19 10 3494 https://omeka.ibu.edu.ba/files/original/6e0c02d3136c89331658059ec5bfaa7a.pdf 60829ebd29db236baf06d464688bd347 PDF Text Text NAZLI ERAY’IN İMPARATOR ÇAY BAHÇESİ ROMANINDA FANTASTİK UNSUR OLARAK ZAMAN VE MEKAN KAVRAMLARI *Emine Nur SARITOSUN ÖZET Büyülü gerçekçilik Latin Amerika’nın roman alanında en üretken dönemi olarak bilinen 1950’ler ve 1960’larda farklı şekillerde ortaya çıkmış bir anlatım tarzıdır. Büyülü gerçekçilik kavramı, Türkiye'ye bir akım niteliğiyle 1980'li yıllarda ulaşır. Büyülü gerçekçilik özellikle yirminci yüzyıl Latin Amerikan edebiyatında gelişmiştir. Bu anlayış fantastikten ve masaldan ayrı olarak yeni gerçekliği kavramanın ve anlatmanın bir çabası olarak ortaya çıktığı söylenmektedir. Nazlı Eray (d.1945), Türk edebiyatına önemli yenilikler getirmiş yazarlardan birisidir. 1959’ da henüz ortaokuldayken kaleme aldığı ‘Mösyö Hristo’ ile edebiyat dünyasına adımını atmıştır. Gerçeküstücülük akımının niteliklerini taşımakla beraber bunu eserlerine yansıtmıştır. Bu makalenin amacı, Eray’ın İmparator Çay Bahçesi yapıtında büyülü gerçekçilik yönünden değerlendirerek, onun bu tarzda zaman ve mekan unsurlarına nasıl şekil verdiğini incelemektir. Nazlı Eray’ın seminerine katılarak kitap hakkında veriler elde edilmiştir. Araştırma ve inceleme yöntemiyle de bu veriler sentezlenip yazıya aktarılmıştır. Türk edebiyatında fantastik unsur olarak kullanılan zaman ve mekan kavramları, farklı yönleriyle edebi eserlerde yer almıştır. Yazarın yapıtında büyülü gerçekçiliğe göre zaman ve mekan kavramlarının farklı yönlerden tasvir edilmesi, onun büyülü gerçekçi anlatım tekniklerini ustaca kullandığının göstergeleri olduğu görülmüştür. Eray, örnek aldığı Gabriel Garcia Marcus, Sait Faik Abasıyanık, Ahmet Hamdi Tanpınar, Sevim Burak ve eserlerinde de yer verdiği Stalin, Evo Poren’den aldığı ve kendi fikir dünyasıyla sentezleyerek, özgün eserler vermiştir; bu yapıtında da zaman ve mekan kavramlarını fantastik unsurları kullanarak şekillendirmiştir. Anahtar Sözcükler: Nazlı Eray, Büyülü Gerçekçilik,İmparator Çay Bahçesi. �ABSTRACT Magical realism in the novel areas of Latin America, known as the most productive period in the 1950s and is a narrative style emerged in the 1960s in different ways. The concept of magical realism, with a current nature to reach Turkey in the 1980s. Magical realism is particularly developed in the twentieth century Latin American literature. This approach is said to grasp the new reality as distinct from fantasy and fairy tales and emerge as an effort to tell. Nazli Eray (d.1945), the author is one of the major innovations brought to Turkish literature. 1959 is not yet in junior high penned 'Hristo Monsieur' and took a step into the world of literature. Although the move has reflected on the nature of the Surrealist movement that works. The purpose of this article, Eray Emperor's Tea Garden building in evaluating the direction of magical realism, is that this kind of time and gave her to examine how the shape of the space component. Nazli Eray participating in the seminar about the book data was obtained. The research and investigation methods were also synthesized data transferred to this article. When used in Turkish literature as elements of fantasy and space concepts, it has been involved in different aspects of literary works. The author's work is to describe the different aspects of the concept of time and space according to magical realism, it was found to be skillfully uses his magical realistic narrative techniques that indication. Eray, samples received by Gabriel Garcia Marcus, Sait Faik Abasıyanık, Ahmet Hamdi Tanpınar, Stalin gave Sevim in the John and art works, taken from Evo porém and to synthesize their own idea of the world, has original works; the concept of time and space in this building is shaped using elements of fantasy. Key Words: Nazli Eray, Magical Realism, Emperor Tea Garden. �GİRİŞ Türk Edebiyatında fantastik unsurların yoğun olduğu kurgularıyla tanınan Nazlı Eray, bu dünya ile gerçek dünyayı çok iyi bir şekilde romanlarına yansıtmıştır. Nazlı Eray, kurgusal unsurları romanlarında ve öykülerinde sık kullanan yazarlarımızdandır. Nazlı Eray’ın (d.1945) 1959’da yazdığı ve 1960’ta Varlık’ta yayımlanan ilk öyküsü “Mösyö Hristo”dan itibaren büyülü gerçekçi bir anlayışla tüm eserlerini kurgulamıştır. Nazlı Eray, öykülerinin hemen hemen tamamında olayları yaşayan ve anlatan, kimi zaman yazar kimliğini öne çıkararak otobiyografik bilgiler aktaran bir anlatım tutumu sergiler. Özellikle ilk öykülerinde yazarın çocukluk anılarından fazlaca yararlandığı, kendi yaşamını kurgunun odağına aldığını gözlenmektedir. NAZLI ERAY 28 Haziran 1945’te Ankara’da doğdu. İstanbul Arnavutköy Kız Kolejini bitirdi. İstanbul Üniversitesi Hukuk Fakültesi ile Edebiyat Fakültesi Felsefe Bölümü’nü bitirmeden ayrıldı. 1965-1968 yılları arasında Turizm ve Tanıtma Bakanlığı’nda çevirmen olarak çalıştı. Evlendikten sonra görevden ayrılıp sadece yazılarıyla ilgilendi. 1977’de Amerika’da Iowa Üniversitesi’nde konuk öğretim üyesi olarak bulundu ve bir sömestr yaratıcı edebiyat dersi verdi. Yazmaya lise öğrenciliği yıllarında hikaye çalışmalarıyla başladı. İlk öyküsü “Mösyö Hristo” Varlık dergisinde yayınladı. Yazı hayatına başlama serüvenini kendisi şu şekilde anlatıyor: “Edebiyat duygumun ve serüvenimin nasıl ve ne zaman başladığı sorulduğunda ortaokul yıllarıma gidiyorum. 16 yaşında bir ortaokul son sınıf öğrencisiyken “Mösyö Hristo” adlı öyküyü kaleme aldığım yıllara… İstanbul’un eski bir köşesinde, Şişhane’de, Tepebaşı’nda bundan çok uzun yıllar önce, İstanbul böyle bir İstanbul değilken, yarı karanlık bir dünyada bir akşamüstü, bir beyaz kâğıda “Mösyö Hristo” adlı bir öykü yazdım. Bu benim ilk hikâyemdi…Mösyö Hristo, Şişhane Yokuşu’ndaki Saadet Apartmanı’nın kapıcısıydı. Mösyö Hristo, bir yaz günü bir kuş olup Kuledibi’ne uçuyor. Gece gündüz, tüm gün boyunca o çok sevdiği Pera’yı kuşbakışı izliyor. Yaşlı kapıcı orada hayatının muhasebesini yapıyor. Kapıcı dairesine dönmemek, kendisini bekleyen karısı Madam Marina’dan kaçmak istiyor, ama yapamıyor. Birçoğumuz gibi tekrar o rutin hayata geri dönüyor, onu yaşlı gözlerle bekleyen karısına, “Çok yoruldum,” diyor. Kapıcı bir gün süren o özgürlüğün tadını çıkarmış, fakat ondan bir parça dahi alamayacağını anlayarak eski hayatına geri dönmüş. �Uçan bir kapıcı, Mösyö Hristo… Ben bu hikâyeyi yazdığım zamanlarda daha Süpermen, Harry Potter yoktu, uçan bir adam ya da diğer fantastik öğeler ortada yoktu. Öyküyü bitirdiğimde, kendimden çok emin bir halde zarfa koydum ve okulumun edebiyat kulübünün kapısının altından attım. Şimdi düşünüyorum da, bunu neden bir hocaya vermedim veya bir arkadaşıma okumadım; enteresan bir şey. Diğer deyişle, bu benim için bir F16 sortisi gibi bir şeydi. Geriye baktığımda, o yaşlardaki kendime güvenimi ve öykümün okunacağından emin oluşumu takdir ediyorum. Öyle ki, okul ücra bir yerdeydi, belki de edebiyat kulübünün kapısı hiç açılmayacaktı, dahası ben oraya üye bile değildim. Genç yaşında, önemsenmeyen bir öğrenciydim. Eve döndüğümde, ‘Bana deli derler mi?’ diye düşünmeye başladım. Yazdığım öyküde uçan bir adam vardı sonuçta… O esnada Jean-Paul Sartre ve Albert Camus’nün de aralarında bulunduğu birçok yazar Paris’teydi. Ama benim gerçeküstücülükten haberim yoktu. Ama yine de inanıyordum hikâyeme ve mucize gerçekleşti. Bir gün telefon çaldı, okula çağırdılar. Gittiğimde edebiyat kulübünde hocalar ve benden büyük öğrenciler bana şaşkın şaşkın bakıyor, tebrik ediyorlardı; Mösyö Hristo’yu, uçmasını ve bunun aklıma nereden geldiğini soruyorlardı. Hayatımda ilk defa yazarlık duygusunu orada hissetmiştim. Bugün “Mösyö Hristo”, dünya edebiyatının önemli antolojilerinde o gün yazıldığı gibi, hiçbir değişime uğramadan, birçok dile çevrilmiş biçimde yaşıyor. Mösyö Hristo bu hikâyeyi okuyamadı, çok yaşlıydı ve biz o mahalleden taşınmıştık…” Öyküleri İngilizce, Fransızca, Almanca, İtalyanca, Japonca, Çekçe, Urduca ve Hintçe’ye çevrildi. 1986’da öykülerinden bir demet Almanca olarak Almanya’da yayınlandı. Eserlerinde ironi ve eleştirinin ağır bastığı gerçek dışı bir evren oluşturur. Düşle gerçeğin yaşananla tasarlananın iç içe örüldüğü öykü ve romanları zengin bir düş gücünün ürünüdür. BÜYÜLÜ GERÇEKÇİLİK Gerçek ve fantezinin bir karışımı olan büyülü gerçekçilik, Latin Amerika’da oluşan bir akımdır. Büyülü gerçeklik nitelemesine ilk kez Avrupa’da 1925 yılında Alman yazarı Franz Roh’un soyut ekspresyonist ressamları eleştiren yazılarında rastlanır. İlk kez Kübalı romancı Alejo Carpentier’in adını koyduğu bu tür, Latin Amerika’nın günlük hayatındaki fantastiği açığa çıkaranlar arasında özellikle Marquez’in elinde olağanüstü anlamlar ve biçimler kazanmıştır. Bu kavram, Türkiye'ye bir akım niteliğiyle ancak 1980'li yıllarda ulaşır.39 �Büyülü gerçekçilik (Magischer Realismus), mucizelerin ve olağanüstü olayların, alışılagelmiş olaylar biçiminde algılandığı ve insanların, yaşadığımız dünyanın geçerli yasalarının ötesinde özelliklerle donatılmış olduğu, gizem dolu bir dünyayı ifade eden bir terimdir. Bu özelliğe sahip olan kurgular, hayatta gerçekleşmesi imkânsız olan durum, olay ve kahramanları, itibarî âlemde normalmiş gibi gösterir. Gerçeği ve fantastiği birleştirerek her şeyi doğal bir şekilde sunar. Böylelikle sıradan olayları gerçek dışı bir masal gibi anlatır. Bu kurmaca dünya içinde her şey, hikâyedeki karakterler tarafından tipik bir hayat olarak kabul edilir. Olaylar ne kadar olağan dışı olursa olsun, durum alışılagelmiş bir biçimde gösterilir. Büyülü gerçekliğin anlatımında batıl inançlar, hayaletler, cinler, periler ve doğaüstü olaylar doğruluğu şüphe götürmez bir biçimde, gerçek bir olaymış gibi anlatılır. Kurmaca dünyaları büyülü yapan da bu özelliğidir. Gerçeğin ve düşün iç içe halkalar oluşturduğu bu anlatım biçimi çeşitli yönleriyle düşsü gerçeklikten ve fantastik kurgudan ayrılır. Kahramanın bir düş dünyası içinde yaşaması, büyülü gerçekliğin fantastik kurgu ile birleşen noktasıdır. Ancak fantastik kurgularda hikâye kahramanı ve okur, olayların düş veya rüya olduğunu, gerçek dünyanın kurallarına aykırı durumlar yaşadığının farkındadır. Büyülü gerçeklik ise düşsü gerçekliğe dayandırılmakla birlikte fizikî dünyanın yasalarını göz ardı eder. Düşsü gerçeklikle çok yakın anlam alanlarına sahip olan büyülü gerçekçilik, rüya gibi bir kurguyu işler. Düşsü gerçeklikte anlatıcı herhangi bir unsuru kullanarak olayların gerçekte yaşanmasının çok da mümkün olmadığını bir şekilde ifade eder. Bu yüzden anlatıcı ve kahraman, gerçek ve düş arasında mekik dokur. Ancak büyülü gerçekçi dünyada gerçeğe dönüşler, düşsü gerçeklikteki kadar yoğun değildir. Latin Amerika’da ortaya çıkan büyülü gerçekçilik ve postmodernizm son dönemlerde dünya edebiyatlarını fazlasıyla etkiler konumdadır. Bu tür eserler, kurmacalıkları uç noktalardadır. Dış dünyadan soyutlanmış olan ve iç dünyayı öne çıkartan bu kurgular, anlatılanları inandırıcı bir dille sunar. Yazara ve kurguladığı kahramana sağladığı özgürlük çok geniştir. İnsanı ve anlattığı gerçekliği de büyüleyen bir yaratma gücüne sahip olan büyülü gerçekçi yazar, geleneksel anlatım biçimlerinden uzaklaşarak farklı teknikler kullanır. Dış dünya karşısında insanın iç gerçekliğini sezgili bir biçimde gösteren bu anlayış, insanın, hayatın ve eşyanın bilinmeyen yönlerini ortaya çıkarır. İç gerçekliğin ayrıntılı anlatımıyla birlikte, yazar ve okur gerçekle yüzleşir ve onu çözmeye çalışır. Bu yüzden amaç hayalî olgular veya dünyalar yaratmak değildir. �Büyülü gerçekçilikte metinler, insanın çevresi ve kendisi arasındaki gizemi ortaya çıkarmak için kurgulanır. Hayata yeni bir bakış açısı getirme amacıyla hareket eden büyülü gerçekçi yazar, fizik kanunlarıyla açıklanan olayların yerine hayal gücünü getirir. Bu sebeple büyülü dünyada gerçekleşen olaylarda mantık aranmaz. İnsan mantığının geleneksel bakış açısının ellerinden kurtulduğu bir dünyada var oluş meselesini farklı bir boyutta işleyen büyülü gerçekçi yazar, okura bu yolla çeşitlilik sunar. Postmodern edebiyatın getirdiği bu yolla, insan zihninin sınırları zorlanarak gerçekliğe bir çeşit darbe vurulmuş olur. Böylelikle okurun bilinenin sınırları dışında düşünmesini sağlamış olur. Bu anlatılarda olağan olan tuhaflıklardır. Gerçeğin beklenmedik bir biçimde, bir rüyadaymış gibi hızlı değişimi farklı bir estetik yapıyı da beraberinde getirir. “Büyülü gerçekçilik, dili büyüye dönüştürürken insanı ve anlattığı gerçekliği de büyüleyen bir yaratma gücü”dür. 40 Fantastik edebiyatta geniş yer tutan büyülü gerçeklik, Marquez’in hemen hemen tüm romanlarında belirir. Gabriel Garcia Marquez, Yüzyıllık Yalnızlık romanıyla büyülü gerçeklikte asıl başarısına ulaşır. Marquez, büyülü gerçekçiliğin mitlerden, büyüden, doğanın yarattığı sıra dışı olaylardan, Latin Amerika’nın biricik yaşam biçiminden ve Avrupa gerçekçiliğinin gereksiz görüp dışladığı deneyimlerden oluştuğunu söyler. Angel Fiores, bu tür romanları ‘gerçeğin yanında gerçeküstü oluşumlara da yer veren, bu ikisinin iç içe girdiği ve neyin gerçek neyin gerçeküstü olduğunun kimi zaman ayrımsanamadığı özel bir anlatı” şeklinde değerlendirirken Chanady, büyülü gerçekliği “gerçeküstünün kurduğu masalsılığın altında eleştirisini kolaylıkla yapan, bir ‘alt ses olarak düşünür. Gerçekleşmesi mümkün olmayan olayları bir metafor haline sokarak inandırıcı kılan büyülü gerçekçi yazar, çevresindeki gerçeği eserine aynen yerleştirmez. Gerçeği karmaşık ayrıntılarla okura sunmaya çalışır. Yeni Roman akımının ortaya çıkmasıyla birlikte bu kurgulara ilgi daha da artar. A. Robbe-Grillet, N. Sarraute, M. Butor, C. Simon, Miguel Asturias, Carlos Fuentes, Mario Vargas Llosa, Julio Cortazar, Jorge Amado, Isabel Allende, Cabrera Infante, Manuel Scorza, Vascancelos, Manuel Puig, Jorge Lois Borges, Günter Grass, Milan Kundera, Arundhati Roy, Toni Morrison gibi yazarların eserleriyle geniş kitlelere ulaşır. Bu isimlerin dışında, Cervantes’in kaleme aldığı Don Kişot, büyülü gerçekçi kurgunun ilk örneği olarak kabul edilir. Bu görüşe göre, “edebiyatta ilk büyü 'yel değirmenlerine saldırmakla' başlar.” �Yunan yazar Mara Meimaridi'nin İzmir Büyücüleri adlı eseri, büyülü gerçekliği barındıran bir eserdir. Eserde tarih zemini kuvvetli bir unsurdur ve bu unsurlar büyülü bir dünyanın gizemi içerisinde okura sunulur. Salman Rushdie, Fuentes, Borges gibi isimler, büyülü gerçeklik akımının öne çıkan yazarları arasındadır. Salman Rushdie, Geceyarısı Çocukları isimli eserinde gerçek, düş, gizem ve büyüyü fantastik unsurlarla kaynaştırmıştır. Türk Edebiyatının başarılı isimlerinden Latife Tekin de büyülü gerçekçi kurgularıyla dikkatleri üzerine çeker. Eserlerinde bir tür büyülü gerçekçi üslup oluşturan yazarın Sevgili Arsız Ölüm romanında fantastik unsurlar yoğunluktadır. Ancak bu yoğunluğa rağmen Tekin, gerçeği göz ardı etmeyerek fantastik dünyayı olağan bir şekilde anlatır. Handan İnci’ye göre Sevgili Arsız Ölüm, bu yönleriyle Latin Amerikalı Marquez’in, Batı’nın ampirik gerçeklik kavramını altüst ettiği Yüzyıllık Yalnızlık adlı romanına benzetilir. Cinler ve perilerle insanların iç içe yaşadığı, masalsı bir kurguya sahip olan eserde, bir köylü ailenin şehre alışma çabası işlenir. Romanda fantastik unsurlar Atiye’nin düşüyle başlar. Dirmit isimli kahraman kullanılarak birtakım olağanüstülükler verilir. İsimleri ve özellikleri açıkça verilen Kepse, Sarıkız, Kişner Oğlan ve Küllük Cini kurguda ayrıntılı yer tutar. Hatta kahramanların hayatlarını bu cinler belirler. Fantastik unsurların ağır bastığı bu büyülü gerçekçi romanda köy ve kent gerçeği de başarılı bir şekilde gözler önüne serilmiştir. İMPARATOR ÇAY BAHÇESİ Eserin ön sözünde Nazlı Eray’ın gerçekçi bir yazar olduğu anlaşılmaktadır. Yazar kitabın içinde geçen belli başlı unsurların gerçeğin aynısı olduğunu bile dile getirmiştir. “İmparator Çay Bahçesi Bartın’da tasarlandı; Ankara’nın değişik pastanelerinde, çay bahçelerinde, Bodrum’un bazı kahvelerinde kaleme alındı. Roman bütünüyle insanlar arasında yazılıp tamamlandı. Romanda yer alan Japon oyun makineleri aslının aynısıdır.İmparator Çay Bahçesi’ni yol kenarında gördüğüm an, tüm yapıt çalkalandı ve her şey birden yerli yerine oturdu. Tıpkı bir mevsim gibi…” Zamana Bağlı Fantastik Unsurlar Postmodernizm, tek bir gerçek, tek bir anlam vardır, anlayışı yerine birden çok gerçek ve anlam vardır, düşüncesini edebiyata kazandırmıştır. Postmodernizmin unsurlarını �eserlerinde uygulayan Nazlı Eray, zaman problemini de bu anlayış çerçevesinde şekillendirmiştir. Zamanın geçişliliğini öne çıkararak gerçeklik fikrini yıkmak ve hayalî bir dünya kurgulamak isteyen Eray, gerçekle kurmacayı iç içe geçirirken anlatı zamanlarında çeşitli oynamalar yapar. Zamanda yolculuğa çıkma motifi sık kullandığı fantastik unsurlarındandır. Başka zamanı yaşamak veya o zamanın insanı olmak, çevresindeki kahramanları da bu yolculuklara çıkarmak yazar için âdeta bir oyundur. Zamanlar arası yolculuklarda geçişleri her anlatısında farklı bir şekilde yapar. Ayrıca zamansızlık da kahramanlarının yaşadığı belli problem alanlarındandır. Dünden bugüne, bugünden geçmişe ve geleceğe geçişlerle okuyucusunu çeşitli maceralara sürükleyen Eray, bu özelliğiyle eserlerine masalsı unsurlar katar. İnsanoğlu düşlerini, özlemlerini, mutsuzluklarını dile getirmek için olağan’ı değil hayalî olanı ağırlıklı olarak kullanır ve bu doğrultuda düşselliği yakalamaya çabalar. Eray’ın amacı da zamanı çeşitlendirerek anlatıya yeni bir gerçeklik kazandırmaktır. Zaman konusu, hemen hemen her eserinde fantastik yapıyla yer alır. Eserlerinde zamansızlığı kullanmasının nedenini bir söyleşide şöyle açıklar: “Kolumdaki saate çok bağlıyım. Başucumda saat olmadan uyuyup uyanamıyorum. Oysaki yazarken bende zaman mefhumu yok. İnce zaman çizgisini, ölümle yaşam çizgisini sevmiyorum ve atıyorum yazdıklarımdan. Zamanla çok ilgiliyim ama zamanı karıştırmayı seviyorum. Bir de beynimin bir yarısında bir zamansızlık, sonsuza uzanan bir koridor var.” Zamansızlığı daha iyi ifade edebilmek için saat mefhumunu kullanmamaya dikkat eder. Anlatıcıya ‘’ Acaba gecenin saat kaçı, bilmiyorum. Zaman geç olmalı…’’ sözlerini söyleterek kurguyu zamanı olmayan bir duruma getirir. Zaman çizgisinin dışında yer alış, zamanda sürekli ve hızlı atlayışlar da belirgindir. Anlatıcı, zamanın dışında olduğunu sürekli vurgular: ‘’ Aysız, karanlık bir gece. Ayakkabılarımın topuklarını soyan arnavutkaldırımlı yollarda nefes nefese koşuyorum. Saati bilmiyorum, çünkü hiçbir istasyon binası geçmedim, ortasında saat kulesi olan bir alana düşmedi yolum…’’ �Mekana Bağlı Fantastik Unsurlar Nazlı Eray, herhangi bir mantıksal sıra takip etmeden kurguyu farklı mekânlara götürür. Mekânda yaptığı ani değişiklikler, romanlarındaki fantastik unsuru ortaya çıkartır. Gerçek olanla hayalî olanı sentezlemek için kahramanlarını çeşitli mekânlarda bir araya getirir. Anlatıcı, bir mekândan diğerine hiçbir açıklama yapmadan geçer. Gerçek dünyadaki iç ve dış mekânlardan düşsel dünyanın zengin ve farklı mekânlarına geçiş, çerçeve öykünün içindeki olayların zincirleme şeklinde genişlemesiyle sağlanır. Fantastik anlatımlarda bütün olayların tesadüfen gelişmesi mekânları da farklılaştırır. “İstanbul’da mıyım, İzmir’de miyim, Ankara’da mıyım tam kestiremiyorum.” cümlesiyle başlar. Bu anlatıdaki mekân belirsizliğinin göstergesidir. Arzum Apartmanı’na tesadüfen girip orada kendini bekleyen iki insanı gören anlatıcı büyük bir şaşkınlık duygusuna kapılır. Gizemli dünya daha anlatının başında belirir. İlk düşsel mekân gece karanlığında anlatıcının gözüne çarpan Arzum Apartmanı’dır. Bu apartman şu şekilde tasvir edilir: “Yılların izini üstüne çekmiş, bilmediğim bir geçmişi giyinmişti sanki. Arzum Apartmanı… Ağır camlı, demir kapısını ittim… Merdivenler eskiydi, bazı basamakları aşınmıştı… O rüya ışığı yeniden aydınlatmıştı apartmanın içini.” Bu apartmanda tesadüfen gerçekleşen olaylar belirsizliğini korurken, Gül ablanın evine ani bir geçiş yapılır. Ardından Eski Cebeci Mezarlığı’nda roman kahramanları yavaş yavaş belirmeye başlar. Erkeklerin sevdikleri ve hayal ettikleri kadınları düşündükleri yer olan Taşhan, her gece erkekler ve hayal kadınları ile dolar taşar. Yarı karanlık bir dünya şeklinde tasvir edilen Taşhan’a gelen kadınların kimileri ölülerdir, kimileri ise yaşayan varlıklardır. Ancak ortak noktaları hepsinin de hayal olmalarıdır Romanda, anlatıcının Gece ile yer değiştirmesi sonucu yeni düşsel mekânlar ortaya çıkar. Gece ile yer değiştikten sonra anlatıcının tesadüfen bulduğu İmparator Çay Bahçesi şu şekilde tasvir edilir: “Anlatması çok zor, dedim. Bir garson var, boş masalar, iskemleler var, yaşlı bir Generalin bir köşeye atılmış pirinç saplı bastonu; şuh bir kadının siyah, üstü payetlerle işli gece çantası; dudaklarına götürdüğü şampanya kadehi; bu iki kişinin birdenbire baktıkları bir çizgide oluşan elektrik akımı… Aşk ve tutku çizgisi yani… Garsonun bu çizgiye kazara girişi, çok eskiden yitirdiği sevgilisi ile �bu çizginin içinde debelenirken sevişmesi, ölümle yaşam arasında gidip gelişi… Ölmek pahasına da olsa bu olayı yeniden yaşamak için çizgiye, yani o akımın içine tekrar dalışı… Her şey var orada!” SONUÇ Nazlı Eray, roman ve öykülerinde fantastik ve gerçekçiliği bir arada harmanlamış başarılı bir postmodern yazardır. Yazar, kendine has oluşturduğu bir üslupla romanlarını ve öykülerini kaleme almıştır. İmparatorluk Çay Bahçesi romanı da diğer romanlarında olduğu gibi okuyucunun alışık olmadığı bir tarzdadır. Kitabın ilk sayfalarında gerçeklik ile kurgunun harmanlanması biraz kafa karıştırmıştır. Fakat bu durum sayfalar ilerledikçe doğallaşmıştır. Kitap neredeyse hiçbir sınır gözetmeyen fantazi dünyasıyla birleşiyor. Gelenekselcilikten uzak, klasikleşmemiş bir yazar… Nesrinde ki sadelik ve yalınlıkla birlikte anlatımda ki duruluk dikkat çekicidir. Cümleleri okurken içinde kaybolmam ve kelimelerin ahenkli dünyası yazarın olağanüstülüğünün kanıtı diyebiliriz. Son olarak insanın ne kadar ilginç bir iç dünyası ve hayal gücü olabileceğini gözler önüne seriyor. KAYNAKÇA ERAY, Nazlı. İmparator Çay Bahçesi, Everest Yayınları, İstanbul, 2015 Nazlı Eray İmparator Çay Bahçesi Kitap Değerlendirme Semineri � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3592 Title A name given to the resource NAZLI ERAY’IN İMPARATOR ÇAY BAHÇESİ ROMANINDA FANTASTİK UNSUR OLARAK ZAMAN VE MEKAN KAVRAMLARI Author Author Saritosun, Emine Nur Abstract A summary of the resource. ÖZET Büyülü gerçekçilik Latin Amerika’nın roman alanında en üretken dönemi olarak bilinen 1950’ler ve 1960’larda farklı şekillerde ortaya çıkmış bir anlatım tarzıdır. Büyülü gerçekçilik kavramı, Türkiye'ye bir akım niteliğiyle 1980'li yıllarda ulaşır. Büyülü gerçekçilik özellikle yirminci yüzyıl Latin Amerikan edebiyatında gelişmiştir. Bu anlayış fantastikten ve masaldan ayrı olarak yeni gerçekliği kavramanın ve anlatmanın bir çabası olarak ortaya çıktığı söylenmektedir. Nazlı Eray (d.1945), Türk edebiyatına önemli yenilikler getirmiş yazarlardan birisidir. 1959’ da henüz ortaokuldayken kaleme aldığı ‘Mösyö Hristo’ ile edebiyat dünyasına adımını atmıştır. Gerçeküstücülük akımının niteliklerini taşımakla beraber bunu eserlerine yansıtmıştır. Bu makalenin amacı, Eray’ın İmparator Çay Bahçesi yapıtında büyülü gerçekçilik yönünden değerlendirerek, onun bu tarzda zaman ve mekan unsurlarına nasıl şekil verdiğini incelemektir. Nazlı Eray’ın seminerine katılarak kitap hakkında veriler elde edilmiştir. Araştırma ve inceleme yöntemiyle de bu veriler sentezlenip yazıya aktarılmıştır. Türk edebiyatında fantastik unsur olarak kullanılan zaman ve mekan kavramları, farklı yönleriyle edebi eserlerde yer almıştır. Yazarın yapıtında büyülü gerçekçiliğe göre zaman ve mekan kavramlarının farklı yönlerden tasvir edilmesi, onun büyülü gerçekçi anlatım tekniklerini ustaca kullandığının göstergeleri olduğu görülmüştür. Eray, örnek aldığı Gabriel Garcia Marcus, Sait Faik Abasıyanık, Ahmet Hamdi Tanpınar, Sevim Burak ve eserlerinde de yer verdiği Stalin, Evo Poren’den aldığı ve kendi fikir dünyasıyla sentezleyerek, özgün eserler vermiştir; bu yapıtında da zaman ve mekan kavramlarını fantastik unsurları kullanarak şekillendirmiştir. Anahtar Sözcükler: Nazlı Eray, Büyülü Gerçekçilik,İmparator Çay Bahçesi. ABSTRACT Magical realism in the novel areas of Latin America, known as the most productive period in the 1950s and is a narrative style emerged in the 1960s in different ways. The concept of magical realism, with a current nature to reach Turkey in the 1980s. Magical realism is particularly developed in the twentieth century Latin American literature. This approach is said to grasp the new reality as distinct from fantasy and fairy tales and emerge as an effort to tell. Nazli Eray (d.1945), the author is one of the major innovations brought to Turkish literature. 1959 is not yet in junior high penned 'Hristo Monsieur' and took a step into the world of literature. Although the move has reflected on the nature of the Surrealist movement that works. The purpose of this article, Eray Emperor's Tea Garden building in evaluating the direction of magical realism, is that this kind of time and gave her to examine how the shape of the space component. Nazli Eray participating in the seminar about the book data was obtained. The research and investigation methods were also synthesized data transferred to this article. When used in Turkish literature as elements of fantasy and space concepts, it has been involved in different aspects of literary works. The author's work is to describe the different aspects of the concept of time and space according to magical realism, it was found to be skillfully uses his magical realistic narrative techniques that indication. Eray, samples received by Gabriel Garcia Marcus, Sait Faik Abasıyanık, Ahmet Hamdi Tanpınar, Stalin gave Sevim in the John and art works, taken from Evo porém and to synthesize their own idea of the world, has original works; the concept of time and space in this building is shaped using elements of fantasy. Key Words: Nazli Eray, Magical Realism, Emperor Tea Garden. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PI Oriental languages and literatures Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3438 Title A name given to the resource METAPHOR TRANSLATION IN SUBTITLING Author Author Schmidt, Goran Abstract A summary of the resource. The paper aims to shed light on how subtitlers cope with metaphor translation. The paper presents the results of a case study on a set of English subtitles of one Croatian movie. Metaphor translation procedures were analyzed using Conceptual Metaphor Theory. There are four basic ways to translate metaphors: a. using the same conceptual metaphor, b. using a different conceptual metaphor, c. using a non-metaphorical paraphrase; and d. deleting the metaphor. In addition, a non-metaphorical expression can be translated by a metaphorical expression. Metaphors are mental, linguistic, but also cultural entities. Since translation in the contemporary age is recognized as both linguistic and cultural transfer, translating metaphors is at the core of the translation task. Many conceptual metaphors are universal and can be found in (almost) all languages, but some are culturally specific, appearing in just one language (group). This case study shows that the universality of metaphor influences the choice of a metaphor translation procedure, in a way that shared metaphors are mostly translated using the same conceptual metaphor, whereas non-shared metaphors are translated by a different metaphor or a non-metaphorical paraphrase. The paper also explores the ways in which the specifics of subtitling as a constrained type of translation influence the choice of a translation procedure. The results are compared to the results of a previous study, which dealt with the translation of metaphors in literature. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/360316bf106079189e742caf2844ad85.pdf 8ef0e17a03e25d8ee013033b61b008ab PDF Text Text ADOPTION OF STANDARD FOR INFORMATION SECURITY ISO/IEC 27001 IN BOSNIA AND HERZEGOVINA Anis Skopak International Burch University Bosnia and Herzegovina anis.skopak@gmail.com Semir Sakanovic International Burch University Bosnia and Herzegovina symorgh13@gmail.com Abstract: When it comes to security, no company in the world can be too cautious. Many companies own and use different systems for protection of data and information from intentional or non-intentional loss, unauthorized access, or abuse. However, the legal aspects of information security systems are well known in order for system to be internationally accepted and adopted. Because of this, the standard ISO/IEC 27001, which ensures positioning in relation to competition through marketing usage of this certificate, fulfills all requirements of the client for information security; reducing the risks associated with information relevant for the organization, reducing operating costs for the prevention of complaints and other incidents, and optimization of the process because the tasks in the organization are clearly defined and understood. ISO/IEC 27001 process of certification is carried out by a certification body that is accredited by schemes that are under the supervision of the IAF (International Accreditation Forum), as only these certificates are a guarantee of global standard acceptance. This study has examined the surveys of twenty (20) large companies, whose scope guarantees the suitability to this standard, and explored the way of implementation, and more importantly that the certification companies in Bosnia and Herzegovina offer this feature. In the end we compared the results of this study with the results from the region and the world. Keywords: ISO/IEC 27001, International organization for standardization, Information security management system, ISO, ISMS Introduction History of this certificate dates from 1995 when United Kingdom Government’s Department of Trade and Industry (DTI) wrote BS7799 standard in several parts. First part of this standard contained Information Security Management which was adopted by International Organization for Standardization as ISO/IEC 17799, “Information Technology – Code of Practice for Information Security Management” in 2000. The International Organization for Standardization (ISO) is an international standard setting body composed of representatives from various national standards organizations. Founded in 1947, the organization promotes worldwide proprietary, industrial and commercial standards. It is headquartered in Geneva, Switzerland, and as of 2013 works in 164 countries (Secupent). In 2007, ISO/IEC 17799 is renamed for the last time into ISO/IEC 27002. The second part of the BS7799 standard, which was presented in 1999 as “Information Security Management Systems – Specification with Guidance for Use”, was focused on implementation of Information Security Management System (ISMS). ICESoS 2016 - Proceedings Book 35 �International Conference on Economic and Social Studies (ICESoS’16) In 2005, together with the third part of BS7799 standard it became ISO/IEC 27001:2005 standard. His successor was the advanced version of ISO / IEC 27001: 2013. In the area of ​​security of information resources currently applied increasing number of standards adopted so far, and some standards are still in the process of drafting and adoption proc e dure should go to their implementation could begin. ISO / IEC 27000: 2009 Information technology - Security techniques, represents a standard that provides an overview and introduction to the family ISO27 standards, as well as the dictionary of specific terms used in ISO27 vocabulary. ISO / IEC 27001: 2005 - Information Security Management Systems Requirements, (Ex standard BS 7799-2). Is the basic standard for the establishment, implementation, control, promotion and certification of information secu r ity (ISMS - Information Security Management System). ISO / IEC 27002: 2005 - Co d e of Practice for Information Security Management, (former ISO / IEC 17799). Stan d ardizes the Guidelines for the implementation of recommended protection measures (control) and provides an overview of best practices to protect information resources. ISO / IEC 27003: 2010 - ISMS Implementation Guide, represents the standard that provides guidelines for successful implementation of ISMS in accordance with ISO / IEC 27001. ISO / IEC 27004: 2009 - Information Security Management Measurement, represents the standard that gives guidelines to carry out measurements in order to assessment of effectiveness of the ISMS. ISO / IEC 27005: 2008 - Information security risk mana g ement, represents standard which provides guidelines for risk management, information security and implementation of the system of information security based on risk management. SO / IEC 27006: 2007 - Guide to the certification / registration proc e ss, represents the standard that specifies requirements for the accreditation of certification bodies - ISMS according to ISO / IEC 27001 requirements, outlines the spec i fic requirements for certification and together with ISO / IEC 17021 is a basic stan d ard accreditation. ISO / IEC 27011: 2008 - Information technology - Security techniques, represents the standard that provides guidelines for telecommunications orga n izations implement recommended protection measures ISMS (also known as ITU X.1051 as standard). ISO / IEC 27033 - IT network security, represents the standard security IT networks, was introduced as a replacement for multitask standard based on ISO / IEC 18028: 2006 specification (this standard was adopted in part). ISO 27799: 2008 - Health informatics, represents the standard that provides guidance for ISMS implementation in the health sector. ISO/IEC 27001 Late l y, more and more attention is paid to the dangers that are closely related to the protection of data in companies. The issue of data protection applies to all types of businesses, regardless of their status, size or area of ​​operations and activities. The best and absolutely need a system to solve the problem of in f ormation security, incl u ding loss or theft, the information security management system “Information Security Management System - ISMS ‘’, which includes the availability, integrity and dete r mination of the degree of confidentiality of informatio n . The method, which allows solving the problems information security, has been developed and is described in ISO-IEC / BSI internationally recognized standards ISO 17799 / ISO 27001 certification of management systems built on the basis of these standards company confirms its commitment to the protection of data according to applicable laws in the industry and legal requirements, enabling a significant instrument competitiveness in the market. the construction of ISMS is particularly important for companies that use internal and / or external computer systems with stored sensitive information, for companies whose business processes are dependent on information systems, and to all other companies that simply want to adapt to the requirements of information security. This is especially true for organizations such as banks, IT companies, financial institutions and insurance 36 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation companies, hospitals, schools, universities, car manufacturers, call centers, tax offices, consulting firms and many other companies. ISO 27001 is an international standard published by the International Organization for Standardization (ISO) and describes how to manage information security companies. The latest version of this standard was published in 2013, and the current full name is ISO / IEC 27001: 2013. The first revision of the standard was published in 2005 and was developed based on the British standard BS 7799-2. ISO 27001 can be implemented in any organization, profit or non-profit, private or public, large or small. They wrote him the world’s best experts in the field of information security and prescribe the methodology for the application of information security management in an organization. Also, enables companies to obtain certification, which means that the independent certification body provides certification that the organization has implemented information security in accordance with ISO 27001. ISO 27001 has become the most popular standard of information security in the world, and many companies are certified to him. International Standard ISO / IEC 27001: 2005 prescribes certain set of requirements for the establishment of systems for information security management (Eng. ISMS Information Security Management System). Proper fulfillment of these requirements, i.e. their implementation, the organization created a holistic environment in which risks to information timely observed, in order to eliminate or reduce the same. With the establishment of the management system, the organization is able to continuously monitor and review all aspects of information security, and to make the necessary and effective improvements. As a result, we have continuous improvement of the security situation. Standard ISO 27001 i.e. The system for managing information security that derives from it, is applicable to banking and financial institutions, IT industry, economic sector, all public or private organizations. ISO 27001 is focused on protecting the confidentiality, integrity and availability of data in the company. This is achieved by recognizing that potential problems can happen to the data (i.e., risk assessment), and the definition of what should be taken to prevent such problems (i.e. The treatment or processing risk). Thus, the basic philosophy of ISO 27001 is based on risk management: identifying and systematic analysis of risks. Safety measures to be implemented are usually in the form of policies, procedures and technical applications (i.e.. Software and equipment). However, in most cases, companies already have all the necessary hardware and software, or use them in an insecure manner - thus most applications ISO 27001 relates to the establishment of organizational regulations (i.e. Write documents) that are necessary to prevent security breaches. Given that such applications require multiple management policies, procedures, people, resources, etc., ISO describes how to fit all these elements in the information security management system (ISMS). Therefore, the information security management is not only about IT security (i.e. Firewall, protection against computer viruses and so on.) But also on process management, legal protection, human resources management, physical protection and the like. ISO 27001 is aligned with other management systems, and supports the implementation of integrated with other management system standards. ISO 27001 is harmonized with the management system standards such as ISO 9001 and ISO 14001, ISO 27001 focuses on a continuous improvement process information security management system, contains requirements relating to documentation and records, including risk assessment and management processes using PDCA (Plan, Do, Check, Act) model. Norma comprehensive approach to security information. Different assets / assets owned organizations require protection. Some of them ICESoS 2016 - Proceedings Book 37 �International Conference on Economic and Social Studies (ICESoS’16) are digital information, the information in paper form, physical resources such as computers and networks, the knowledge that the organization has. The account must be taken wide degree areas of competence development of staff to the physical / technical security. ISO 27001 will help you protect your information according to the following principles: Confidentiality ensures that information is accessible only to people with authorized access, integrity monitor and ensure the accuracy and integrity of information and methods of management information, availability ensures that the authorized personnel have access to the necessary information and adequate resources. There are two types of ISO 27001 certification: (a) for the organization and (b) for individuals. Organizations may be certified in order to demonstrate compliance with all mandatory clauses standards; Individuals can take the course and pass an exam to get a certificate. To be certified as an organization, you must implement the standard as outlined in the previous sections and then pass a certification audit by the certification body. The certification audit was carried out through the following steps: Phase 1 (Document Review) - auditors will review all documentation, Phase 2 (main audit) - auditors to perform the audit on the spot to verify whether all activities of the company in compliance with ISO 27001 and documentation system information security management Supervisory visits - after certification, during the validity period of three years, auditors will verify whether the company maintains information security management system. To implement ISO 27001 in the company, you have to follow these 16 steps: 1. Provide support of top management 2. Use project management methodology 3. Define the scope of information security management system 4. Write roof privacy policy 5. Define risk assessment 6. Conduct risk assessment and treatment 7. Write seventh Statement of applicability 8. Write the Risk Treatment Plan 9. Define ways of measuring the effectiveness of security measures and information security management system 10. Implement all applicable safety measures and procedures 11. Implement training programs and awareness 12. Carry out all daily activities prescribed documentation of your information security management system 13. Track and measure your information security management system 14. Establishment of internal audit 15. Conduct Management Review 16. Implement corrective measures Sixteen rules for the implementation of ISO 27001 38 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation ISO/IEC 27001 standard in Bosna and Herzegovina The world now has about 200 countries (193 UN member states). Average one country has about 8,000 certificates. There is a legitimate question where is Bosnia and Herzegovina, and its economy and other entities. According to the latest data available to the Foreign Trade Chamber of Bosnia and Herzegovina currently has about 1,400 certificates. Of these, ISO 9001 represented over 90%, while certificates of ISO 14001 and OHSAS 18001, as well as key in the environmental management and health and safety at work, minor represented. The competent national authorities should pay more attention to and care for the faster adoption of EU directives and harmonization of our legislation. You should also provide continuous and procedural simple financial support to companies for the preparation and Survey implementation of individual certificates. In the future, as we get closer to EU membership, all the greater will be the need for certification, to manufacturing and service firms. One should be careful to time, as in some similar situations, not to be slaves to the system “give what you give, because after this.” Practice shows that in a well-organized company with well-organized and consultations required several months of intensive work, but for more complex processes and more than one year to obtain a certificate. This should confirm that the BH. businesses introduced new standards that apply to selective European and world markets, and not only that owns the paper, which is not a rare case. Also, in the world there is a trend that is increasingly companies which have two or more standards in the application. Companies are introducing an integrated system consisting of a base of ISO 9001, ISO 14001 and BS OHSAS 18001 or ISO 9001, ISO 14001, HACCP or ISO 9001, ISO 14001 and FSC CoC, etc. What is encouraging is that some of our companies that had a single certificate follow this practice, and more of those who have two or more of the standard. In this research (M.Sci. Anis Skopak and M.Sci Semir Šakanović), we did the research followed a survey that we submitted to the addresses of twenty companies in Bosnia and Herzegovina, looking for answers whether companies in Bosnia and Herzegovina have implemented ISO / IEC 27001 certified, and if they do not have to I have basic knowledge regarding the benefits or the implementation thereof. It should be noted that we check our results with the list of certified organizations in BiH by the standards of the Foreign Trade Chamber of Bosnia and Herzegovina, and that we get the information when it is made from certified companies to implement standard working on the introduction of standards. ICESoS 2016 - Proceedings Book 39 �International Conference on Economic and Social Studies (ICESoS’16) Results In this research, we found that 85% of our citizens are familiar with this certificate, and also to know the way of its procedures and that they already had contact with the introduction of other ISO standards in their companies. What is particularly interesting is that our respondents mostly aware of the benefits of this standard, and its primary benefit is improvement in the status of the company. Awareness of European integration and international business objective is to all of the companies surveyed, the Administration ISO certifications are confirmation of the quality of services offered. Thus, 72% of our respondents said that they are considering in the future to adopt the implementation of this system, as well as some others. But when we look at companies that have already implemented this system, the situation is not at all promising. Even 95% of the company does not have implemented ISO 27001, although considered to be useful. Given that we have in our survey included some of the largest companies in Bosnia and Herzegovina set us question what is the general number of companies that have ISO 27001 certification? 40 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation From the Foreign Trade Chamber of Bosnia and Herzegovina have been given information on the leading companies for certification in Bosnia and Herzegovina, which are certainly the most prominent TUV SUD Sava d.o.o, SGS d.o.o., Det Norske Veritas. So we created this list of companies among the thousands of companies in Bosnia and Herzegovina only possess ISO 27001. Among the certified companies in Bosnia and Herzegovina now are: Sarajevo International Airport, the Lottery of Bosnia and Herzegovina, Partner MCF, CS Computer Systems, Institute for Commercial Engineering, ComTrade, KING ICT and several banks and micro-credit organizations. Number of certified companies in Bosnia and Herzegovina barely exceeds the number 10, which is quite small compared with the number of registered companies in this country. When we considered state of the Western Balkans, Croatia 36 organizations has been certified ISO / IEC 27001, Serbia 15, while Macedonia 3 in other countries there is no ISO 27001 organizations. Among other countries, the largest number of certificated organizations are in Japan (3657). Organizations can themselves specify the scope of ISO / IEC 27001 certification in accordance with their own wishes and possibilities. The scope of the implementation of standards and statements of applicability of the standards should be harmonized, and that the documents are crucial in the process of certification. If an organization wants sertificirati one of its organizational units, then this certificate does not apply to other entities, and those in this case does not have to be certification and are not subject to revision. Certification is completely is voluntary act of an organization, but in modern business is increasingly the subjects of our suppliers and business partners to possession of a certificate in information security. An independent assessment of information security and its periodic ravizija bring organizations quite strict and formalized and implementation, which requires prior approval of management. Possession of a certificate of information security indicates the potential of the organization in terms of fed up information resources and to upgrade the status of secure and credible business partner. Conclusion It can be concluded that the information security policy is a document that allows the organization of the establishment of security over the entire information resources. Development of a comprehensive program for the protection of information resources should enable the protection of people and information, set rules of behavior of all users of information resources defines a consequence of safety rules and minimize risk, and constant monitoring of compliance with legislation. As there are already a number of standards in the field of information resources, it is necessary to systematically approach the process of their evaluation and certification. Accordingly, we can conclude that the certification process needs to start adopting ISO / IEC 27001 as the basic standard for the establishment, implementation, control, promotion and certification of information security (ISMS - Information Security Management System), from which it should subsequent to certification of specific basin, information resources at a higher level. ISO / IEC 27001, in order to establish a comprehensive system of protection of information resources, determines the system for the protection of information, the responsibility of executives, determining the procedures of internal control systems to protect information, ATMI procedures validation system for the protection of information, and procedures related to improving the system for the protection of information. ICESoS 2016 - Proceedings Book 41 �International Conference on Economic and Social Studies (ICESoS’16) When it comes to the adoption of the above standards in Bosnia and Herzegovina, it can be concluded that the current situation is quite unfavorable in relation to the country’s developed regions in the world, considering that only a few organizations have adopted ISO / IEC 27001. Reference Hajdarević K, Infrasturctures Proactive Information Security Metrics for Computer Network Architectures and, based on ISO 27001, Internacionalnni Burch Univerzitet, Sarajevo, 2013. Vanjskotrgovniska Komora Bosne i Hercegovine, http://komorabih.ba/wpcontent/uploads/2013/05/Baza_certificiranih_organizacija_ BiH_apr_2015.pdf Diver S., Information Security Policy - A Development Guide for Large and Small Companies, SANS Institute, Bethesda, Maryland, 2007. International Organization for Standardization, ISO/IEC 27000, Geneva, 2009. Petrović R. S., Čekerevac Z., Milanović Z., Međunarodna naučna konferencija Menadžment 2010, Politika informacione bezbednosti kao element prevencije kriznih situacija, Srbija, Kruševac, 2010. About the ISO27k Standards, http://www.iso27001security.com/html/iso27000.html, 2010. About the ISO27k Standards, http://www.iso27001security.com/html/27001.html, 2010. Danchev D., “Building and Implementing a Successful information Security Policy.” 2003., http://www.windowsecurity.com/pages/security-policy.pdf International Register of ISMS Certificates, http://www.iso27001certificates.com/ Register%20Search.htm, 2010. ISO - International Organization for Standardization, http://www.iso.org/ NERDA, ISO/IEC 27001, http://www.nerda.ba/pdf/standardi/ISO-IEC%2027001.pdf 42 ICESoS 2016 - Proceedings Book � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3316 Title A name given to the resource ADOPTION OF STANDARD FOR INFORMATION SECURITY ISO/IEC 27001 IN BOSNIA AND HERZEGOVINA Author Author Skopak, Anis SAKANOVIĆ, Semir Abstract A summary of the resource. Abstract: When it comes to security, no company in the world can be too cautious. Many companies own and use different systems for protection of data and information from intentional or non-intentional loss, unauthorized access, or abuse. However, the legal aspects of information security systems are well known in order for system to be internationally accepted and adopted. Because of this, the standard ISO/IEC 27001, which ensures positioning in relation to competition through marketing usage of this certificate, fulfills all requirements of the client for information security; reducing the risks associated with information relevant for the organization, reducing operating costs for the prevention of complaints and other incidents, and optimization of the process because the tasks in the organization are clearly defined and understood. ISO/IEC 27001 process of certification is carried out by a certification body that is accredited by schemes that are under the supervision of the IAF (International Accreditation Forum), as only these certificates are a guarantee of global standard acceptance. This study has examined the surveys of twenty (20) large companies, whose scope guarantees the suitability to this standard, and explored the way of implementation, and more importantly that the certification companies in Bosnia and Herzegovina offer this feature. In the end we compared the results of this study with the results from the region and the world. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/8350b5d69c0b41f23d8ed4cb3d1e9532.pdf ddb2c79626f5017e021ddb9c44afdcf5 PDF Text Text DEVELOPMENT OF A BANK SECURITY SYSTEM USING PROGRAMMABLE LOGIC CONTROLLER (PLC) Anis Skopak International Burch University Bosnia and Herzegovina anis.skopak@gmail.com Semir Sakanovic International Burch University Bosnia and Herzegovina symorgh13@gmail.com Abstract: The aim of this project is to solve the bank security problems (robbery, illegal weapons, and the safety of employees) caused by lack of the security in the banks. This project is divided into two parts which are hardware and software. A kind of bank security system by using Programmable Logic Controller (PLC) was designed, and the automatic control of the bank security system was performed by software. The hardware part is the model of one bank containing two front doors, one door of the vault room, and some sensors. The limit switches, doors and sensors are connected to Zelio PLC Schneider SR3B261BD. The PLC controls every signal which is coming from the inputs (Limit switch) to software and display to the outputs (Doors). Using software, Function Block Diagrams (FBD) are programmed to control the traffic light. Keywords: Programmable Logic Controller, Function Block Diagrams, PLC, FBD Introduction This is an era when control and disposition increase, and signal integrity problems are getting more and more severe, and time when design teams are available to solve these problems and design new products in short time. This is an era when Programmable logic control (PLC) is exchanging many other components and devices. There is huge fan of reasons why, here are some of them: they are more practical, simpler, very fast, cooperative, payable, etc. Many successful companies are those that using PLCs overcoming their integrity and implementation problems. In highspeed production, accuracy and correctness are very crucial and one of the most important parameters. By understanding the fundamental principles of guideline and controlling PLCs at the engineering level, every engineer involved in this field process can see the impact of PLCs on the system performance. The main advantage and factor is that PLCs can work on 220V as well as 24V, and we can say that PLCs have huge scope of work. A programmable logic controller (PLC) is and industrial computer used to control and automate complex systems. Programmable logic controllers are a relatively recent development in a process control technology. It is designed for use in an industrial environment, which uses a programmable memory for the integral storage of user-oriented instructions for implementing specific functions such as logic, sequencing, timing, counting, and arithmetic to control through digital or analog inputs and outputs, various types of machines or processes.Programmable logic controllers are used throughout industry to control and monitor a wide range of machines and other movable components and systems. PLC is used to monitor input signals from a variety of input points (input sensors) which report events and conditions occurring in ICESoS 2016 - Proceedings Book 15 �International Conference on Economic and Social Studies (ICESoS’16) a controlled process. Programmable logic controllers are typically found in factory type settings. A typical programmable logic controller employs a backplane to serve as the communications bus for interconnecting the PLC processor with the array of individual input/output devices with which the processor interacts in terms of receiving input data for use in executing the control program and transmitting control data for use in controlling the targeted objects. A PLC includes a rack into which a plurality of input/output cards may be placed. A rack includes several slots into which these input/output cards are installed. Each input/output card has a plurality of I/O points. The I/O modules are typically pluggable into respective slots located on a backplane board in the PLC. An I/O bus couples the cards in the slots back to the processor of the programmable logic controller. The slots are coupled together by a main bus which couples any I/O modules plugged into the slots to a central processing unit (CPU). The CPU itself can be located on a card which is pluggable into a dedicated slot on the backplane of the PLC. The particular processor employed in a PLC together with the particular choice of input and output cards installed in the PLC rack are often referred to as the hardware configuration of the programmable logic controller. The primary aim of this project is to analyze the scope of PLCs, how to solve problems and create efficient algorithms which help solve some particular problem. In this case, that is bank security system and how to solve security problems in the bank. Programmable logic controller A programmable logic controller (PLC) is and industrial computer used to control and automate complex systems. Programmable logic controllers are a relatively recent development in a process control technology. It is designed for use in an industrial environment, which uses a programmable memory for the integral storage of useroriented instructions for implementing specific functions such as logic, sequencing, timing, counting, and arithmetic to control through digital or analog inputs and outputs, various types of machines or processes. Programmable logic controllers are used throughout industry to control and monitor a wide range of machines and other movable components and systems. PLC is used to monitor input signals from a variety of input points (input sensors) which report events and conditions occurring in a controlled process. Programmable logic controllers are typically found in factory type settings. A typical programmable logic controller employs a backplane to serve as the communications bus for interconnecting the PLC processor with the array of individual input/output devices with which the processor interacts in terms of receiving input data for use in executing the control program and transmitting control data for use in controlling the targeted objects. A PLC includes a rack into which a plurality of input/output cards may be placed. A rack includes several slots into which these input/output cards are installed. Each input/output card has a plurality of I/O points. The I/O modules are typically pluggable into respective slots located on a backplane board in the PLC. An I/O bus couples the cards in the slots back to the processor of the programmable logic controller. The slots are coupled together by a main bus which couples any I/O modules plugged into the slots to a central processing unit (CPU). The CPU itself can be located on a card which is pluggable into a dedicated slot on the backplane of the PLC. The particular processor employed in a PLC together with the particular choice of input and output cards installed in the PLC rack are often referred to as the hardware configuration of the programmable logic controller. 16 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation PLC Arhitecture PLC Device The hardware configuration also includes the particular addresses which the I/O cards. Each option module typically has a plurality of input/output points. The option modules are coupled through an interface bus, for example via a backplane, to a main controller having a microprocessor executing a user program. Option modules may also include a microprocessor and a memory containing separate user programs and data directed to a particular operation of the PLC system. During the execution of a stored control program, the PLC’s read inputs from the controlled process and, per the logic of the control program, provide outputs to the controlled process. The outputs typically provide analog or binary voltages or “contacts” implemented by solid state switching devices. PLC’s are normally constructed in modular fashion to allow them to be easily reconfigured to meet the demands of the particular process being controlled. The processor and I/O circuitry are normally constructed as separate modules that may be inserted in a chassis and connected together through a common backplane using permanent or releasable electrical connectors. System Hardware The hardware part of this project is Programmable logic controller (PLC) and a bank security model. SCHNEIDER ZELIO SR3B261BD is the type of PLC used in this project as the processor to control the bank security system. This type of PLC is chosen because of its characteristics which shown optimal for this particular application. The bank security model is constructed to display how this bank security system is running. This bank security model has gates (doors), switches, sensors, speakers, indicator lights, displays. It has three main parts split into two categories. First is modeling, second is wiring system and third is programing the PLC. Modeling and wiring system belong to the first category and programing to the second. The right connection between PLC and bank security model is very important because it can avoid problem or conflict when the program is transferred to the PLC. The bank security model consists of the following components: • • • • • • Six switches Four sensors Three gates (doors) Three speakers Three indicator lights Two displays ICESoS 2016 - Proceedings Book 17 �International Conference on Economic and Social Studies (ICESoS’16) The six switches that this model has are divided into two “Open gate (door) switches”, three “Close gate (door) switches” and one “Security Room Switch”. The purpose of the two “Open gate (door) switches” is to open gates (doors) in the bank. The purpose of the three “Close gate (door) switches” is to close gates (doors) in the bank, and the one “Security Room Switch” is to turn off the alarm in the bank. In this model we have these four sensors which are presence sensors. We have one presence sensor that opens the main door of the bank, second one is detecting weapon while entering the bank, third one is in vault room and the fourth one is the laser presence sensor which is activated when the bank is not working.Next, we have three doors, two of them are front doors of the bank and one of them is for the vault room.Also, we have three speakers used for alarm system. One of them is in vault room, second one is located where the weapon presence sensor is, and the third one is when the laser sensor is in “On” state when the bank is not working.The three indicator lights are positioned like the three speakers and they are also activated at the same time as speakers. End at last we have two displays that are placed in front of vault room and in the vault room. These displays are for entering the password while entering or leaving the vault room. Once hardware is designed cabinet box is use to connect PLC with the bank security model. A basic wiring diagram is as shown in Figure 7. The PLC supplied with DC power 24V and then I/O card supplied with DC 24V. The common for input card is 24VDC. Using a smart relay means that ordinary switches (with open or closed positions) can be used in place of two position switches. The switches are identified as S1 and S2 in the wiring diagram above. S1 and S2 are connected to inputs I1 and I2 on the smart relay. The operating principle is as follows: Each time the status of inputs I1 and I2 changes, the status of output Q1 also changes which controls the lamp L1, in our care is can be one of the gates. The figure above is just for the illustration purpose only. Schneider Zelio SR3B261BD 16/10 Smart relays are designed to simplify the electrical wiring of intelligent solutions. A smart relay is very simple to implement. Its flexibility and its high performance allow users to save significant amounts of time and money. A Zelio SR3B261BD is typically digital device using relay on the output. Generally voltage limits is between 19.2 – 30V, and 4mA discrete current input. It has 16 inputs and 10 outputs connected to the 24V DC power supply with the power 0.2W and max current 8A or 5A with conversion error ±5% at 25 ºC, and ±6.2% at 55 ºC. It has local display on the main side. Number or color scheme lines <= 200 with FBD programming and 120 with ladder programming. Response time is 10ms (from state 0 to state 1) for relay output, and 5ms (from state 1 to state 0) for relay output. Ambient air temperature for operation is between-20 ºC and +40 ºC. Instead of relay we can used also transistors which are more productive and more frequently used in the practice. Relay can handle more current then transistor output but the transistor output is faster than relay because of that there is no mechanical time constant like the relay mechanical contact, also the durability of the transistor output is higher from the number of ON/OFF point of view. One thing to consider is that, most PLCs with transistor outputs, is cheaper than PLC with relay outputs, and of course it has a longer life also it is faster, so it offers more options than a simple relay output. We should always use transistor output cards and put an interface relays to protect them against any damage. In other words, use a transistor output to trigger a relay, and connect the load to the relay. Relay Outputs typically can handle a larger load and either AC or DC signals. Most PLCs are typically 2 amp relays. A typical transistor output is 5 amps. Unless you’re running lights or other low current devices, you will require an interposing device, be it solid state relay or mechanical 18 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation relay. The greatest advantages of a transistor output are speed and life cycle. They can turn on in 1 ms or less and with no armature or moving parts, will last much longer than a relay. Keep in mind that whether relay or transistor, life cycle will depend on the amount of current required to turn on the output device. The higher the current, the shorter the life cycle and vice versa. It is amazing how many PLC manufacturers offer products with less than adequate output ratings, given the many uses for PLCs. Even with a 2 amp relay output, many applications still require interposing relays. You would think that they would take this into account when designing their products. System software The main task is concerning software development to make modules according to the Hardware diagram and model. Zelio Soft 2 is program used to make these modules that are written in Function Block Diagram (FBD). Function Block Diagram PLC Function Block Diagrams (FBD) is a graphical language that allows the user to program elements in “blocks”. The blocks can then be wired together like electrical circuits. FBD is one of the languages supported by IEC 1131. A function block diagram is a diagram which describes a function between input variables and output variables. A function is described as a set of elementary blocks. Inputs and outputs of the blocks are wired together with connection lines, or links. Single lines may be used to connect two logical points of the diagram: • An input variable and an input of a block. • An output of a block and an input of another block. • An output of a block and an output variable. Zelio Soft 2 is a comprehensive multilingual application designed to help us program the Zelio Logic smart relays. There are eight module categories, each displaying a picture and a full description of the characteristics such as power supply, discreet input/output, clock, language, screen keyboard, and reference, which makes them very easy to identify. This program offers a simple way to configure the modules that are written in Ladder Diagram, Function Block Diagram, or both. When programming, we can set a wide range of parameters dealing with counters, winter/summer functions, timers, auxiliary relays, fast counters. We can also set the date format, time zone, and so on. In case of an error alarm, we can define the type of message that will be displayed, when to send a message and who will receive it via telephone or e-mail. We can also enter one or more users that can send control commands. Both the user interface and the simulation languages can be switched into English, Spanish, German, Italian, or French. This program can be downloaded and used free of charge. It is also possible to get this programming solution on a CD from distributors. Zelio Soft 2 can run under all versions of Windows. One of the benefits of this type of PLC is Quick programming. From an intuitive interface, create and modify programs in record time using an extensive number of “drag and drop” pre-programmed functions. Types of languages: Ladder and Function Block Diagram (FBD). ICESoS 2016 - Proceedings Book 19 �International Conference on Economic and Social Studies (ICESoS’16) Software of bank security system using Function Block Diagram (FBD) For better understanding software, FBD is divided into several stages. The first part is used to control two front gates (doors) and weapon presence sensor (detector), second to control vault room, and third to control the alarm system when the bank is not working (non-working hours). More in depth about these stages will be expostulate later on this chapter. FBD application There are several block which are controlling this bank security system. First one is for detecting weapon in the bank, second one is for controlling the vault room, and the third one is for controlling the bank when the bank is not working, means the laser presence sensor will be activated on non-working hours. The full system will be described on following papers. Case I First case is when the bank is working (working hours) and where there is no weapon detection. So, while entering the bank the “presence sensor” which is located in front of the gate (door) of the bank will be activated and the gate (door) will be opened. After entering the bank the weapon “presence sensor (detector)” will detect if there is any weapon located on the person that entered the bank. If all clean, the person will be able to enter to the main hall of the bank after employee press the “Switch” to open the second gate (door). Case I 20 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Case II Second case is when the bank is working (working hours) but where the weapon detection is detected. So, while entering the bank the “presence sensor” which is located in front of the gate (door) of the bank will be activated and the gate (door) will be opened. After entering the bank the “weapon presence sensor (detector)” will detect if there is any weapon located on the person that entered the bank. In this case the person that entered the bank had weapon and the “alarm” and “indicator light” are in “On” state. All gates are closed, and even if the employee is forced to open the gate by pressing the “Switch”, he will not be able to open because when the alarm is in “On” state, only the “Switch” in the security room can turn “Off” the “alarm” and then the gate (door) can be opened, otherwise when the “alarm” is in “On” state, nothing can be opened till alarm goes to “Off” state. So, the person who has the weapon can only surrender to the police or to the security employee in the bank. After the person decide to surrender, the security guy can turn “On” the “Switch” in the security room and the “alarm” will be in “Off” state. But still employee that is in charge to open gate (door) cannot open the gate (door) until security employee comes and open the gate (door) from the other side. So, to conclude this, only the security employee can switch “Off” the “alarm” and can open the gate (door) after the alarm went to “Off” state from the “On” state. Case II ICESoS 2016 - Proceedings Book 21 �International Conference on Economic and Social Studies (ICESoS’16) Case III Third case is when the bank is working (working hours), but now the bank employee wants to enter to vault room. So, if the bank employee wants to enter to vault room, he/she will need to press the “Switch” for opening the gate (door) of the vault room. After pressing the “Switch” which opens the gate (door) of the vault room, the “display” which is located in front of the vault room will ask the employee to enter the password to be able to enter to vault room. If the employee has entered the right password, the gate (door) of the vault room will open and the employee can enter. After employee has entered into vault room, the “presence sensor” which is located in the vault room will close the gate (door) of the vault room, and the “small alarm” and “indicator light” will be in “On” state to indicate that somebody is in vault room. When employee wants to leave the vault room, he/she will need to press the “Switch” which is located inside the vault room to open the gate (door) of the vault room. When “Switch” is in the “On” state, again employee will need to enter the password, but this time different one, because for the more security, and if employee has entered the right password, the gate (door) of the vault room will open. After employee has left the vault room, the “presence sensor” will detect that there is nobody in vault room and sensor will close gate (door) of the vault room. And the “small alarm” and “indicator light” will go to “Off” state. Case III 22 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Case III Case IV Case four is when the bank is not working (non-working hours). All gates are closed and only the “laser presence sensor” is in “On” state. If nothing happens in the bank, the “laser presence sensor” will go to “Off” state when working hours of the bank start. But, if somebody wants to robber the bank, the “laser” will detect the criminal and the “alarm” and “indicator light” will be activated and they will be in “On” state. None of the gates (doors) can be opened till “alarm” is in “On” state. Again, only person in security room can shut down the “alarm” and only after that gates (doors) can be opened. ICESoS 2016 - Proceedings Book 23 �International Conference on Economic and Social Studies (ICESoS’16) Case IV Conclusion This chapter summarized the concept of this thesis. Chapter 2 shows some basic properties of Zelio PLC like function, construction, operation, application etc. Chapter 3 explains very useful method of PLC application in the field. Also in this chapter was construction of the model, wiring system, advantages and disadvantages of the relay and transistor output are mentioned. In Chapter 4, developed application is presented using FBD. An Intelligent Bank Security System that used the PLC to control a security in the bank has been successfully developed. The PLC program (FBD) for implement the two modes of bank security system operation; Working hours Mode and Non-Working hours Mode, have been designed completely and can be operated effectively. All testing has been done successfully, without any error. The aim of this project is to minimize the robbery in banks and it is accomplished successfully. The primary aim of this project is to demonstrate the usefulness of the programmable logic controller (PLC) or programmable controller and how it can be implemented in the field. The usefulness of the built program is that it can be used in various applications and can be extended to have additional features. It is almost impossible to give all possible future work concerning extended built code, but because it has various advantages it can be used to extend the bank security system, airport security system, jewelry stores, other important buildings, etc. 24 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Reference Daniel Kandray, Programmable Automation Technologies, Industrial Press, 2010 ISBN 978-0-8311-3346-7, Chapter 8 Introduction to Programmable Logic Controllers E. A. Parr, Industrial Control Handbook, Industrial Press Inc., 1999 ISBN 0-8311-3085-7 M. A. Laughton, D. J. Warne (ed), Electrical Engineer’s Reference book, 16th edition,Newnes, 2003 Chapter 16 Programmable Controller “The father of invention: Dick Morley looks back on the 40th anniversary of the PLC”. Manufacturing Automation. 12 September 2008. Harms, Toni M. & Kinner, Russell H. P.E., Enhancing PLC Performance with Vision Systems. 18th Annual ESD/HMI International Programmable Controllers Conference Proceedings, 1989, p. 387-399. Maher, Michael J. Real-Time Control and Communications. 18th Annual ESD/SMI International Programmable Controllers Conference Proceedings, 1989, p. 431-436. Kinner, Russell H., P.E. Designing Programmable Controller Application Programs Using More than One Designer. 14th Annual International Programmable Controllers Conference Proceedings, 1985, p. 97-110. W. Bolton, Programmable Logic Controllers, Fifth Edition, Newnes, 2009 ISBN 978-185617-751-1, Chapter 1 Keller, William L Jr. Grafcet, A Functional Chart for Sequential Processes, 14th Annual International Programmable Controllers Conference Proceedings, 1984, p. 71-96 Gregory K. McMillan, Douglas M. Considine (ed), Process/Industrial Instruments and Controls Handbook Fifth Edition, McGraw-Hill, 1999 ISBN 0-07-012582-1 Section 3 Controllers Erickson, Kelvin T. (1996). “Programmable logic controllers”. Institute of Electrical and Electronics Engineers. Iqbal, S. (2008). “Programmable Logic Controllers (PLCs): Workhorse of Industrial Automation”. 68-69. IEEEP Journal: 27–31. Petruzella,, Frank D. (2005). “Programmable logic controllers”. Tata McGraw-Hill Education. ICESoS 2016 - Proceedings Book 25 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3315 Title A name given to the resource DEVELOPMENT OF A BANK SECURITY SYSTEM USING PROGRAMMABLE LOGIC CONTROLLER (PLC) Author Author Skopak, Anis SAKANOVIĆ, Semir Abstract A summary of the resource. Abstract: The aim of this project is to solve the bank security problems (robbery, illegal weapons, and the safety of employees) caused by lack of the security in the banks. This project is divided into two parts which are hardware and software. A kind of bank security system by using Programmable Logic Controller (PLC) was designed, and the automatic control of the bank security system was performed by software. The hardware part is the model of one bank containing two front doors, one door of the vault room, and some sensors. The limit switches, doors and sensors are connected to Zelio PLC Schneider SR3B261BD. The PLC controls every signal which is coming from the inputs (Limit switch) to software and display to the outputs (Doors). Using software, Function Block Diagrams (FBD) are programmed to control the traffic light. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/e1f52abb1e24c7a5d0bf9e02aef0d48d.pdf e00cc43fa64d9820656c0751071991d4 PDF Text Text DETERMINANTS OF FIRM PROFITABILITY IN CROATIA’S MANUFACTURING SECTOR Lorena Škuflić School of economics and business Croatia lskuflic@efzg.hr Danijel Mlinarić School of economics and business Croatia dmlinaric@efzg.hr Marko Družić School of economics and business Croatia mdruzic@efzg.hr Abstract: This paper investigates determinants of the profitability of industrial firms in Croatia, using data for large, medium and small companies for the period 2003-2014. This paper provides a broad theoretical review of the determinants of profitability analysed in economic literature with special remarks on firm level determinants, and explanation of most used variables such as size of firm, revenues, growth rate of revenues, sales, profit in previous years, ownership, productivity level, financial leverage, cost of inputs, indebtedness. Results from the panel ordinary least squares model for Croatia’s manufacturing sector reveal a positive and statistical significant relationship between profitability, total factor productivity, and concentration measured through Herfindahl-Hirschman index. On the other hand, indebtedness and liquidity show a negative relationship with the firm profitability of Croatia’s manufacturing sector. Keywords: Profitability, Determinants, Manufacturing Industry JEL Classification: D22, L10 1. Introduction Manufacturing industry represents a significant base for the long-term economic growth and development of each nation’s economy, especially when it comes to a small country which has to focus on foreign markets during its process of development. A strong industrial base, export-oriented, competitive in the international market, represents an economic objective of both developed and less developed countries. It is evident that the countries, which are in the process of its economic development, exceed from being industrial countries into being service countries, that is, after a certain degree of achieved economic development, industrial sector is being replaced by the service sector. Accordingly, and in the EU, there has been a reduction in the share of manufacturing industry in the gross domestic product, which, in the economic literature, is known as the process of de-industrialization.1 1 De-industrialization began in the mid-60s in the US and copied to Europe, and its manifestations are reflected in reduced number of employees in the manufacturing industry as a result of increased productivity and decrease in demand towards this segment of the economy. ICESoS 2016 - Proceedings Book 269 �International Conference on Economic and Social Studies (ICESoS’16) Reduction in the share of the manufacturing industry in total national production, regarding the number of employees, was affected by the changes in demand, increased productivity and dynamics in trade. The share of the manufacturing industry varies from country to country, ranging from 5.2% in value added GDP (Luxembourg, the year of 2013) to 22.2% (Germany, in 2013). Following the trend line in the manufacturing industry since 1970 to this date the shares have continuously declined in the European countries. In France, the share fell from 22.3% (1970) to 11.3% (2013), while significantly smaller decrease was recorded in Germany, from 27.8% (1970) to 22, 2% (2013). The country which recorded the largest decline in the share of value added in GDP is Luxembourg, where the share dropped from 41.5% (1970) to 5.2% (2013) (www.unctad.org). If the process of de-industrialization is to be observed from the of micro-entity aspect, then it may be due to the slower growth of those companies in relation to companies of the service sector. The cause for the slower growth lies both on the supply and the demand side. The company, like any other living organism has its path, from starting point to death, during which some companies grow faster, some slower, and some stagnate. Length of the company’s existence on the market is also individual and depends on the degree of adaptability to the environment. Companies that produce products with higher demand, achieve faster growth rates, and with the proper cost management they preserve better financial results, which then allow them a higher investment rate and investment in the production process technology. This simple explanation of profitability circle and company’s existence on the market, can be viewed from the Firm`s Theory aspect. The level of profitability depends on the ultimate goal of a business entity. Firm`s Theory, observed through prism of neoclassical school of economics, focuses on the production aspect, specifically on transformation of inputs into outputs, for which a level of technology and market environment, in which entities work, are important in terms of pricing and volume of production, and the market plays an important role on the output side in the design of consumer behaviour. The neoclassical theory company is based on market analysis models of perfect and imperfect competition, and within these other market structure on the analysis of oligopoly and monopoly, and monopolistic competition. The neoclassical theory company believes that the company is also the entrepreneur who is at the same time unified function of owner and manager, and whose main goal is to maximize profit, or to achieve maximum possible difference between total revenue and total costs. An entrepreneur makes the decision on how many inputs to be employed in order to achieve the planned level of production, taking into consideration the price of inputs and output prices on the market. Hence, in the basis of neoclassical theory, property and institution have no influence on the company’s goal, as well as on the amount of knowledge, technology and cost-effectiveness (as summarized set of production capabilities). For each level of output, the entrepreneur determines that quantity of input that will minimize the expenses, but only output, through which the maximum profit is achieved, is considered to be the balanced level of production, which presents the rational behaviour of entrepreneurs. Generally, by reducing the agriculture share, country carries out a higher level of national income and fewer people are employed in that sector, while the employment in the industry increases and so its share in value added, which gives way to the service sector after a certain stage. This process is associated with the reallocation of resources from less to more effective productions which implies structural changes. 270 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation All mentioned provides importance of profitability determinants for firm` performance and on the other hand, undoubted influence on the economy in the whole. Manufacturing industry in Croatia is the important contributor to the Croatian economic growth, especially in the past. It is arguable that the impact of determinants of profitability, throughout the world, is not similar on the firm` financial performance in every country that gives different influence on all stakeholders. Such reason gives motivation for this research which include quantitative data of all manufacturing companies in Croatia for over 11 years, from 2003 until 2014. All data gathered from FINA database. According to that, the aim of this research is to determine which microeconomic factors influence on the profitability of firm`s in Croatian manufacturing industry. The paper is organized as follows. Section 2 presents review of microeconomic determinants of firm profitability what includes theoretical background and related literature with discuss on main characteristics and relations. Section 3 gives extensive overview of methodology, used models and explanation of research results of determinants of profitability. At the end, Section 5 concludes the article and gives main points of research with recommendations for further researches. 2. Review of Microeconomic Determinants of Firm Profitability The connections between the profitability determinants and profitability of companies are well represented in previous researches. Most common question is what drives firm profitability unrelated to the firms’ essence. According to that, models of firm profitability can be classified into two major groups, structure-conduct performance (SCP) and firm effect models (Škuflić, Mlinarić and Družić, forthcoming). There has been a huge volume of literature to date that has sought to identify the determinants of firm profitability. Here are some of them. Gringer and McMKiernan (1991) focused on the determinants of profitability and showed that market share, capital intensity, growth of sales, working capital and decentralization play a significant role in explaining firm profitability. Brush et al. (1999) find that company and industry affect business profitability, but company has the larger influence. In addition to the size of the firms, and investment, some of the other determinants have also affected profitability, such as lagged profitability, a significant determinant of current profit margins, and that industry concentration is positively related to firm profits margins. Further, profit margins are found to be pro cyclical in concentrated industries but counter cyclical in less concentrated industries (McDonald, 1999). Similar, Feeny (2000) found a strong connection of a positive association between capital intensity, size and profitability. In addition, Nunes, Serrasquerio and Sequeria (2009) found a positive relationship between size, growth and profitability. Moreover, they concluded that higher liquidity will not decrease profitability. On the other hand, lower level of debt and lower level of fixed assets are more profitable. Depending on the research, firm-level or industryspecific effects are found to be the dominant factor on firm profitability. According to the all mentioned next Table briefly shows microeconomic determinants and their indicators of firm` profitability. ICESoS 2016 - Proceedings Book 271 �International Conference on Economic and Social Studies (ICESoS’16) Table 1: Microeconomic determinants of firm profitability Determinants Indicators 1. Lagged profitability - net profit from previous year 2. Firm` size - total assets; number of employees 3. Firm growth in industry - growth rate in operating income from the sale of company/growth rate in operating income of the industry 4. Age - years of firm existence 3. Ownership - share of state ownership - share of foreign ownership - cost of production - share of material costs in total costs - growth rate of material costs 4. Cost management - share of labor costs in total costs - growth rate of labor costs - cost of I&R - cost of advertising - financial leverage - leverage ratio - net debt/EBITDA 4. Leverage ratio; capital structure - self-financing coefficient - net debt ratio - share of loans in equity - EBIT/interest coverage ratio 5. Working Capital Productivity; Multifactorial Productivity - operating income/working hours - operating income/capital 6. Tax burden - paid taxes/total costs 7. Export oriented firm - amount of export 8. Import dependence - share of import in total sales 9. Human capital - number of high educated employees 10. Quotation on the stock exchange and EPS - dividends per share - annual growth (decline) rate of market price shares 11. Current ratio 12. Regional affiliation (location) Table 1 shows microeconomic determinants of firm` profitability with their indicators what is in continuation thoroughly explained with all significant literature and authors. CONCENTRATION Generally, in theory of industrial organization it is well known that concentration indicators are good approximation for market power, with positive correlation. There are a lot of researches about positive correlation, one of them is shown in „Oligopoly Theory“ of Stigler (1964). It is demonstrated positive correlation between profit maximization and relative firm size. Saving (1970) also showed same but in correlation 272 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation between firm` shares and Lerner index. Same results are shown also in Encaoua and Jacquernin (1980). According to that, most used approximation of concentration are Herfindahl-Hirschman index and concentration index, with positive correlation, what is in accordance with SCP paradigm (see: Bain, 1951; Demsetz, 1973; Peltzman, 1977). Most important concentration indicators, are briefly described below. Concentration index represents sum of market shares of k number of firm`s. This indicator shows share of total revenues or sales of firm in total revenues or sales of an industry. It is possible to calculate market shares of 4, 8, 20 or even 50 largest firms in the industry. The most common concentration ratios are the and the . Next Table shows classification of market structures for concentration ratio . Table 2: Classification of market structures for concentration ratio Market structure 0= Perfect competition 40 < < 0 Monopolistic competition 60 < =< 40 Weak oligopoly =< 60 Extremely oligopoly =< 90 Monopoly Herfindahl-Hirschman index is defined as the sum of the squares of the market shares of the firms within the industry, with equation The Herfindahl index provides a more complete picture of industry concentration than does the concentration ratio. Here are advantages of HHI: a) HHI gives distribution of markeet shares of four (or eight) firms and compozition of market not just for larger firms. b) HHI also gives more weight to larger firms, respectively it recognizes interction between larger concurents. Table 3: HHI classification of market structures HHI Imperfectly competitive market structure HHI < 1000 Monopolistic competition HHI < 1800 < 1000 Monopolistic competition or oligopoly HHI < 1800 Oligopoly or monopoly SIZE In theoretical and empirical economic literature, within the framework of current researches, issues of correlation of company’s size and profitability are indispensable. A variety of researches, as the main evidence of importance of company’s size arguments, that the average cost of operating a small business is higher than the average cost of operating large enterprises (Agiomirgianakis et al., 2013) so it is necessary to observe the relationship between the two variables. Large enterprises have higher levels of ICESoS 2016 - Proceedings Book 273 �International Conference on Economic and Social Studies (ICESoS’16) profitability when compared to small ones, primarily due to economy of scale. On the other hand, small enterprises are often new players on the market, so they take over market shares and profits of large companies (Papadogonas, 2007). According to above mentioned, and considering the majority of studies that show the significance of company’s size to its level of profitability (see Dwyer et al., 2010), we can generally state and assume a positive correlation. According to RBV theory, the positive correlation between company’s size and profitability, is a result of the more accessible access to capital and of suitability for utilization of the economy of scale’s principles, which ultimately leads to higher profitability. Furthermore, other studies also confirm the hypothesis of positive correlation: Gschwandtner (2005), Nunes et al. (2009), Fukao (2006), Asimakopoulos et al. (2009), Stierwald (2010). The most common choice for company’s size variable comes down to property size, number of employees and total sales, of which one of the most frequently used according to (Hirschey, 2008) is total sales. LAGGED PROFITABILITY Getting back to prior period assets, is mentioned in literature as an indispensable determinant because the lagged profitability is related to profitability of the next period. Positive correlation is expected, which has been confirmed in the works of Bothwell et al. (1984) and Fenny and Rogers (1999). AGE In the framework of the resource based view theory, RBV (see Jovanovic, 1982; Wernerfelt, 1984), where specific determinants of business enterprise have the greatest significance, it is assumed that the older the company is it can potentially acquire more resources (Autio, 2005), and the older the company is, it possesses higher amounts of information and more experience, enjoys a better reputation and it is enabled to have wider and better access to financing. However, there are a multitude of studies which confirmed the negative relationship of age and profitability, where as an important argument, the lag of older companies to market changes and innovations have been highlighted (Glancey, 1998). According to studies determinant of age can have a positive and a negative impact on profitability. INDEBTEDNESS Generally, indebtedness does not have to have only negative impact on profitability. Namely, if the borrowed funds are invested in products / services which bring an additional income, with the average profit values, indebtedness will in the long term have a positive impact on profitability. Thus, theoretical studies provide complex and intertwined answers on the impact of debt on profitability. The impact of debt on profitability can be divided according to three basic relations (Kebewar, 2012): a) Signal theory which assumes a positive impact of debt on profitability; b) The theory of agency costs: b1.) The correlation is positive if the capital’s agency costs are between the owners and manager, b2.) The correlation is negative if the agency costs of debt are between owners and lenders; c) The tax aspect - correlation is unpredictable, complex and depends on the tax evaluation of interests, income tax and tax valuation. 274 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Such dual points of view are confirmed by the results of empirical researches, where the negative impact has been proved by Majumdar and Chhibber (1999), Eriotis et al. (2002), and Ngobo Capiez (2004), Goddard et al. (2005), Rao et al. (2007), and Tian Zeitun (2007) and Nunes et al. (2009). On the other hand, a positive impact has been proved by Baum et al. (2006, 2007), Berger and Bonaccorsi (2006), Margaritis and Psillaki (2007). The high rate of invested capital refund reflects the real state of the market, namely its imbalance. The degree of profitability is one of the most important indicators of market power. Studies, that tried to prove the connection between capital refund, industry concentration and also entry barriers, have been carried out. Weiss (1974) determined the link between profits, concentration and entry barriers. Salinger (1984) demonstrated that the MES in concentrated industries is linked with capital refunds, while this link was not found with other entry barriers variables such as the level of advertising (Carlton and Perloff, pp. 260-261). The capital structure, according to Bos and Fethersonu (1993), affects the profitability and the companies’ risk. There are several debt ratios used in studies within the capital structure. Muhammad (2003) concludes in his paper, that a certain level of indebtedness is desirable, but an excessive level leads to financial turmoil. It uses indicators such as the ratio of total indebtedness in relation to properties, total capital debt and long-term debt in relation to capital. Ventoura (2002) proves that the ratio of debt and capital has a negative effect on profitability. Finally, literature on the effect of capital structure and profitability states that there are certain circumstances in which the ratio is positive and also negative. FIRM GROWTH IN INDUSTRY According to Greiner (1972) growth of the company in relation to the profitability can have a positive and a negative effect. In case of a negative ratio, the cause is found in violation of interpersonal relationships within the company due to the increased growth of demands for increasing formal relations in order to achieve the necessary efficiency, which in the short term represents a challenge for the achievement of the desired level of profitability. The positive effect is explained by the increased motivation of employees that, given the growth in the future, they will achieve set goals and thus affect profitability. There are few studies which would undoubtedly lead to a defined impact of the company’s growth on the profitability, for example Roper’s (1999) and Gschwandtner’s (2005) study, whose results studied a statistically insignificant relationship between growth and profitability of the company. However, a positive relationship can be considered more natural as evidenced in the work of Serrasqueiro (2009). OWNERSHIP STRUCTURE High quality and comprehensive display for the significance of the ownership structure to the company’s management was given in the work of Berle and Means (1932), which demonstrate the advantages and disadvantages of public ownership. Since then, there are many studies that speak in favor of one or the other ownership structure, but there are also studies that have shown no effect (positive or negative) of property to profitability as in Demsetz and Lehn (1985), Himmelberg et al. (1999), Demsetz and Villalonga (2001), Holderness and Sheehan (1988) and Denis and Denis (1994). Shirley ICESoS 2016 - Proceedings Book 275 �International Conference on Economic and Social Studies (ICESoS’16) and Walsh (2000) explain the differences in company management, depending on the type of ownership. Finally, it is not possible to unambiguously determine the impact, because there are examples and studies for both types although it is expected that the companies in private ownership are more efficient and therefore more profitable. IMPORT DEPENDENCE According to Peltonen et al. (2008) import can have two different effects on profitability. First of all, it can influence in the way that it increases competitiveness on the market and consequently reduces profitability. It can also affect the competitiveness of companies which will ultimately increase profitability. By using the dynamic panel model Peltonen et al. (2008) demonstrated a negative and significant relationship between imports of goods and profitability. Such attitude is confirmed by the works of Sauner-Leroy (2003) and Boulhol (2005). Hansson (1992) determines a different result with respect to geographic region (country) in which the company operates. In summary, studies researching the determinants of profitability have identified several factors in many countries. However, they do not clearly indicate which factors are the most significant in relation to the firm profitability, although different factors have been identified as determinants of profitability in different countries by using the different methods of study. This is an area this research intends to explore. 3. Methodology, model and research results The analyzed period covers the years 2003-2014, for which the data were available. However, for our sample of companies relevant data are not abundant. All data gathered from Croatian database FINA. The FINA database contains tax return information on an annual basis. Each year all of entities in Croatia return data on their income, expenses, and other financial activities. The results have to be evaluated with the fact that some entities in sample may be used for tax planning purposes rather than for reporting the financial activities of a particular line of business. The use of tax entities for accounting purposes will affect the results of an investigation of the determinants of entity profitability using economic variables. This has influenced our choice of explanatory variables, as discussed above, but also a method of estimation. We have applied the panel data analysis method, using the unbalanced sample to obtain the estimated coefficients. It is well known that determinants are product of specific characteristics of industry and at the end economy, namely different variable has different impact and relation with profitability with other intensity (Škuflić, Mlinarić and Družić, forthcoming). This research employed the most important factors that influence firms profitability and that are commonly utilized through the previous researches. The variables and their used measurements are presented in Table 1. The dependent variable is profitability as measured by net profit before tax. As independent variables consider (1) indebtedness (Debt/EBITDA); (2) concentration (Herfindahl-Hirschman index); (3) liquidity (Current ratio); (4) productivity (Total factor productivity); (5) indebtedness (Indebtedness factor). 276 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 4: Variables and measurement Dependent variable Measurement Profitability Net profit before tax Symbol Independent variables Indebtedness Debt/EBITDA ldug_EBITDA Concentration Herfindahl-Hirschman index lhhi2 Liquidity Current ratio lkoefteklik Productivity Total factor productivity LTFP Indebtedness Indebtedness factor lfak_zad Further, while current studies do indicate that panel data analysis is more suitable than other methods of study in determining the profitability of manufacturing companies (Pratheepan, 2014). Therefore this study also hopes to explore the relative importance of determinant of profitability by using the panel data analysis. Panel data (also known as longitudinal or cross sectional time-series data) is a dataset in which the behavior of entities are observed across time. Panel data allows you to control for variables you cannot observe or measure like cultural factors or difference in business practices across companies; or variables that change over time but not across entities. This is, it accounts for individual heterogeneity. With panel data you can include variables at different levels of analysis suitable for multilevel or hierarchical modeling. Some drawbacks are data collection issues, non-response in the case of micro panels or cross-country dependency in the case of macro panels. Usage of fixed-effects (FE) is appropriate in analyzing the impact of variables that vary over time. FE explore the relationship between predictor and outcome variables within an entity. Each entity has its own individual characteristics that may or may not influence the predictor variables. When using FE we assume that something within the individual may impact or bias the predictor or outcome variables and we need to control for this. This is the rationale behind the assumption of the correlation between entity’s error term and predictor variables. FE remove the effect of those time-invariant characteristics so we can assess the net effect of the predictors on the outcome variable. Another important assumption of the FE model is that those time-invariant characteristics are unique to the individual and should not be correlated with other individual characteristics. Each entity is different therefore the entity’s error term and the constant (which captures individual characteristics) should not be correlated with the others. If the error terms are correlated, then FE is no suitable since inferences may not be correct and you need to model that relationship (probably using randomeffects), this is the main rationale for the Hausman test. (Torres-Reyna, 2007) ICESoS 2016 - Proceedings Book 277 �International Conference on Economic and Social Studies (ICESoS’16) For the sample of our research, the fixed effects method is more appropriate than the random effects. This assumption was also formally tested. Breusch-Pagan Lagrange multiplier test is based on verification and selection an appropriate model between Ordinary Least Squares (OLS) or random model. The null hypothesis is when is the variance between the entities (in this case firms) zero, i.e., what implies that there is no panel effects, what allows us to conclude that the usual OLS is suitable method. However, the test result suggest rejection of the null hypothesis with on all levels of reliability, what implies that random model is more appropriate. Further, Hausman test helps us in making decision about better model between fixed and random. Main point is about whether the errors are correlated with regression. The null hypothesis presupposes that they are not, what goes in favour of random model, but if results are opposite, more appropriate is fixed model. The result of Hausman’s test indicates rejection of the null hypothesis at all levels of significance, and fixed effects is better model than random effects. Nevertheless, we have concluded that the fixed effects method should be applied in this case. The results of the estimation are presented in the following table: Table 5: Results of Breusch & Pagan and Hausman tests Breusch and Pagan Lagrangian multiplier test for random effects lPrfPRO[ID,t] = Xb + u[ID] + e[ID,t] Estimated results: 4.771073 .7250876 1.14926 lPrfPRO e u Test: Var 2.184279 .8515208 1.072036 Var(u) = 0 chibar2(01) = 63918.40 Prob > chibar2 = 0.0000 Coefficients (b) (B) fixed random ldug_EBITDA lfak_zad lkoefteklik LTFP lHHI2 sd = sqrt(Var) -.1819732 -.6143266 -.2401719 .0075825 .3131585 -.1885957 -.583628 -.2354695 .0086374 .35242 (b-B) Difference sqrt(diag(V_b-V_B)) S.E. .0066225 -.0306986 -.0047024 -.0010549 -.0392615 .0041334 .0033769 .0037796 .0002127 .0034747 b = consistent under Ho and Ha; obtained from xtreg B = inconsistent under Ha, efficient under Ho; obtained from xtreg Test: Ho: difference in coefficients not systematic chi2(5) = (b-B)'[(V_b-V_B)^(-1)](b-B) = 235.38 Prob>chi2 = 0.0000 278 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation The results of panel Ordinary Least Square (OLS), random effects, between effects and fixed affects are reported in Table 6. The basic equation for our model is as follows: Table 6: Results of panel data analysis method )1( )2( )3( )4( VARIABLES OLS Random Between Fixed ldug_EBITDA ***-0.306 ***-0.189 ***-0.364 ***-0.182 )0.0151( )0.0122( )0.0381( )0.0128( ***-0.455 ***-0.584 ***-0.356 ***-0.614 )0.0132( )0.0105( )0.0338( )0.0111( ***-0.199 ***-0.235 ***-0.231 ***-0.240 )0.00688( )0.00690( )0.0145( )0.00787( ***0.0109 ***0.00864 0.00499 ***0.00758 )0.00229( )0.00156( )0.0128( )0.00158( ***0.383 ***0.352 ***0.362 ***0.313 )0.00149( )0.00241( )0.00307( )0.00423( ***15.15 ***15.05 ***14.96 ***14.85 )0.0142( )0.0204( )0.0343( )0.0256( Observations 63,496 63,496 63,496 63,496 R-squared 0.625 0.620 0.462 12,888 12,888 lfak_zad lkoefteklik LTFP lHHI2 Constant Number of ID Standard errors in parentheses *** p<0.01, ** p<0.05, * p<0.1 12,888 The Table above shows dependent variable with profitability which is represent with net profit before tax and five independent variables. All variables are significant on 1%. Concerning statistical significance, estimated parameters and Breusch & Pagan and Hausman tests we have used fixed effects panel models. There is a positive and significant relationship between concentration which is represent with HerfindahlHirschman index and productivity with measurement in total factor productivity with dependent variable (profitability). Contrarily, there is negative and also strong significant relationship between indebtedness which is represent with ratio of debt and EBITDA, liquidity with current ratio and indebtedness factor and profitability. Further more, final and concrete conclusion about relation between profitability and selected microeconomic determinants in Croatian manufacturing industry are given in below. If we change indebtedness by one percent, we would expect profitability to change by -0,182%, in average. If we change Herfindahl-Hirschman index by one percent, we would expect profitability to change by 0,313%, in average. If we change current ratio by one percent, we would expect profitability to change by -0,24%, in average. If we change indebtedness factor by one percent, we would expect profitability to change by -0,614%, in average. If we change total factor productivity by one percent, we would expect profitability to change by 0.00758%, in average. ICESoS 2016 - Proceedings Book 279 �International Conference on Economic and Social Studies (ICESoS’16) The results showed evidence of a strong positive significant relationship between profitability and Herfindahl-Hirschman index and total factor productivity. The strongest negative correlation with profitability has indebtedness factor, followed by current ratio and indebtedness. 4. Concluding remarks Particularities of manufacturing industry, in general sense, considering the changes in macroeconomic and microeconomic indicators with their relation puts determinants of firm profitability for high level of importance for firm`s profitability in Croatia. The main contribution of this paper is the identification of the determinants affecting profitability of manufacturing firms in Croatia. A static panel model method is utilized on a sample of all manufacturing firms with business in Croatia covering the period between 2003 and 2014. Parameter coefficients show that market concentration (Herfindahl-Hirschman index) and total factor productivity had a significant and positive impact on the profitability for the manufacturing industry in Croatia during the study period. The results also showed a significant but negative relationship between indebtedness, current ratio and indebtedness factor. This results implies that concentration and indebtedness factor are determinants with larger influence on profitability and next researches have to absorb that facts. Further, provided results are in line with previous studies in the same area but for future researches we should pay attention to some notes from this research. First of all, there are restrictions about selection of the determinants (different number of determinants give different results), picked econometric tools and usage of different variation of panel (dynamic) models. Inclusive, it is common knowledge that the profitability determinants of manufacturing firms are very important according to the economic development of any country, especially to countries adopting an export what includes oriented industrialization policy within an open economic environment, according to that, more researches in this area are necessary. References • • • • • • • • • Agiomirgianakis, G. M., Magoutas, A. I. i Sfakianakis (2013). 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(2001). Ownership Structure and Corporate Performance. Journal of Corporate Finance 7, 209-233. Denis, D. i Denis, D. (1994). Majority Owner-managers and Organizational Efficiency. Journal of Corporate Finance 1, 91-118. 280 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • • • • • • • • • • • • • • • • • • • • • Dwyer, L., Forsyth, P. i Dwyer, W. (2010). Tourism Economics and Policy, Channel View Publications, London, European Central Bank, Online Statistical Database Economics, 13, 235-252. Fenny, S. i Rogers, M. (1999). The Performance of Large Private Australian Enterprises, Working Paper No. 2/99, Melbourne Institute of Applied Economics and Social Research, University of Melbourne Glancey, K. (1998). Determinants of Growth and Profitability in Small Entrepreneurial Firms, International Journal of Entrepreneurial Behavior and Research, Vol. 4 (1), 18-27. Greiner, L. (1972). Evolutions and Revolutions as Organizations Grow, Harvard Business Review, 50, 37-46. Grinyer, H. P. and McKiernan, P. (1991). The determinants of corporate profitability in the UK electrical engineering industry. British Journal of Management, 2(1), 1732. Gschwandtner, A. (2005). Profit Persistence in the ´Very` Long Run: Evidence From Hansson, P. (1992) The discipline of imports: The case of Sweden, The Scandinavian Journal of Economics, Vol. 94, No. 4, 589-597. Himmelberg, C., Hubbard, G. i Palia, D. (1999). Understanding the Determinants of Managerial Ownership and the Link between Ownership and Performance. Journal of Financial Economics 53, 353-384. Holderness, C. i Sheehan, D. (1988). The Role of Majority Shareholders in Publicly Held Corporations. Journal of Financial Economics 20, 317-346. Jovanovic, B. (1982). Selection and the Evolution of Industry, Econometrica, Vol. 50 No. 3, 649-70. McDonald, J. T. (1999). The determinants of firm profitability in Australian manufacturing. The Economic Record, 75 (229), 11-126. Muhammad M. (2003). The relationship between economic growth and capital structure of listed companies: evidence of Japan, Malaysia and Pakistan. The Pakistan Development Review, 42:4 Part II, 727-750. Papadogonas, T. (2007). The Financial Performance of Large and Small Firms: evidence from Greece, International Journal of Financial Services Management, Vol. 2, No. 1/2, 14-20. Peltonen, T. A., Skala, M., Rivera, A. S. i Pula, G. (2008). Imports and profitability in the euro area manufacturing sector – The role of emerging market economies, WPS 918, ECB Pratheepan, T. (2014). A panel data analysis of profitability determinants empirical results from Sri Lankan manufacturing companies. International Journal of Economics, Commerce and Management, Vol. 2, Issue 12. Roper, S. (1999). Modelling Small Business Growth and Profitability, Small Business Sauner-Leroy, J.-B. (2003). The impact of the implementation of the Single Market Programme on productive efficiency and on mark-ups in the European Union manufacturing industry, European Economy, European Commission DirectorateGeneral for Economic and Financial Affairs, Economic Papers, No 192 Schmalensee, R. (1989). Intra-industry profitability diferendec in US manufacturing 1953-1983, Journal of Industrial economics, June 1989, No. 4, Volume XXXVII Serrasqueiro, Z. (2009). Growth and profitability in Portuguese companies: A dynamic panel data approach. Economic Interferences, Vol. 11, Num. 26, 565573. Shirley, M., Walsh, P. (2000). Public versus Private Ownership: The Current State of the Debate. World Bank Policy Research Working Paper 2420 Survivors and Exiters, Applied Economics, 37, 793-806. ICESoS 2016 - Proceedings Book 281 �International Conference on Economic and Social Studies (ICESoS’16) • • • • Škuflić, L., Mlinarić, D. and Družić, M. (2016). The determinants of profitability: evidence from Croatian construction sector. (forthcoming) Torres-Reyna, O. (2007). Panel Data Analysis Fixed and Random Effects using Stata. Princeton Univesity Ventoura-Neokosmidi, N. (2002). Sales efforts, capital structure and monopoly power. Managerial Finance, Volume 28, No. 5 Wernerfelt, B. (1984). A Resource-Based View of the Firm, Strategic Management Journal, Vol. 5 No. 1, 171-80. 282 ICESoS 2016 - Proceedings Book � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3328 Title A name given to the resource DETERMINANTS OF FIRM PROFITABILITY IN CROATIA’S MANUFACTURING SECTOR Author Author Skuflic, Lorena Mlinaric, Danijel Druzic, Marko Abstract A summary of the resource. Abstract: This paper investigates determinants of the profitability of industrial firms in Croatia, using data for large, medium and small companies for the period 2003-2014. This paper provides a broad theoretical review of the determinants of profitability analysed in economic literature with special remarks on firm level determinants, and explanation of most used variables such as size of firm, revenues, growth rate of revenues, sales, profit in previous years, ownership, productivity level, financial leverage, cost of inputs, indebtedness. Results from the panel ordinary least squares model for Croatia’s manufacturing sector reveal a positive and statistical significant relationship between profitability, total factor productivity, and concentration measured through Herfindahl-Hirschman index. On the other hand, indebtedness and liquidity show a negative relationship with the firm profitability of Croatia’s manufacturing sector. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3615 Title A name given to the resource ROLE OF GOOD GOVERNANCE AND LOCAL ASSETS IN DEVELOPMENT OF RURAL AREAS IN FEDERATION OF BOSNIA AND HERZEGOVINA Author Author TANDIR, Natasa Abstract A summary of the resource. Bosnia and Herzegovina is one of the most rural countries in Europe with around 61% of population living in predominantly rural areas. The characteristics of rural areas in BH are similar to the ones in other countries but are also specific in relation to the overall country development, natural resources and mentality of the people (social and human capital). The aim of the study is to investigate the reasons for the differences in economic performance, in particular, to investigate the role of tangible and less tangible factors influencing development outcomes, and to show how people in rural areas perceive the role of local governance, as influential, as mediating or without significant contribution to their development level. The basis of the designed theoretical model is drawn primarily from completed research projects conducted in European Union. Model assumes that the different economic performance of rural areas is the result, in part at least, of five locally available capitals: (1) natural capital; (2) built capital; (3) human capital; (4) social capital; and (5) cultural capital. In order to ensure the significance of this research and contribution to the field, the framework takes into consideration effective governance as having an important role in development of rural areas. To include this driver into the model it evaluates governance through defined principles of good governance found in the literature. This study represents a cross-sectional study which used both quantitative and qualitative methodology. Target population were residents in 72 municipalities classified as rural. In total 521 questionnaires were used in the analysis. The conducted method of analysis that was used was structural equation modelling. The results showed that only natural and human capital have statistically significant influence on development of rural areas. Related to institutional capital or good local governance there is no direct influence on the development, however some kind of contribution exists through other capitals. This research could present, along with other studies and sector analysis, useful base for constructive discussions on direct and long lasting measurements for improving rural development in our country in consistent, systematic and strategic way. Keywords: rural development, capitals, good governance, structural equation modelling Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Thesis NonPeerReviewed S Agriculture (General) https://omeka.ibu.edu.ba/files/original/819808227e39cb4f9a4daf8d627a34c0.pdf fe4759d09a2e97d7d5e1442f428139d6 PDF Text Text PERCEIVED SATISFACTION WITH PUBLIC TRANSPORT SERVICE: CASE STUDY OF GRAS Nataša Tandir International Burch University Bosnia and Herzegovina natasa.tandir@ibu.edu.ba Haris Tandir International Burch University Bosnia and Herzegovina hari.tan@hotmail.com Abstract: Public service quality is in recent years one of the major challenges for economic analysis. It is due to the size of companies providing public services as well as to the importance of obtained results both for companies offering the services and for the public policy creators and administrators. One of the aspects that can be evaluated is the level of service offered or the supply side. The other side is the perceived satisfaction with the service quality, which represents the demand side aspect. There is not much research that analyses how the passengers perceive the quality of the services. The objective of this paper is two folded. Firstly, to evaluate the quality of GRAS services from the aspect of users and secondly to see what needs to be improved in order for non-users or people who rarely use public transport to become regular users. The information is valuable for policy makers as well as operational managers in the public transport system. An insight into what users consider as important and how they perceive existing public transport service can show that investment and improvement of existing service can really attract new users and keep the existing ones. The data were collected using self-administered internet mediated questionnaires to the residents of Sarajevo Canton. In total 247 persons answered the questionnaire. The response rate was above 50 per cent. The results showed that there is wide space for improvements in service, especially if the company is trying to reach non-users. Keywords: public transportation, services, satisfaction Introduction Car traffic has increased considerably during recent decades. The car enables transportation that brings people positive consequences but also costs for society. Individual freedom and independence are among the positive consequences noted in connection with car use. Thus, the versatile car enables people to conduct diverse activities in different places, for instance, work, purchases of different kinds, and leisure activities. At the same time the negative environmental effects of car use is becoming recognized. Public transport has a lower societal cost than the car. Although most people use public transport for some trips they make, it is generally perceived to be less attractive and is less chosen. How can it be made more attractive? In the public transport ICESoS 2016 - Proceedings Book 311 �International Conference on Economic and Social Studies (ICESoS’16) industry, increasing competition has led to an increased market orientation, something which for instance has led to that customer surveys have become common. With the increased competition, there is also an interest in boosting market shares. In addition to this, there are adaptations of services in order to encourage both existing and new travellers to travel more by public transport (Carlsson, 1999; Eriksson, 2006). Both society and the public transport industry want to change public transport in order to adapt it to those who are frequent car users today. Accordingly, there is a need for knowledge of how public transport can be made attractive to car users. Public service quality is in recent years one of the major challenges for economic analysis. It is due to the size of companies providing public services as well as to the importance of obtained results both for companies offering the services and for the public policy creators and administrators. One of the aspects that can be evaluated is the level of service offered or the supply side. The other side is the perceived satisfaction with the service quality, which represents the demand side aspect. There is not much research that analyses how the passengers perceive the quality of the services. The objectives of this paper are two folded. Firstly, to evaluate the quality of GRAS services from the aspect of users and secondly to see what needs to be improved in order for non-users or people who rarely use public transport to become regular users. Literature Review According to Fellesson and Frimen (2008) in many countries there have been investments in improvement of public transport systems in order to increase the quality and thus the usage of this mean of transport. However, this doesn’t lead to corresponding increase in demand (Fujii & Kitamura 2003, Mackett & Edwards 1998). This is mainly because of the increasing usage and ownership of cars. Anable states (2005) that today, people are very dependent on car transportation. For them, car is not just a mean of travel. As Steg (2005) points, it gives a feeling of sensation superiority, power, freedom, position in the society. On the other hand, there is an increase development and implementation of measures related to the promotion of consequences of car travel, mainly on environment and congestion, especially in large cities. Together with cycling and walking, public transport is generally recognised as a sustainable alternative to the usage of cars (Redman et al., 2013). Transfer from car travel to public transport usage became an important alternative for the society which leads to the necessity to improve the quality of public transport, make it more appealing and satisfying for the users (Beirão and Cabral, 2010). Public transport systems need to become more market oriented and competitive. They need to create certain image that would attract users. In order to recognize the possibilities for improvement and increase market share, companies providing public transport services need to understand travel behaviour, consumer’s needs, expectations and satisfaction of users (Beirão and Cabral, 2010). Those information are valuable for policy makers as well as operational managers in the public transport system. An insight into what users consider as important and how they perceive existing public transport service can show that investment and improvement of existing service can really attract new users and keep the existing ones (Fellesson and Friman, 2008). Satisfaction represents a concept that deserves certain attention. It is manly elaborated in consumer research and it is proven to have great value in understanding present 312 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation and future behaviour of customers. Customers’ satisfaction is the link between the service (or a good) offered by a company and perception of that service from the customers (Fellesson and Frimen, 2008). In the research by Friman, Edvardsson and Garling (1998) it is pointed that dissatisfied users are maybe more important than satisfied users. In order to determine the satisfaction or dissatisfaction the relevant attributes need to be identified. In the same study it was assumed that the satisfaction is mainly affected by negative critical incidents (NCIs) and that positive critical incidents are not so relevant. The main NCIs identified were: treatment of employees (lack of competencies, knowledge, willingness to serve); service unreliability (delays); simplicity of information; and shortcomings of vehicles, equipment and stops. The study showed that single NCI and a memory of how many times it has repeated (frequency) affects overall satisfaction with the public transport service. Paulley (2006) determined key factors that affect the demand for public transport. According to the research it was found that fares, income, car ownership and quality of service are key in determining the demand. The study is mainly related to the urban public transport in Great Britain, however many international examples and sources are used to emphasise the topic. The research of Walle (2006) studies the relation between transport mode and time factors using elasticities and regression techniques. The results showed that there is a clear relation of waiting and walking time and public transport use. According to the findings important issues were emphasised and recommended to the public transport companies. The important factor that can influence car drivers to switch to public transport is trip chaining. In the work of Hensher and Reyes (2000) different discrete choice models are evaluated to determine the role that certain features of households have on the tendency to undertake varying trip chains that involve the use of the car or public transport. Research conducted by Dell Olio et al. (2011) indicates the difference between desired quality of service and perceived quality by users. The first represent what the users desire, expect or hope to receive and the later one is the daily experience of the users of public transport. The research offers new aspect of quality: the quality that the user and potential user desires. The most valued variables were waiting time, cleanliness and comfort, while driver’s behaviour, occupancy and travel time were valued less. The obtained results provided useful information for the authorities and operating companies to plan marketing policies directed towards different categories of users, as well as potential users. The important attributes that could attract car users to become the users of public transport were emphasised by Lauren Redman et al. (2013). The important contribution of this research is related to the quality attributes of public transport services that would encourage shift from private car usage to public transport. The results implied that reduction in fare promotions and other habit-interrupting measures of transport policy can lead car users to initially try public transport. To sustain those new users, the accessibility, reliability and mobility provision are highly valued. In a study of public transport services, Hensher et al. (2003) found that travel times and fares have the greatest impact on negative satisfaction, whereas frequency of ICESoS 2016 - Proceedings Book 313 �International Conference on Economic and Social Studies (ICESoS’16) service and seat availability constituted the largest sources of positive satisfaction. In another study, Friman et al. (2001a, 2001b) found four factors identified as constituting perceived service quality in public transport services. The first factor was how travellers were treated by staff, that is their willingness to serve, their knowledge, and their competence. The second factor was service reliability. The third factor was simplicity of information (e.g. the availability of departure and destination information). The design of vehicles and space (relating to comfort, safety, and cleanliness) constituted a fourth factor. A transnational study of public transport in nine European cities (Fellesson & Friman, 2008) confirmed these results by highlighting the impact of safety, security, frequency, service reliability, comfort, and the quality of staff behaviour on the level of satisfaction with public transport. Stradling et al. (2009) examined 68 items which de-motivate people from using buses. Eight factors were revealed by factor analysis. Factor 1 was interpreted as inconvenience of route, scheduling, and other service provision; Factor 2 as unwanted arousal from the journey experience (e.g. crowded bus); Factor 3 as feelings of being unsafe; Factor 4 as the need for autonomy and control; Factor 5 as costs; Factor 6 as self-image; Factor 7 as the preference for independence; and Factor 8 as disability and discomfort. In a narrative review of international research on how to attract car users to use public transport, Redman et al. (2011) concluded that it is essential to break car-use habits, for instance by providing free public transport tickets for a limited time to enable car users to test public transport. To bolster attractiveness, it may be necessary to go beyond core service attributes such as travel time, accessibility and reliability by improving affective qualities. In order to keep (former) car users in public transport it is essential that they perceive the service as attractive, not only initially but over time. If this can be accomplished successfully car users may become satisfied public transport users (Pedersen et al., 2011). Case Study - Public Company “GRAS” The public transport in city of Sarajevo was organised in 1885. Firstly, it was a tram which used horses. The electric power trams were introduced in 1895. The bus transport started in 1948. After many change, improvements and development, new charging system was introduced in 1974 while the half automatic fare charging system was implemented in 1977. During the war, the vehicles, the lines and whole company, as everything else in Sarajevo were devastated. The reconstruction of the public transportation service started in 1996. Today, the mission and vision of the company states that the public passengers’ transportation represents one of the most important if not the key function of modern city, overgrowing simple communication function. It represents the part of the city development policy, the base for healthy community with great social role, since the main users of public transport is population with lower income, especially younger population and retired people. The mission of the company is to improve conditions and safety in public transport, to increase the offer, improve the efficiency of communication and to maximise profit. The vision is to give absolute priority to the quality, speed and reliability of public transport, support of the Sarajevo Canton and to the ecology and energy efficiency. 314 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Since 2005 the company implemented ISO 9001:2000 standard which was successfully recertified in 2010. The special attention is given to the staff training and communication toward the users. Methodology In Sarajevo there are two companies providing public transport services to the city. The objective of this study is to evaluate the user’s perception and satisfaction with the quality of GRAS public transport company. The research should show what are the strengths and weaknesses of GRAS and where are the places for service improvement. The users will evaluate characteristics of public transport services like: coverage, time, reliability, behaviour of employees, condition of vehicles, frequency, safety, etc. According to the available literature and with the objective of the research following hypotheses were constructed: H1: There is an overall satisfaction with public transport services of GRAS. H2: Non users would become users if more than three attributes would be improved. H3: Places for improvement of public transport services are quality of vehicles, treatment of users by employees and service reliability. The data were collected using self-administered internet mediated questionnaire. The questionnaire was designed using Google docs. It was administered using e-mail and social networks. This way of collecting data was chosen because of following reasons: there is no demand for field work, there are no financial resources necessary, data input is automated and data analysis is easy to perform using SPSS (Saunders et al., 2009). The design of each question was done by adapting questions used in other questionnaires. The advantages of relying on already designed questionnaires are the ability to compare the findings with other studies and possibility to asses’ reliability of the questionnaire. In order to avoid poor questions, the relevant scientific literature was consulted. Likewise, there were no copyrights on the questions and the questions were adapted from many existing questionnaires, thus there is no need to point each out. The first part of the questionnaire is consisted of basic demographic questions. The second part consist the question related to the reasons why people do not use public transport or use it very rarely, and what needs to be improved so a non-user would become the user of public transport services. Third part is evaluating the perception of users about the quality of public transport service using 5-point Likert scale: (1) don’t agree at all, (2) hardly agree, (3) neutral, (4) partially agree, and (5) fully agree. The sampling was done using non-probability sampling more precisely convenience sampling, which is used because of ease of reaching the respondents this way. The survey was administered in English and Bosnian language. The purpose of the research was explained with accompanying cover letter. According to Dillman (2007) the message in covering letter has positive effect on the response rate. ICESoS 2016 - Proceedings Book 315 �International Conference on Economic and Social Studies (ICESoS’16) Since the number of thematic questions in the survey was 19, in order to obtain validity, the minimum number of respondents was 190 (ten respondents per each question). In total 247 persons answered the questionnaire. The response rate was above 50 per cent. Results Out of 247 respondents 49.8 per cent are female and 50.2 are male. When asked about living area, 81.9 per cent live in the study area while 18.1 per cent do not. The age structure of respondents is presented in next figure. Figure 1: The age structure of respondents Related to employment status 59.6 per cent are students and 36.7 are employed. There is also a minority of self-employed (3.3 per cent) and retired respondents (0.4 per cent). The respondents who own a car are 43.4 per cent of the sample. Since one of the aims of this paper is to determine what are the reasons not to use public transportation services, it was important to find out how often respondents use public transport. People who use it few times a year count for 20.8 per cent of the total sample and 8.6 per cent never use it. This is represented in figure 2. Figure 2: Frequency of public transport usage 316 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Figure 3 shows the reasons why some respondents do not use or rarely use public transportation services. The main reasons, according to the non-users are that it is easier to travel by car and that public transport is overcrowded (more than 40 per cent). Only 9 per cent thinks that public transport is too expensive and only 7.2 per cent do not use it because the whole family is travelling by car. Figure 3: Reasons for not using public transport When asked about what needs to be improved so they would become users or more frequent users of public transport the respondents gave different answers (table 1). Table 1: What needs to be improved in order to use public transportation more frequently Frequency of using public transportation services Every day If you do not use public transportation services or use it very rare, what are your reasons for it? Safety (7) Cleanness (3) Frequency (4) Reliable (regular) (3) Speed (2) To reduce the price of tickets (3) New tram More vehicles and seating places (2) Few times a month Quality, better conditions Reliable and more frequent (3) Less crowd Modern vehicles (2) Customized tickets according to the destination There should be only one public transport service company The public transport market should be more competitive, not monopolistic. Everything (2) Better hygiene and behavior of employees ICESoS 2016 - Proceedings Book 317 �International Conference on Economic and Social Studies (ICESoS’16) Wi-Fi Few times a week Safety (3) New vehicles (3) Frequency (2) Cleanness (2) Better employees (2) You never know whether the bus will take you all the way to your destination or it would stop somewhere (therefore you lose your money you pay for the ticket and you are late in most More comfortable Everything (2) Nothing Few times a year Cleaner (4) Better transport (3) Safety (3) Better connectivity and more available routes More vehicles with newer production date frequency (7) Less crowd (2) Educate people manners in public transport Never All (2) Speed, reliability and frequency (2) Don’t know Not planning to use it Mainly answers were related to three broad topics. Frequency and reliability is very important. Second issue that was pointed is related to the conditions in the vehicles. The respondents ask for better quality, better hygiene and more clean vehicles. The third group of possible improvements is related to the employees and their behaviour. The complaints are related to the manners of drivers and lack of politeness. One more response that was repeated few times is safety during ride. When all respondents were asked to say whether they agree or disagree with certain attributes of public transport the responses corresponded with answers from non-users. The number of surveyed people that thinks it is overcrowded is 148 (61.9 per cent). Around 45 per cent thinks it is not safe. More than 60 per cent states that the vehicles are not modern and not clean. Discussion The purpose of this study is to investigate which are the problems in public transport perceived by its users and which solutions may make public transport more attractive to car users. With such knowledge, it will then be possible to suggest how public transport can adapt its service offering to car users. The results of this study indicate that public transport services need to be improved. 318 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation This is due to the perception that current public transport services are not attractive enough. The generality of these results is implied by the fact that they are in line with previous research findings from other countries (Curtis & Headicar, 1997; Kingham et al., 2001; Shannon et al., 2006). How can public transport be improved and become attractive? In response to this question, the results showed that increased service frequencies, reliability, cleaner and newer vehicles were stated by car users to be reasons for increasing their use of public transport. Similar results have been shown in other studies (Kingham et al., 2001). Even if an improved public transport system would be provided in medium- size cities, it would probably still be the case that car users would have to make sacrifices, especially initially because of their known difficulties in changing an acquired car-use habit (Fujii & Gärling, 2005). Furthermore, it is unlikely that a public transport service would fully cater to car users’ needs as regards time and flexibility. In order to increase public transport use, it is thus also essential to make car use less attractive. It is not likely in the near future that conditions governing car use in medium-sized cities will deteriorate due to congestion. Other measures need to be taken to reduce the relative attractiveness of car use, for instance the prohibition of car traffic in various zones, parking restrictions, and general measures such as increasing the cost of owning and driving a car. Conclusion One of the undisputable need for the economic development of any society is providing public transport services that are satisfying the growing mobility needs of citizens. Many public transport companies in other countries, as well as our domestic company have internal indicators of the quality of services they offer. However, those parameters are usually related to some attributes that are important from the aspect of the company, such as travel time, frequency of the service, the average delay, the average age of the buses that serve a route, etc. These measurements have internal utility but in many cases are not valid for specific actions to improve user welfare. The studies on quality must be not only based on certain standards but on combination of set quality criteria and level of user’s satisfaction. The public authorities, no matter they are regulators or providers, must establish levels of quality that maximize user utility. Related to the above mentioned, this study provides an interesting insight into the satisfaction of users. Likewise, it determines attributes that need to be improved in order for non-users to become users. Frequency, reliability, safety, cleanness are the characteristics that need to be main concerns of future strategies of public transport companies, especially in a market that once used to be monopoly and is transforming to more competitive market. ICESoS 2016 - Proceedings Book 319 �International Conference on Economic and Social Studies (ICESoS’16) References • Anable, J. (2005). Complacent Car Addicts” or ‘”aspiring Environmentalists”? Identifying travel behaviour segments using attitude theory. Transport Policy, Vol. 12, Issue 1, p. 65-78. • Beirao, Gabriela and Cabral, J.S. (2010). Travelling to work or just for fun? Exploring differences in perceptions and attitudes by travel modes, 12th WCTR, July 11-15, 2010 – Lisbon, Portugal • Curtis, C., & Headicar, P. (1997). Targeting travel awareness campaigns. Which individuals are more likely to switch from car to other transport for the journey to work? Transport Policy, Vol. 4, p. 57-65. • Dell Olio, L., Ibeas, A. & Cecin Patricia (2011). The quality of service desired by public transport users, Transport Policy, Vol. 18, Issue 1, p. 217-227 • Eriksson, L. (2011). Car Users’ Switching to Public Transport for the Work Commute. Dissertation, Karlstad University Studies. • Fellesson, M., and Margareta Friman (2008). Perceived Satisfaction with Public Transport Service in Nine European Cities, Journal of the Transportation Research Forum, Vol. 47, Issue 3 (Public Transit Special Issue 2008), p. 93‐103 • Friman, M., & Gärling, T. (2001b). Frequency of Negative Critical Incidents and Satisfaction with Public Transport Services. II. Journal of Retailing and Consumer Services, Vol. 8, p. 105-114. • Friman, M., Edvardsson, B., & Gärling, T. (2001a). Frequency of Negative Critical Incidents and Satisfaction with Public Transport Services. I. Journal of Retailing and Consumer Services, Vol. 8, p. 95-104. • Friman, Margareta, Edvardsson B., & Gärling, T. (1998). Perceived Service Quality Attributes in Public Transport: Inferences from Complaints and Negative Critical Incidents. Journal of Public Transport, Vol. 2, p. 69-91. • Fujii, Satoshi and Ryuichi Kitamura (2003). What Does a One-Month Free Bus Ticket do to Habitual Drivers? An Experimental Analysis of Habit and Attitude Change. Transportation, Vol. 30, p. 81- 95. • Hensher, D. A., Stopher, P., & Bullock, P. (2003). Service quality – developing a service quality index in the provision of commercial bus contracts. Transportation Research Part A Vol. 37, p. 499-517. • Hensher, D.A., Reyes April, J. (2000). Trip chaining as a barrier to the propensity to use public transport, Transportation, Vol. 27, Issue 4, p. 341-361. • Kingham, S., Dickinson, J., and Copsey, S. (2001). Travelling to work: will people move out of their cars, Transport Policy, Vol. 8, p. 151-160. • Mackett, Roger L., and Marion Edwards (1998). The Impact of New Public Transport Systems: Will the Expectations Be Met? Transportation Research Part A: Policy and Practice 32, p. 231-245. • Paulley, N.; Balcombe, R.; Mackett, R.; Titheridge, H.; Preston, J.M.; Wardman, M.R.; Shires, J.D.; White, P. (2006) The demand for public transport: The effects of fares, quality of service, income and car ownership. Transport Policy, Vol. 13, Issue 4, p. 295-306. • Pedersen, T., Friman, M. & Kristensson, P. (2011). Affective forecasting: predicting and experiencing satisfaction with public transport. Journal of Applied Social Psychology, Vol. 41, p. 1926–1946. • Redman Lauren, Friman Margareta, Garling, T. and Hartig, T. (2013). Quality attributes of public transport that attract car users: A research review, Transport Policy, Vol. 25, January, p. 119-127 • Redman, L., Friman, M., Gärling, T., & Hartig, T. (2013). Quality attributes of public transport that attract car users: A research review. Transport Policy, Vol. 25, p. 119-127. 320 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Saunders, M., Lewis, P. And Thornhill, A. (2009). Research Methods for Business Students, Pearson Education, UK • Shannon, T., Giles-Corti, B., Pikora, T., Bulsara, M., Shilton, T., & Bull, F. (2006). Active commuting in a university setting: Assessing commuting habits and potential for modal change. Transport Policy, Vol. 13, p. 240-353. • Steg, L. (2005). “Car use: lust and must. Instrumental, symbolic and affective motives for car use.” Transportation Research Part A: Policy and Practice Vol. 39, Issue (2-3), p. 147-162. • Walle, S.V. and Steenberghen Therese (2006). Space and time related determinants of public transport use in trip chains. Transportation Research Part A: Policy and Practice, Vol. 40 Issue 2, p. 151-162. ICESoS 2016 - Proceedings Book 321 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3332 Title A name given to the resource PERCEIVED SATISFACTION WITH PUBLIC TRANSPORT SERVICE: CASE STUDY OF GRAS Author Author Tandir, Natasa Tandir, Haris Abstract A summary of the resource. Abstract: Public service quality is in recent years one of the major challenges for economic analysis. It is due to the size of companies providing public services as well as to the importance of obtained results both for companies offering the services and for the public policy creators and administrators. One of the aspects that can be evaluated is the level of service offered or the supply side. The other side is the perceived satisfaction with the service quality, which represents the demand side aspect. There is not much research that analyses how the passengers perceive the quality of the services. The objective of this paper is two folded. Firstly, to evaluate the quality of GRAS services from the aspect of users and secondly to see what needs to be improved in order for non-users or people who rarely use public transport to become regular users. The information is valuable for policy makers as well as operational managers in the public transport system. An insight into what users consider as important and how they perceive existing public transport service can show that investment and improvement of existing service can really attract new users and keep the existing ones. The data were collected using self-administered internet mediated questionnaires to the residents of Sarajevo Canton. In total 247 persons answered the questionnaire. The response rate was above 50 per cent. The results showed that there is wide space for improvements in service, especially if the company is trying to reach non-users. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/dae801c25e4875049a6c0e682daaafc3.pdf 536bd84b2f699401fd632be86fbe8187 PDF Text Text TAX EVASION IN ALBANIAN ECONOMY AFTER ’90 Viola Tanto European University of Tirana Albania viola.tanto@gmail.com Abstract: Albanian economy has gone through some difficult processes during different periods. For 45 years, it was a centrally planned economy, because of the dictatorial system. Albanian economy suffered a defeat during its adoption from centralized economy to a liberal economy. The main difficulty was the concentration of the Albanian economy in the cooperative system. In this type of system, all properties were owned by the state, there was no right of privatization. After ‘90 the identity of properties was returned. The banking sector, as one of the most important sectors of economy, was not having an appropriate development. Not only inflation would be the problem of the economy, but also the loss of trust for the deposit of money in the second level banks that could be opened, which would lead to the failure of the financial sector. An important factor which characterize the economy is the informality. This article seeks to explain the factors that influenced informality in economy, in specific, tax evasion. Tax evasion is an illegal action as it constitutes a deed where the person is breaching the provisions found in the Tax Procedures Law and Penal Code. This paper shall discuss such provisions in the Albanian legislation. Keywords: tax evasion, legislation, liberal economy, informality, economic growth JEL Classification: K4 Introduction Recently, we have been witnesses to a significant increase in the quantitative and qualitative level of tax evasion and tax avoidance. Often, the “battle” between fiscal system and contributors in bad faith (or suspected as such) is made on the basis of power of probation (burden of proof) regarding the elements of the transaction that must be verified by the tax administration. Nowadays, tax evasion is leaving more and more space to avoid refined, in contrast to what might generally be thought, it is not only the prerogative of big companies, corporations or powerful groups of business, but it’s become a common management tool for small and medium enterprises and in some cases for natural persons. Economy evolved with the same steps with the evolution of mankind. The need for economic change and the adoption of economic was the result of evolution of the society. Application of transition in Albania was very difficult, because Albania was one of the poorest country of Europe. It was a communist country with similar features with other socialist countries but with a centralized economy, in other words Albanian people did not have the right to have a property. Structural changes in the banking system started since 1992 with the economic reforms, which began with the change of legal basis. The structure changed with the adoption of the law on ‘Bank of Albania’ and the approval of the law “On the banking system in the Republic of Albania”. The banking system with its inefficiency as a financial intermediary created spaces for pyramids (in 1997) to absorb the growing ICESoS 2016 - Proceedings Book 257 �International Conference on Economic and Social Studies (ICESoS’16) savings, especially savings of immigrants. Interest rates on deposits offered by these companies were too high and ranged from 6-8% per month. Main causes of pyramid schemes were lack of appropriate legal framework and political factor. The developments in the real sector, during ‘92-96’ were characterized by a sensitive economic increase of 9 % per year, a decline in the average level of inflation of 17.5 % , and a sensitive improvement of current account and budget deficit. Progress in the macroeconomic stabilization was based on the design and implementation of strong monetary and fiscal policies and also on rapid privatization in agriculture, retails, wholesales, small and medium enterprises which helped economic growth of the country. The desire and effort to fill the budget theoretically one side and ignorance of the Albanian reality, made to fixed quotas excise arbitrary values, provoked by withholding production firms or tax evasion. Refering to the Working Document of the Secretariat of the Investment Council (SIC): Informality, A Common Government-Business Challenge, December 2015, since the 1st of September 2015, the Government officially initiated an extensive campaign against informality in the country. This campaign was preceded by public statements during July–August 2015 on the necessity to fully establish rule of law in the economic and commercial sphere of the country. The campaign was also preceded by a series of concrete, but not published, steps by the Government, including the establishment of a working group within the Council of Ministers, discussions in the Inter-ministerial Strategic Planning Committee (SPC), and the presentation of the campaign to the National Economic Council (NEC). The process was accompanied by a large number of on-site tax inspections (fiscal visits) aimed at scanning the informality situation, numerous media statements by all stakeholders, followed by a series of legal initiatives. A “unique” intensity of debate and reaction was observed concerning this campaign, involving the Government, the business and its representative associations, as well as international institutions. Informality and the tax system The informality in Albania is identified mainly in the form of unregistered businesses, fiscal evasion, and informal employment. An important aspect of “informal economy” is “criminal economy,” the kind of economy resulting from the illegal production of products and services and activities forbidden by the law. The difference between the two is that in criminal economy, what is forbidden is the activity itself, but in informal economy, the activity itself is legal, but the income is concealed and avoided through illegal means. Tax evasion, as a phenomenon of corruption overall economy of our country, in this extended period of transition, tends not only by moral anti-law to benefit, above all, the adoption of the law, not in the real conditions of development our economic, mentality, transitions and versatile infrastructure fiscal. Albania, with the entry into the market economy felt a duty to adopt Western laws in various sectors of the economy, and specifically, in the fiscal sector. Western Europe, in reality it enforced these laws for a long period, subject to supply and demand. This resulted in the harmonization of the price upon request. Due to the low level of life and fiscal mentality, excises were put under a strict technical control, not produced rampant evasion. They defined levels of tax payable and especially, excise duties to 258 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation achieve the objective of their optimum absorption by the state, to realize not only the budget revenues (out lower). In order to create an anti-evasion atmosphere because populations larger than our country and not only that, but the state tradition most part, these countries rushed to recognize capitalists young and teach the masses, with the tradition of the new tax reduction tax evasion by using tax policy carefully. The tax system represents one of the main pillars that facilitates or impedes the formalization of economy, also making the business climate more attractive or not. Regarding the tax system, businesses have identified the following concerns: tax burden, fragmentation of the tax system, tax administration, and tax procedures. The administration of taxes is mentioned as an issue in different recent reports of international organizations on the business climate of Albania. As it’s stated in the Working Document of SIC, businesses have continuously emphasized and made different comments, generally negative ones, over the capacities of the administration, interpretation of the legislation, and frequent tax inspections. Tax avoidance is one of the most difficult issues with which they are confronted tax authorities, courts and legislation throughout the world, especially in places where it is hard to believe or doubt that the tax system is the main instrument to increase revenues that support government investment (Orow, 2000). Tax avoidance and other forms that deviate from the failure of taxes or reduce them can be called without hesitation more widespread phenomenon in recent centuries. Tax avoidance involves arranging a transaction or a series of transactions, as to obtain a tax advantage, distinguishing the tax planning, which is lawful and tax evasion, as the incidence of serious violations of tax rates. Increasing cases of avoidance must be given a choice and must take immediate and concrete measures. This poses a serious challenge against the effectiveness of the tax laws. In all the multitude of books, articles or reports on this subject are noticed contradictions and different currents of thought on the nature and causes of tax evasion, ways of responding to it or address it, citing the fact that some perpetrators tax avoidance is a problem which requires a response by the legislation. The divergence in the views of different groups of researchers, doctrine or jurisprudence come as a consequence of the legal traditions of the countries that belong or individual rights and obligations in tax law. The main issues and the most vulnerable areas (Palumbo, 2011) which have been and continue to be problematic for Albania, as well as for other countries include: - The lack of a clear and coherent policy to tackle the structural choices provided by tax legislation; - The fact that the tax system exists as an economic reality in the business world and as a real and substantial cost affects the shape of the majority of transactions; - The existence and application of formal principles characterizing many of the transactions and creating differences which are more formal than substantive; - Different taxes for different businesses and the lack of a coherent framework of income tax on investment. ICESoS 2016 - Proceedings Book 259 �International Conference on Economic and Social Studies (ICESoS’16) Ways that are followed to address tax avoidance have been different. Abuse of the law doctrine is used in all areas of law, including the right to tax. The European Court of Justice (De La Feria & Vogenauer, 2011) alluded to more than thirty years connected with the terms “abuse or abusive practices”, but for a long time the meaning of these references has been unclear. Recent years there has been a radical change in attitude, mainly due to the development by the Court of a test for finding of abuse and its application in the field of taxation. The European Court of Justice has formulated a principle of general anti-avoidance according to this doctrine. The principle of prohibition of abuse of rights can be used as an effective basis for addressing tax avoidance, which is a manifestation of abuse of the right of the taxpayer. The principles that govern tax avoidance and evasion are provisions that prohibit the performance of complex structured transactions intentionally by the taxpayer, to divert from paying the tax. Before determining these principles, we need to make the difference of the behaviors of the taxpayer, in order to better understand the link between the illegal conduct and general principles. One of the manners of tax benefit, which is in any case illegal is tax evasion. Tax evasion is the taxpayer’s behavior (Galdieri, 2009), that consists in a direct violation of tax liabilities as a result of existence of some elements related to the birth of the tax. In practice, the taxpayer avoids the payment, wholly or partially, of the tax liability using tools / illegal ways to hide all or part of the taxable base. These behaviors of taxpayers, which are illegal, can come as a result of gross negligence or intent on committing acts or omissions e.g failure of invoices or lack of billing transactions (such as omission of the taxpayer), or may result in active actions as fulfillment of invoices for transactions that are really nonexistent (Caraccioli, 2009). In this way the definition of conduct for tax purposes is very simple: there is tax liability specified in the relevant rules, the person/business is not aimed at changing the legal structure, but illegally, evading this obligation. Usually these situations occur in the case of creating models or transactions, for e.g corporate mergers, divisions, transformations, created as entities without a “valid reason economic”, but to take an advantage of tax. Ratio (reason) is a savings/ evasion of taxes (Terracina, 2012). Tax avoidance and tax planning Tax avoidance should not be confused either with tax evasion (as discussed above), which is in breach of a legal obligation to pay taxes, nor with tax saving. The taxpayer can make the choice among of the various options offered by the legal system to minimize the tax burden. The concept of tax saving is broader and more general than that tax avoidance. Well, we can say that the tax saving is a grouping that includes all sub-groups considered. Methods, tools, techniques of conducting tax avoidance are different from those of the realization of tax planning. 260 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation In fact, there is absolutely nothing wrong in choosing between two or more different transactions that lead to the same result, where the choice of one leads to lower taxes, reduction or elimination of the tax burden. The possibility for taxpayers realizing a savings (Pistone, 1995) allowed by the legal system (the so-called tax-free zone) is characteristic of capitalist economic systems. It is symbolic that such opportunity was given without hesitation the former communist countries after leaving the planned economy system. The benefit of tax savings by planning when there is no exceed of the limits of legality, can be very useful and socially. It was argued that the specific weight of the tax burden is an instrument to stimulate (or discourage) a certain kind of social or economic choices of taxpayers. Meanwhile, the essential features of tax avoidance is avoidance or deviation from the definition of tax rates or the use of legal space for the performance of certain transactions. The tax burden is not mitigated by falsifying the facts of tax relevant (as in the case of tax evasion), or through simulation of certain transactions (as in the case of fraud), but through careful use of tax rates existing gaps (Palumbo, 2011). Often, (Galdieri, 2009) taxpayers willing to avoid taxes, create more complex schemes with the sole purpose to avoid the law. Tax avoidance, in other words, consists in acquiring a particular economic outcome, using the not the normal procedure provided for by the legal system. The main problem lies in the fact that how far can go the taxpayer, choosing less heavy taxation without avoiding the law. Conclusions This paper has explored a number of issues regarding shadow economy and fiscal evasion. Although in different levels and ways, shadow economy is present in every country. Tax evasion is an important and significant phenomenon that affects both developed and developing economies. Size of the informal economy and fiscal evasion associated with it should be clearly understood, in order to forecast the appropriate policies to deal with these issues. Generally countries with low tax rate, tend to have less fiscal evasion. However, Albania is an exception, since it has or had a low tax rate, but fiscal evasion is still a major problem. As the tax rate increase, the probability of evading taxes increases, too. Tax payers lack trust on governmental institution, so they evade taxes or pay only the amount they believe they can be caught. In order to reduce tax evasion, Tax Administration should increase the quality of audits and controls. This can be done through an improvement in tax audit methodologies and existing topics, creating a unique database with the results of inspections made on businesses and individuals. Strengthening of financial control may also help in the reduction in the size of informal economy. Government should develop business management tools for a more precise control or a database including taxpayer’s taxpaying habits. Fiscal evasion can be reduced also by the improvement of enforcement procedures. In order to control tax evasion government should: ICESoS 2016 - Proceedings Book 261 �International Conference on Economic and Social Studies (ICESoS’16) a)Build business- friendly policies abolish repressive practices against business and fiscal arbitrariness, b)Increase cooperation between different state agencies c)Increase the capacity and professionalism of customs and tax administration, in order to improve the control of fiscal evasion in the labor market it is required the education of both employees and employers; d)Strengthening the legal and financial penalties for individuals and companies who manipulate company balance sheets. International experiences suggest that stronger penalties function better when adequate incentives have been created preliminarily for formalization purposes and when informal companies have a more successful transition towards formalization. On the other side there are many question marks on the efficiency of the complaint system, including tax appeal procedures and complaints procedures through the judicial system. The formalization reform must also have a goal to relieve the administrative burden for taxpayers, by promoting compliance with the tax system and the regulatory system as well as a higher standard of the final goods and services in the following aspects: For e.g. Improvement of public institutions’ infrastructure in relation to application of online systems and enhancing the exchange of information in real time. More concretely, the online coordination of State Inspectors and online exchange of information on Inspections as well as coordinated registration of private entities, with institutions such as the NRC, Tax Office, Employment Office and other Inspectorates (e.g. NFA, the Environment Inspectorate, etc.) or the General Directorate of Customs for imports of raw materials (necessary for agro-business). References • Antonini L., 1966, Equivalenza di fattispecie tributarie ed elusione di imposta, Riv. dir. Fin, 167-174. • Amatucci F., 2009, L’abuso del diritto nell’ordinamento tributario nazionale, Clausola generale antielusiva, Corriere giuridico. • Brown Karen B., A comparative look at regulation of corporate tax avoidance, Comparative prespectives on law and justice,12, Springer editor, p.p 1-5, 198199. • De la Feria R. & Vogenauer S., 2011, Prohibition of Abuse of Law, A New General Principle of EU Law?, Studies of the Oxford Institute of European and Comparative Law. • Ivo Caraccioli, 2009, Elusioni o forzature nell’applicazione dell’imposta di registro, Gianni Marongiu; Spunti di metodo in tema di “abuso del diritto”, Paolo Gentili; Neotepa- Periodico ufficiale dell’A.N.T.I. – Associazione Nazionale Tributaristi Italiani, Milano. • Galdieri E., 2009, General anti-avoidance rules & doctrines, EUCOTAX Wintercourse 2009, Barcelona, Università LUISS – “Guido Carli” – Roma, Facoltà di Giurisprudenza, Cattedra di Diritto Tributario, p.p 27, 191. • Garbarino C., 2009, The development of a judicial anti-abuse principle in Italy, British Tax Review, B.T.R. • Lavoisier, 2099, L’abuso di diritto nell’ordinamento tributario italiano. • Losurdo F., 2011, Il divieto dell’abuso del diritto nell’ ordinamento europeo, storia e giurisprudenza, G.Giappicheli Editore, Torino. 262 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Orow Nabil BEc, LLB (Hons), 2000, Department of Business Law and Taxation, Faculty of Business and Economics, Monash University, Victoria, Australia, General anti-avoidance rules, A comparative International analysis, Jordans Editor, Bristol. • Palumbo G., 2011, Elusione fiscale e abuso del diritto, L’aggiramento degli obblighi impositivi tra legittimo risparmio ed evasione fiscale, Cesi Multimendia, Milano, 1-3. • Piantavigna P., 2011, Abuso del diritto fiscale nell’ ordinamento europeo, G.Giappicheli Editore, Torino. • Pistone P., 1995, Abuso del diritto ed elusione fiscale, Padova, p.p 7-8. • Terracina D., 2012, Riflesi penali dell’ evasione fiscale, Tra ricchezza nascosta e regime del dichiarato, Dike Giuridica Editrice, Roma, 183-190. • Jarvis, Chris, 1999, The Rise and fall of the Pyramidic Schemes in Albania. • World Bank, 1994, “Albania and the World Bank. Building the Future”, Washington DC. • World Bank, 1998, ”Albania Beyond the Crisis”, Washington, D.C • INSTAT • Secretariat of the Investment Council: Working Document – Informality, A Common Government-Business Challenge, December 2015. • Annual Report of National Registration Center, 2015, Albania ICESoS 2016 - Proceedings Book 263 �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3337 Title A name given to the resource TAX EVASION IN ALBANIAN ECONOMY AFTER ’90 Author Author Tanto, Viola Abstract A summary of the resource. Abstract: Albanian economy has gone through some difficult processes during different periods. For 45 years, it was a centrally planned economy, because of the dictatorial system. Albanian economy suffered a defeat during its adoption from centralized economy to a liberal economy. The main difficulty was the concentration of the Albanian economy in the cooperative system. In this type of system, all properties were owned by the state, there was no right of privatization. After ‘90 the identity of properties was returned. The banking sector, as one of the most important sectors of economy, was not having an appropriate development. Not only inflation would be the problem of the economy, but also the loss of trust for the deposit of money in the second level banks that could be opened, which would lead to the failure of the financial sector. An important factor which characterize the economy is the informality. This article seeks to explain the factors that influenced informality in economy, in specific, tax evasion. Tax evasion is an illegal action as it constitutes a deed where the person is breaching the provisions found in the Tax Procedures Law and Penal Code. This paper shall discuss such provisions in the Albanian legislation. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/77a6b8061fd3b8e1f9f649f36af34637.pdf ca2938cbcddb6293fed208b1770a35d9 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3298 Title A name given to the resource Jecoss, Volume 6, Issue 1 Author Author Teoman, Duman, Editor Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/3e3ba716c5ce75325ebc136188955901.pdf 48caccc9cb01b0c66a6947539791641c PDF Text Text TURNING THE CRISIS INTO OPPORTUNITY: CASE OF BANVİT Mustafa Tok Suleyman Sah University Turkey 110201049@st.ssu.edu.tr Erhan Atay Suleyman Sah University Turkey eatay@ssu.edu.tr Abstract: Uncertainty is rapidly increasing in fast-changing world. With each moment we are faced with various crisis and uncertainties. Today, crises have become an important part of our lives. It is same for the organizations. That is why preventing the crisis before it starts, exiting from the crisis with minimum damage and effectively managing crisis has become a main object of the organizations. In this research firstly; crisis, its reasons and effects are tried to be explained and identified. After that crisis management and its processes are examined and tried to be identified. In second part of this study we are going to examine Banvit Bandırma Vitaminli Yem Sanayi Ticaret A.Ş. Şirket. We will try to examine and understand the organization’s reaction to crisis (avian influenza), how they handle it and how a crisis can be turn into an opportunity. 1. Introduction Crisis is the most important factor that affects the production and marketing strategies of organizations. Production and demand drops significantly during the crisis time. In global world; political instability, wars, technological innovations, socio-cultural and political changes effect the organizations anywhere in the world. Although some researchers say that the biggest features of the crisis are emerging suddenly and occur an unexpected time, some crisis can be recognized, but ıf organizations cannot foresee upcoming events and improvements or cannot manage the situation, they will face crisis a lot. In order the prevent crisis, organizations need to develop strong crisis management procedures and make preparation for possible crisis. 2. Scope and Methods of the Study This case study was made on Banvit (Bandırma Vitaminli Yem Sanayi Ticaret A.Ş. Şirket). Data were obtained for 2005. Secondary data is used. Main information source is the data from the company and it is also used newspapers’ articles and corporate’s website. ICESoS 2016 - Proceedings Book 203 �International Conference on Economic and Social Studies (ICESoS’16) 3. Purpose of the Study Purpose of the study is to understand how crisis begins, develop and what should organizations do in order to stop and turn the crisis into an opportunity or avoid crisis with minimum damage. Banvit has been selected as example organization in order to understand the process of crisis and its management. Banvit is a feed and poultry producer that founded in Bandırma, western Turkey. They started as a feed producer in 1968 and moved into the production of broiler chickens in 1985. Today Banvit is the largest single broiler producer in Turkey. 4. LITERATURE REVIEW 4.1. Crisis Today, there are lots of definitions for crisis. The word crisis means ‘extraordinary and adverse event’, ‘difficult situation that undesirable and hard to avoid, ‘complex phase of a work or an event’ ‘suddenly emerged deterioration and dangerous moment’(Tutar, 2011: 13). In Oxford dictionary, definition of crisis is ‘‘time of intense difficult or danger’’. (http:// www.oxforddictionaries.com/). In Turkish Language Society defines crisis as ‘it is hard time, depression, of society or organization’s life in a country or between the countries’(http://tdk.gov.tr/). Organizational sense, crisis threatens the existence and purpose of the organization(Sezgin, 181). In this respect, there were made some definition about what crisis means for organizations. According to Tağraf, ‘Crisis is unexpected and unforeseen situation which threatens the current value and purposes of the organization’(Tağraf & Arslan, 2003: 150). Güler defines crisis as; ‘Crisis is an unexpected situation that can occur at anytime and it limits the organization’s way of doing business’(Güler & Yılmaz, 2009: 88). Coombs’s definition is ‘‘Crisis is the perception of an unpredictable event that threatens important expectancies of stockholders related to health, safety, environmental and economic issues and can seriously impact an organization’s performance and generate negative outcomes’’(Coombs, 2014: 3). In systematic approach ‘‘Crisis is seen as critical change in important variables that endanger or destroy either part of or the entire system’’(Glasser, 2006: 11), and Devlin describes it as, ‘‘Crisis is unstable time for an organization, with a distinct possibility for an undesirable outcome’’(Devlin, 2006: 5). Another definition is, ‘Crisis is the situation of tension which is not expected and predicted, and which threatens the prevention and adoption mechanisms of the organization’(Baran, 2001: 26). So, by looking at these definitions we can say that, crisis is a crucial situation that has to be handled quickly and in proper way before it turns into disaster or catastrophe for the organization. 4.2. Causes of Crisis Many factors may bring out crisis in the organizations, but we can address them in two topics, one is internal factors, second one is external factors. 204 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation 4.2.1. External Factors The most important reason why organization is in the crisis is external environmental factors. External factors are the uncontrollable changes that occur outside of the organizations(Aymankuy, 2001: 107). ‘‘The external environment includes a wide variety of needs and influences that can affect the organization, but which the organization cannot directly control’’(McNamara, 2006: 143). These uncountable factors are; natural environmental factors such as earthquakes, fire, and flood. Socio-cultural factors like change of values in society, social turmoil and reduction of customer’s interest. Political factors, technological innovations and strong competition. 4.2.2. Internal Factors Internal factors are related to external factors. These problems occurs when organizations cannot adapt and response to the changing external environment(Erten, 2011: 8). Incompetent Top Managers; Incapable senior executives have weak estimation and intuition about organization’s future. Because of inability to understand differences of new problems and tendency to solve them in old way, denial of crisis(Baran, 2001: 29) and unqualified managers led organization to crisis(Yavaş, 2014: 16). Data Collection and Lack of Experience; Crisis situation is not always occur surprisingly, sometimes unqualified managers cannot see the early warning signals of upcoming threat. This situation may become a crisis in the future and it prevents the organization from taking precautions(Yavaş, 2014: 16). To prevent this situation, organization should gather information and evaluate them. These information needs to be; accurate, received in exact time, full (all data that the manager needs), short (for making fast decision) and relevant (information should reach the required place or manager(Akçe, 2005: 22). Organization’s Experience; Organizations can benefit from their past experiences in order to solve the crisis they are in(Yavaş,2014: 17), but generally, old experience is not suitable for new crisis and it requires new solutions(Baran, 2001: 29), so organizations should always consider new solutions for every possible threat that may occur in the future. Management’s Values, Benefits and Attitudes; Values and assumptions of the managers may in conflict with changing environment. This conflict may led organization to crisis(Yavaş, 2014: 17). The life Stage of Organization; Organization may be in any phase in its life (birth, growth, maturity, regress, collapse). In first three phase, organization face only predictable problems and in last two stage, mostly faces with fear of loss and it usually threatens the organization’s life span(Baran, 2001: 29). According to Greiner; organizations face leadership crisis in birth, devolution crisis at growth, bureaucracy crisis at maturity and need for resurgence at regress. If organization cannot overcome the regress it will collapse(Uzun, 2001: 38 in Şen, 2011: 20). ICESoS 2016 - Proceedings Book 205 �International Conference on Economic and Social Studies (ICESoS’16) Life Cycle of Business Source:http://thepresidentscouncil.org/are-you-sure-of-which-business-life-cyclestage-youre-in/ 4.3. Types of Crisis Origin of all type of crisis comes from technical, economic, social, legal, administrative, anthropogenic and communicative problems. Environmental and organizational factors are categorized as(Baran, 2001: 28); -Industrial Accidents -Financial Problems -Hand over -Recalled products -Natural Disasters -Service Disruptions -Environmental Problems -Shareholder Problems -Strike -Failure of Information System -Bankruptcy 4.4. Formation Process of Crisis Generally, crisis is defined as unexpected situation and it may occur anytime without giving a sign but it actually has a process. It is important the identification these processes to managing crisis effectively. 4.4.1. Inability to Recognize Interior and Exterior Signs (Blindness) At this stage, there are signals about the situation that threatens the organization’s aim and existence. Because of insufficient information flow in the organization(Demirtaş, 2000:361) managers cannot get enough information to take precaution. Taking the good results for granted, managers do not care the possible incoming crisis during precrisis period(Tağraf & Aslan, 2003: 151). However, when the severity of crisis increases, managerial and organizational problems become more obvious, and it may cause panic in management. 206 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation 4.4.2. Failing to Take Action and Unresponsiveness Phase In this phase, managers think that, danger or opportunity that emerged is temporary or cost of changing the current practice will be high(Baran, 2001: 31). Because of these thought, managers expect crisis to recover by itself or it is believed that the current situation can be resolved over time with temporary measures and standards(Tağraf & Arslan, 2003: 151). 4.4.3. Wrong Decisions and Activities In this stage, management recognizes that, there is a crisis in the organization. At this rate some problems occur in the organization such as lack of capital, decline in the market share and profitability, reduction of qualified staff and increasing centralization etc. this make uncertainty for the future and it prevents common views in the management(Akçe, 2005: 37). 4.4.4. Crisis Stage In this phase, if an organization fails to pass through first three stages and cannot adopt the changes, then crisis revealed and anger and bustle occurs in the management (Baran, 2001: 32). At crisis stage, organization may have not passed all of these processes (4.1, 4.2, and 4.3). At this stage, management should change organization’s purposes, strategies, structure, functions and personnel. However, if organization pass all of these process (4.1, 4.2, 4.3) then management should be changed(Sucu, 2000: 65). 4.4.5. Solution or Bankruptcy of the Organization Exit from the crisis, but if intervention is insufficient then it will decrease the chance of survival of the organization(Sucu, 2000: 66). 4.5. Result of the Crisis There will be two outcomes after the crisis. First one is negative results, second one is positive results. 4.5.1. Negative Effects of the Crisis Tendency of Centralization in Decisions; In crisis time, quick decision must be made by the managers. In order to make quick decision, power of authority must gather in the center(Şen, 2011: 31). The reason of gathering authority in the center is that crisis is corrupting the normal decision-making process in the lower management and top management wants to be informed all of the process(Özdevecioğlu, 2002: 99). That is why organizations are centralized in the time of crisis. Organizational Communication Corruption; In crisis situation, because of lack of time, and information, there will be tension in the whole organization from lower level to top management. The reason is that this information from outside of the organization is insufficient and because of insufficient information, there will be deficiency and disconnections within the organization. In time of crisis, information from outside of the organization might be inadequate or none. In that case, there might be a problem among decision makers, personnel and information processing in the ICESoS 2016 - Proceedings Book 207 �International Conference on Economic and Social Studies (ICESoS’16) organization(Özdevecioğlu, 2002: 99). Deterioration of the Quality of Decisions; Making quick decisions only in head office impair the quality of decision. Because for quick responding, manager will decide by asking few managers or bosses. This cause poor communication and lack of information. So in this situation, manager cannot make good decision(Özdevecioğlu, 2002: 99). Psychological And Physiological Depression; Even crisis is abolished; still some members of the organization may not escape from effect of the crisis. Because even minor problems are perceived as a harbinger of the crisis during that time and it cause a feeling of shyness about making new ideas(Özdevecioğlu, 2002: 101). Increase in Self-Defense; In crisis time, all energy and attention focused on solution to overcome the crisis(Şen, 35 :2011), but after overcoming crisis, worker will begin to fear for the future because working at an organization in crisis is risky(Özdevecioğlu, 2002: 101). The Decline of Confidence between Employees and Top Management; Due to the centralization, number of empowered personnel will be decreased, so participation of employees will be reduced. Because of these reasons, there will be strong resistance to change among the employees (Şen, 35 :2011). 4.5.2. Positive Effects of the Crisis Emerging Of the Weaknesses of The Organization; Organizations usually do not revision their daily activities when everything is alright. They cannot see the problems or ignore the problems they discovered and they get used to it(Akçe, 2005: 28). However in the time of crisis, these problems attract the attentions. That is why we can say that, it is the positive effect of the crisis(Şen, 2011: 36). Development of Effective Strategies; Crisis must be recognized as soon as possible in order to minimize its effects. But to do so, it is not enough to use conventional methods(Akçe, 2005: 29). They need to develop new strategies. Otherwise, organizations cannot keep up with changes and cannot compete with competitors(Şen, 2005: 36). Establishing Teamwork and Discovery Of New Talents; If crisis handled with care, teams are created and some talented personnel might be found after the crisis, because in the time of crisis, management will create teams and some extra work will be given to lower and middle class managers by the top management. This extra works will improve the managers’ talents(Akçe, 2005: 28-29). Developing Effective Strategies; By establishing early warning system, organization can recognize exterior threats and opportunities. Organization can develop new strategies by looking at these threats and opportunities(Şen, 2005: 36). 4.6. Crisis Management The meaning of the crisis management in the Turkish Language Society (TDK) is, ‘it is a way of management in a troubled time (because of faulty production, raw material shortage, low quality, marketing, etc.) by the managers.’(http://tdk.gov.tr/). Every crisis requires immediate response. As in the definition of crisis, there are lots of definitions about crisis management. According to Tutar’s definition of crisis management, 208 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation ‘Instead of detecting problems early or taking steps for limiting the results of these problems, it is a reaction to problems after it occurs’(Tutar, 2011: 69). Akdağ defines crisis management as, ‘Crisis management is a public relation studies which is done in order to avoid damage to communicate with target audience and to prevent injuries to organization’s image’(Akdağ, 2005: 3). In a different definition, ‘‘Crisis management is a changing tasks and processes of the organization during the crisis time’’(Glasser, 2006: 22). Coombs describe it as, ‘‘Crisis management represents set of factors designed to combat crisis and to lessen the actual damage inflicted.’’(Coombs, 2014: 5). According to Devlin, ‘‘Crisis management was designed as special measures taken to solve problems caused by a crisis to confine or minimize any damage to the organization’s reputation or image.’’(Devlin, 2006: 1). 4.6.1. Pre-Crisis Management Pre-Crisis phase is one of the periods of crisis. For the organizations, primarily important thing is not to overcome the crisis(Ofluoğlu, 2001: 3). Pre-crisis management should make accurate forecast, necessary strategies and preparation before the crisis moment by noticing the early warnings and signs of incoming crisis(Demir, 2011: 31). Basic studies are required by the pre-crisis management: - Creating Strategies Establishing an early-warning system Making Crisis Management plan Establishing Crisis Management team 4.6.2. Crisis Moment Management Approaches for management during crisis and post-crisis period are very different from the pre-crisis stage(Babüroğlu, 1999: 6). During the crisis time, trying to solve the problem as if the organization is in under normal conditions will fail. (Ofluoğlu, 2001: 15). During this period, the decision taken should be more consistent and also should serve post-crisis period(Demir, 2011: 31). Crisis management during the crisis consist three phases(Demir, 2011: 32); - Crisis should be identified, emergency detection should be done. Organization should determine what kind of measures to be taken and related decision should be taken. The decision taken must be implemented, the process of implementation should be monitored and the results should be evaluated. 4.6.3. Post-Crisis Management The end of the crisis period is the period after the crisis, but the effects continue. The purpose of post-crisis management is to eliminate the behavior of feeling of insecurity, fear, fatigue and excessive reaction to even small problems(Erten, 2011: 32). Management prepares for the recurrence of the crisis. Organization tries to prevent crisis as much as possible but if occurs again, management determines urgent applications(Ofluoğlu, 2001: 24). ICESoS 2016 - Proceedings Book 209 �International Conference on Economic and Social Studies (ICESoS’16) 4.7. Approaches There are 2 basic approaches which is the subject of crisis management (Dinçer, Ön.Ver. s.328 in Aymantkuy, 2001: 108); Avoiding Crisis; the main purpose here is to prevent organization go into crisis. In order to prevent and effectively manage the crisis, organizations should create mechanisms that collect and evaluate the crisis and make plans by evaluating the result of crisis signals(Erten, 2011: 23-24). Crisis Solving Approach; in case of facing possible crisis, it is a process of recognizing and evaluating early signals of crisis and taking necessary precautions and practice them at the right time ın order to overcome the crisis with minimal losses(Baran, 2001: 32). We saw the simple three-stage approach above (6.1, 6.2, 6.3), but in order to better understand stages of crisis it is tried to be explained Pearson and Mitroff’s five stage framework of crisis management at below(Pearson and Mitroff(1993) in Crandall & Spillan, 2009: 9-10); Source:http://www.slideshare.net/AnishaDahiya/understanding-crisismanagement-30380919 Signal Detection; sometimes crisis warns the organization before it occurs. By capturing these signals, organization can make preparation for the impending crisis. Preparation/Prevention; in this stage crisis management team make plan by looking the data obtained from phase of the crisis signal and attack the crisis that may occur. The purpose is preventing as many crises as possible and manage crisis that appear. Containment/Damage Limitation; the goal is to mitigate the effect of the crisis and kept damage minimum to organization and stakeholder. Recovery; the intention is to continue the activities of organization as normal as possible. Short-term recovery aims to get operations back to acceptable level. In long-term, it is expected that operational activities will be restored to their pre-crisis level or better. Learning; in this stage, organizations should not seek scapegoat or blame another party for the crisis. Instead of this, organizations should take lesson from the crisis and use this information to improve current operational problems and preventing future ones. 210 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation “An open system is a system that regularly exchanges feedback with its external environment. Open systems are systems, of course, so inputs, processes, outputs, goals, assessment and evaluation, and learning are all important”(McNamara, 2006: 143). Organizations are constantly interacting with the environment. This interaction is very important for the organizations. In the absence of inputs, there will be no output(Yalçınkaya, 2002: 105) so it means organizations cannot survive if they cannot sell outputs. Avian Influenza was a big environmental problem for white meat producers. One of the white meat producers Banvit is an open system organization and it was affected from that problematic environment. 5. Banvit Case Study Avian İnfluenza (bird flu) began to be seen in Far-East countries in 2003 and it spread to other countries by migratory birds1. This disease was seen in lots of countries including Europe and it affects the economies of these countries. Avian influenza emerged in October 5, 2005 for the first time in Turkey, it transmitted to 12 people and killed 4 of them and also it downsized Turkish poultry sector2.Banvit was one of the companies that were affected from this chaotic environment. Their sales came to a standstill and their stock prices declined. 1:http://www.mfa.gov.tr/avian-influenza-_kus-gribi_-hastaliginin-turk-ekonomisiuzerindeki-etkileri-.tr.mfa 2:http://www.kusgribi.gov.tr/TR/Genel/BelgeGoster. aspx?F6E10F8892433CFFAAF6AA849816B2EF3F93D97214554F97 5.1. Pre-crisis Period There had been many signals to be noticed before the crisis of avian influenza broke out. First of all, the occurrence of a disease in Far-East and the developments related to the risk that the disease might be spread by migratory birds were amongst these signals. This case put Turkey in potentially risky position. In this step, their priority was preventing crisis or managing the crisis with minimum damage by evaluating the early signals of crisis. With this respect, the works of Banvit in Pre-Crisis period were: Company Meetings Executive committee, in which also the directors of corporate development and communications are included, met in stated meeting every Friday. There had been exchange of information, situation assessment and risk analyses in these meetings. Developments related to the avian influenza in Far-East countries have been followed and the studies of World Health Organization have been examined. Informing the employees Live Production Director, who manages the core of production (breeding farms), and veterinary surgeon and breeders came together at educational meetings. People at the meeting were informed about avian influenza, bio-security measures and disinfection system in case the virus spread to poultry. There has been information sharing about the crisis that the disease may bear, and also in monthly personnel meetings where administrative departments and production departments have ICESoS 2016 - Proceedings Book 211 �International Conference on Economic and Social Studies (ICESoS’16) participated; the CEO, Ömer Görener, shared information with employees about the disease. Avian Influenza Seminar and Demonstration Works In case that avian influenza occurs in Turkey, Avian Influenza emergency action plan was addressed through seminar and demonstration in Balıkesir 5-9th September. This study was undertaken by the officials from Ministry of Agriculture and Rural Affairs, Ministry of Health, Banvit, other sectoral firms, local administrations, and TAIEX (European Commission Technical Assistance and Information Exchange). In this seminar, there was presentation on “Avian Influenza Emergency Action Plan”. In virtual demonstration, an emergency action practice was made against a possible avian influenza incident close by Manyas Bird Paradise. The Creation of a Crisis Management Team Crisis management team was formed to manage the crisis that may occur in the precrisis period. This team determined the crisis communication and management policies. After that, spokesman was selected in order to provide information to the media and target audience. CEO of the company was decided to be crisis spokesman. Management team - CEO Institutional development and communication director Business director Communication agency representative 5.2. Crisis Period News and Interview Studies The first week of the outbreak of the crisis, CEO’s interview has been published in all national newspapers. Company’s CEO has attended 4 times live broadcast in TRT HABER and other programs and in these interviews, images that related to safety and hygiene conditions of production facilities were shown very often. Newspapers and Advertising Activities In the first campaign, 6 different printed advertising was published on newspapers. Advertisements were published 5 days after the outbreak of the crisis. These advertisements were published 40 times in 22 national newspapers and 2 magazines in 13 October- 22 November. We can see the advertisement and given message below: Ads Messages Her Kuşun Eti Yenmez Questions was answered (‘What is bird flu?’, ‘How does it infect?’, ‘Does it pass from human to human?’, ‘What are the symptoms?’. ‘What are the ways of protection and ’?treatment 212 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Kuşkusuz It has been given ‘no doubt the Banvit’ message to the consumer who already knows what bird flu is Uygunsuz ’Message was given ‘use packaged products Uyanık Olun Real danger comes from poultry that grown in the open. Do not buy unpacked prod.ucts Emin Olun It is continuation ads of ‘Uyanık Olun’. Message was ‘Choose brands that have quality ’assurance practices Ürün Takip .It was given info how to reach information about products through website Advertorial Campaigns First TV advertorial campaign was broadcasted in all national channels in October 19-31, 2005. In this period, 2 short videos was shown, first one was 70 seconds. It was explained that the virus came to our country through migratory birds in the first 20 seconds of first video. Through the last 50 seconds, Banvit’s hygiene and quality assurance standards were introduced. Second video was 60 seconds. Through the second video; technology, production standards, bio-security practices, and hygiene procedures was shown. Both videos has been published 200 times in 14 channels in the 12-day period. Second advertorial campaign was published in January 26- February 5, 2006. In this period, second video in the first campaign was changed visually and textually and published as a third video and it has been published 221 times in 15 national channels in 15-days period. In March 29-April 4, 2006, fourth advertorial video was published and its main theme was ‘izlenebilirlik’ (traceability). That movie was shown 68 times in 4 channels in 6-days period. Web Communication Banvit began to publish information about avian influenza, the dangers, way of protection and treatment in Banvit’s website.(www.banvit.com.). Banvit sent mails to 575.000 people with attached information. We can see the studies below: Web Communication By making question-response part in the website, questions were answered as quickly as possible .izlenebilirlik’ (traceability) work started by the company transferred to the web‘ Consumer can watch their product on the website by entering the barcode number of their products By informing 19 e-groups (internet groups) , accurate information and answers were provided ICESoS 2016 - Proceedings Book 213 �International Conference on Economic and Social Studies (ICESoS’16) Outdoor and Alternative Environment Studies Outdoor and Alternative Environment Studies Advertising -Metro This advertisings was displayed in the billboard at the Istanbul subway Movies-Metro First advertorial movie was shown in Istanbul, third movie was shown in Ankara metro and stations Movies-Cinema .Traceability’ movie was shown in Izmir, Ankara and Istanbul cinemas‘ Banners For ‘Traceability’ (tracking products) campaign, banners were given to websites. (mynet.com, msn messenger, bebek.com, yemeksepeti.com, ailem. )com, milliyet.com STBP Studies CEO of Banvit Ömer Görener, serving as executive board member in Sağlıklı Tavuk Bilgi Platformu (STBP), he played an active role in all communication activities carried out by STBP. Various advertising campaigns were made in collaboration with STBP such as; giving accurate information about avian influenza, the ways of protection, and importance of consuming branded and packaged products. Brochures Works 774.000 brochures were printed to be given to consumers and customers. Through these brochures, cases of avian influenza and issues that are wondered by consumers, clarifications of ministry of agriculture informed. Also, it was reminded that branded and packed products should be consumed and the message ‘Banvit’s products can be consumed without doubt’ was given. Internal Communication The staff meeting which CEO included were continued during crisis. Recent developments about crisis and its effects on private sector and Banvit, were discussed in these meetings. In addition, CEO and Corporate Development and Communications Director sent mail to staff for informing the employees about avian influenza. In order to keep staff’s morale high, some support messages from educational institutions, partner companies and consumers were shared with employees. Proficiency test which is to detect administrative staff’s knowledge about production process was done. Personnel that could not show adequate performance, sent to orientation program to update their knowledges. 5.3. Post-Crisis Period Project ‘İyiliğiniz İçin, Sağlığınız İçin’ It was seen that, society who do not have sufficient information about avian influenza, caused emergence of speculation and panic. The probability of facing a similar event such as avian influenza, Banvit launched social responsibility project to be implemented in the Aegean and Marmara region. This project was performed in 68 districts and 88 villages from İzmir, Bursa, Balıkesir and Çanakkale. This project was performed by 27 veterinaries and professionals educators in May, June, July, 2006. 214 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Village Education Educations were centered on raising awareness about the disease and it was given to villagers living in rural areas. These educations basically explain; - What avian influenza is and its dangers How this disease spread and what are the symptoms How to approach the sick animals Measures to be taken against the disease. Public Education Centers (HEM) Education Purpose of this education is to inform housewives about avian influenza, food safety and hygiene rules to be followed at home. Primary School Education These events showed that, children especially living in rural region are more vulnerable to disease. With this respect, some information was given to children to understand; - What is microbe and what does it like? When do they and why and how should they wash their hands? Which animals they can play At the end of the education, letters were given to the children to pass on to their parents. These letters included same information and it was also explained why poultry should be fed in the coops. With this practice, Banvit aimed that to strengthen the basic awareness about ways of protection from avian influenza. Avian Influenza Fast Testing Procedure Although the virus is seen in free-roaming poultry, there are risks spread to coops of the companies. To eliminate this risk, Banvit made test that detect virus. It allows the virus to be controlled and this early diagnosis resetting the risks. 6. Conclusions and Recommendations When crisis arise, it is mentioned as a condition which entails a losses and occur suddenly in organizations. However, crises usually send signals before it happens but generally, managers pay no attentions.(Tağraf&Arslan, 2003: 158) That is why organizations face crises a lot. In pre-crisis period, Banvit was able to notice the threat and soon they made preparation for incoming crisis. We can say that they could recognize the early signals of upcoming crisis and make preparation for it. However, although it was fore seen upcoming crisis, Banvit and other organizations could not prevent the crisis and poultry sector were damaged in Turkey. ICESoS 2016 - Proceedings Book 215 �International Conference on Economic and Social Studies (ICESoS’16) Source: http://www.milliyet.com.tr/2006/03/31/ekonomi/resim/axeko02.gif As we can see there is a decrease in sales of white meat about 60-70% in October 2006 because of detection of avian influenza and deaths due to illness. In crisis period, cooperate with STBP, newspaper and TV commercial studies that provide detailed information about avian influenza made packed chicken sales have become better than pre-crisis period. Consumer awareness was increased by right information that provided by the organization. At the end of the crisis, Banvit started to recover its wound and turn to crisis into opportunity. In this stage, Banvit limited the damage of the crisis, recover its wounds and they could turn the crisis into an opportunity. They could achieve the high sales rate after the crisis by directing people to buy packed products. 216 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation According to household consumption panel survey that made by Banvit, packed white meat consumption increased %168 in general, packed white meat consumption of Banvit increased %179. Managerial İmplication In summary, there is no exact method to completely prevent the crisis in advance. Organizations that having continues interaction with their environment are very vulnerable about change in their environment, but organization can see the incoming crisis by watching their environment by creating right early warning system. So, ınstead of dealing crisis after it happens, organizations should try to eliminate or reduce effect of crisis before it occurs. To do so, organizations should restructure their approach to crisis and make plans and studies for pre-crisis to post-crisis period. However if organizations go into crisis, someone should take command but he/she should not take all authority because if he/she gather all authority on himself/herself, he/she will prevent new ideas and opinion. 7. Attachments All documents below are taken from Banvit Bandırma Vitaminli Yem Sanayi Ticaret A.Ş. Şirket. Newspaper and Interview Samples Media Plan Summary Advert Her Kuşun Eti Yenmez Date October 2005 13-16 Repetition Publication 20 Akşam, Hürriyet, Sabah, Dünya, Posta, Referans, Takvim, Yenişafak, Milliyet, Tercuman, Türkiye, Vatan, Zaman, Cumhuriyet, D.B., Gözcü, Güneş, Radikal, Star, Yeni Asır ICESoS 2016 - Proceedings Book 217 �International Conference on Economic and Social Studies (ICESoS’16) Uygunsuz October 2005 29-31 10 Vatan, Akşam, Milliyet, Posta, Zaman, Radikal, Hürriyet, Sabah, Sonar, Cumhuriyet 10 Fanatik Basket Newspaper, Lezzet Güneşi, Çocuğum ve Ben Magazines Repetition Publications 24 Hürriyet, Sabah, Milliyet, Posta, Radikal, Akşam, Takvim, Yeni Asır, Vatan, Zaman, Türkiye, Gözlem 6 Hürriyet, Sabah, Posta, Takvim, Yeni Asır, Gözlem November 2005 18-22 Kuşkusuz November-December 2005 Advert Date Emin olun ve uyanık olun January 2006 22-29 January 2006 29-31 Emin Olun March 2006 15-26 İzlenebilirlik Advertorial Campaign Date )Time (second Channels 1. and 2. mo�vie October 2005 19-31 ’and 60 ’70 Show TV, Kanal D, Atv, Kanal 7, Star, STV, TGRT, NTV, Cnbc-e, CnnTürk, SkyTürk, TV8, Ege TV, Olay TV, Sky TV, Haber Türk January 2005 22-27 3. movie 4. movie ’60 January- 5 February 27 2005 ’55 March 2006 29-31 ’20 April 2006 1-4 ’20 Advertisement Samples 218 ICESoS 2016 - Proceedings Book Atv, Cnbc-e, CnnTürk, Ege TV, HaberTürk, Kanal 7, Kanal D, NTV, Olay TV, Show TV, SkyTürk, Star, STV, TGRT, TV8 Atv, Kanal D, Show TV, Star �Regional Economic Development: Entrepreneurship and Innovation Website and Mailing Samples Outdoor and Alternative Environment Samples ICESoS 2016 - Proceedings Book 219 �International Conference on Economic and Social Studies (ICESoS’16) STBP Advertisement Samples Brochure Samples 220 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Banners of Social Projects and News Samples References • Akçe, K. (2005). Kriz Sürecindeki İşletmelerde Örgütsel Küçülme (Downsizing) Uygulamaları ve Kayseri İlinde bir Araştırma • Akdağ, M. (2005). Halkla ilişkiler ve kriz yönetimi. Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 14, 1-21. • Aymankuy, Ş. Y. (2001). Turizm Sektöründe Kriz Yönetimi. Balıkesir Üniversitesi Sosyal Bilimler Dergisi, 6. • BABÜROĞLU, N. (1999). Kriz Süreci Yönetiminde Yeni Bir Paradigmaya Doğru. TÜSDAD Görüş Dergisi. • Baran, H. (2001). İşletmelerde kriz yönetimi. A& G Bülten) Araştırma ve Meslekleri Geliştirme Müdürlüğü. • Coombs, W. T. (2014). Ongoing crisis communication: Planning, managing, and responding. Sage Publications. • Crandall, W., & Spillan, J. E. (2009). Crisis management in the new strategy landscape. Sage. • Demir, N.(2011) Türk Kamu Yönetiminde Kriz Yönetimi. • Demirtaş, A. G. H., & Üniversitesi, E. F. İ. (2000). Kriz yönetimi. Kuram ve Uygulamada Eğitim Yönetimi, 23(23), 353-373. • Devlin, E. S. (2006). Crisis management planning and execution. CRC Press. • Erten, Ş. (2011). Türk kamu yönetiminde kriz yönetimi anlayışı= The concept of crisis management in Turkish public administration (Doctoral dissertation, Sosyal Bilimleri Enstitüsü). • Erten, Ş. (2011). Türk kamu yönetiminde kriz yönetimi anlayışı= The concept of crisis management in Turkish public administration (Doctoral dissertation, Sosyal Bilimleri Enstitüsü). • Glaesser, D. (2006). Crisis management in the tourism industry. Routledge. • GÜLER, E., & YILMAZ, B. EKONOMİK KRİZ, KOBİ’LERE YANSIMASI VE BİR ÇIKIŞ YOLU OLARAK BARTER. • McNamara C. (2006). Field Guide to Consulting and Organizational Development: A Collaborative and Systems Approach to Performance, Change and Learning 143-145 • OFLUOĞLU, G. (2001) İşletme ve Kriz Yönetimi. • ÖZDEVECİOĞLU, M. (2002). KRİZİN İŞLETMELERİN YÖNETSEL VE ÖRGÜTSEL YAPISI ÜZERİNDEKİ OLUMSUZ ETKİLERİ VE KAYSERİ SANAYİ İŞLETMELERİNDE YAPILAN BİR ARAŞTIRMA. • SEZGİN, F. KRİZ YÖNETİMİ.181-195 ICESoS 2016 - Proceedings Book 221 �International Conference on Economic and Social Studies (ICESoS’16) • SUCU, Y., & KİTAP, G. (2000). Kriz Yönetimi. Elit Yayıncılık, Ankara. • Şen, F. (2011). Küçük ve Orta Ölçekli İşletmelerde Kriz Yönetimi ve Bir Örnek Olay Analizi • Tağraf, H., & Arslan, N. T. (2003). KRİZ OLUŞUM SÜRECİ VE KRİZ YÖNETİMİNDE PROAKTİF YAKLAŞIM. • TUTAR, H. (2011). KRİZ VE STRES TÖNETİMİ. • YALÇINKAYA, M. (2002). Açık sistem teorisi ve okula uygulanması. Gazi Eğitim Fakültesi Dergisi, 22(2). • Yavaş, E. (2014). İşletmelerin Kriz Döneminde Uyguladıkları İnsan Kaynakları Politikalarının, İşletmelerin Kriz Alabilirliğine Olan Etkileri. 222 ICESoS 2016 - Proceedings Book � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3331 Title A name given to the resource TURNING THE CRISIS INTO OPPORTUNITY: CASE OF BANVİT Author Author Tok, Mustafa Atay, Erhan Abstract A summary of the resource. Abstract: Uncertainty is rapidly increasing in fast-changing world. With each moment we are faced with various crisis and uncertainties. Today, crises have become an important part of our lives. It is same for the organizations. That is why preventing the crisis before it starts, exiting from the crisis with minimum damage and effectively managing crisis has become a main object of the organizations. In this research firstly; crisis, its reasons and effects are tried to be explained and identified. After that crisis management and its processes are examined and tried to be identified. In second part of this study we are going to examine Banvit Bandýrma Vitaminli Yem Sanayi Ticaret A.Ţ. Ţirket. We will try to examine and understand the organization’s reaction to crisis (avian influenza), how they handle it and how a crisis can be turn into an opportunity. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General)