Businesses In Albania Research Articles

Assessment of the Capital Structure and Cost of Capital Using Financial Indicators, the Case of Large Businesses in Albania

The assessment of capital cost and capital structure is a complex field of financial activities, integrating all long term decisions of financial funding. Difficulties arise especially when financial markets are not liquid, as in the case of Albania, in terms of a new market that is economically, politically, legally, and fiscally fragile. The purpose of this paper is to assess the capital structure and cost of capital for large businesses in Albania that have a 100% Albanian ownership. Financial analyzes are based on the 2013-2014 financial statements of 50 companies, within 5 most representative sectors of the economy. The performed analyzes are based on multivariate regressions and the application of financial formulas. According to estimates in Albania, it results that companies do not have an optimal structure of capital, and furthermore the diversification of capital structure is merely a theoretical concept. Therefore, businesses face a high cost of capital. Even their level of systemic risk "beta" ranks them with more risk. Consequently, these businesses will not be able to achieve exports of goods and services to compete in international markets.

Structure, Strategy and Organizational Design in Albanian Context

This research paper will try to understand and explain how much and how is understood the nature, the importance and factors that affect the business organizational structure and design in Albanian Organizations, compared with theoretical factors researched from the literature. How a business does structure in our country, knowing how important are the theoretical factors in business organization performance and therefore how much and how the principles of organizational design are applied in Albanian Organizations. Why structure, strategy and organizational design? Organizational design and organizational restructuring remains one of the most important issues that management of organizations, in the global era and information technology, must deal with, for the fact that businesses today face some unprecedented challenges: increased competition, globalization, growing of social responsibility, technological changes, changes in taste and consumer’s exigency, new strategic thinking, etc. Referring the literature and contemporary researchers, a constant topic during these recent years has been the one of how globalization and economic crisis have obliged the organizations to review their strategies and to change the way they operate, trying often therefore to structure for surviving and achieving success. These challenges should be carefully managed in order to build and hold a high performance organization, to deal with tough competition and endless problem that this era we live does bear. It is also important to understand correctly that organizational structure and design, by dictating roles connection in an organization and consequently how people function, may often be the main cause of the problems, but also one more reason of success. The way that organizations structure or the specific model of business, may constitute their competitive advantage, or special strategic skills, so it can make a business organization unique and competitive in the market. For many researchers the prevailing conclusion is that the organizations either neglect the importance of organizational design, or they just do not know what to do about it and therefore they evolve in an indirectly, spontaneous or intuitive way. From what the paper identifies, most of organizational structuring in Albania are made in a hasty way, without seeing or paying attention to full frame or circumstances. This may result in some partial and fragmentary initiatives instead of aiming in organizational designing and general structuring. This is not surprising as the subject is complex, often poorly explained and not rightly understood even though the academics and the consulters have made a great work to address the organizational design topic. However the paper shows that entrepreneurs and managers still lack a practical and systematic framework in order to guide their choices of organizational structure. To find a practical approach for the organizational design, can be difficult, even though some business schools have tried to simplify the things. The study will try to achieve this task, through careful research, in order to diagnose the organizational design process and restructuring situation in Albania, highlighting the effect of the current challenges which have an impact on this difficult process, mainly based on a survey of 200 organizational businesses in Albania.

Some Economic Aspects of Business Environment in Albania

Doing business in Albania, as a country that has suffered by a long economic transition, is not so easy. The most crucial agents of economic game: government and business are going to be in the bad situations that they ever been. The role of state is so decisive. By the status that it have, is it duty to take fiscal and monetary policies in order to create a favorable climate of business. Especially, regards of competitive environment. Something is sure: if the business is in good condition, also the government will be and will perform its duties in high level. But, how is the reality and what steps has undertake the government by this point of view, will be the focus of this article. For this reason, a questionnaire has been created and distributed in the most great area of the country, in order to get more information and to evaluate the probably correlation that must be exists among the variables that explain the situation. The econometric model will be created with the aim to stress which is the most effective macroeconomic policy, fiscal or monetary policy, under the current economic situation in Albania. The aim of article is to examine which is the macroeconomic policy that contributes in the improvement of firm’s situation. DOI: 10.5901/mjss.2016.v7n1p279

The Importance of Information Technology Use in Business Management

With this paper are examines the main characteristics of Albanian business and their readiness to support this new way of management. Efforts were made to give answer to the question: “Can IT be used by businesses in Albania? Are businesses in Albania ready and convenient for the advantages of IT use? In order to examine the IT and importance to use it not only like hardware but and with information systems we try to present this between an Albanian information system as personal experience. We try to demonstrate that IT is so necessary and can create advantages for businesses. A recent survey of the Approved Accountants Association showed that a very large number of businesses in Albania hesitate to use computer technology. Most believe it’s either a non-necessary expense or it’s too early to start using it. The following arguments should give business owners and managers some insight on what Information Technology could do for them. The conclusion is that the trend of the Albanian business is to get all benefits out of IT. DOI: 10.5901/ajis.2015.v4n2p487

SOCIAL RESPONSIBILITY OF BUSINESS IN ALBANIA

Business Social Responsibility through the advantages that provides, plays an important role in business competition. With their social responsibility activities, businesses fulfill their responsibility for the community where they operate and improve their image to the public. Albanian businesses have started to get aware about social responsibility during the last years but this concept remains still unknown for the main part of businesses in Albania. Actually Albania is working hard toward the European integration. One of the requirements of the European Integration is the awareness of businesses concerning social responsibility. The purpose of this study is to identify the level of social responsibility awareness in medium and large businesses actually operating in Albania.

The Challenges of Accounting Standards in Intellectual Property’s Reporting, an Albanian Approach

Intellectual property has become a key factor in measuring the business performance and its market value. Although the valuation and reporting of intellectual property is important for all companies, it is more crucial, especially to the intellectual property high intensively companies. Accounting standards were created keeping in focus the tangible assets, and despite the efforts and changes that are made, still they need revisions to track successfully the intangible assets. The rigid structure of accounting standards does not allow them to be more flexible in tracking and reporting the intangible assets in a new environment where most of businesses have in their financial table’s components of intangible assets like intellectual property. We will briefly discuss some details regarding the treatment that international accounting standards like IAS 38 and FAS 142 reserve to the intangible assets and especially the intellectual property. Aside with our opinion, we will expose some of the well known researches and academics point of view, to suggest a fair disclosure and to give new insights in intellectual property reporting. The purpose of the research is to establish the inadequacy of the accounting standards in intellectual property reporting and to give new insights and advises regarding the discussed topics to overpass these inadequacies. The methodology used in the preparation of this paper will be that of the utilizing the foreign and national literature, and the utilization of the questionnaires and interviews with the certified accountants and the finance departments of selected businesses in Albania. DOI: 10.5901/jesr.2014.v4n4p442

Is the Adoption of IFRS for SMEs an Added Value for the Financial Reporting in Albania?

SMEs play a vital role in the economy of a country. As in the other European countries, in Albania the SMEs represent over 97 % of entities registered in the commercial register. The importance and their contribution to the economy of a country made possible that the international standard setting body, IASB, to devote a special attention to those developing a specific standard aimed to reduce the reporting burdens on these entities. IFRS for SMEs, published in July 2009, it is not mandatory but the adoption of this standard remains a challenge for every country of the world. Most of European countries are still conservative deciding in favor of the application of this standard as prefer their local standards for SMEs. Albania also has its own local accounting standards for such entities, but in circumtances when it aspires to become an EU country, aims to increase foreign investment and tries to incourage doing business in Albania, the adoption of IFRS for SMEs remains a very important decision. The purpose of this paper is to assess whether the adoption of IFRS for SMEs is an added value for financial reporting in Albania. The conclusion will be reached through the evaluation of capability of preparers of financial statements of SMEs, the needs of users of SME financial statements and thecost / benefit analysis. DOI: 10.5901/ajis.2014.v3n3p371

The Promotion of Multilingualism in Albania: The Role of Italian Language at School and in the Work-Place

Languages have a very significant role in society, in economy, in the working place and in the political relationships among different countries. Multilingualism is a key element nowadays that not only facilitates communication but helps to move between cultures. This article aims to present the situation of multilingualism in Albania with reference to the promotion of language skills in school and their role on employability in the labor market by focusing on the Italian language as one of the best known and most popular languages among European ones that are spoken in Albania.Reforms in the curricula of the education system in Albania are conceptualized according to the education strategies of the Council of Europe and of the EU – where Albania aims to become a member state- and focuses on the promotion of multilingualism and multiculturalist education among the new generation. It is in such context that the teaching and learning of community languages became part of the curricula starting from the very first classes in the elementary school and adding to two the number of languages that are taught in this phase of education in addition to the mother tongue. In the course of secondary education there is assigned an important role to foreign language which are part of the curricula and of the maturity exam; meanwhile their importance is clearly confirmed during university studies and graduate studies. The practice in job recruitment provides evidence that the knowledge of languages increases considerably the possibilities and chances of success for those aspiring to find work in both public and private sectors. Knowledge of a foreign language (preferably English) is now one of the key requirements for participation in all competitions and job applications. In addition, the knowledge of multiple languages is a credit to those who participate in these contests. Even in the private sector the knowledge of languages has become a necessity both in the context of communication and trade with foreign companies and suppliers, and in the area of the work carried out on behalf of foreign companies that conduct their business in Albania. In conclusion, there will be shown that the Italian language occupies an important place in the system of education and training, as well as having a central role in the labor market, especially in the private sector, while taking into account the considerable number of Italian companies present on the territory of Albania and the intensity of trade and cultural exchanges between these two countries, Albania and Italy. DOI: 10.5901/ajis.2013.v2n9p130

Corporate Governance: The Past, the Present and the Future in Albania

Corporate have a great impact and importance in the economic, politic, social and cultural aspect of every country. Because of the importance of the corporations, their governance is essential. In Albania, corporate governance is a developing concept, but vital for the promotion of the economic development of the country. In this context, this subject aims to analyze the factors that have influenced in the evolution of the corporate governance, focused mostly at the weaknesses of the corporative governance mechanisms as well as in the relevant cases of governance in the present and in the future.Albania is facing the challenge of attracting the foreign capital during these last years and especially after the crises of 2008. To support and encourage the attraction of foreign investments, it is important the targeting of the cases of corporate governance. The targeting of the governance cases will affect the climate of doing business in Albania, in the conditions when some sectors of the economy are in the way of privatizations of foreign companies. For the realization of this study we did the review of a rich contemporary literature. In addition we analyzed the reports for Albania mainly from the Bank of Albania and international organizations. The results of the study are based in the research over the governance of businesses in the private sector and the public enterprises in Albania. The conclusions of the study will give a full picture over the problematic corporate governance in Albania. In the study we tried to improve the situation through our recommendations toward a positive development climate. DOI: 10.5901/ajis.2013.v2n9p116

The contribution of University in developing Entrepreneurial potential of the SMEs sector in Albania.

The contribution of University in developing Entrepreneurial potential of the SMEs sector in Albania.

Importance of Relationship Marketing Management in the Insurance Business in Albania

In recent times, managers have started understanding the relevance of retaining active customers with companies as a key component guarantying their survival in the market. Moreover, the benefits associated with companies counting on loyal customers have been highlighted. This loyalty emerges from the relationship “customerorganization”, the longer and more intense the relationship is, the higher the benefits. The aim of this paper is to emphasizes the importance of relationship marketing management in Albanian insurance businesses.

Obstacles to entrepreneurship in a transition business environment: the case of Albania

PurposeTo critically evaluate the obstacles and problems encountered by entrepreneurs while doing business in Albania, which is an economy in a transition.Design/methodology/approachThe research methodology incorporates a survey that uses interview and questionnaire techniques. The sample was determined on a stratified basis (probability‐random sampling) involving the random selection of respondents from various strata of the population.FindingsThe most important obstacles faced by entrepreneurs in Albania include unfair competition, changes in taxation procedures, lack of financial resources and problems related to public order. Bureaucracy and corruption do not appear to represent significant barriers to entrepreneurship.Research limitations/implicationsResponses from the selected strata were not distributed proportionally among the targeted sample.Practical implicationsLegislative amendments and new legislation which focus specifically upon small business and enterprise development should be implemented by the Albanian government in order to achieve a transparent fiscal reform and create a more favorable business environment.Originality/valueThis research provides a critical evaluation of entrepreneurial activities and the obstacles that entrepreneurs encounter while operating in the Albanian economy in transition.