Open Access
Article
SciPap-903
Managing the Costs of Quality in a Czech Manufacturing Company
by Marie Čermáková, Petr Briš
Abstract: One approach to increasing the quality of products and services in companies is the application of a management system of quality costs. This tool is applied to improve the economic results in the company and is considered also as a tool that identifies key areas where the company should direct investment into quality improvement programs. The following article focuses on markets for optical equipment, using action research. The chosen Czech company’s management approach included the implementation of cost management, with the aim of reducting costs of prevention and costs of appraisal and failure. This approach is known as the PAF model. The implementation of the PAF model revealed the true cost structure of quality costs and their real evaluations over time, in this case the period of 2010 – 2014; it also identified key areas for improvement.The greatest potential for improvement was hidden in a category of internal failure costs. In this category the annual costs amount to an average of 7,174 % of sales during the period. In the last part of the article, the costs of quality were analyzed against the sales of company (including material losses). Ultimately, the hypotheses in sections 4.3.1 and 4.3.2 were validated and based on these analyses the current state of the process was assessed and recommendations to streamline were presented.
Keywords: Czech Republic, Cost Of Quality, Management Cost Of Quality, Paf Model
JEL classification: L60, L69, M11
Open Access
Article
SciPap-881
The Mediating Role of Brand Reputation: The Analysis of Discrepancy Between Theory and Fact
by Zulganef Zulganef, Yudhi Julianto
Abstract: The aim of this research is to investigate the role of brand reputation as a mediating variable in the relationship between service quality and loyalty. The MRI’s survey shows that there is a degradation in the ranking of the Oversea Chinese Bank Corporation- Nilai Inti Sari Penyimpan Bank (OCBC-NISP Bank) from 2009 to 2011, while the number of customers has increased over the same time frame. This indication highlighted the fact that although the quality of service decreased, the consumer’s loyalty increased. This shows a contradiction in regard to previous research into the relationship between service and loyalty, such as Al-Rousan and Mohamed (2010), and Akbar et al., (2010). The authors suggest the existence of a variable that mediates the relationship between service (service quality) and consumer loyalty, which is brand reputation. The sample size of this research was determined at 125 respondents. The data were collected by self-administered questionnaires. Results showed that a partial mediation, performed by brand reputation, occurred in the relationship between service quality and loyalty. This research shows that brand reputation is still deemed to be the cause of loyalty. The authors also made some recommendations.
Keywords: Bank, Service Quality, Brand Reputation, Loyalty, Partially Mediated
JEL classification: M30
Open Access
Article
SciPap-892
Requirement Analysis of Agile Information Systems and Business Processes: An Agricultural Case Study
by Athanasios Podaras, Tomáš Žižka
Abstract: The development of modern information systems is demanding and characterized by agility. Consequently, the extensive requirement analysis of these systems and the supported business processes has become vital for analysts, developers and the participating stakeholders. Use Cases are tested tools for analyzing the requirements of information systems. However, the difficulty in capturing use cases has triggered the proposal of methodologies which can derive use cases from business models. Nevertheless, modern agile information system development demands the reverse transformation as well. The current paper proposes the latter transition for analyzing business process requirements and describes it via a computer based pest scouting business process case study. The target business model for depicting business process representation workflows is the Business Object Relation Modeling method. The agricultural case study was selected because both the Business Object Relation Modeling method and the Use Case method have been already proposed for agricultural, food supply and environmental business process representation, and they are both easily comprehensible by all the involved stakeholders including farmers, growers and agronomists.
Keywords: Use Cases, Business Object Relation Modeling (Borm), Use Case To Borm Transformation Algorithm (Ucbta), Pest Scouting, Business Process Models
JEL classification: M15, Q16
Open Access
Article
SciPap-859
Risk Analysis Using Extended SAFMEA Methodolody on Example of Incubated Companies
by Petr Cizek
Abstract: The paper examines the use of the Failure Modes and Effect Analysis (FMEA) methodology – in variant of statistical FMEA (SAFMEA) on the risk factors of incubated technological companies. Each risk factor were evaluated by mentors / management of chosen business incubators by using the Severity, Likelihood, Detection (conventional) and Influence of mentor (enhanced) parameters. The results are shown in different perspective – by using risk priority number (RPN) indexes, risk matrix and risk map. As the most significant risk factor was identified Funding issues - cash flow (followed by Customer acquisition issues and Funding issues – capital). However the results also show very high level of variance within the answers of the respondents. The paper also examines the impact of the enhanced nonconventional parameter (Influence of mentor) on the RPN index results where it was identified that some risk factors (such as Issues with business model) can be substantially reduced by the influence of the mentor / consultant.
Keywords: Risk Management, FMEA, Safmea, Incubated Companies, Business Incubator, Risk Analysis
JEL classification: M13, D81
Open Access
Article
SciPap-860
The Effect of m3 Monetary Aggregates and Bank Loans on the Economic Growth of Countries in the Eurozone, the USA and Japan
by Liběna Černohorská, Vojtěch Kula
Abstract: This paper examines the influence of selected indicators of the banking sector (M3 monetary aggregates and bank loans provided to the non-financial private sector) on economic growth (GDP) in the Eurozone, the USA and Japan. Cointegration of these selected indicators of the banking sector has been demonstrated in relation to the development of GDP using the Engle - Granger cointegration test. These tests were applied to selected statistical data from the years 2000 to 2015. The first was to determine the optimum delay using Akaike criteria for all-time series analysed. Then the presence of a unit root was analysed using the Dickey - Fuller test. Based on the test results, time series were excluded which appear to be stationary. If the conditions were met, testing then continued with the Engle - Granger test to detect cointegration relations, which would determine a relationship between selected variables. Based on these tests, it was found that at a significance level of 0.05, no cointegration relationship exists between any of the time series in the countries surveyed.
Keywords: Economic Growth, M3, Cointegration Test, Banking Sector, GDP
JEL classification: C32, E47, E51
Open Access
Article
SciPap-852
Absorption Capacity of Structural Funds (2007-2013): Typology of Czech Microregions
by Oldřich Hájek, Jiří Novosák, Peter Horváth, Jana Novosáková
Abstract: The intent of this paper was to suggest a typology of Czech microregions based on the demand side of their structural funds (SF) absorption capacity in the programming period 2007-2013. Moreover, the demand side of SF absorption capacity of the so called microregions with concentrated state support was evaluated. Concerning the first intent of this paper, seven clusters of microregions were defined, using a new approach based on the following theoretically substantiated variables for operationalizing the demand side of SF absorption capacity – the number of project applications submitted for financing by SF, the amount of SF requested for one project application, and the share of project applications supported by SF. The relevance of these clusters was shown by the associations between their absorption capacity on the demand side and relative SF allocation. Concerning the second intent of this paper, it was shown that the so called microregions with concentrated state support are less likely to have high absorption capacity on the demand side compared with their not supported counterparts.
Keywords: Czech Republic, Cluster Analysis, Absorption Capacity, Structural Funds
JEL classification: R12, R58, O18, O22
Open Access
Article
SciPap-867
Who Reacts to Income Tax Rate Changes? the Relationship Between Income Taxes and the Motivation to Work: The Case of Azerbaijan
by Orkhan Nadirov, Bruce Dehning, Khatai Aliyev, Minura Iskandarova
Abstract: This research investigates the effects of income taxation on the motivation to work by employing a survey method for the Azerbaijan population. The two research questions of interest are, if subjects consider income taxes when deciding how many hours to work and how subjects would react to a hypothetical 5% income tax rate increase. Also examined are the responses to these questions between subjects with different socio-economic characteristics. Examining cross-sectional data of 326 respondents reveals that income taxes do not influence Azerbaijan labour market participants’ motivation to work, regardless of their socio-economic characteristics. Empirical results indicate that reactions to hypothetical income tax rate increases show that the strength of response differs significantly across gender, age, marital status, field of employment, and income level. However, there are no significant results for differences in gender and after-tax wages. Our study contributes to the labour supply literature with the theory that after an income tax is imposed, both the average price and the average utility of leisure is greater for high wage earners than low wage earners.
Keywords: Income Taxes, Motivation To Work, Survey Design, OLS Method, Azerbaijan
JEL classification: J22, H24
Open Access
Article
SciPap-837
Weight of Topsis Technique Parameter and Its Impact on Assessment of Municipalities in Slovak Republic
by Roman Vavrek
Abstract: Efficient use of funds is the current challenge for operators both private and public sectors. In Slovakia the management of municipalities is governed only by law, that the main and only criterion considers the indebtedness of the village. The goal of the paper is to offer an alternative view of the legal assessment of the economic communities in the form of a comprehensive assessment of management of the municipality. Post characterizes TOPSIS technique as a suitable alternative for a comprehensive assessment of the management of municipalities in 2014, and this technique is applied to a set of villages in the Prešov Region (663) at two levels - at the same and adapted monitored indicators. Within the article the best management of municipalities according to selected criteria is ranked. The results of applications are further statistical examined to identify the impact of the indicators, as well as identification of observed correlation.
Keywords: Local Self-Government, Municipality, Prešov District, Topsis Technique, Multicriteria Evaluation, Indicators Weight
JEL classification: H71, H72, C39, C62, G28
Open Access
Article
SciPap-898
Long-Term Care in Selected OECD Countries in the Context of Demographic Changes
by Renata Halásková, Martina Halásková
Abstract: With respect to demographic changes and population ageing, all OECD countries will be tackling issues of long-term care (LTC) associated with the need for professional services, collaboration between the formal and informal long-term care systems, and the adjustment of the mix of public and private resources playing part in long-term care financing. The paper aims to evaluate the potential of long-term care in selected OECD countries in connection with population ageing. The majority of the selected countries have seen a rise in the number of long-term care recipients along with total expenditures on long-term care. Nevertheless, these countries differ fundamentally in total expenditures allocated on long-term care per recipient. Results of evaluation using selected indicators of long-term care, by use of two-step cluster analysis, in years 2008 and 2013 also showed a variety of approaches in the provision of long-term care among the analysed countries (mainly in terms of LTC recipients aged 65+ as percentage of total LTC recipients) and in financing of long-term care (mainly in terms of LTC expenditures on institutions as percentage of total LTC expenditures).
Keywords: Long-Term Care, Long-Term Care Expenditure, Recipients Of Care, Demographic Changes, Population Ageing, OECD Countries
JEL classification: H75, J11, H41, H51
Open Access
Article
SciPap-866
Nongovernmental Nonprofit Organisations in Social Services: Theories Versus the Real Situation in the Czech Republic
by Jakub Pejcal, Jakub Dostál
Abstract: The national economy can be divided by theory into four segments - public sector, the nongovernmental non-profit sector, the nongovernmental for-profit sector, and the household sector. For a long time, the nongovernmental nonprofit sector has been considered to be a very active and important segment in the area of providing public services. In this paper, we outline the actual situation in the Czech Republic, the role and scope of Czech nongovernmental nonprofit organisations in the field of social services that is significant. On the basis of official statistics of the Ministry of Labour and Social Affairs of the Czech Republic (The Register of Social Service Providers) and other databases (Register of Economic Entities and Public Register), we show that almost two third of all social services (approximately 5,600 services) is provided by nongovernmental nonprofit providers (especially by Public beneficiary corporations, Churches and religious communities and Societies). The contribution also include detailed characteristics of these organizations (their legal form, the location of their seat, number of provided services, etc.). The findings and results of our research are then critically discussed with regard to relevant theories and results of previous studies.
Keywords: Public Services, Distribution Of National Economy, Nongovernmental Nonprofit Sector, Nongovernmental Nonprofit Organisations, Social Services
JEL classification: A13, L31
Open Access
Article
SciPap-873
Mystery E-Mail/Website Customer Service. a Case Study of Retail Companies
by Roman Kozel, Šárka Vilamová, Liliana Hawrysz, Katarzyna Hys
Abstract: This paper examines the customer service process in 5 retail companies using the method of mystery e-mail/website visits. The following study question was formulated in this article: Does the communication effectuated by the retail sector via e-mail and the content of their websites, fulfill customer expectations? The study was conducted in 60 car dealer centers of Škoda in Poland and the Czech Republic. The adjustment of the standards of customer service in such showrooms constitutes a vital issue in the ambit of a company’s functioning, both in the Polish and Czech markets. Perfecting customer service standards by applying communication through the Internet (e.g. the use of e-mails and company websites) for the entrepreneurs functioning in the contemporary market, constitutes a promise of adaptations of standards aimed at meeting customer expectations. It reflects the ability and proclivity to become involved even in extra-economic activities, which, in the long run, might contribute to better economic effects of companies.
Keywords: Competitiveness, Customer Service, Mystery E-Mail, Mystery Website Visits, Retail Companies
JEL classification: M31, O14, D81, D83
Open Access
Article
SciPap-863
Decomposition of Technical Efficiency of Selected City Libraries From the Czech Republic
by Iveta Vrabková
Abstract: The aim of this article is the determination of the gaps of efficiency of 33 city libraries using decomposition of technical efficiency to pure technical efficiency and scale efficiency. The first model estimates the technical efficiency of city libraries from the perspective of the traditional mix of inputs and outputs that are applied in the DEA models; the inputs are represented by the so-called production and technological resources, and the output is represented by the actual demand given by the number of customers. The second model estimates the technical efficiency of operating conditions of selected city libraries against the actual number of visitors, whilst it is based on the assumption that a city library shall have an appropriate space, optimal access in the form of operating time, and optimal number of places for studying. The results depend on the input or output orientation of models and on the expected returns to scale. As the key gaps of efficiency, the models marked – non-topical and large library collection, number of readers and visitors, and also unutilized spaces of city libraries.
Keywords: City Libraries, Dea Models, Pure Technical Efficiency, Scale Efficiency, Total Technical Efficiency
JEL classification: C67, H10
Open Access
Article
SciPap-843
“To Formulate a Positive Vision”: A Debate on the Current State of the Global Society From a Political-Economic Perspective
by Marián Sekerák
Abstract: Rapidly changing global economic environment provokes new challenges for scholars as well as politicians throughout the world. Many of them criticize currently dominant capitalist system, the so-called Washington Consensus and its inherently neoliberal nature. In this paper I directly respond to the recently opened Czech debate on this system’s future development. Therefore, two possible “positive visions” are presented as viable, neutral and potentially well-functioning alternatives: the employee participation and the movement of sustainable de-growth. These visions are incorporated into the framework of the so-called social economy. In the case of employee participation, sometimes labelled as economic democracy, four concepts are presented: the German, the Slovak one and two American ones. Widespread degrowth movement is represented by measures such as the taxation of global banking transactions, decentralization of financial institutions, restrictions on tax havens, fair trade, cooperative business, support of local currencies, reducing emissions and the introduction of an unconditional basic income. Some of these proposals are promoted in the current Catholic social teaching.
Keywords: Political Economy, Neoliberalism, Capitalism, Degrowth Movement, Economic Democracy, Employee Participation
JEL classification: A10, P16
Open Access
Article
SciPap-899
IT Utilization Rate When Determining Corporate Strategic Goals
by Romana Hajkrová
Abstract: This article assesses current level of the information support tools for a specific area of the corporate process. Under this area we understand strategic planning and determination of corporate strategic goals. The mentioned area is perceived quite differently by the plant owner than for instance employee of the same company. But the fact is that this area is the major axis that passes through the entire corporate structure and, if set correctly, it is the very key to success and especially to long-term development and stability of the company. From the historical point of view, creation of corporate strategic objectives was a certain foretelling from the crystal ball for a number of managers, depending on the corporate life cycle phase, or stereotypical raising the goals. Based on this way created corporate strategic goals, it is not surprising that fulfilment of these objectives reflects the reality rather by accident in many cases. Creating truly realistic strategic goals of the company with respect to its life cycle is a much more complex process and therefore one wonders at the low level of responsibility applied by certain managers to it.
Keywords: Analysis, Information Technologies, Strategic Goals, Strategic Plans, Company / Plant, Software
JEL classification: M15, M21
Open Access
Article
SciPap-874
A Study of Generation Z From the Communication Perspective of Universities
by Kateřina Kantorová, Hana Jonášová, Jan Panuš, Roman Lipka
Abstract: This paper deals with the examination of high school and college students’ preferences for choosing the university who were born in the period of mid 1990s. The goal of the paper is to conduct more detailed analysis of the most common means of communication from the perspective of potential and existing customers (in this case, students). We approach how members of this generation make decisions when they choose a university to study and what content of the information affects their final decisions. Research conducted for this article include at most 900 respondents from among high school students and first year university students. It is evident that students are affected more by information concerning their future than those that make life in the study. A big influence on the decisions of the university have information that students gained from their friends or family who the studied similar schools in the past. We found that within a generation Z the older generation does not have such an influence on their decisions. Our findings also show a degree of decision-making dynamics of two students subgroups comparison - students who doesn´t study the university and those who already are studying. The valuable information for business sphere about the way how examined groups of student gather information is presented in the paper. This information can significantly help to understand and better targeting that groups.
Keywords: Media, University, Questionnaire, Generation Z, Marketing
JEL classification: I23, M31
Open Access
Article
SciPap-896
Corporate Life Cycle Identification: A Model Based on Relationship Between Return on Equity and Cost of Equity
by Zdeněk Konečný, Marek Zinecker
Abstract: The theory of shareholder value maximisation implies that the ultimate aim of each entrepreneur is to increase the market value of the company, i.e. to maximise the wealth of shareholders. This concept assumes that the returns to shareholders should outperform the cost of capital. The higher the spread is, the better the position of shareholders. The capital assets pricing model has been very often used for calculation the cost of equity as implicit costs, where the risk-free rate, the expected return of the market and the premium to operational and financial risks in the form of beta coefficient is considered. Moreover, the return on equity is significantly dependent on the corporate life cycle. The purpose of this paper is to develop an innovative model identifying stages of the corporate life cycle while using two variables: the rate of economic profit and the share of operational and financial risk within the total entrepreneurial risk. The model is verified by using data of a selected company. Identifying stages of the corporate life cycle should simplify the risk management and subsequently raise the capital access.
Keywords: Return On Equity, Cost Of Equity, Financial Risks, Operational Risks, Rate Of Economic Profit
JEL classification: D24, G32
Open Access
Article
SciPap-883
Management of Emissions Permits: Threats of the European Emissions Trading System
by František Zapletal, Jan Ministr, Petr Řeháček
Abstract: Since the beginning of the millennium, heavy industrial companies in the EU must face the threat related to duty of emissions trading. The aim of this paper is to assess an impact of selected indicators of the emissions trading system (EU ETS) – number of grandfathered permits (allowances) to a company for free and emissions price for different type of permits. That is enabled by the parameterization and sensitivity analysis of the simple linear programming model which maximizes the total profit margin of the company. Analyses in this paper are performed using the data of one real iron and steel producing company in the Czech Republic. The influence of the chosen factors is explored for the second and the available part of the third trading phase of the EU ETS.
Keywords: EU ETS, Risk Management, European Union Allowance, Linear Programming
JEL classification: C44, C61
Open Access
Article
SciPap-886
On Reporting Performance of Binary Classifiers
by Pavel Škrabánek, Petr Doležel
Abstract: In this contribution, the question of reporting performance of binary classifiers is opened in context of the so called class imbalance problem. The class imbalance problem arises when a dataset with a highly imbalanced class distribution is used within the training or evaluation process. In such cases, only measures, which are not biased by distribution of classes in datasets, should be used; however, they cannot be chosen arbitrarily. They should be selected so that their outcomes provide desired information; and simultaneously, they should allow a full comparison of just evaluated classifier performance along, with performances of other solutions. As is shown in this article, the dilemma with reporting performance of binary classifiers can be solved using so called class balanced measures. The class balanced measures are generally applicable means, appropriate for reporting performance of binary classifiers on balanced as well as on imbalanced datasets. On the basis of the presented pieces of information, a suggestion for a generally applicable, fully-valued, reporting of binary classifiers performance is given.
Keywords: Machine Learning, Binary Classification, Class Imbalance Problem, Performance Measures, Reporting Of Results
JEL classification: C45, C83
Open Access
Article
SciPap-875
Application of Corporate Controlling in the Czech Republic
by Michaela Jánská, Čeněk Celer, Marta Žambochová
Abstract: In order to secure corporate control continuity, the management utilises instruments of controlling that begin to be applied even in the environment of small and medium firms. The goal of the report is to find the reasons and the scope of controlling application in companies operating in the Czech Republic. In order to fulfil the objectives of the article, an analysis of expert literature and studies dealing with the issues in question has been performed. The data obtained during the electronic questionnaire investigation in the firms of the Czech Republic was used as primary data. The application of controlling in firms has been examined based on the number of employees in the company and their economic focus. For the presumption in question, hypotheses had been expressed where the statistical importance and correlation relationship have been examined. The results ascertain the growth of controlling in the enterprises and the lowering discrepancy between the application of controlling activities from the standpoint of the number of employees and economic focus. The article is concluded with a discussion of the ascertained results of the actual investigation complemented with the expert knowledge of other researchers.
Keywords: Controlling, Control Management, Application Of Controlling, Number Of Employees, Economic Sector, Economic Importance
JEL classification: M21
Open Access
Article
SciPap-865
Non-Financial Factors of Performance: The Case of Mechanical Engineering Companies in the Czech Republic
by Mária Režňáková, Michal Karas, Michala Strnadová
Abstract: Successful achievement of strategic goals requires an effective performance management system, i.e. determining the appropriate indicators measuring the rate of goal achievement. These indicators are known as key performance indicators or value drivers according to the principles of value-based management. Performance is monitored by both financial and non-financial indicators. In order to gain further insight into the topic, this paper presents the results of research identifying the non-financial factors that affect the performance of mechanical engineering enterprises in the Czech Republic. The data were obtained from a questionnaire survey of the enterprises’ senior management. The results of the survey were evaluated on the basis of response rate. The evaluation also included a comparison of the managers’ opinions and the performance of their enterprises – measured by return on equity. The results of the analyses show that the factors most detrimental to enterprise performance include the incompetence of responsible employees and the disregard of the customers’ requirements. Factors most frequently shown to increase the value of the enterprise are the product quality, product innovation and flexibility in meeting customers’ requirements.
Keywords: Performance Measurement, Value-Based Management, Value Drivers, Financial Ratios, Mechanical Engineering Enterprises
JEL classification: G30, G32
