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Business Policy and Distribution

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A C T A U N I V E R S I T A T I S L O D Z I E N S I S KOLIA OECONOM ICA 17, 1982

G y u l a Z e l l e r *

BU SIN ESS PO LIC Y AND D ISTR IB U TIO N

T he e n te rp rise as an econom ic system can only be in te rp re te d w ith its e n v iro n m en t and connections; th e basic prin cip le of its a c tiv ity is th a t it tak es up m aterials, energy, labour force and in fo rm atio n from th e en v iro n m en t and in th e form of p ro ducts or services it em its th ose also to th e en v iro n m en t. This alg o rith m of fu nctioning urges each e n te rp rise to a d ap t itself to th e en v iro n m en t, or r a th e r to have an effect on th e environm ent. So am ong th e aim s of th e e n te rp rise — in d iffe re n t form s and com positions — one can alw ays find those wich a re focused both on th e quick and effective follow ing of changing e n v iro n -m en tal influences, and on inducing changes in th e environ-m ent. These aim s a re called, depending on th e ir directions, ad ap tiv e and im pressive aims.

W ith th e adaptive aim s th e e n te rp rise w a n ts to define its rela tio n to th e en v iro n m en t; w an ts to follow q u ickly and fle x ib ily w ith conception and p lan figures th e dynam ic changes of th e en v iro n m en t, because th e stra te g ic aim s of th e e n te rp rise, e.g., survival, grow th, technical deve-lo pm ent and com petitiveness a re realizab le only w ith devedeve-loping capa-c ity fo r a d a p ta tio n to th e capa-changes. The aim s set for th e e n te rp rise a capa-c ti-v ity a re changing dynam ically, and th e sam e is obserti-ved concerning th e re q u ire m e n ts and dem ands of th e n a tio n a l econom y, th e p ro p rie ta ry claim s of society, and last b u t not lea st re q u ire m e n ts of m a rk e t p a rtn e rs (suppliers and buyers). T he developm ent and m a rk e t activities becam e m ore com plicated, and before long th e y set m ore d iffic u lt d u ties for th e m anagem ent th a n th e co n tro l of w ell m echanized or au to m atic p ro -duction organizations.

In th e im pressive aim s, a c tiv ity of th e e n te rp rise and its w illingness to p rom ote its good im age a re fo rm u lated . T he e n te rp rise m u st

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tin o u sly e x e rt an influence on its environm ent. It is tru e , th a t th e socialist e n te rp rise a d ap ts itself to an en v iro n m en t stro n g ly influenced by th e s ta te ’s economic policy, in spite of th e fact th a t th is en v iro n m en t can n o t be reg a rd e d as a given th in g from th e view point of socialist e n te rp rises, because th e y a re them selves also factors of change w hen form ing and refo rm in g th e ir e x te rn a l an d in te rn a l relations. T he aim s of th e e n te rp rise co n stitu te a d efin ite dynam ic system ; am ong th e ele-m ents of th e systeele-m th e re exists a ele-m u ltila te ra l relatio n sh ip , w hich secures th e coherency and h ierarch ical s tru c tu re of aims.

T he freedom of decision-m aking and sp h ere of activ ity expressed in th e set of objectives of th e e n te rp rise cre a te such an a ttitu d e , w hich m akes possible and prom otes th e dynam ic a d a p ta tio n to th e e n v iro n -m ent, th e w inning of en v iro n -m en t over to th e e n te rp rise ai-m s and the solving of in n e r problem s. Passing over to problem s of th e e n te rp rise policy, first of all, I should like to note, th a t th is idea can be approached from d iffe re n t sides, in d iffe re n t w ays. The above analysis show s th at, a t first, I define th e e n te rp rise policy as a concrete expression of th e e n te rp rise set of objectives and th e e n te rp rise a ttitu d e com patible to it.

We can d iffe re n tia te five sub -sp h eres of th e e n te rp rise policy, w hich a re as follows:

1. P ro d u ctio n policy, 2. Sales policy, 3. F inance policy,

4. Incom e a n d social policy, 5. D evelopm ent policy.

W hen looking a t th e above m entioned division w ith w hich I have trie d to define th e su b -sp h eres of th e e n te rp rise policy, we can find no su b -sp h ere w hich m ight be called „business policy”. As it app ears to m e it concerns som ething else, business policy is n ot a sep ara te sub- -sp h ere of th e e n te rp rise policy. If we should like to approach th e concept a n d th e role of business policy, w e have to go to a n o th e r d im e n -sion, and to change th e h o rizo n tally connected sub -sp h eres for some kind of vertical, in te g rate d connection.

The concept of business policy can be deduced from th e concept of e n te rp rise policy, and know ing th is w e can say th a t business policy is nothing else b u t a com prehensive system of decisions m ade in d iffe re n t sub -sp h eres of e n te rp rise policy in connection w ith th e long-range business (com m ercial) aim s of th e en terp rise. So th e th in g is th a t am ong th e e n te rp rise policy ideas w e can find some w hich concern th e com m er-cial connections, m a rk e t a ttitu d e s, pro d u ct developm ent concepts, etc. of th e e n te rp rise. These ideas can be found in all subspheres of th e e n te rp rise policy, n a tu ra lly w ith d iffe re n t w eight and im portance, b u t

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jo in tly fo rm ing a business a ttitu d e of th e e n te rp rise. T hese elem ents have to build up a system th e sam e w ay as th e a lre a d y m entioned sub- -spheres. B ut th is system is to be approached in a n o th e r dim ension, be-cause w e a re speaking ab o u t a vertical system , w hich is com bined w ith th e e n te rp rise policy, th e basic ta sk of w hich is to in te g ra te th e aim s and tools concerning th e business a ttitu d e s found in a n y su b -sp h ere of th e e n te rp rise policy. W e can fo rm u la te th e problem as a re q u ire m e n t of double coordination:

— th e su b -sp h eres of th e e n te rp rise policy have to be coordinated to each other, and to th e w hole e n te rp rise concept,

— th e elem en ts of th e sam e goals and purposes ex istin g in th e ho-riz o n tally connected su b -sp h eres have to be coordinated to each o th e r and to th e e n te rp rise concept as a w hole.

T his la te r task can be fu lfilled — from th e view point of business * a ttitu d e s and aim s — by th e e n te rp rise business policy. In th is w ay

w e have ro u g h ly defined th e aim and fu n ctio n of th e e n te rp rise business policy in th e fu nctioning of th e e n te rp rise. F u r th e r on w e have to discuss th e field of business policy. I th in k , th a t it is su itab le to s ta r t from th e e n te rp rise m a rk e tin g elem ents and to fo rm th e follow ing sub- -sphereą:

— acquisition policy,

— p ro d u ct and service policy, — price policy,

— prom otion policy, — d istrib u tio n policy.

M y sta te m e n t th a t d istrib u tio n policy is an in d ep e n d e n t field of business policy m ay produce a controversy. Som ebody m ay p u t fo rw ard a rg u m e n ts concerning th e size of th e co untry, th e re la tiv e ly m onopo-listic position of w h o le-salers an d tra d e e n te rp rise s in pro d u ctio n goods, and also th e rela tiv e ly ov erco n cen trated production cap acity on th e scale of th e co u ntry. B ut w e have to acknow ledge th a t pro d u ctio n and consum ption a re m oving aw ay fro m each o th e r in space a n d w e have to th in k a t sam e tim e about th e fact, th a t although tra n sp o rtin g acti-vities a re to be considered as valu e increasing actiacti-vities, as additional activities to production (as M arx states it in „The C a p ita l’VII. vol.), inspite of th e fact th a t optim izing th e tim e and cost of th e irs is a m ore and m ore increasing task. W e deal w ith such activities, w hich secure th e realizatio n of goods’ value, b u t do n ot increase it, w h a t is m ore som e-tim es th e ir being of value lim its circulation (e.g., spoiling).

I th in k , th a t a sh o rt defin itio n is re q u ire d before going on. We can accept O stro fsk y ’s opinion: „D istrib u tio n is th e tra n s fe r of th e pro d u ct or process to th e u ltim a te o p erato rs or consum ers; th is m ay include

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and it m eans th a t th e s ta te gives im p o rta n t su p p o rt for th e developm ent to en te rp rises, and so th e firm s „ex p lo it” it w ith coordinating th e ir aim s

to th e aim s of th e n atio n al econom y.

G yula Z elle r

PO L IT Y K A PR ZED SIĘB IO R STW A DY STRY BU CJA

W ychodząc z an a liz y p o lity k i p rze d sięb io rstw a a u to r d e fin iu je ją' osta te cz-n ie ja k o k o cz-n k re tcz-n y w y ra z sy stem u celów, k tó re p rzed sięb io rstw o zam ierza osiąg-nąć, w y ró ż n ia jąc k ilk a tzw . su b sfe r p o lity k i p rze d sięb io rstw a w liczając w nie rów nież p o lity k i m arketingow e.

W dalszej części a rty k u łu a u to r o m aw ia pro b lem y zw iązan e z fo rm o w a n iem p o lity k i d y stry b u c ji w p rze d sięb io rstw a ch o raz sposobam i je j rea liza cji, w iążąc te k w estie z p o d ejm o w an iem o k reślo n y ch decyzji m ark etin g o w y ch .

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