the firm reveals the strategies of marketing, acquisition of competitive position, innovation and resources of the firm.

The conditions that must occur in the ex-ternal environment that management believes must be present to meet the broad objectives and business strategy involve analysis of the market, analysis of the macro-environments, customer analysis and analysis of the competi-tors.

The data on the new products launched in the next years depends on the time of product existence. This information is important for the evaluation of the firms that deal in short-term products (e.g. information technologies, service industry).

Non-financial information about the future production capacity of the firm helps to evalu-ate if the firm is able to efficiently manage the springs of production demand, and check if the firm performs at its full capacity. if the produc-tion capacity is inefficient, a risk to lose a part of customers arises.

The category “Management’s analysis of fi-nancial and non-financial data” (ANA) of non-financial information consists of two groups. The group “reasons for changes in financial, operating and performance-related data” re-veals the results of the management’s analysis of the internal evaluation of the firm effects, i.e. the financial indicators of the firm (such as the volume of units sold or revenues; innovations; profitability; long-term financial position; short-term liquidity and financial flexibility).



The management of the firm seeks to evalu-ate the reasons of the changes in these indica-tors. A consistent analysis of the changes of innovations determines the management of innovation strategies. The indicator of the vol-ume of the units sold is related to the produc-tion, turnover, revenue and the profit of the firm. Non-financial information of this kind is beneficial to everyone who evaluates the per-formance of the firm: its employees, analysts and investors. This group also includes a non-financial information item about the unusual or nonrecurring events of the firm.

The data of the group “The identity and past effect of key trends” helps to highlight what trends have an effect on the performance of the firm in the period of its existence for the firm management. The following trends are distinguished in the group: social, demograph-ic, political, macro-economic and regulatory.

Political and economic crises, demograph-ic recession as well as political upheavals can have a negative effect on the performance of the firm, and occasionally cause its failure. De-mographic and social trends, such as ageing society, distribution of the labour force caused by emigration and immigration, new taxes or their reduction, as well as changes in laws, can have a considerable effect on the performance of the firm.

The data of non-financial information cat-egory “information about management and shareholders” (MAN) are constantly analysed by financial analysts and investors. Theese non-financial information items help to fa-miliarise with the structure and management of the firm: directors and executive manage-ment; major shareholder(s) of the firm’s stock; number of shares owned by the directors, managers or employees; director and executive

management compensation; transactions and relationships among stakeholders and the firm; disagreement with directors, auditors, bankers not associated with the firm. information of this category is specific, transparent and eas-ily analysable. The analysis of transactions and relationships among stakeholders and the firm helps to better understand the activity of stake-holders and their influence on the firm.

The non-financial information category “intellectual capital information” (IC) is a cat-egory, whose items on the intellectual capital and its influence on the performance of the firm are extensively analysed. This information is related to the quality of products, services and goods. Modern firms strive to efficiently use the information of this category.

The items of the non-financial information of IC category are divided into the following groups: human capital, internal structure and external structure.

The analysis of the data of non-financial in-formation group “Human capital” demonstrate that the firm invests into human resources and attempts to satisfy their needs. Human capital is the principal resource of the firm. evaluating the non-financial information of this group, it is recommended to analyse the following data: compensation of employees; education and training programmes of employees; level of ex-pertise of the employees; staff policy; job rota-tion; employee satisfaction; as well as quality of the management.

employees of high expertise, efficient staff policy, and employee satisfaction positively affect the evaluation of the firm. in scientific literature, the information on employee satis-faction is defined as “favourable and positive environment related to the evaluation of an employee” (Locke, 1976). The employee, whose



level of satisfaction is low, has a negative effect on the productivity of the firm and the qual-ity of services, which affects the changes in the financial indicators of the firm.

The non-financial information group “in-ternal structure” comprises the data on in-novation (e.g. new products, new production processes); important patents, trademarks or licenses; research and development pro-grammes; quality of the products or services; organisation structure; technological know how; as well as time required to perform activi-ties such as production, delivery of products, development of new products.

The use of new scientific and technical knowledge causes the development of innova-tions. Firms seek to implement innovations. New products are created and produced to satisfy consumer needs. Technological innova-tions are applied in different areas of activity. New work places are established, as well as old production and technology lines are reorgan-ised. There is an opinion that the development of innovations and novelties stimulates the market. it is an efficient means to overcome the consequences of the decline of the economic development cycle. Non-financial information about the firm’s productivity, patents and tech-nological know how is constantly employed in the evaluation of firms. knowledge manage-ment is significant as it ensures the retention of the created knowledge and its efficient use in firms.

The analysis of the non-financial data of “external structure” is important in identify-ing the competition capacity and advantage of the firm on the market. The following main items of non-financial information are distin-guished: evolution in the market share; main brands of the firm; customer satisfaction or

customer loyalty; realised acquisitions; as well as distribution and delivery methods.

Customer satisfaction is the main factor determined by long-term behaviour of the customer (oliver, 1980). Šapkauskienė and Leitonienė (2009) recommend to include non-financial information on timely fulfilment of deliveries, the time of order fulfilment, the time of provided responds to inquiries, the number of dissatisfied customers, the volume of faulty production, accuracy of documenta-tion, as well as the data on order reliability into the groups of customer satisfaction.

The development of latest technologies, in-creasing competition and initiatives of perfor-mance quality stimulate the growing demands of competing firms to publish non-financial data.

Currently, there is no unanimous opinion regarding what data or indicators of non-fi-nancial information should be evaluated, what criteria should be applied, what is the benefit for the firm, or what impact it has on the firm development and opportunities to improve its performance. The items of all the five catego-ries can be used to evaluate the firm in terms of the demand for information.

The research methodology for use of non-financial information for firm’s evaluation

The sample of the present research includes fi-nancial analysts in Lithuania. on the basis of the data of 2014 provided by Association of Fi-nancial Analysts (Lithuania) (FAA), the num-ber of financial analysts in Lithuania is equal to 91. The size of the sample of general popula-tions (N) should equal: N = 91. However, the preliminary survey (applying the method of interview) revealed that it is complicated to



identify an exact number of financial analysts because their activity functions are not specifi-cally defined.

The non-financial information items in-cluded into the questionnaire were chosen from the documents of AiCPA (1994) and FAsB (2001) and comply with the presented recommendations. The authors rogers and Grant (1997), robb et al. (2001) and vanstrael-en et al. (2003) also used the recommendations to design their own non-financial informa-tion disclosure index. According to the afore-

said authors, use of non-financial information helps financial analysts more accurately evalu-ate activity results of firms.

The items of financial and non-financial information in the questionnaire of the survey were chosen following the analysis of the em-pirical research and for testing of the hypoth-eses formulated by orens and Lybaert (2010). The items of non-financial information volun-tarily disclosed by companies are classified into five categories according to groups and items (Table 2).

TaBLE 2. The structure of the survey questionnaire of non-financial information

source: compiled by the authors following orens and Lybaert, 2010.

Non-financial information

category‘s number

Non-financial information category

Non-financial information category‘s group

Number of non-financial information

items

1Category ANA: Management‘s analysis of financial and non-

financial data

reasons for changes in the financial, operating and performance-related data

6

The identity and past effect of key trends 5

2Category FwL: Forward-

looking information11

3Category MAN: information

about management and shareholders

6

4Category Bi: Background

information about the firm

Broad objectives and strategy 3

scope and description of business and properties

10

impact of industry structure on the firm 10

5Category iC: intellectual capital

information

Human capital 7

internal structure 8

external structure 5



The following indicators were addition-ally calculated during the research: the average ratio of long- and short-term debt to total as-sets of the firms followed by financial analysts; the average standard deviation in daily stock returns of the firms followed by financial ana-lysts; the number of years that a financial ana-lyst performs his/her profession and the num-ber of firms followed by a financial analyst. in the survey each financial analyst was asked to indicate frequency of use of non-financial information on a five-point Likert scale. The scores in the questionnaire form were arranged as follows: 4 = always used; 3 = often used; 2 = sometimes used; 1 = rarely used and 0 = never used. A higher score suggests a higher use of non-financial information.

The following multivariate regression model associates financial analysts’ use of non-finan-cial information to the independent variables:

useij = β0+β1 Levi + β2 sDri+β3 exPi + + β4 NCoMi+ε,

with:useij – average use of non-financial in-formation by financial analysts i from the information category j, with j representing the average use of all 71 non-financial in-formation items (TOT) and the average use of all the five components of non-financial information, i.e. the categories ANA, FWL, MAN, BI and IC.Levi – average ratio of long- and short-term debt to total assets of the firms fol-lowed by financial analysts i; sDri – average standard deviation in daily stock returns of the firms followed by fi-nancial analysts i;exPi – number of years that a financial an-alyst i performs his/her profession;

NCoMi – number of firms followed by fi-nancial analysts i;ε – error term.The data used for calculation of independ-

ent variables were obtained from the following sources: a questionnaire survey, an interview, the publicly announced annual reports of com-panies’ activities of 2013, the trading data, stat-stics and history of Nasdaq oMx vilnius stock exchange of 2013.

The results of the research on use of non-financial information for firms’ evaluation

Following the methodology of the research 21 respondents were surveyed. Processing the data of non-financial information question-naires the main descriptive statistical indica-tors were calculated to establish the frequency of use of all the items of non-financial informa-tion (usei,ToT) (Table 3.)

TaBLE 3. The descriptive statistical data on use of non-financial information items for firms’ eva-luation

Non-financial information

items

Descriptive statistics

MeanMini- mum

Maxi- mum

Stan- dard

deviation71 non-financial information items(usei, ToT)

2,98 2,57 3,43 0,18


Having processed the survey data, it can be stated that the mean scores of all the questions (usei,ToT) tend to fluctuate around 3. This suggests that the Lithuanian financial analysts “often” (2.98) use all the items of non-financial information for firm’s evaluation. The mini-



mum score of the responses of financial ana-lysts equals 2.59, whereas the maximum one is 3.41. The standard deviation of the responses to all the questions (0.17) refers to a slight vari-ation in answers.

The detailed analysis of the frequency of using all the non-financial information items reveals that three items are used “always” (the mean frequency of 4) by financial analysts: “reasons identified by the management for changes in the volume of units sold or in reve-nues”, “reasons identified by the management for changes in profitability” and “expectations about the future growth of the firm”. Financial analysts “often” evaluate innovations in a firm (3.43), research and development programmes

(3.33). The respondents least frequently (be-tween “sometimes” and “rarely”) use informa-tion on social and demographic trends and the past effect of them on the firm as well as on edu-cation and training programmes of employees.

The mean scores on use of the categories ANA, FWL. MAN, BI and IC of non-finan-cial information vary from 2.70 to 3.59. The processing of the results disclosed that the respondents most frequently (3.59) employ forward-looking information about the firm (usei,FwL). The lowest mean score (2.70) was in regard to intellectual capital information. The respondents tend to employ it less often (Table 4):

Table 4 . The main indicators of descriptive statistics of use of non-financial information items for firms’ evaluation

Non-financial information categoriesDescriptive statistics

Mean Minimum Maximum Standard deviation

1. Management‘s analysis of financial and non-financial data (usei,ANA)

2,82 2,36 3,27 0,26

2. Forward-looking information (usei,FWL) 3,59 3,18 4,00 0,25

3. information about management and shareholders (usei,MAN) ,86 1,67 3,83 0,59

4. Background information about the firm (usei,BI) 3,04 2,52 3,96 0,28

5. intellectual capital information (use i,iC) 2,70 2,20 3,05 0,19


During the research it was established that financial analysts frequently employ non-fi-nancial information from the category “Man-agement’s analysis of financial and non-finan-cial data” (ANA), which consists of 11 items of non-financial information. The mean score of use of information items from the afore-said category fluctuates at around 3 (almost “often”). The standard deviation value (0.26)

shows a small dispersion of the responses around the mean score.

A more detailed analysis of use of separate non-information items of the category ANA shows that financial analysts “always” (4) use information on reasons identified by the management for changes in profitability and for changes in the volume of units sold or in revenues (Fig. 2).



The non-financial information item “regulatory trends and the past effect of them on the firm” is used often (3) and the item “unu-sual or nonrecurring events and the effect of them on the firm” is employed quite “often” (2.90).

FIG. 2. The mean scores on use of non-financial information items from the category “Management’s ana-lysis of financial and non-financial data” (ANA)


Item of non-financial information Ranking scale

FIG. 3. The mean scores on use of non-financial information items from the category “Management’s ana-lysis of financial and non-financial data“.


unusual or nonrecurring events and the effect of them on the firm

reasons identified by the management for changes in the short-term liquidity and financial flexibility

reasons identified by the management for changes in the long-term financial position

reasons identified by the management for changes in profitability

reasons identified by the management for changes in innovation

reasons identified by the management for changes in the volume of units sold or in revenues

regulatory trends and the past effect of them on the firm

Macro-economic trends and the past effect of them on the firm

Political trends and the past effect of them on the firm

Demographic trends and the past effect of them on the firm

social trends and the past effect of them on the firm


The information on social and demograph-ic trends and the past effect of them on the firm is used least often in the category under dis-cussion. The mean scores of both social (1.48) and demographic (1.43) information use vary between “rarely” and “sometimes” (Fig. 3).



The mean score of use of non-financial in-formation in the category “Forward-looking information” (FWL) for evaluation of firms is the highest (3.59). such interpretation of the aforesaid indicator allows to conclude that the respondents use non-financial information ascribed to this category more often for the

firm’s evaluation compared to non-financial information items from other categories. The standard deviation of 0.25 refers to a narrow variation in responses. All the respondents “often“ or “always“ use the information in the category FwL, which consists of 11 items of non-financial information (Fig. 4 ).

Future production capacity of the firm

evolution of future macro-economic indicators (e.g. economic climate, exchange rates) and the effect on ....

expectations about the future growth of the firm

New products launched next year

Comparison of actual business performance to previously disclosed opportunities, risks and plans of the firm

Conditions that must occur in the external environment that management believes must be present to meet .....

Conditions that must occur within the business that management believes must be present to meet ....

Activities and plans to meet the broad objectives and business strategy

effects of the risks and opportunities on the business‘s future earnings and future cash flows

Future opportunities for the firm

Future risks for the firm


FIG. 4. The mean scores on use of non-financial information items in the category “Forward-looking infor-mation” (FWL)


The analysis of the presented responses re-veals that the frequency of use of information in this category fluctuates between the values of 3 and 4. The item “expectations about the future growth of the firm” has the highest aver-

age score (4) of all. This item is “always” used by financial analysts to evaluate firms. The mean scores of the non-financial information items “Comparison of actual business perfor-mance to previously disclosed opportunities,



FIG. 5. The mean scores on use of non-financial information items in the category “Information about ma-nagement and shareholders” (MAN)


risks and plans of the firm” and “New products launched in the next years” equal 3.76. such re-sults evidence a very high intensity of using the afore-said non-financial information (almost “always”).

The non-financial information item of evo-lution of future macro-economic indicators and its effect on the firm was used least fre-quently in this category with the mean score of 3.24 (between “often” and “always”).

The category “Non-financial information about management and shareholders” (MAN) consists of 6 items. The mean score of frequency of using information ranges from 2 to 3 (2.86). The standard deviation in this category is high-est (0.56) compared to all the other categories. This can be explained by a significant difference between the lowest value 1.67 and the highest value 3.83 in this category (Figure 5).


Disagreement with directors, auditors, bankers (not associated with the firm)

Transactions and relationships among stakeholders and the firm

Director and executive management compensation

Number of shares owned by the directors, managers or employees

Major shareholder(s) of the firm‘s stock

Directors and executive management

The analysis of the respondents’ answers dis-closes that financial analysts use information on directors and executive management for the firm’s evaluation most frequently (3.24). information of the major shareholder(s) of the firm’s stock is also employed with a frequency between “often” and “always” (3.19). other mean scores of using information from this category vary between the values of 2 and 3. Theese non-financial in-formation items are used less often (between “sometimes” and “often”).

Following the data of the research, it can be stated that 23 items of non-financial informa-tion in the category “Background information about the firm” (BI) are frequently used (3.04) by financial analysts. The average values of the respondents’ answers vary between the values of 3 and 4 (between “often” and “always”). such results are lower than the mean scores of the most frequently used category “Forward-look-ing information” (FWL) but higher compared to those of non-financial information catego-



ries ANA, MAN and IC. The standard devia-tion of 0.28 refers to a narrow variation in re-sponses (Figure 6).

The research allows to conclude that finan-cial analysts most frequently (almost “always“) employ non-financial information related to

FIG. 6. The mean scores on use of non-financial information items in the category “Background information about the firm” (BI)


Ability of new firms to enter the business

Competitive position

intensity of the competition

Major competitors of a firm

relative bargaining power of customers

extent that the business is dispersed among ....

Dominant customers of the firm

relative bargaining power of suppliers

Availability/scarcity of supply of products or ....

Major suppliers of a firm

Location/productive capacity of the firm‘s ...plants

Major contractual relationships with customers...

Macroeconomic activity

existing laws that have an influence ....

seasonality and cyclicality of the firm

Processes used to make .... principal products ....

Principal markets and market segments

Principal products and services

General development of the business

industry in which the business participates

Consistency/ inconsistency of the strategy .......

Broad strategies of the firm

Broad objectives of the firm


broad strategies of the firm (the mean score 3.81), which belongs to the category BI.

information about relative bargaining pow-er of suppliers is most rarely used (between “rarely” and “sometimes”) by financial analysts to asses firms (1.86).



The category of non-financial information “Intellectual capital information” (IC) includes 20 items. The mean score of this category equals 2.70. The analysis of the research shows that the respondents use intellectual capital information for assessment of firms least fre-

quently (between “sometimes” and “often”). The standard deviation in the category IC is lowest (0.19) among all the five categories, which suggests an insignificant variation in the respondents’ answers (Fig. 7).


Distribution and delivery methods

realised acquisitions

Customer satisfaction or customer loyalty

Main brands of the firm

evolution in the market share

Time required to perform activities such as production…

Technological know how

organisation structure

Quality of the products or services

research and development programmes

important patents, trademarks or licenses

innovation (e.g. new products, new production ....)

Productivity of a firm

Quality of the management

employee satisfaction

Job rotation

staff policy

Level of expertise of the employees

education and training programmes of employees

Compensation of employees

FIG. 7. The mean scores on use of non-financial information items in the category “Intellectual capital in-formation” (IC)




The conducted detailed analysis of the data suggests that information on the main brands of the firm and realised acquisitions is used most frequently (“almost always”) (3.90). Fi-nancial analysts use information related to the firm’s employees less often: level of expertise of the employees (2.05), employee satisfaction (2.00) and compensation of employees (1.90). The information item of education and train-

ing programmes of employees is used “rarely” (with the lowest mean score of 1.24).

Following the systematically processed data on the work experience of the respondents and the numbers of their followed (assessed) firms, it can be stated that the average work experience of financial analysts in the survey is 11 years and it ranges from 7 to 15 years (Table 5).

TaBLE 5. The data on the respondents’ work experience and the number of their followed firms

Demographic characteristics of financial analystsDescriptive statistics


Number of years that financial analyst i performs his/her profession (exPi)

11,14 7,00 15,00 2,39

Number of firms followed by financial analyst i (NCoMi) 10,52 1,00 15,00 2,77


The average number of firms followed by the respondents equals 10.5. The standard de-viation (2.77) suggests a broad variety of the portfolio of followed companies.

it is important to point out that an additional survey was carried out to identify what firms are regularly followed by financial analysts. Follow-ing the acquired information, a list of monitored companies and two indicators were calculated on the basis of the data on the announced firms’

balance sheets of 2013 and the data on the Nas-daq stock Market trade in companies’ shares: the average ratio of long- and short-term debt to total assets of the firms followed by financial analysts (Levi) and the average standard devia-tion in daily stock returns of the firms followed by financial analysts (sDri).

The average ratio of long- and short-term debt to total assets of the firms followed by fi-nancial analysts is 0.476 (Table 6).

TaBLE 6. The financial indicators of the firms followed by the respondents

Characteristics of firmsDescriptive statistics


Average ratio of long- and short-term debt to total assets of the firms followed by financial analyst i (Levi)

11,14 0,370 0,771 0,088

Average standard deviation in daily stock retums of the firms followed by financial analyst i (sDri)

0,021 0,012 0,111 0,021




The average standard deviation in daily stock returns of the firms followed by financial analysts equals 0.021.

The standard deviation scores of both fi-nancial indicators (0.088 and 0.021) suggest moderate levels of dispersion around the aver-age.

Multivariate regression analysis of results

Following the devised research methodology, the average ratio of long- and short-term debt to total assets of the firms followed by financial analyst i (Levi), the average standard deviation in daily stock returns of the firms followed by financial analyst i (sDri), the number of years

that financial analyst i performs his/her profes-sion (exPi) and the number of firms followed by financial analyst i (NCoMi) were identified applying the method of multivariate regression.

During the analysis six multivariate regres-sion equations were formed. The first equation specifying all items of non-financial informa-tion usei,ToT and the other five equations divided into five categories: “Management’s analysis of financial and non-financial data” (usei,ANA), “Forward-looking information” (usei,FwL), “information about management and shareholders” (usei,MAN), “Background information about the firm” (usei,Bi) and “in-tellectual capital information” (usei,iC), were used to establish the dependence of frequency of use (Table 7).

TaBLE 7. Multivariate regression analysis results of dependence of use of non-financial information on financial analysts’ data and financial indicators of their followed and assessed firms

USEi,j Intercept LEVi SDRi EXPi NCOMi R2 F-value

usei, ToT

Coefficient 2,756 0,262 1,380 -0,007 0,0149,53 0,422

T-value 7,459 0,541 0,696 -0,428 0,942

usei, ANA

Coefficient 3,106 -0,329 5,292 -0,024 0,00320,45 1,028

T-value 5,831 -0,470 1,852 -0,983 0,126

usei, FwL

Coefficient 3,690 0,141 2,228 -0,018 -0,0016,46 0,276

T-value 6,646 0,194 0,748 -0,698 -0,044

usei,

MAN

Coefficient 2,247 0,299 10,762 -0,027 0,05219,54 0,972

T-value 1,889 0,191 1,686 -0,489 1,055

usei, Bi

Coefficient 2,4902 1,012 1,484 -0,007 0,01112,01 0,546

T-value 4,153 1,286 0,462 -0,253 0,428

usei, iC

Coefficient 2,508 -0,219 0,013 0,013 0,02239,64 2,627

T-value 7,329 -0,489 -2,274 0,845 1,578




Having conducted the regressive analysis, six equations were formed:

28 Table 7

Multivariate regression analysis results of dependence of use of non-financial information on

financial analysts’ data and financial indicators of their followed and assessed firms

Source: compiled by the authors

Having conducted the regressive analysis, six equations were formed:

While conducting a detailed analysis of F, T and p-values, it was established that the effect of

these independent variables on use of non-financial information is insignificant.

The summarised data of regression analysis allow to conclude that all the hypotheses (H1, H2,

H3 and H4) constructed during the research have been rejected. Financial analysts in Lithuania

frequently use non-financial information for assessment of firms irrespective of the average ratio of

long- and short-term debt to total assets of the firms and the average standard deviation in daily stock

returns and this is not dependent of the number of years that a financial analyst performs his/her

profession and the number of followed firms either.

Discussion

The results of the empirical research with the sample of 21 respondents show that financial

analysts in Lithuania frequently apply non-financial information for firms’ assessment. This confirms

the opinion by the authors Hong et al. (2000) and Elgers et al. (2001) that financial analysts tend to

collect non-financial information on a firm and to transform the obtained non-financial information

1. USE i,TOT = 2.756 + 0.262 LEV i + 1.380 SDR i - 0.007 EXP i + 0.014 NCOM i

2. USE i,ANA = 3.106 – 0.329 LEV i + 5.292 SDR i - 0.024 EXP i + 0.003 NCOM i

3. USE i,FWL = 3.690 + 0.141 LEV i + 2.228 SDR i - 0.018 EXP i - 0.001 NCOM i

4. USE i,MAN = 2.247 + 0.299 LEV i + 10.762 SDR i - 0.027 EXP i + 0.052 NCOM i

5. USE i,BI = 2.490 + 1.012 LEV i + 1.484 SDR i - 0.007 EXP i + 0.011 NCOM i

6. USE i,IC = 2.508 – 0.219 LEV i - 4.173 SDR i + 0.013 EXP i + 0.022 NCOM i

USE i,j Intercept LEV i SDR i EXP i NCOM i R 2 F-value

Coefficient

2,756 0,262 1,380 -0,007 0,014T-value 7,459 0,541 0,696 -0,428 0,942Coefficient 3,106 -0,329 5,292 -0,024 0,003T-value 5,831 -0,470 1,852 -0,983 0,126Coefficient 3,690 0,141 2,228 -0,018 -0,001T-value 6,646 0,194 0,748 -0,698 -0,044Coefficient 2,247 0,299 10,762 -0,027 0,052T-value 1,889 0,191 1,686 -0,489 1,055Coefficient 2,490 1,012 1,484 -0,007 0,011T-value 4,153 1,286 0,462 -0,253 0,428Coefficient 2,508 -0,219 0,013 0,013 0,022T-value 7,329 -0,489 -2,274 0,845 1,578

USE i,BI 12,01 0,546

USE i,IC 39,64 2,627

USE i,FWL 6,46 0,276

USE i,MAN 19,54 0,972

USE i,TOT 9,53 0,422

USE i,ANA 20,45 1,028

while conducting a detailed analysis of F, T and p-values, it was established that the effect of these independent variables on use of non-financial information is insignificant.

The summarised data of regression analysis allow to conclude that all the hypotheses (H1, H2, H3 and H4) constructed during the re-search have been rejected. Financial analysts in Lithuania frequently use non-financial informa-tion for assessment of firms irrespective of the average ratio of long- and short-term debt to total assets of the firms and the average standard deviation in daily stock returns and this is not dependent of the number of years that a finan-cial analyst performs his/her profession and the number of followed firms either.

Discussion

The results of the empirical research with the sample of 21 respondents show that financial analysts in Lithuania frequently apply non-fi-nancial information for firms’ assessment. This confirms the opinion by the authors Hong et al. (2000) and elgers et al. (2001) that financial analysts tend to collect non-financial informa-tion on a firm and to transform the obtained non-financial information into useful data for

making investment decisions. The analysis of the research data highlights the significance and use of separate categories of non-financial information. Financial analysts in Lithuania acknowledge that they most frequently col-lect and use information items on future op-portunities for the firm, expectations about the future growth of the firm, future production capacity of the firm, which are attributed to the category FWL. The majority of the respondents state that they often use non-financial informa-tion items of broad objectives and strategies of the firm, principal products and services, ma-jor competitors of the firm as well as industry in which the business participates that belong to the category “Background information about the firm” (BI).

The research results disclose that informa-tion on directors and executive management, the major shareholders of the firm’s stock (the category MAN) have significant influence on financial analysts. A big number of respond-ents agree that they frequently apply non-fi-nancial information items of this category as-sessing firms.

The respondents’ answers show a less fre-quent use of non-financial information items from the category ANA compared to non-



financial information items from the catego-ries FWL, BI and MAN. The analysis of all the answers of the respondents allows to state that several of items from that category have the highest mean scores of use. Financial analysts in Lithuania always use information on rea-sons identified by the management for changes in the volume of units sold or in revenues and for changes in profitability.

information on intellectual capital infor-mation of firms is referred to as least frequent-ly used by the majority of the respondents. However, a detail analysis reveals considerable differences in the mean scores of use of non-financial information items ascribed to the category IC. Assessing firms the respondents frequently use information on realised acquisi-tions, innovation (e.g. new products, new pro-duction processes), important patents, trade-marks or licenses, research and development programmes, whereas information on educa-tion and training programmes of employees, staff policy and compensation of employees is used rarely by a big number of the respondents.

such results contradict the statements by Barth and Clinch (1998) and by kallapur and kwan (2004) that intellectual capital informa-tion proves to be useful assessing firm value. But they confirm the results of the research earlier conducted by Johanson (2003). During the research Johanson (2003) established that financial analysts doubt the relevance and reli-ability of intellectual capital information (IC) as well as impact of such information on future cash flows. Dempsey et al. (1997) states that in-tellectual capital information (iC) is used less often because of limited release of such infor-mation. According to Dempsey et al. (1997), companies are unwilling to publicly announce this kind of information and as a result, costs

of collection of such information for financial analysts tend to increase.

An additional survey could focus on cir-cumstances, which predetermine financial analysts’ choice of non-financial information items for assessment of firms. in such case, it is necessary to take into consideration differenc-es in legal systems of respective countries and requirements for disclosure of non-financial information. it is also necessary to identify if there is a link between educational background of financial analysts and special training cours-es held by Chartered Financial Analysts insti-tute (CFA) and use of non-financial informa-tion for firms’ evaluation.

Conclusions

1. More and more scientific studies have been focusing on use of non-financial informa-tion for firms’ assessment. According to a big number of authors, non-financial in-formation should be included into firms’ annual activity reports. The reports based only on financial information do not fully present results of firm’s current activities and its perspectives. Aiming at a compre-hensive analysis of causal or consequential links of change in activity results, it is nec-essary to carry out a complex analysis of fi-nancial as well as non-financial data. Firms are advised to take into account activities they involve in, to make attempts either to adjust or to create own system of non-fi-nancial indicators and seek to comprehen-sively analyse processes of firm’s activities.

2. The results of the research on possibilities of using non-financial information items for firms’ evaluation carried out by vari-



ous authors reveal that peculiarities of the industry or the firm’s activities predeter-mine the choice of non-financial indicators for forecast of the yield, for establishment of the firm’s value and the price of shares, etc. it is also observed that there is no one officially accepted definition of non-financial information and classification of non-financial indicators. Literature sources provide for description of various non-fi-nancial data groups, categories, which are recommended for evaluation of firms.

3. The research methodology designed for the empirical research on use of non-financial information in Lithuania is grounded on the previously obtained theoretical insights and relevant research proposals. The ques-tionnaire survey of Lithuanian financial analysts was carried out on use of non-fi-nancial information items and the method of interview was applied. All the non-finan-cial information items were systemised and subdivided into categories.

4. The research results show that financial ana-lysts in Lithuania most frequently use non-

financial information for firms’ assessment. Lithuanian financial analysts state that as-sessing firms they most often collect and use information on future opportunities for the firm, expectations about the future growth of the firm, new products, whereas informa-tion on firms’ intellectual capital is used least often by the respondents.

5. After the regression analysis it can be con-cluded that use of all the non-financial information items by financial analysts in Lithuania does not depend on the average ratio of long- and short-term debt to total assets of the firms and the average standard deviation in daily stock returns and this is not dependent of the number of years that a financial analyst performs his/her profes-sion and the number of firms followed by financial analyst either. in future research it is recommended to use not the mean scores but to conduct research on the dependence of use of non-financial information items by financial analysts on the indicators of fi-nancial analysts and those of each company separately.

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Nefinansinės informacijos tyrimai įvertinant kompanijas

Olga Valauskienė, Romualdas Stankaitis, Stanislava Stungurienė

S a n t r a u k a

Nefinansinės informacijos panaudojimo empirinio tyrimo rezultatai parodė, kad Lietuvos finansų ana-litikai dažnai naudoja šią informaciją bendrovėms vertinti. Tyrimo metu nustatyta, kad dažniausiai Lietuvos finansų analitikai renka bei bendrovėms vertinti naudoja nefinansinę informaciją apie ben-drovės perspektyvas, bendrovės augimo lūkesčius, naujus produktus, pagrindinius bendrovės prekės ženklus, mokslinius tyrimus ir technologijų plėtros

programas, atliktus įsigijimus bei inovacijas, tačiau informaciją apie bendrovių intelektinį kapitalą dau-guma respondentų naudoja rečiausiai.

Atlikus regresinę tyrimo duomenų analizę nu-statyta, kad Lietuvos finansų analitikų visų katego-rijų nefinansinės informacijos panaudojimas ne-priklauso nuo finansų analitikų stebimų bendrovių ilgalaikių bei trumpalaikių įsipareigojimų santykio su bendrovės turtu vidurkio, finansų analitikų stebi-




mų bendrovių kasdienės akcijų grąžos standartinio nuokrypio vidurkio, finansų analitikų darbo patir-ties metais vidurkio bei finansų analitikų nuolat ste-bimų bendrovių skaičiaus vidurkio.

Lietuvoje ir Belgijoje atliktų tyrimų rezultatų palyginimas išryškino, kad Lietuvos finansų anali-

tikai bendrovėms vertinti nefinansinės informacijos naudoja santykinai daugiau nei jų kolegos Belgijoje.

Raktiniai žodžiai: nefinansinė informacija, bendrovės vertinimo modeliai, informacijos panau-dojimo dėsningumai, regresinė analizė


Tarptautinis verslas:inovac i jo s , p s i cho l og i ja , ekonomika


ISSN 2029-5774

About the authors

About the authors

*

Jüri LAvreNTJev was born in 1959 in Tallinn, estonia. He received his Msc in mechanical en-gineering from Tallinn university of Technology (TuT) (1983). He has studied as PhD student in the Moscow state Automobile and road Technical university (MADi), russia and in the royal insti-tute of Technology (kTH). Lavrentjev received his Doctor of Technology in technical acoustics at kTH in stockholm, sweden (1998). He became a profes-sor of automotive technology at TuT in 1999. He is a member of the board of directors of iiAv from 2009–2012. Lavrentjev is a member of the board of the international journals evolution of science and Technology. He is a member of international society of Automotive engineers (sAe) and serves as an expert in european Transport safety Council (eTsC). He has been coordinator for several nation-al and international projects in noise control, traffic safety, logistics, and environmental protection. e-mail: [email protected]

reiN MuoNi – Head and a senior researcher of the Laboratory of Fuel Technology in the oil shale Competence Center and a lecturer in the virumaa College of the Tallinn university of Technology. He obtained the Doctor of Technology degree from the Helsinki university of Technology and the PhD in combustion engine technology from the st. Peters-burg Agricultural university. His research focuses on fuel chemistry, fossil diesel fuels, and biodiesel fuels. He has also conducted research in the field of engine lubricants and fuel additives. He has con-tributed to more than 50 scientific papers that have published or presented at national and international academic conferences. e-mail: [email protected]

PHiLiPPe reBiere – Docteur en sciences de Ges-tion université Paris i Panthéon sorbonne, titulaire du MBA de l’iAe de Paris (institut d’administration des entreprises de Paris) sorbonne Graduate Busi-ness school, ingénieur Cesi, PHiLiPPe reBiere a exercé en 1983 la fonction d’ingénieur d’affaires internationales dans le domaine de l’industrie High Tech du semi-conducteur. Philippe reBiere est le créateur d’un cabinet de conseil-formation en 1993 et il a conceptualisé, expérimenté et animé des mis-sions de conseil/ formation pour des entreprises de premier plan, telles que xerox, TNT, eDF, la Poste, sNCF,Havas, Bolloré, st Gobain, MGeN et auprès de PMe, Business school et universités. il a ensei-gné le management stratégique en tant que visiting professor dans de nombreuses institutions en France et à l’étranger, notamment à l’iroMA à Bucarest (roumanie), à l’université Nationale d’economie de kiev (ukraine), dans le MBA de Management eu-ropéen du New York College à Athènes(Grèce). De 2004 à 2008, au sein d’iCN Business school, Philippe reBiere a assuré le management d’un programme de formation auprès d’un public de managers au sein de l’université Nationale d’economie de kiev. Professeur associé iCN Business school depuis 2006, Philippe reBiere assure des enseignements de management de l’innovation, management stra-tégique et entraînement à la négociation d’affaires en milieu B to B auprès de publics bachelor/ master. ses travaux de recherche sont centrés vers les stra-tégies des firmes dans l’industrie pharmaceutique et sur la dynamique de l’avantage compétitif. e-mail: [email protected]


109About the Authors

DiDier roCHe – Associate Professor at rochelle Business school, France. He obtained the PhD in Management sciences from the Poitiers university. His teachings focus on general marketing, market research, negotiation and sales techniques. His re-search focuses on the performance of salesforces, on their ethics and the relationship between these two concepts. He also conducts research in the field of industrial tourism. He has contributed to more than 50 scientific papers that have been published or presented at national and international academic conferences. He has also publications in collective books, prepared a scientific film and published per-sonal books. e-mail: [email protected]

roMuALDAs sTANkAiTis – Doctor of so-cial sciences, Lithuanian university of educational sciences. First degree and master in economics (Po-litical economy), Lomonosov Moscow state univer-sity (1983). Doctor of social sciences (1988). Head of economics and business department at Lithua-nian university of educational sciences; Ceo, vŠĮ „vilniaus verslo konsultacinis centras“ (vilnius Busi-ness Consulting Center). 25 years of experience in business consulting, 15 years of experience in man-agement. research interests: business financing, mar-keting innovation and the assessment of the effective-ness ofinnovation activities, operations management, personnel management efficiency, investment project management. e-mail: [email protected]

sTANisLAvA sTuNGurieNe – Doctor, profes-sor, international Business school at vilnius univer-sity, Lithuanian university of educational sciences, First degree and master in economic engineering, vilnius university (1972). Doctor (1982). Author about 50 scientific articles. reviewer of Journal of Civil engineering and Management and Journal in-ternational Business: innovations, Psychology, eco-nomics.research interests: information technolo-gies, operations management, quantitative analysis in economics and management, optimal financial decisions. e-mail: [email protected]

olga vALAuskieNė – Master’s degree student, international Business school at vilnius university. e-mail: [email protected]

erko vALLBAuM – doctoral student of the Tallinn university of Technology. His research topic is “Com-parison study of Petrodiesel and Biodiesel in a Com-pression ignition engine”. His previous researches have involved biodiesel and other alternative fuel ef-fectiveness for a transportation company. Although his technology theme studies are focusing mostly on laboratory outcomes, he is also keen to add a business aspect to each of his research topics. His has said that it is important that research outcomes are usable and cost-effective. e-mail: [email protected]

MAriJA ZYkuvieNė – Master’s degree student, international Business school at vilnius university. e-mail: [email protected]




ISSN 2029-5774

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effects from nonrandomized studies: A prac tical guide and simulated example. Psychological Methods, 13, 279–313.

Unpublished paper:kregždė, s. (in press). Fundamentalios psicho-

loginės atramos švietimo reformai ieškant. Electronic article: shu-Cheng, steve, Chi-Friedman, raymond A.

and Yang, Mei-Yu (2009). Are supervisors fair mediators? The effects of personality traits and age difference on expected media-tion fairness. Social Behavior and Personality, 37 (1), 59–118. retrieved from http://www.swetswise.com/titleBank/getAtoZList.do?title =187408

b) B ooks and book ar t ic les Book: Jovaiša, L. (2008). Profesinio konsultavimo psi-

chologija. vilnius: Agora. Book whose author is an organization or a

group of people: Lietuvos statistikos departamentas (2010). Lie-

tuvos statistikos metraštis. vilnius: infor-macijos–leidybos centras.

Book with no author or editor: Lietuvos Respublika. Konstitucija. (1996). vil

nius: Lietuvos informacijos centras prie Tei-singumo ministerijos.

E-book: Pettinger, r. (2002). Global Organizations.

oxford: Capston Publishing. Available from NetLibrary database.

c) Conference and symposia proceedings Presentation when the paper is published in the official conference proceedings: Bohrer, s., Zielke, T. and Freiburg, v. (1995).

integrated obstacle detection framework for intelligent cruise control on motorways. Paper presented at IEEE Intelligent Vehicles Symposium. Detroit, Mi: Piscataway.

Presentation reported at a conference but not published: Bowden, F. J. and Fairley, C. k. (1996, June).

Endemic STDs in the Northern Territory: Estimations of effective rates of partner change. Paper presented at the scientific meeting of the royal Australian College of Physicians, Darwin.

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