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BUSINESS ENVIRONMENTAL ANALYSIS OF ORGANIZATIONS
IN MONGOLIA Norovsambuu O.1, Dorjgotov E.-O.2, Banzragch B.3
1Norovsambuu Oyunjargal - PhD in Business Administration, Associate Professor;
2Dorjgotov Enkh-Otgon - PhD in Business Administration, Associate Professor;
3Banzragch Bolor - PhD in Economics, Associate Professor, MANAGEMENT DEPARTMENT, BUSINESS SCHOOL NATIONAL UNIVERSITY OF MONGOLIA, ULANBATOR, MONGOLIA
Abstract: business environment is the key influencing aspect for business operation success. The business environment consists of the internal and external factors which influence business operation directly and indirectly. They are: taxation environment, financial environment, legal environment, government activities, interrelationships between government organizations, organizational structure and management, etc. [4]. This article explores the current business environment situation of Mongolia and consists of the following sections: The Analysis for current business environment situation of business organizations, and The Analysis for business environment factors of organizations. This research covers 1,543 business organizations from countryside and urban areas of Mongolia [6].
Keywords: business organizations, business environment, taxation environment, financial environment, government activities, legal environment.
INTRODUCTION
Mongolia was transitioned from the centralized planned economy to the free market economy in 1990 and, only starting from that time, the previous state-owned business organizations were privatized, and new private businesses were emerged. Since then the Government of Mongolia has implemented multilateral activities to improve business environment, and number of private businesses has been increased enormously.
There are 92,366 business entities registered in State registration n Mongolia as of 2017. But only 6,374 of them are operating actively, and this is clearly an issue to give an attention [7]. And there is a forecast that the number of active business entities will keep decreasing, and it is obvious that this decline is caused by unfavorable internal and external business environment factors. Thus there is a strong need to improve business environment.
It is certain that role and contribution of private business organizations to the country's economic development are pretty high. In this instance, development level of business organizations is considered as one of the key characteristics to represent the country's competitiveness rating. As the development and growth of business organizations are greatly influenced by business environment situation, the government and the businesses themselves need to give enormous joint efforts to improve the business environment by actively seeking better opportunities and implement supportive and right policies. Thus the right and supportive policies and actions towards businesses have an important role for not only improving the organizations' competitiveness and tolerance to changes of business environment, but also facilitating the sustainable social and economic development through those well-performing businesses.
BUSINESS ENVIRONMENTAL ANALYSIS
Purpose of this research is to come up with ideas and recommendations to improve current business environment situation in Mongolia. To do this, first we will set up specific criteria for each factor stated above and analyze correlation between them, and then we will evaluate current business environment situation in Mongolia. Based on the responses to the questionnaire criteria, analyses were made on the correlations of business environment factors of Mongolia. We have completed following analyses within this research framework:
■ Analysis on current business environment situation for business organizations
■ Analysis on correlations of business environment factors for business organizations
1. Analysis for current business environment situation
A descriptive analysis was done for identifying current business environment situation for business organizations. Within this analysis, following factors were considered: taxation environment, financial environment, government institution structure, legal environment, government activities, organizational structure and management, human resources, organizational efficiency and productivity, etc. Criteria were measured by Likert scale 1-5 and, to come up with simplified analysis
result, the measures were bundled and converted to 1-3 scale using the "Recode into different variables" command.
Table 1. Taxation environment
№ Taxation environment Mean Median Mode Std Deviation
1 Income tax percentage 1.43 1.0000 1.00 .67
2 Excise tax percentage 1.44 1.0000 1.00 .68
3 Value added tax (VAT) percentage 1.40 1.0000 1.00 .66
4 Personal Income Tax (PIT) percentage 1.44 1.0000 1.00 .68
5 Social insurance premium percentage 1.52 1.0000 1.00 .74
6 Immovable property tax percentage 1.51 1.0000 1.00 .71
7 Customs tax percentage 1.44 1.0000 1.00 .69
8 Other tax percentage 1.47 1.0000 1.00 .68
9 Number of tax types 1.46 1.0000 1.00 .69
10 Time spent for tax payment 1.50 1.0000 1.00 .72
11 Tax incentive 1.40 1.0000 1.00 .66
12 Double taxation 1.40 1.0000 1.00 .64
13 Whether all liable parties pay taxes (tax base) 1.37 1.0000 1.00 .65
We have done tax environment analysis using above 13 criteria. In overall, the means are between 1.37-1.52 and standard deviations 0.6 - 0.7. Specifically, the mean of social insurance premium is 1.52, immovable property tax 1.51, time spent for tax payment 1.50 and other taxes 1.47.
Table 2. Financial environment
№ Financial environment Mean Median Mode Std Deviation
1 Opportunity to intervene in the stock market 1.33 1.0000 1.00 .61
2 Shareholders' rights 1.40 1.0000 1.00 .65
3 Types of banking and financial services 1.62 1.0000 1.00 .77
4 Simplicity of obtaining a loan 1.41 1.0000 1.00 .69
5 Interest rate percentage 1.24 1.0000 1.00 .55
6 Internal investment/financing 1.29 1.0000 1.00 .59
7 Influence of currency rate fluctuation in business 1.23 1.0000 1.00 .54
8 Investment incentive policy 1.26 1.0000 1.00 .57
Financial environment analysis was done on above eight criteria. In general, the means are between 1.23-1.62 and standard deviations 0.5-0.7. In detail, the mean for types of banking and financial services is 1.62, simplicity of obtaining a loan 1.41, shareholders' rights 1.40, opportunity to intervene in the stock market 1.33.
Table 3. Government institutions ' structure and interrelationships
Government institutions structure and Mean Median Mode Std
№ interrelationships Deviation
1 Business facilitating rate of state economic policies 1.26 1.0000 1.00 .57
2 Legal regulatory environment 1.29 1.0000 1.00 .57
3 Propriety of state policies and decisions 1.28 1.0000 1.00 .58
4 Influence of state policy implementation in business 1.27 1.0000 1.00 .57
5 Interrelationships between government organizations 1.28 1.0000 1.00 .58
Analysis of government institutions structure and interrelationships was done based on above 5 criteria. Overall mean is 1.2 and standard deviation 0.5. Specifically, the mean of legal regulatory environment is 1.29, state propriety of state policies and decisions 1.28, influence of state policy implementation in business 1.28, interrelationships between government organizations 1.27 and business facilitating rate of state economic policies 1.26.
№ Legal environment Mean Median Mode Std Deviation
1 Company law 1.60 1.0000 1.00 .72
2 Unfair competition law 1.50 1.0000 1.00 .67
3 Consumer rights protection law 1.50 1.0000 1.00 .68
4 Special licenses law 1.55 1.0000 1.00 .71
5 Small and Medium sized enterprises (SMEs) law 1.51 1.0000 1.00 .70
6 Other legal acts related to operating businesses 1.50 1.0000 1.00 .70
7 Compliance to the legal requirements 1.60 1.0000 1.00 .72
Legal environment analysis was done on above 5 criteria. The means are being between 1.5-1.6 and standard deviations 0.6-0.7. In detail, out of that, the mean of Company law is 1.60, compliance to the legal requirements 1.60, Special licenses law 1.55, and Small and Medium sized enterprises (SMEs) law 1.51.
Table 5. Government activities
№ Government activities Mean Median Mode Std Deviation
1 Bureaucracy of government officials 1.29 1.0000 1.00 .59
2 Government stability 1.22 1.0000 1.00 .53
3 Corruption of government officials 1.29 1.0000 1.00 .60
4 Transparency of government activities 1.28 1.0000 1.00 .59
5 Simplicity of obtaining a land for business operations 1.32 1.0000 1.00 .61
6 Whether government tendering process is fair 1.26 1.0000 1.00 .57
7 Whether government's procurement supports national industries 1.29 1.0000 1.00 .57
8 Propriety of government subsidies 1.29 1.0000 1.00 .57
9 Public and private partnership 1.35 1.0000 1.00 .62
Analysis on Government activities was done according to above 9 criteria. In overall, means are between 1.2-1.3 and standard deviations 0.5-0.6. Specially, the mean of public private partnership is 1.35, simplicity of obtaining a land for business operations 1.32, bureaucracy of government officials 1.29, whether government's procurement supports national industries 1.29, propriety of government subsidies 1.29 and transparency of government activities 1.28.
Table 6. Organizational structure and management
№ Business operations Mean Median Mode Std Deviation
1 Use of modern management skills 1.66 1.0000 1.00 .78
2 Whether the entity has optimal organizational structure and management that fits their operations 1.65 1.0000 1.00 .76
3 Whether the organization puts an effort for improving its employees' knowledge and skills 1.71 1.0000 1.00 .80
4 Whether the organization cooperates with universities, Vocational training centers and other training organizations 1.57 1.0000 1.00 .76
5 How well is the corporate governance? 1.69 1.0000 1.00 .79
6 Whether the organization has contracted relationships with banking, insurance and financial service providers who support normal business operations 1.64 1.0000 1.00 .76
7 Opportunity to generate revenue with investment 1.55 1.0000 1.00 .72
8 Whether the organization adapts advanced new technologies and innovation 1.63 1.0000 1.00 .77
9 Human resources deficiency 1.61 1.0000 1.00 .78
10 Knowledge and skills of employees 1.60 1.0000 1.00 .77
11 Legal regulation on labor relations 1.57 1.0000 1.00 .74
12 Total productivity (Total sales / total cost) 1.63 1.0000 1.00 .75
13 Labor productitivty (Total sales / labor cost) 1.66 1.0000 1.00 .75
14 Profitability ratio (Net profit / total sales) 1.58 1.0000 1.00 .73
We have done business operations analysis using above named 14 criteria. Generally, the means of them are between 1.55 - 1.71 and standard deviations 0.7 - 0.8. Particularly, the mean for the question - whether the organization puts an effort for improving its employees' knowledge and skills is 1.71, corporate governance 1.69, use of modern management skills 1.66, whether the entity has optimal organizational structure and management that fits its business operations 1.65 and labor productivity 1.66.
2. ANALYSIS TNE ENVIRONMENTAL FACTORS OF ORGANIZATIONS We have done component analysis on the Mongolian business environment influencing factors of infrastructure, taxation environment, financial market, government institution structure, government activities, legal environment, and organizational structure and management.
Table 7. Component matrix
Component Taxation environment Organizationa l structure and management Government activities Legal environment for business Financial environment Interrelations hips between government institutions
Taxation environment .493 .428 .456
Organizational structure and management .829
Government activities .759
Legal environment for business .452 .602
Financial environment .656
Interrelationships between government institutions .536
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
From the results in above table, taxation environment is correlated with government activities and itself, while organizational structure and management is with taxation environment and itself also. In other hand, government activities are correlated with taxation and legal environments, while financial environment and interrelationships between government institutions are with themselves only.
Correlation power analysis shows taxation environment has very high correlation with government activities and correlation coefficient is 0.759. This result explains that 64% of the change in taxation environment is directly influenced by government activities. Organizational structure and management correlation with itself is very high and correlation coefficient is 0.829. This explains 64% of the change in organizational structure and management environment.
Taxation environment correlation with itself is high and correlation coefficient is 0.656. This explains 49% of the change in taxation environment. Legal environment correlation with itself is high and correlation coefficient is 0.602. This explains 36% of the change in legal environment. Correlation of interrelationships between government institutions with itself is high and correlation coefficient is 0.536. This explains 36% of the change in this component.
SUMMARY
We have analyzed current situation of business environment by 6 factors: taxation environment, financial environment, government institution structure, legal environment, government activities, and organizational structure and management of business. Specific criteria were set per factor, and following are the results of this analysis. Here, the mean for the taxation environment is 1.4, financial environment 1.3, government institution structure 1.2, legal environment 1.5, government activities 1.2, and organizational structure and management 1.5. Overall mean for above business environment influencing factors is 1.3, and it shows business environment situation in Mongolia is in medium level rating. It is a clear indicator that Government of Mongolia needs to put huge effort on improving the business environment situation.
Moreover, the component analysis on above business environment factors results following summary. Very high correlation (0.829) of organizational structure and management with itself shows that business operation success is greatly influenced by its own organizational structure and management. Thus business organizations need to improve corporate governance and management activities. Additionally, the tax environment has very high correlation (0.759) with government activities, and it clarifies that the Government of Mongolia needs to give significance importance for improving tax environment to support business activities.
References
1. Competitiveness Report, 2017.
2. Batkhurel G. Analysis on influencing factors for improving competitiveness of business organization, 2008.
3. Purevdagva Kh. Organizational change management, 2012.
4. Noh Chun-Sup. A Study on Strategic Management Models for Growth of Small and Medium-sized Enterprises, Small and Medium-sized Enterprises Research Institute, 2000.
5. Cho Young Ho. A Study on Management Innovation and Manpower Management of Small and Medium Enterprises, Small and Medium Business Institute, 2000.
6. Study on Business environment of Mongolia, 2017.
7. Statistical yearbook of Mongolia, 2017.
ПРОБЛЕМЫ И ПЕРСПЕКТИВЫ РОССИЙСКОГО ОБРАЗОВАНИЯ Откидычев В.В.1, Зурабов В.М.2
'Откидычев Вадим Васильевич - кандидат технических наук, доцент;
2Зурабов Вячеслав Михайлович - кандидат технических наук, доцент, кафедра экономики и управления, Дмитровский институт непрерывного образования Международный университет природы, общества и человека «Дубна», г. Дмитров, Московская область
Аннотация: в настоящее время практически все вузы России практикуют двухступенчатую систему образования и на протяжении уже многих лет не утихают споры об эффективности этой системы, а подавляющее число граждан просто недовольны этой системой. В статье рассматриваются вопросы, связанные с состоянием и развитием образовательной сферы России.
Ключевые слова: система образования, болонский процесс, экономика, университеты, доходы населения, программы развития образования, качество образования.
В настоящее время социально-экономические проблемы в российском обществе растут как снежный ком: нашествие мигрантов, вызывающее напряжения в межнациональном общении, низкий уровень заработной платы и пенсий, экономические кризисы, ухудшение экологии городских поселений, отсутствие в России нормальных дорог и т.п. Но есть ряд проблем, которые создаются искусственно, что называется «на ровном месте».
В 2003 году Россия подписала Болонскую декларацию (Берлинская конференция 19 сентября 2003 года). С этих пор Россия пытается выстроить систему образования, соответствующую основным мировым тенденциям.
«Болонский процесс» получил свое название в результате совещания в Болонье (1999 год) министров образования европейских стран. Результатом этого совещания стало формирование образовательной общеевропейской системы, которая обязывала ввести двухступенчатую систему образования (бакалавриат и магистратуру), обеспечить организацию и аккредитацию учебных заведений, а также ввести систему зачетных единиц и учета часов изучаемых дисциплин. Основная же идея болонского процесса заключается в том, что образование должно стать отраслью экономики, которая приносит ощутимый денежный доход обществу. Кроме того, Болонская система предусматривает, что после получения студентом степени «бакалавр», он должен отработать на предприятии, в организации какое-то время (два-три года), определится с необходимостью дальнейшего обучения в магистратуре, уже сознательно выбрав специализацию.
В настоящее время практически все вузы России практикуют двух ступенчатую систему образования и на протяжении уже многих лет не утихают споры об эффективности этой системы, а подавляющее число граждан просто недовольны этой системой. Причин для этого действительно много. Попробуем хотя бы вкратце разобраться.
Обратимся к статистике. С начала 2011/2012 учебного года число российских вузов сократилось в 1,2 раза — с 1080 до 896 на начало 2015/2016 учебного года. Число государственных и частных вузов снизилось почти на 20%.
В марте 2015 года было объявлено, что количество вузов до 2020 года планируется сократить на 40%, а число филиалов — на 80%. Всего по итогам мониторинга эффективности 2012-2014 годов реорганизован 21 вуз и ликвидировано 164 филиала вузов, подведомственных
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