Appunti Fundamentals of business administration

H

With goods:

1)Intrinsic Goods:

Definition: Intrinsic goods are things or qualities that are valued for their

inherent worth, independent of any external factors. They are considered

valuable in and of themselves.

Example: Happiness, love, knowledge, and personal integrity are often seen as

intrinsic goods because they are valued for their inherent qualities.

2)Extrinsic Goods:

Definition: Extrinsic goods, in contrast, are things that are valued for the

benefits or outcomes they bring, rather than for their intrinsic qualities. These

goods have value because they serve as means to achieve other ends or

goods.

Example: Money, fame, power, and education can be considered extrinsic

goods because people often pursue them for the benefits they provide, such as

security, influence, or opportunities.

3)Transcendental Goods:

Definition: Transcendental goods refer to values or qualities that are considered

to transcend or go beyond the usual categories of intrinsic and extrinsic goods.

They are often associated with higher or ultimate values and are deeply

meaningful to individuals

Example: Concepts like truth, beauty, justice, and the divine are often seen as

transcendental goods. These values are considered to hold a special, almost

spiritual significance and are pursued for their inherent worth and connection

to deeper meaning .

Code of ethics(a lot of ethical dilemma)

In business, a code of ethics is a set of principles that promote honesty,

fairness, transparency, and responsibility in all activities. It guides behavior,

upholds legal standards, and fosters trust among stakeholder.

Model 231: is a set of legal provisions in Italy that addresses corporate liability

for certain offenses committed by individuals within an organization. It

establishes a framework for holding companies and their executives

accountable for crimes such as fraud, corruption, money laundering, and

environmental violations, committed in the company's interest. Under Model

231, companies are required to adopt and implement compliance programs to

prevent such offenses. These programs include measures to promote ethical

conduct, ensure transparency, and establish reporting mechanisms for

potential violations

What is an organization ?:

Anorganization is an entity that in carrying out an economic activity produces

goods and services that users need and want Organizations create and satisfy

human needs. All organizations have labour and capital that are used to carry

out the economic activity. All organizations have stakeholders . In today's

economic system the economic activity is played by different entities:

individuals, group of persons, organized entities. These entities are named

organizations. Organizations are usually distinct in profit and non-profit: "The

organization is an entity that in carrying out an economic activity produces

useful goods and services that users need and want", All organizations have

stakeholders. A stakeholder is an individual who possesses a "stake", that is an

interest in the organization

What is an Azienda? Cannot translate the word aziend a

Economia Aziendale (EA) is an Italian doctrine founded in 1927 by Gino Zappa.

The is a unitary science that studies the "life condition and the existence

manifestations of the Azienda", which is investigated as an economic

coordination of elements implying dynamic processes

-Zappa (1956) states that the azienda is an 'economic institution intended to

last for an indefinite length of time and that, with the aim of meeting human

needs, manages the production, procurement or consumption of resources in

continuous coordination' (p. 37, our translation).

-Onida observes that the company does not follow solely economic purposes,

and its life has not only economic problems, since 'as social institution, the

company has necessary to contribute to the human being, to promote the

development of his personality and to better achieve the purposes of human

life associated to it, which they are essentially of ethical nature' (1971, p. 44,

our translation).

Ferrero points out that the firm is a 'durable source of common welfare present

and future' (1968, p. 63,

our translation).

The Italian doctrine of "Economia Aziendale" and the concept of "azienda" play

a significant role in the study of organizations, offering unique insights and

perspectives that have contributed to the field of organizational studies in

several ways. Here's a description of their importance:

1)Holistic Approach to Organizations: Economia Aziendale and the

concept of azienda emphasize a holistic approach to understanding

organizations. Unlike some traditional Western economic theories that

tend to focus solely on financial aspects, these Italian concepts take into

account both the economic and non-economic dimensions of an

organization. This holistic view is essential for a comprehensive

understanding of how organizations function in a complex business

environment.

2)Integrated Management: Economia Aziendale promotes the idea of

integrated management, which involves considering all aspects of a

business, from financial management to human resources, marketing,

production, and more. This holistic approach fosters a deep

understanding of the interconnections and interdependencies within an

organization, leading to more effective decision-making and

management practices

1)system

The azienda is a system in the sense that its parts (e.g. capital such as

machinery, equipment) and persons (labour) are not separated; instead they

are coordinated and integrated, they are bounded together in order to

accomplish a specific objective. Thus, the azienda is a system with a specific

objective, with its own interest.

Moreover, the azienda is not an organization with a short life-time, instead is an

organization set to continue ('institution intended to last for an indefinite length

of time'). In the azienda the

"system effect" must be achieved, so that the whole is higher than the sum of

the parts. The azienda "is not identified with the owners, the capital, the

assets, the people taking

part in it or with the contracts or the relationships among its components, but

rather it is an autonomous and real entity composed of all these elements and

the relationships among them. It is very important to point out the concept of

system which is used by Zappa but not fully explored [...] In the azienda, the

components will change, the elements will modify, but the whole will persist"

(Zappa, 1950, p. 13)

The purpose of the system is the victory

1)decision making autonomy

In economics, the concept of "autonomy" can be referred to various aspects.

When it is used as one of the three attributes of the azienda it refers to the

decision-making power. That means that, in reaching its objectives, it must not

be subjected to the direction of other organizations.

The autonomy is also important in terms of legal responsibility and economic

independence. .

Autonomy can be referred to other things, we connect it to decision making in

these 3

attributes of the azienda

When? The azienda reaching its objective, (The board of governance), is not

subjected to the control and management of another organization.

When the azienda can autonomously reach its objective using an activity

chosen by itself, in its way. Sometimes there is only control A has 100% shares

of B), A decide the governance body, that then can decide the management,

that can also not be given.

You can be controlled but you can have a not given management, in this case

you can have autonomous decision making and A and B, also if they belong to

the same group,

are two aziende This concept of decision making autonomy is related

particularly connected to aziende that have an only customer or supplier, we

can say that they economically dominates the entity "Geox Japan" training

company ! It's not a system because the object is linked with the objective of

another azienda! It's a subsvstem

Also the commercial entity is a subsystem, the company decide to distribute

products thought legal entities. Decision making autonomy when the board of

director is autonomous

The governance body of Geo Japan aren't autonomous, it's a subsystem, there

will be integration and coordination .Consolidate financial statement = we find

results of the whole system Geo s.p.a

All internal trisection are eliminated in this statement.Each legal entity has a

financial statement

LVHM buy majority of shares of Geox, and decide the board of director

But the management power is delegated because operate to different niche, so

Geox is autonomous

The objective of Geox is different from LVHM's one, Geox is a system

LVHM can also chose the management, in that case Geox is a system(different

objective) but this system is not autonomou. This difference between

subsystem and system has legal implications

More precisely the azienda has a decision-making power when it can

autonomously achieve its objective ( the objective can be given by A)

(question) Commercial entities also conduct a production process It has to

conduct is economic activity with economicità

3)It operates with economicità

This is a method of action, a condition of existence and operation that implies

that the entire activity of the azienda is permanently inspired by the logic of

strategic effectiveness and operational efficiency.

The strategic effectiveness is the ability of the azienda to allocate the available

resources to the achievement of winning objectives, or, rather, to select

suitable products to meet and satisfy the overall expectations of the

customers/users.

Operational efficiency is the azienda's ability to achieve these productions, due

to the levels of

quality, reducing the use of available resources.

(Esempio luci accese o spente)

-Effectiveness: "Doing the right things";

-Efficiency: "Doing the things right"

Differences between effective and efficient

1)Effective Company:

-An effective company is one that achieves its goals and objectives while

delivering the desired results. It emphasizes the quality and impact of its

actions.

-Effectiveness is often measured by how well a company meets customer

needs, fulfills its mission, and achieves strategic objectives.

-Examples of indicators of effectiveness include customer satisfaction, market

share, and successful product launches

2)Efficient Company:

-An efficient company emphasizes the optimization of resources, such as time,

money, and manpower, to maximize output while minimizing waste and cost.

-Efficiency is often measured by factors like cost-effectiveness, productivity,

and the elimination of unnecessary processes or resources.

-Examples of indicators of efficiency include reduced production costs,

stream