Future study Management: 4 (46)

Open Access Article

1 - Globalization and it’s effects on Iran agricultural Sector (Case study on wheat and pistachio)
Akbar Komijani Keyomars Noori

The process of globalization is changing the world economically, politicaly, socially and culturally. Globalization in the general sense is the greater integration of the national economies in the world and it is a much discussed phenomenon. Greater integration has many More

The process of globalization is changing the world economically, politicaly, socially and culturally. Globalization in the general sense is the greater integration of the national economies in the world and it is a much discussed phenomenon. Greater integration has many effects on the structure of production in national economies, the roleof multinational corporation and foreign direct investment, consumer choice and other aspects of production and consumption in all trading economies. One particular effect of globalization has been to change profounding the nature of competition in markets for goods and services. There is no doubt the importance of agricultural sector in Iran economy. It has very much capacity in production and to be able to supply to international market. Result of study show that globalization didn’t have a clear effect on agricultural sector of Iran for the 1974-97 period, because agricultural was a very small part of agricultural production and only a small part of trade was export. The estimated functions show that globalization has positive effect on wheat and pistachio markets. Globalization can increase wheat production and pistachio export and can decrease wheat import. Therefore, it is expected that globalization can create very good opportunity for agricultural sector of Iran. Manuscript profile

Open Access Article

2 - Planning Suitable Strategies for Improving Organizations: Shokri’s Organization Prosperity Model (SOPM)
Mostafa Shokri

The main objectives of a profitable organization are its survival, excellence and finally its prosperity. The organizational prosperity depends on performance based on dimensions called abilities and motivations of the organizations. Therefore, the organizations need to More

The main objectives of a profitable organization are its survival, excellence and finally its prosperity. The organizational prosperity depends on performance based on dimensions called abilities and motivations of the organizations. Therefore, the organizations need to have contingency integration between those two dimensions. In the past two decades, we have seen different views and models dealing with the subject of making suitable strategic decisions for or organizations using strategic management, competitiveness, productivity models and other models. None of these models have been able to apply the best combination of those two dimensions in determining suitable strategies for organizational changes. Therefore, there is a need to develop a model, which could define the organization’s standing and situation in its operational environment according to its abilities and motivations. The Shokri’s Organization Prosperity Model (SOPM) developed here will take into account the abilities and motivations in operational environmental conditions to establish a suitable strategies for organizational changes. The main objective of the model of the model is to determine the position of the position of the organization with respect to its abilities ( including internal parameters like productivity, quality, etc) and motivations (including related external parameters like competition, economical, social forces, etc) and then evaluate these factors (quantitatively and qualitatively) to define the organizational standing in its operational field and establish the main improvement strategies of the organization for change. The last step would be the planning of the practical steps with respect to the most important and influential factors of the planned strategies within the proposed time span. Manuscript profile

Open Access Article

3 - Ceiling Price Policy in Iranian Energy Carriers Market
H. Bastanzad

The process of Price Setting in Market for goods &Services along with the phenomenon of price ceiling in production factors market with distort the equilibrium & result in price gap in the economy, which in turn generates excess demand & necessitate the perm More

The process of Price Setting in Market for goods &Services along with the phenomenon of price ceiling in production factors market with distort the equilibrium & result in price gap in the economy, which in turn generates excess demand & necessitate the permanent sources of finance (Subsidy) for its satisfaction, failing which may lead to budget deficit & embarrass the maintenance of policy execution. The energy Carriers are part of those goods which are subject to price ceiling since last three dacades in order to protect the final consumers & producers from the menace of hike in general level of prices. But however such policy may not persist for along time because of chronic constraints of resources that made the opportunity cost of this policy so significant. In this paper an attempt is made to analyse the impact of price adjustment of energy carries in the aim of financing the budget deficits, in contrast to alternative policy of borrowing from the banking system to maintain the price ceiling. Moreover we have tried to postulate the income & inflationary effects of price adjustment in energy sector. Manuscript profile

Open Access Article

4 - Development of Engineering Structures on NPD (New Product Development) Processes in Industry
S.M. Seyad-Hosseini J. Nazemi

New product development is a major competitive advantage of any enterprise in today’s golden market. In spite of the many researches that have been done on the subject of product development, still there is a lack of knowledge of answering to this question ‘ More

New product development is a major competitive advantage of any enterprise in today’s golden market. In spite of the many researches that have been done on the subject of product development, still there is a lack of knowledge of answering to this question ‘why some companies are so successful while others fail.’ The main objective of this paper is to introduce the organizational structure and processes of companies in their NPD practices which causes delays, cost disadvantages and missed market opportunities on their projects. The paper then proposes a model for situational analysis and assist companies to compare themselves with others. Based on the developed model, the description of characteristics, weaknees and strengths of companies also has been investigated. Manuscript profile

Open Access Article

5 - A Survey of the stock right issue and its effect on the stockholder’s returns in Tehran stock exchange
Ali Jahankhani Ebrahim Abbasi

A current for financing and capital raising among listed in Tehran Stock Exchange has been common stock right issue. About 80 percent of capital raising in stock exchange has been practiced through the method of stock right issue during 1991-1997. The purpose of this di More

A current for financing and capital raising among listed in Tehran Stock Exchange has been common stock right issue. About 80 percent of capital raising in stock exchange has been practiced through the method of stock right issue during 1991-1997. The purpose of this dissertation was to survey the stock price reaction to the announcement of capital raising through the stock right issue. So, three hypothesis have been studied: The first hypothesis was “ the stockholders of the firms that issued stock right, faced with positive abnormal returns during the weeks of the extra ordinary general assembly around and after the announcement data”. According to the semi-strong form of market efficiency as soon as new information enters the market, stock prices are rapidly and completely adjusted as much as the information content. So, gaining abnormal returns by the use of public information at the time of announcement and after that is impossible. The researcher calculated 206 stock rights abnormal returns for a seven-year period for the term of 15 weeks before and 12 weeks after the dates of the extraordinary general assemblies. The abnormal returns were gained by the differentiation of the expected returns (general market conditions) and real returns in every 27 weeks around any of the extraordinary general assembly’s date. Descriptive charts of an average and cumulative abnormal returns have shown that market reaction before announcement date had no significant difference from zero level. It means that before the announcement date no private information about future events entered into the market. The market was not able to anticipate the prices. So there will be the extensive information asymmetry prevented the rapid reaction of the market. Delayed reactions and overreactions in a week after extraordinary general assembly indictated that market was slow in receiving information. Investors didn’t trust management to release news. The existence of large variance in the abnormal returns after announcement and extraordinary general assemblies dates indicated that information asymmetry had not decreased. However, the continuance of the abnormal returns in the levels 0.024, 0.044 and 0.313 for the weeks -1 , 0 and +1 respectively indicated that market was not efficient. Cumulative abnormal returns in dictated that those who bought and kept shares 15 weeks before and 12 weeks after the general assembly gained about 17 percent of the cumulative abnormal returns. This rate belongs to a period of six and half months, which is about 31 percent for a year. The second hypothesis suggest that the higher the stock right percentage (issue size) has increased, the more the cumulative abnormal returns have increased. The theoretical basis of this claim is the price pressure hypothesis. According to this hypothesis, when a firm offers stock, it is necessary to drop prices in order to increase demand. Transaction cost hypothesis also suggested that as issue size increased, flotation and selling costs increased and share price decreased; as a result, abnormal returns decreased. All of the 206 stock rights were classified in three portfolios in terms of stock right percentage. 1-50 , 51-100 and higher than 100 respectively. The average of cumulative abnormal returns in the week +12 for each portfolio were respectively 0.139 , 0.053 and 0.408, which showed that there was not strong relationship between these two variables. But the greatest cumulative abnormal returns were related to the portfolio that stock right was issued more than 100 percent in it. The least cumulative abnormal return was related to the firms that had capital raising from 50 to 100 percent. The third hypothesis said that the market price of the stock right certificate is less than its theoretical value. In efficient market buying stock right didn’t increase the stockholders wealth by itself, and in comparison with stock buying didn’t present extra returns since prices determined equally to theoretical value. To test this hypothesis, 2124 stock right and the firm’s stocks which were dealt in the same day were observed. The theoretical value of stock right was the difference if the subscription price (Thousand rials) from the stock day’s price. The results showed that the average of the stock right market price was 6124 rials and the average of the stock right theoretical value was 6557 rials. The most important reason of the underpriced stock right was the acceptance of its liquidity risk. The 7 percent extra returns for the expected period of 4 months indicated that buyers of the stock right certification attained an extra returns of 21 percent for a year. In addition to liquidity risk, other dificiencies of the market like the impossibility of reselling stock right and unregistrated risk of capital raising were problems that caused the stock right price not to be able to adjust at the level of intrinsic value. Manuscript profile

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