Social media and its impact in marketing strategy

Marketing through social media nowadays represents one of the most effective ways to introduce the company and its products on the market. Various businesses are achieving amazing results being advertised via e-mail marketing. Online marketing is fast, simple, represents a different way to socialize the business and it is most direct marketing medium that is currently available. Through social media platform businesses are exposed to a global market and different kind of customers. Well-conceived marketing strategy may have positive results in different areas in business; it represents a breeding ground for business ideas. This paper aims to present the impact of social media and the impact that the electronic part, has in the marketing strategy. The paper is based in secondary data through different reports, scientific papers and literature regarding the importance of social media and its tools in the marketing strategy. Business marketing strategy in relation to social media platform and its channels (e-mail, social networks, blogs, etc.). How this type of marketing has affected and improved the business environment and in what form it is expected to effect in the future. The paper concludes that a well-conceived social media marketing strategy will have a great impact in the company’s level of exposure and awareness process, customer loyalty creation and interaction process and in the level of traffic increase.


Introduction
The aim of this paper is to analyze a conceptual framework about social media activities that have an impact in the marketing strategy of a company.
Objectives of the paper are: Firstly, to identify the key factors that encourage a business or marketers to use social media channels to reach their business objectives. Secondly, to summarize some key findings of the main steps that companies should consider while planning and executing their social media marketing strategy.
The main questions raised during this paper are: Why companies use social media channels for their marketing strategy and, which are the main steps that the social media marketing strategy model should contain in order to achieve effective results?
This paper is based in secondary data analyzing and interpretation, literature from different research papers related to the theme, different reports that show the practical side about how companies actually use their social media strategy, and articles from different experts from the field that show the most practical social media marketing strategy framework.

Literature review
Social media represent a modern platform that has changed especially the marketing strategy, the way busi-nesses reach their potential consumers and how they represent their product and offer it to the wide public. Social media strategy it is not about targeting as much people as possible, but to understand their needs and demands in order to create a suitable services and offers for them [1]. Moreover, it does not matter the size of the business, or the location, what matters for businesses in order to have success by applying social media as one of their marketing channel, is how to find the best possible way to sustain their costumer goals and what matters is "Finding the right presence" [2]. Nowadays, people use more than one social site, according to [3] 24% of adults use mainly two social sites; 16% of adults use mainly three social sites; 8% of adults use mainly four social sites and 4% of adults use mainly five social sites.
The best presence it is to actually identify if the brand is adaptable with the main goals trying to be achieved through this kind of marketing channel [4]. Even though, many businesses especially the ones who were used to apply their services in one particular stock, in order to concentrate in their line of merchandise, they need to invest more in finding the best possible way how to promote their product culture, rather than concentrating in the main benefits [5]. According to [6] one of the reasons why social media strategy cannot have a great im-pact in marketing, it is because of the marketers who are not adaptable to change their strategy to reach their potential consumers or to capture a wider audience, due to many technological changes. Moreover, the same source explains how companies treat social media marketing as a separate department instead of considerate it as an integrative part of their daily marketing activities.
Social media presents a new framework of communication process, it is considered as an essential part of interactive marketing communications [7], making possible for businesses to reach their audience in the most effective way, and consumers are aware that their engagement and creativeness plays a big part on how successful business can apply its marketing goals through this online platform. Consumers use social media channels to interact with companies and to interact with each other [8]. Due to this fact, many marketers are having difficulties to establish social media in to their marketing strategies [9].
According to [10] in order to implement a successful social media strategy, marketers need to create an effective social media marketing plan, which means to summaries all the aspects that the business plans to succeed while executing social media marketing activities. Moreover, based on the same source, there should be an audit and controlling technique, to test the outcomes of the plan.

Why companies use social media?
There are different reasons why a company can use social media for its business purpose, the main one is considered to be the application for the marketing objectives. For example, retail companies in Germany, specifically 30% of them based on a survey from Statista in 2015 ( Figure 1) [11] declared that they use social media platform to impact their marketing activities, 28% to create closer communication with their customers and 24% to increase their level of exposure. Moreover, 93% of customers according to a research made by Social Media Today expect companies to be present in social media platform and it is channels [12]. The main reason why companies use social media related to their marketing objectives, are especially related to achieve these aims [13]; [14]; [15]: To build awareness; To create loyalty and interaction with customers; To increase traffic to their website.

Social media marketing strategy model
The social media marketing strategy model should contain these main steps [16]: 1. The discovery process 2. The strategy part 3. The management procedure

The discovery process
Before defining a social media strategy plan, marketers need to identify their: Target audience -social media platform provides techniques for business to identify its current and potential customers; suppliers; subsidiary companies; bloggers; etc. Every channel such as: Facebook; Twitter; Instagram; LinkedIn; YouTube; have its own specific applications by allowing businesses to reach a potential audience based on some demographic characteristics [17]. For example, with 1.04 billion daily active users [18], Facebook is considered to be the main social network, (based on a Pew Research Center) with 77% women and 66% man audience; which 87% of them, age18-29 and 73% of people age30-49 use Facebook, 71% from urban and 72% from suburban location. Top countries by active users are considered to be: USA with 14% of Facebook users; Indi with 9% of Facebook users; Brazil with 7% of Facebook users; Indonesia with 5% of Facebook users and Mexico with 4% of Facebook us-ers [3]. Segmentation strategy is an important factor in order for the business to apply its marketing strategy, by using social media techniques.Moreover, in daily bases 49% of adults use Instagram, 36% of adults use Twitter, 17% of adults use Pinterest and13% of adults use Linke-dIn. As seen in the figure below [19] businesses should connect with consumers, through social media platform based on these steps: • Objectives-should be the most important part to be identified in order to enhance the social media presence. For businesses is important to integrate the aims and objectives with the marketing plan. According to [20] a social media marketing objective for a company could be: "Build brand visibility and authority" or "Influence and promotion of products/services". Moreover, marketers should use these steps/models, as seen in table below [21] to set their main social media objectives: Based on survey with online marketers [22], 76% of businesses used social media to achieve their main objectives, 64% of them integrated social media in to the marketing plan and 96% of them didn't consider social media activities related only to their sales objectives but also to increase their marketing achievement.
• Social Capacity -which according allows the businesses to create their special contents and interact with their appropriate communities, and provide their social presence by using the social media tools (Buffer; Objective Marketer; Photos; etc.) [23] [24].
• Governance -the rules and policies that a company can chose to apply in their social media marketing strategy. Those policies guide the company and its struc-ture on how to use social media channels such as: social networks, micro blogs, blogs, forums, and their services based on a conceptual framework [25].

The strategy
The impact of social media in marketing strategy is based on how marketers or companies use and relate their social media tools in the best possible way to back up their business objectives [26]. Social media platform has to be related to the initial marketing plan, different kind of departments in the company and with the process of business growth. Moreover, creating the proper strategy to support the mentioned factors, it represents a big challenge for marketers, 83% of them, based on a research made by Social Media Examiner on 2016 [27] express an apprehension, on how to define the proper social strategy. In 2015, 84% of the marketers have integrated their social media with the traditional marketing activities [28]. The main body of social media marketing strategy should contain these activities [23] [29]: like videos, pictures. Moreover, 70% of marketers use videos in their advertising activities [33]. f) Being involved and interact with the audience, since they have different prospective and interests regarding their group of interests. This can be done [34]: by creating group forums, holding question and answer sessions, creating polls and surveys, asking the audience to engage themselves in different activities, etc. For example, Zappos as an online retailer that sells shoes, they have built a Like-Like strategy for their customers [35]. Also, talk show hosts, use their social media channels to create a relationship with their audience, in order to increase their social media traffic, they make people use hashtags with different stories and ten they read them in their live shows [36].Moreover, 80% marketers expressed that their engagement to social media activities had a positive impact traffic [37].

The management procedure
The management procedure includes measuring techniques and defining the return on investment strategy. It is the phase were marketers or companies can compare the final results with the objectives set at the beginning of the strategy plan.
It is very important for companies to create a schedule and have a data base of their social media activities, their users' demographic statistics, their group of interests. The identification of the difference between the users [38] who actually are visitors and the ones who are active and are considered to be resident in their site, the ones who can become potential customers. It is considered to be, the user toward visitor identification strategy [39].There are different types of social media applications (Social Media API-s strategy) that can encourage users to share the business information and the offers with others to their own social media page [12].There are multiple benefits from using social media Application Programming Interface (API) businesses to create a better communication procedure with their customers and to collect data from their users in order to design their marketing strategy [40].

Facebook API
The Graph API «Provides access to every object in Facebook's database, including users, photos, videos, statuses, conversations, places, and their interlinked relationships with each other"

Twftter API Embedded Tweets
It is a tool that makes possible for marketers «to take any tweet and embed it directly into their content of their article or website» with hashtags, author attribution, mentions, etc. , the mentioned metrics are the ones who increased over time, from the period 2010-2014, for example the number of follower/friends 88%, the rating of products and services increased 71%. The statistics and the ratio of the metrics over the years show that companies actually identified the importance and the impact of social media data gathering and analyzing, in order to achieve the objectives, set at the beginning of the marketing strategy.

Results and Discussion
Social media has an enormous impact in marketing, especially in communication and connection of businesses with their customers. As seen in this paper, companies who want to be present in social media platform activities need to use appropriate procedures to be effective as much as possible. Almost 93% of customers expect companies to be present in social media platform and due to this fact, companies and marketers, should build a proper social media marketing strategy that meet their main business objectives. They should use a proper way to target their audience, to set achievable objectives, to choose and use appropriate tools in order to listen to their customers' needs and demands, and to find the best ways how to collect the proper data through different applications for social media platform, so they can compare the final results with the objectives set at the beginning of the strategy plan. A well-conceived social media marketing strategy will have a great impact in the company's level of exposure and awareness process, customer loyalty creation and interaction process and in the level of traffic increase.
Since one of the biggest aim for companies that use marketing modern tools, is to grab as much as possible the customers' attention, social media channels, especially social networks such as Facebook, Twitter, Instagram, LinkedIn have shown a great impact in this direction. The extent to which a customer shows interest and contrib-utes in the business social media activities, depends in the extent to which a company creates the proper strategy to enhance in the most appropriate way tools available in this platform.

References:
23. Varagic D. Social Media Strategy Templates Recommendations, (Online). Available: http://www.draganvaragic. com/en/social-media-strategy-templates-recommendations/. 24. Baer J., The 39 Social Media Tools I'll Use Today, February 2016. (Online). Available: http://www.convinceandconvert.com/social-media-tools/the-39-social-media-tools-ill-use-today/. (Accessed 25 February 2016). 25. Hrdinova J., Helbig N. and Peters S. C., Designing social media policy for government: Eight essential elements, Center for Technology in Government, University at Albany., 2010 Strategic planning is based on the approaches that determine the contents of the strategy. Approaches are often chosen in accordance with the target goals. Unfortunately in practical work decision-makers who experience lack of comprehension and skills select their own tools. It is quite common for modern Russian businessmen to go with their gut. It doesn't mean that analytical methods are not suitable in this situation; the fact is that decisionmakers don't know how to use these methods [7].
The objective of our research is to increase the effectiveness of strategic planning process by means of the usage of the approach which is based on pace of developments.
The goals of the research are to analyze current approaches of the market strategy development of an enterprise, to justify dynamic approach for choosing the strategy, to work out a dynamic model of oligopoly market for consumer goods, to test a new method using the example of one of the regional markets of domestic gas meters, to study the relevance of market factors (market drivers) for an enterprise, to determine the management decision packages for achievement of strategic target goals.
First, we are going to describe the principles and approaches that exist in strategic planning. These approaches may coincide for the strategies of such levels as: corporative, functional and business strategies, but methods or algorithms of market strategy development are different. It is considered that representatives of Harvard Business School -K. Andrews, M. Porter, G. Hamel, K. Prahalad are the founders of the approaches for strategy development [1][2][3]. Approaches offered by these scientists were widely used in 1970s-1990s. It is a popular misconception that traditional approaches are hard and fast guidelines of strategic planning [4][5][6]. In figure 1 you can see the classification of approaches for strategic planning on the grounds of environment dynamics. To take into account dynamics means conducting analysis of previous accumulated data and designing strategies of business development on the basis of this information. It also means comprehension of the interaction of all significant factors and feedback that can have an impact on the future events. The usage of the dynamic approach has its reason because using different approaches you may get discrepant results. For example, classical model of M. Porter of five factors that determine competition behavior of an enterprise as a market player may give different market insights compared to the dynamic approaches because impact of one factor over time can significantly change the behavior of the market participants. System dynamics enables to take into account the reaction of each market player, consider complex factors and feedback; adjust the strategy in accordance with expected changes.
The group of classical methods based on time-independent interpretation of course of events includes an approach developed by K. Andrews that centered on the comparison of factors of internal and external environment. This principle was used in SWOT analysis [7][8][9]. The approach of G. Hamel and K. Prahalad is focused on production specialization of the business. Core competencies offered by these scientists draw management attention to the creation of unique benefits in technologies that give an opportunity to achieve a competitive advantage. The practical application of these approaches is the matrix method which is still being used by analysts because of its simplicity. The algorithm of these methods is simple: based on the present day information and immediate forecasts it is possible to find ways of achieving goals and reduce the gap between planned indicators and current values. An essential fault in these methods is that they don't take into account the dynamics of the external environment, parameters which can hardly be described and the existence of the feedback.
The second group of approaches that is shown in Figure 1 enables to remove listed above shortcomings. These approaches are used in all methods of system dynamics. System dynamics which was first mentioned in writings of D. Forrester gives us an opportunity to choose the strategy of business development on the basis of anticipated feedback process taking place in the system [10]. The dynamic approach finds an application in strategic planning. The author interconnects the definition of the dynamic strategy with an industry and business lifecy-cle. He considers that the main idea of his conception is the search of points of impact on the system in order to improve management quality. The dynamic approach should include the system dynamics, the discrete-event simulation, and the agent-based model. It is necessary to take into account events that happened in the past, i. e. the history of earlier periods. We need a conception that comprises an analysis of the situation in the past and the system dynamics as a projection into the future. This approach can be called cognitive as it is based on processing and interpretation of the accumulated information about an enterprise and external environment [4]. It is the dynamic approach that attracts attention because of objectives reasons. That's why our research is devoted to the study of dynamic approach usage for market strategy development.
System dynamics along with the discrete-event simulation and an agent-based model is an effective tool of the simulation modeling. Conceptual framework and model building algorithms have been fully described [10,13].
According to the theory and the basic concepts of the system dynamics a new market model has been developed. It takes into consideration changes of external environment factors, behavior of the key market players, customer feedback, a product lifecycle, economic aspects of marketing which include the determination of the net present value of each market player and investment potential of sales promotion. Hereafter there are successive stages of model building of consumer market using the example of domestic gas meters market. As a software simulation tool we have used Anylogic 6.9.0 Advanced. The aim of model building is to identify the behavior of an enterprise under current market situation, i. e. market strategy. At the first stage we created the basic model of influence of external environment factors on market player behavior. Figure 2 displays the primary model of one of the regional markets of domestic gas meters that later on was supplemented by variables and invariables influencing on market activities.
The model consists of accumulating units (the number of households, potential buyers, and the number of purchases from each market player or the definite vendor), flows, variables (sales and so on) and invariables which are used to determine the variables.
The idea of this model as well as any other dynamic system is to identify the optimal law of flow control, in this particular case sales volume under the influence of external factors. There are three key players in the domestic gas meters market. The market leader is the company "Betar"; second best is the company "Grand" which is strengthening its position. "Relero" rounds out the top three. The peculiarity of the existing situation is that products offered by these companies have the same consumer at-tributes (similar specifications, price) but they find different demand on the market. The secret of the success is the company ability to sell its product, availability of a well-defined marketing plan and a promotion strategy. Nowadays "Relero" is underperforming but this company was among the first developers of the product. In order to change the situation for the better "Relero" has come to a decision to enhance marketing activity by means of market expansion. At present a marketing strategy for market share increase is being worked out, the policy in relation to its competitors is being determined. If we want to know what measures it is necessary to take for achievement of the strategic goals (for example to seize 30% of the market) we must identify the most efficient leverages. That's why we have created the model that enables to specify optimal parameters of the marketing management system under dynamic conditions. The unique feature of the model is the possibility to observe interaction of all factors which have great influence on sales dynamics. The number of potential buyers was determined by a formula: where N is the number of potential buyers of gas meters; N 0 -population size of the region с -ratio considering dependence between population size and the number of households; b -the rate of households that have already had domestic gas meters T ∆ -the growth rate of provision of gas supply in the region.
The distinguishing feature of the given model is that it takes into account the growth dynamics of the number of potential buyers in connection with the rate of provision of gas supply. The strategy is worked out for a long term perspective because by the end of the planned period there may be substantial changes in market volume. In the model there are some regulators which give an opportunity to adjust changes of variables (for example, rate of provision of gas supply) by means of discrete increment (+1; -1). Sales of each market player are calculated as a product of numbers of units purchased on a unit price. To verify the model we compared actual and model values of sales and market shares. Actual values of market shares were determined by conducting market research. Fig. 3 shows primary distribution of market shares that identifies starting conditions for modeling. Modeling horizon contains 60 periods; the duration of each period is one month. Three flows characterize sales volume of each vendor and the intensity of sales flows is adjusted in the model on the basis of market share values.
Factors which are involved in market forming: the stage of product lifecycle, power of persuasion (feedback between people who have already bought the product and potential buyers), influence of commodity price and the most important factor -marketing activity that includes the number of sales outlets having certain turnover, advertising effectiveness have been antecedently identified. Figure 4 shows the fragment of the model that considers segment lifecycle. The situation at the federal market of domestic gas meters has an impact on a sales flow. It is known that according to the federal law № 261 by the first of January 2015 all households must have devices for metering gas consumption. This fact allows forecasting high demand in the first six months of 2015 and then there will be a slump in demand caused by market saturation. We have simulated anticipated demand swings for gas meters caused by current situation in the external environment by using the standard tabulated function of the software program Anylogic. Fig. 5 depicts the graph of total values of sales volume of these vendors for 60 periods. On the graph we can see nonlinearity that resulted from high demand in the peak of segment lifecycle (approximately the first half of 2015). In Fig. 6 the scheme considering changes in consumer activity is shown. By means of the tabulated function "Function Dynamics" we can control sales flows of each market player according to the predetermined values. Thus, in the model the factor of external environment dynamics is taken into account. At the consumer market there are some laws which speed up or slow down the activities inside the environ-ment. It should be noted that buyer decision process is motivated by the opinion of other people who have al-ready bought the product. In the marketing this phenomenon is called word-of-mouth advertising. Customers having bought a product tell potential buyers about their good purchase and thereby influence on sales growth of a vendor. The higher turnover of the company, the more potential buyers the vendor can have. The quantitative influence of this factor is measured by a purchase probability being estimated as 0,015 or 0,02. It means that every 100 people who have bought a product could turn 1 or 2 potential buyers into actual ones. Our further research revealed how important this influence was and whether we should take into consideration this factor. Fig. 7 displays the marketing model considering the factor of word-of-mouth advertising. The variable value "Power of persuasion" shows purchasing intensity of every brand made under the influence of word-of-mouth advertising.
The results of undertaken studies of the model when the power of persuasion equals 0,015 or 0,02 demonstrate the telling impact of this factor (the results are given in fig. 8 and 9). We assume that in other regions this indicator may vary depending on demographic and social factors, that's why we performed computation enabling us to come to a conclusion about the power of the factor. We can see from the graphs that increase of power of persuasion by 3% results in growth of total sales volume by 10%. One may state that this factor becomes more and more apparent when sales of a company are higher. The influence of this factor is visible when we investigate market leaders, underperformed companies don't show any changes. Time element plays an important part -the longer the period of the project, the more people who have bought a product under the influence of buyers' opinions. The next factor which we investigated was a marketing activity of a company. This integrated indicator displays the effectiveness of the market promotion of a product. It includes a number of actions having specific contents and a predictable result. In this case the principle of measurability is observed and the result has got a quantitative evaluation. There is no use planning any actions if a quantitative result is unknown. This key element defines the validity of the developed models. If there is a lack of comprehension what result we expect (by how much will the sales volume be increased?) it is no use carrying out a project even by means of the system dynamics. We may conclude that we must know consequences of every stage of the project and its rough estimation. For instance, if we plan a promotional event with a certain budget we must forecast what impact it may have on our business. Business event contents for intensification of the marketing activity include creation and expansion of a sales system (opening of new sales points, monthly turnover for each region can be determined by the primary analysis of the market), promo offers, advertisements, e-tail and other actions which are the most effective according to the precise context and region. The increment of the parameter "Marketing activity" in real situation brings about sales volume increase by a particular value. Figure 10. Consideration of the marketing activity in the regional market model Every stage of the project requires costs, so in the scheme ( Figure 10) this parameter is called "Investments required" and such presentation of economic indicators enables us to calculate investment potential of each stage. If we have a strategic goal to seize 30% of the market we can forecast the planned turnover increase by varying the number of new outlets because we know investment required to open new sales points (on the basis of an estimate of planned expenses), maintenance expenses for an outlet (rent, compensation of employees, utility payments). Taking into consideration sales revenue it is possible to calculate a payoff period of investments and a net present value for the whole period of the project, i. e. we may find out a criterion value that measures the level of region attractiveness. Figure 11. Net present value for the forecasting period.
These data enable us to make initial conclusions about the situation at the market of domestic gas meters in the region. Thus we can decide what we should do to achieve our strategic goal (how many outlets to open, what advertising campaign to use and etc.), how many investments we need, when they will be repaid and what the net present value output will be. The last indicator can be used to estimate the effectiveness of any product promotion plan and implementation of the outlined strategy. It can help to work out a plan how to seize the federal market determining strategically important regions. Figure 11. Shows the graph of changes of the net present value in rubles for 60 periods (months) Fig. 12 displays market shares values that were achieved by varying marketing activity indicator (by increasing the number of newly opened outlets) in order to get 30% of the market. In the process of model execution it becomes clearer how many outlets we have to open for achievement of our strategic goal (in our region we had to open three outlets), when we can seize the market (whether we can do it before decrease in demand) and how many investments and resources are necessary to execute a product promotion plan under the given initial conditions (the number of households, growth of provision of gas supply, power of persuasion, market behavior). It is worthwhile investigating other regions to aim efforts and resources at the most promising region. In the article we haven't touched upon the subject how a product price can influence on a selling rate. To fill a gap we added in the scheme the variable "Price reduction impact" that reflects dependence of sales increase on price reduction. In Fig. 13 the marketing model with the variable "price reduction" is shown. In the model we assume sales increase at the expense of price reduction but now at the market there is a set level of prices that is equivalent to the lowest value. Simulation results showed that reasonable reduction of wholesale price would lead to a slight increase of sales volume, consequently there is no point in considering this indicator as the main driver of sales of this sample of a gas meter. In the long view an invention of a new type of a device may blow up a market but at the present time we assert that the marketing activity is the most significant regulator of sales growth. On the basis of the simulation results and conducted studies we can make the following observations: 1. The dynamic approach is more forward-looking than other marketing strategies because it enables to compute level of all factors and to rank them in accordance with their importance.
2. The dynamic model gives us an opportunity to find in the system the optimal points for managerial decision making, to formulate a marketing strategy in order to achieve strategic goals with minimum expense.
3. Validation of strategy selection enables us to assess our resource requirement, timeliness and sequence of its usage.

Introduction
Business organizations differ. This differentiation should be viewed as a conditioned interaction by factors such as the business organization's values and culture. The organization culture perceived as an approach method of its members leads to reciprocity and the need to engage and cooperate in determining the method to be used in decision-making. The components of the culture of the organization grouped into several groups. So, the majority of the cultural factors can be grouped under four categories: the locus of control; decision style and mode; orientation group; and hierarchy [1]. The organizational culture of business affect on the organization's decision. In a more collective management culture, decisions will be reached at through a process of consultation and discussions, although the authority to make final decisions may still be vested at the top of the organization [2]. The influence of the culture of the organization, about the importance of the necessity that it presents to the decisionmaking process, has also been assessed by the researchers because culture, thus, not only fulfills the function of providing stability, meaning, and predictability in the present but is also the result of functionally effective decisions in the group's past [3]. Culture of the organization, in its composition, is influenced by national culture. This makes us face different organizational cultures in different countries. In considering the impact of national cultures can evidence two types of cultures and their reflection in the way of decision-making. So, in an individualist management culture, such as in North America, Anglophone countries and Northern Europe, managers tend to take their own decisions in relation to their job responsibilities and their budget [3]. In Japan, it is seen another method of decision-making. In this context, the prime example of a collectivist management culture is Japan, where decisionmaking is carried out through a consultative process, with everyone involved in the discussion and decision-making [3]. Whereas in China the link is between the culture organization and decision-making method is moderated one. In a turbulent environment, Chinese cultural factors will mostly lead to faster decision-making because of the decision style, and the attention received by the boss or the chief executive [1].
The aim of the paper is to measure the influence of organization culture on the decision-making methods. Methodology The methodology of this paper includes the desk work and the field work.
Desk work: considers the study of literature in foreign language, mainly English and that in Albanian lan-guage, the data analysis linked with the completion of the set objectives, prepared questionnaire and drafting conclusion.
Field work: The part of field work is the interviewing. We interviewed 167 managers in Albania, Montenegro and Macedonia.

Analysis results
Thus, the centralized business culture generally represents a denied opportunity for collaboration in the decision-making process. Therefore, the centralized culture increases the potential for the use of experience based methods on decision-making, being the intuitive methods. The collaborative culture within the business organizations increases the availability of the human capacity in the decision-making process; accordingly it is hypothesized that the collaborative culture can enhance the opportunities for decision-making according to the analytical methods.
The business success is considerably dependent upon the organizational culture in decision-making. The organizational culture not only does reflect the prevailing ideology of the managers, among other perspectives, in the decision-making process, but it has also a sig-nificant impact on the business performance because in many case studies of the culture-performance relationship exist… [4] To this purpose, the culture definitely conveys a sense of identity orienting the managers on how to operate towards decision-making. The organization culture is a feature that differentiates the business, thus constituting a mere advantage. Herewith is explained the fact that businesses have different cultures also in the decision-making process. On analyzing the decision-making culture in doing businesses in the regional countries we refer to the following tables.
Factor Analysis According to the table no. 1 indicators result that the index KMO reaches the value of 0.532, which is within the set limits, enabling us to further analyze the data through the factor analysis. Even the Bartlett's Test values, which are smaller than 0,05 highlight the fact that the factor analysis could be potentially useful to our data. So, considering the KMO index value of 0.532 and the Bartlett test having p < 0.001, assessed by the respective scholars as 'very highly significant' , to this reason the factor analysis is appropriate [9]. .000 To the assertions provided in the questionnaire related to the business organization culture concerning the decision-making process, the analysis considered the total explained variation and the Varimax rotation.
As indicated by the table no. 2 is evidenced that the total explained variation amounts to 63,331%, a value meeting the Kaiser criterion [10]. On the above stated, we can execute the questionnaire's grouping of assertions, on considering the business organization culture in the decision-making ap-proach, according to the correlative relationship among them. The assertion grouping on the culture aspect is represented as following: To the study of relationships we have referred to the reliability analysis that considers the "Cronbach Alpha" coefficient, which indicates the compliance rate among the variables as a group. Correlation between two forms given virtually at the same time, is a coefficient of equivalence, showing how nearly two measures of the same general trait agree [5]. The data of the following table no. 4 evidence an acceptable reliability. It proves that the surveyed manager's evaluation on the organization culture questionnaire statements has an acceptable compactness. The value of the "Cronbach Alpha" coefficient evidences once more the phenomenon that was observed during the field survey. Specifically, concerning an interpretative difficulty on the organization culture notion in general and the or-ganizatation culture in decision making in particular, on the managers part.
The interpretative difficulty in question for the interviewed managers is explicable if considering that the regional countries have not inherited any culture concerning the decision making manners. These countries have a dictatorial past, wherein the state dictated upon the businesses, which were also entirely state-owned. Thus, the business managers lacked any minor degree of independence on choosing the decision making-method, the approach of doing business and on the overall decision-making culture. Therefore these claims were difficult to duly comprehend by the business managers although the time at their disposal, to this part of the survey, was relatively long. "Cronbach Alpha" coefficient presented as follow: .360 2 However, researchers also hold different positions on the issue. So, the researchers regarding on the data validity via the "Crombach Alpha" clarifies that Crombach Alpha has indicated 0.7 to be an acceptable reliability coefficient but lower thresholds are sometimes used in the literature [6]. At the same time, after a certain point, higher values of alpha do not necessarily mean higher reliability and better quality scales or tests [7].
Under the conditions, the factor's designation is done as following: Factor 1: The centralized business culture orientates the manager (owner's) concentration in the decisionmaking process -This label may be best suited if we refer to the fact that all assumptions that may be included in this factor have as their main focus the hi-erarchical leadership role in determining the decision making method. To measure the "centralized cultures" impact in decision-making, two main statements are considered in the questionnaire. The principal components analysis resulted in a single factor. The allegations concerning this factor and their factorial weight are presented in table 3.
Factor 2: The collective organization culture enables decision-making based on (cooperation) consultation -The assumptions included in this group consider cooperation as an important element in decision-making. To this factor two main statements are included in the questionnaire. The principal components analysis thereof resulted in a single factor. The included allegations concerning this factor and their factorial weights are presented in the table.

Multicollinearity Measurement
The correlation coefficient between the two components of the organization's culture regarding the decision-making procedure is evaluated as statistically important as to p < 0.05. This coefficient turns out to be negative, namely the value r = (-0.188), which means that the strengthening of one component leads to the weakening, at the same proportions, of the other component. Namely, the strengthening of the organization's collective culture reduces the centralized organizational culture (the owner's influence).
Since the multicollinearity coefficient results included within the defined limits it constitutes a precondition to the use of multiple regressions. As demonstrated above, the decision-making method is influenced by the organization's culture components. Cultural congruence is present in an organization when the dominant characteristics, leadership style, organizational glue, and strategic emphasis all are consistent with one another; for example, they may all be indicative of a clan culture type [4].
Notwithstanding the foregoing, the connection existing between the components of the organization's culture and business decision-making methods will be statistically verified. To this we refer to the hypotheses raised for this purpose.

Regression Analysis
Working in businesses the employees strive to meet their economic and social needs through the emotional support and the cooperation into achieving their objectives. To this purpose, the business organization must cultivate a specific organization culture as to achieve an equilibrium between the labor productivity and meeting the employees individual needs. This approach makes possible the clarification of the future vision of the business organization, granting simultaneously to the organization's members security to their future. It is enabled, among other things, through the decision-making and the methods used therein. To this aim the below hypotheses is formulated: The centralized organization culture is expected to positively affect the use of intuitive methods in decision making.
The business organization culture, with its two composing constituents, represents a crucial factor which affects in the choice of the method to be used in decision-making. To this we refer the regression analysis results. The findings of the analysis are shown in tables no. 6; 6.1; 6.2, which indicate the relationship between the independent variable "the business organization culture" and the dependent variable "the use of intuitive methods in decision making".
In table 6 we notice that R 2 = 0.147, which indicates that 14.7% in the alternation of the intuitive methods use in decision-making is accomplished by the business organization culture. The rating on both components results statistically significant in explaining the phenomenon. The relationship between the independent variables and the dependent variable can be express via the equation as follows: y = 3.134 + 0.281*x 1 -0,251*x 2 + e y -decision making methods -intuitive methods x 1 -centralized business culture x 2 -collective business culture e -random term   The processing of questionnaire data collected for the culture rubric emphasizes the fact that the relationship between the dependent variable and the independent variables does not hold a similar direction. Therefore, the connection between the intuitive methods use to the centralized decision-making business culture is positive and the contrary is proven concerning the collective culture. Thus the H 1 hypothesis set up to this purpose is confirmed.
H 2 : The collective action culture enables the use of analytical methods in decision making. Whereas, to analyze the impact of the collective action organization culture on the analytical methods we refer to the regression analysis results presented in the tables 7; 7.1; 7.2, wherein is observable that R 2 = 5.3%. It proves that the dependent variable variation is conditioned up to 5.3% by the independent variables.
The data evidences that the assessment on both components results statistically of almost the same importance level in explaining the phenomenon. It means that the organizational cultures dimensions have nearly the same trend in the use of analytical methods in decision making.
The relationship between the independent variables and the dependent variable can be expressed according to the below equation: y = 3.430 + 0.090*x 1 + 0,083*x 2 + e y -decision making methods -intuitive methods x 1 -centralized business culture x 2 -collective business culture e -random term   With respect to the above stated, the impact of the two components of the organization culture on the use of the analytical methods in decision-making is highly similar to one-another, because the collective culture involves the voting, but voting is rated low because it involves judgment, but not analysis [8]. However, both the intuitive methods and the analytical methods occupy an important position. In this way the hypothesis H 2 is confirmed.
But the organization's culture is influenced by national culture. So for some researchers emphasize that the Chinese have specific characteristics in this area which explain the adaptability of and perceived risk in making strategic decisions. They explaining that Chinese managers exhibit patience in making decisions, lack a sense of urgency, and can be informal and insensitive to time in the decision process [1].
It should be noted that the position managers retain towards the organization's culture aspects as evidenced above, stems from a strong connection to tradition. Recognizing the fact that the three regional countries come from a centrally planned economy, but with varying degrees of centralization, the concept that "organization culture" meaning is mainly based on the orientation of what is judged important to the organization, is not yet entirely assimilated.

Conclusion
Based on the study and data gathered on the impact of organizational culture on decision making method we can come to some conclusions such as: • Choosing decision-making methods that managers used in business is a complex situation. The very amelioration of the decision-making quality starts from the selection of decision-making method, aiming at the most efficient methods. This characterized by the specifics of the organizational culture of the business. The business organization culture, with its two composing constituents, represents a crucial factor which affects in the choice of the method to be used in decision-making.
• From the interview with the managers it resulted that the centralized organization culture is expected to positively affect the use of intuitive methods in decisionmaking.
• Based on the study we can stress that is important to oriented to chosen of decision-making methods based besides the intention, perspective should be considered as well. So, from the study resulted that the collective action culture enables the use of analytical methods in decision making. The analytical methods posed the improving the decision-making methods, as a reflection to the contemporary changes. This is an ongoing subject of the manager's activity.
• The impact of the two components of the organization culture on the use of the analytical methods in decision-making is highly similar to one-another, because the collective culture involves the voting.
• It should be noted that the aspects of organization culture stem from a strong connection to national culture.

On relations between quality management, doing business and life quality (a comparative analysis of Balkans with Western European countries)
Abstract: The purpose of research: Determination of relations between quality management, doing business and life quality and giving some thoughts to improve the situation regarding the quality institutions and quality infrastructure parallel with doing business climate and life quality.
Methods: Collection of information, data and facts for quality management, doing business and life quality mainly from primary sources, comparing the information, data and facts gathered, conducting relevant analysis and make recommendations on this issue.
Results: Balkan countries recently have joined the international community of ISO standards as well as being part of World Bank Reports on Doing Business and Life Quality Index studies. These those countries for years have had multiple problems regarding quality's institutions, quality infrastructure, doing business issues and life quality level, problems that affect the development and performance of businesses, development and economic growth, sustainable development and improving the quality of life of citizens under the framework of the Balkan's integration into the Europe and beyond.
Outcome: Improving quality's institutions, quality infrastructure, doing business climate in Balkans will have a positive impact on increasing economic growth and improving the quality of life of citizens within the Balkan's integration into the Europe and wider.
Keywords: quality management, ISO standards, quality's institutions, quality infrastructure, doing business climate, life quality.

Doing business and global trends on doing business
Societies need regulation, and businesses, as part of society, are no exception. Without the rules that underpin their establishment, operation and dissolution, modern businesses cannot exist. And where markets left to themselves would produce poor outcomes, well-designed regulation can ensure outcomes that are socially optimal and likely to leave everyone better off. Doing Business focuses on regulations and regulatory processes involved in setting up and operating a business. It analyzes those that address asymmetries in information (such as credit market regulations), those that balance asymmetries in bargaining power (such as labor market regulations) and those that enable the provision of public goods or services (such as business or property registration).
Countless transactions are required to set up and operate a business. When starting a new business, entrepreneurs need to establish a legal entity separate from themselves to limit their liability and to allow the business to live beyond the life of its owners, a process requiring commercial registration. To operate their business, entrepreneurs may need a simple way to export and import; they may need to obtain a building permit or acquire property to expand their business; they may need to resolve a commercial dispute through the courts; and they are very likely to need an inflow of funds through credit or new equity. Regulation is at the heart of all these transactions. If well designed, regulation can facilitate these transactions and allow businesses to operate effectively; if badly designed, it can make completing these transactions difficult.
Doing Business is a World Bank Group Report Measuring Regulatory Quality and Efficiency, measuring the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies of the world. Doing Business measures regulations affecting several areas of the life of a business, like starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Doing Business report of 2014, 2015 and 2016 finds that entrepreneurs in more than 100 economies saw improvements in their local regulatory framework, and between June 2014 and June 2015, on 189 economies worldwide have been documented 231 business reforms. Among reforms to reduce the complexity and cost of regulatory processes, those in the area of starting a business were the most common in 2014/15, as in the previous year. The next most common were reforms in the areas of paying taxes, getting electricity and registering property. EU countries enjoy being in top of the list, while some Balkan countries like Macedonia, etc have been listed between top 20, while some others like Albania have been listed below previous lists [1].

Quality management and global trends on ISO certificates
Quality management is the act of overseeing all activities and tasks needed to maintain a desired level of excellence. This includes creating and implementing quality planning and assurance, as well as quality control and quality improvement. Quality management ensures that an organization, product or service is consistent. It has four main components: quality planning, quality assurance, quality control and quality improvement [2]. Quality management is focused not only on product and service quality, but also on the means to achieve it. Quality management, therefore, uses quality assurance and control of processes as well as products to achieve more consistent quality.
Several means to achieve quality management are between doing business regulations and rules, ISO certificates included, which are focused more in quality of procedures private and public subjects follow, which at the end of the day brings higher quality of products and services [3].
Because societies need regulation -and businesses, as part of society, are no exception, ISO certificates finally are part of business and trade regulations since they are the minimum requisites for characteristics of processes, products and services to be used from private and public entities/subjects to be acceptable from their clients and markets. Without these standards modern private and public entities cannot exist. And where markets left without standards they would produce poor outcomes and finally low life quality for citizens. When starting a new business, or entering in a new phase of enterprise development, entrepreneurs need to establish certain procedures and standards, allowing the business to live beyond minimum frontiers, to export and import, to participate in public procurement procedures, and finally to attract as much as possible clients, for higher profits and achieving other business objectives. Standards are the heart of all these issues, facilitating business transactions and allow businesses to operate effectively.
With 1 609 294 certificates issued worldwide in 2014, there is a slightly up on the previous year, which demonstrates a moderate growth for almost all the ISO management systems standards around the world [4], confirming trends observed over the last two years.
This market stabilization is, however, offset by three good performers exhibiting more sustained growth. Albeit less impressive than in previous years, ISO 50001 for energy management demonstrates a 40% growth rate, led once again by Germany, responsible for 50% of the 6 778 certificates reported. Similarly, food management standard ISO 22000 contin-ues to deliver reliable performance with a 14% growth rate, while ISO 16949 for the automotive sector shows accelerated progression with a commendable 8%, signaling that economic recovery in the auto industry is holding up. Big news for 2014 and 2015 is the increase of ISO 22301 certificated for business continuity issued, motivated by a global awareness that organizations need to protect themselves against disruption in times of crisis. The new recruit made a timid breakthrough with 1.700 certificates, but is thought to hold good potential for the future.
Following on last year's trend, ISO's popular quality management standard (ISO 9001) continues to experience a lull, claiming a mere 1% share of the market. Growth has certainly stabilized since the boom times two decades ago, reflecting the current economic uncertainty in the world. Moreover, in countries with a longerestablished tradition of certification, many of the largest companies are already certified and are branching out to more specific standards. The prevailing situation is expected to improve, however, as markets pick up and with the introduction of the new version of ISO 9001 [4] (IS0 9001: 2015).

Life quality and global trends to life quality
The Life Quality Index (LQI) is a compound social indicator of human welfare that reflects the expected length of life in good health and enhancement of the quality of life through access to income. The Life Quality Index combines two primary social indicators: the expectancy of healthy life at birth, E, and the real gross domestic product per person, G, corrected for purchasing power parity as appropriate. The three components of the Life Quality Index, G, E and K re-flect three important human concerns: the creation of wealth, the duration of life in good health and the time available to enjoy life. The amount of life available to enjoy wealth acts as a multiplying factor upon the value of that wealth. Conversely, the amount of income one has to enjoy that available lifetime acts as a multiplier on the expected duration of life. Unlike the United Nations' Human Development Index (HDI), the LQI is derived rigorously from the economics of human welfare [5]. Like the HDI it can be used to rank nations in order of human welfare (development, quality of life). However, more important and unlike the HDI, it can also serve as an objective function to be used in setting national or corporate goals for managing risk and to guide effective allocation of society's scarce resources for the mitigation of risks to life or health, which generally should be related to the application of ISO standards, mainly ISO 9001 (quality management), ISO 14001 (environment protection) and ISO 18001 (health and safety at work), which are main ISO standards required and applied all around the world. The LQI is a summary indicator of net benefit to society for improving the overall public welfare by reducing risks to life in a cost-effective manner [6]. In the accounting and assessment of human development, we can view the role of individuals as the principal means, or contributors, to development as well as the ends. For example, the productivity of an individual contributes directly to the aggregate wealth creation in a society, and the productivity of an individual is related strongly with the productivity of private and public entities, which increase of productivity are considering through achieving and application of ISO standards between other important management activities. However, the income so gener-ated (to whomsoever it may accrue) increases the capacity of society to provide the necessary means such as the required infrastructure (hospitals, schools, clean water, safe roads and structures -all of them mainly realized through public procurements for which ISO standards are required from private and public entities to win the tenders, as preconditions of legal requests to participate in public procurements). The adequacy of the infrastructure in turn benefits the individual via ac-cess to quality health and environment, education and means for cultural expression and enrichment. The LQI enhances our decision-making capacity in the management of risks to life and health. It brings into sharp focus the choices and trade-offs we have to make between extension of life and creation of productive wealth, which at the end of the day is totally related to quality of procedures in private and public entities, as well as to quality of products and services we realize, trade and consume.

Relations between ISO 9001 certificates, doing business index and life quality
As per data, facts and figures gathered by the Doing Business Reports (2014, 2015 and 2016) and ISO Executive Summary (2014) it is evident that EU western countries like United Kingdom, Germany, etc, South East countries like Austria etc, have higher doing business index and higher number of ISO 9001 certificates issued. In these countries citizens enjoy high life quality and there is no any significant dispute from business clients and public generally for quality of products and services (Life Quality Index -Germany 199.7, Austria 192.40, United Kingdom 180.25 [7].
Most of Balkan countries are in middle and bottom of the list for doing business index and ISO certificates issued (Table 1 at Appendixes). In these countries citizens enjoy a middle level of life quality and significant dispute from business clients and public generally for quality of products and services have been reported currently (Life Quality Index Romania 146.13, Bulgaria141.61, Serbia 138,26, etc [7]. In Balkan countries, besides the fact that some improvements have been done regarding to the institutions, infrastructure and legislation of quality, there is still a lack of understanding of the situation generally in public and between authorities and as a result, poor situation regarding the quality institutions, quality infrastructure and quality legislation and regulations spreads through the business climate [8]. Conclusions and recommendations 1. There are strong relations between quality management/ISO standards and doing business climate.
2. There are sustain relations between doing business climate and life quality.
3. Improving quality management system/respecting ISO standards parallel with doing business regulations and doing business climate improves life quality of citizens.
4. Balkan countries, recently joined the international community of ISO standards and being part of World Bank Reports on Doing Business, for years have had multiple problems regarding quality's institutions, quality infrastructure, doing business and life quality.
5. Balkan countries recently are facing problems that affect the development and performance of businesses, development and economic growth, sustainable development and life quality.

Introduction
Derivatives have a long history all around the world. A number of important changes in the global financial markets have strongly influenced the growth of derivative markets since the early 1970s. It can be said that during the last two decades, the use of derivative contracts is associated with a high number of events that affected corporate performance throughout the global financial markets. The trading of financial derivatives has received extensive attention and many authors have dealt with skepticism the use of these contracts in financial markets, playing an important role in stimulating the global financial collapse of large banks and corporations. We can mention the most critical that financial history has known in recent years, as the case of Barings Bank in 1995, Long-Term Capital Management in 1998, Enron in 2001, Lehman Brothers and American International Group (AIG) in 2008. The speed of their diffusion in financial markets is quite large, even in the current conditions of globalization their rate of expansion is expected to be even higher.
Based on these conditions and in past credit events which exposed many weaknesses in the organization of derivatives trading, the main challenges facing all coun-tries is related to the design of new rules to minimize risk and to promote transparency. One of the major policymakers challenges is to ensure that derivative transactions be traded properly and carefully supervised. Addressing the main constraints, the paper will serve as a theoretical instrument to further stimulate the use of these derivative contracts in Albanian oil market in defense of the main risks facing the market traders.
Derivative contracts: some basic concepts Derivative contracts as a tool for risk management have an early origin, namely in the commodity markets. Later they were found useful as a hedging tool even in financial markets. Besides the different moment of their diffusion, the basic concept of a derivative contract remains the same whether the underlying happens to be a commodity or a financial asset. One of the most important elements that differentiate their use is that commodities require a special storage facility while financial assets do not needed to. Also an important issue to be managed is that in the case of commodities the quality of the asset underlying the contract can vary largely. While in the case of financial derivatives most of these contracts are cash settled and the underlying assets have similar qualities.
Primary assets are sometimes real assets (gold, oil, metals, land, machinery) and financial assets (bills, bonds, stocks, deposits, currencies). Financial asset markets deal with treasury bills, bonds, stocks and other claims on real assets. The owner of a primary asset has a direct claim on the benefits provided by an asset. Financial markets deal with primary assets and derivative assets. It can be said that derivative assets are assets whose values depend on (or are derived from) some primary assets. Also, derivative assets (positions in forwards, futures, options and swaps) derive values from changes in real assets or financial assets, and actually even other indices, for example temperature index. Derivatives represent indirect claims on real or financial underlying assets.
The main goals of the use of derivative contracts are related to hedging against fluctuations in exchange and interest rates, equity and commodity prices, as well as credit worthiness. Derivative contracts are widely used to speculate on future expectations or to reduce a security portfolio's risk. The most common positions held by participants in derivative markets are often classified as either "hedgers" or "speculators".
Derivative contracts are widely used to speculate on future expectations or to reduce a security portfolio's risk. Derivatives transactions are now common among a wide range of entities, including commercial banks, investment banks, central banks, fund managers, insurance companies and other non-financial corporations. Firms can use derivatives to hedge risk, but also derivatives bring additional benefits to the companies like minimizing earning volatilities or reduce tax liability (Stulz, 2005). The most common positions held by participants in derivative markets are often classified as either "hedgers" or "speculators". Hedgers take positions in financial derivatives to reduce their exposure against adverse changes in the values of their assets or liabilities. Many hedgers who maintain large portfolios of stocks or bonds take a futures position to hedge their risk. Speculators commonly attempts to profit by taking the opposite position and therefore serve as the counterparty on many futures transactions or by anticipating changes in market prices or rates or credit events. Based on the activity nature that speculators perform in derivative markets, it can be said that their operations are inherently more risky and should warrant close monitoring by financial regulators.
The most important types of derivatives: This section discusses the basics concepts of four types of derivatives:

Forward Contract
A forward contract obliges its purchaser to buy a given amount of a specified asset at some stated time in the future at the forward price. Similarly, the seller of the contract is obliged to deliver the asset at the forward price. Non-delivery forwards (NDF) are settled at maturity and no delivery of primary assets is assumed.
Forward contracts are not traded on exchanges. They are over-the-counter (OTC) contracts. Forwards are privately negotiated between two parties and they are not liquid. Forward contracts are widely used in foreign exchange markets. The profit or loss from a forward contract depends on the difference between the forward price and the spot price of the asset on the day the forward contract matures. Forward contracts are settled only at maturity.

Futures Contracts
Futures contracts are created and traded on organized futures exchanges. Contracts are highly standardized in terms of the amount and type of the underlying asset involved and the available dates in which it can be delivered. The exchanges themselves provide assurances that contracts will be honored through clearinghouses. One of the primary roles of the Corporate Finance clearinghouse is to be the opposite party to all trades. Buyers and sellers of future contracts do not deal directly with each other but with a clearinghouse.
Options An option is a derivative security that gives the buyer (holder) the right, but not the obligation, to buy or sell a specified quantity of a specified asset within a specified time period. An option contract differs from the futures contract in that the option contract gives the buyer the right, but not the obligation, to purchase or sell a security at a later date at a specified price. One way of creating options is through single contracts that are individually negotiated between parties, usually firms and their banks (OTC options). Organized option exchanges Corporate Finance provide the advantages of liquidity, low transaction costs, and safety through the standardization of the assets on which the contracts are based and of the contract sizes and maturity dates.
Swaps Swaps are considered to be interest rate risk management tools because they give an efficient means of adjusting the interest rate exposure of a company's assets and liabilities. It should be noted that other financial instruments, such as exchange-traded interest rate futures and option contracts, are often capable of achieving the similar results. Swaps are long-term OTC instruments.

Some basics of commodity trading
Commodity markets came into focus in 1948 when the US increased uncertainty in trade between farmers and merchants. Just thought it was an important moment of the origins of the use of prior agreements between farmers and merchants. It's supposed to be this important moment of the beginning of the first use of agreements between farmers and merchants which was further refined in derivative contracts. The commodities' market was one of the first to begin the use of the derivatives as a hedging instrument (Chance, undated). Consequently, it can be found a lot of literature including studies of commodities derivatives. There are also several empirical evidence regarding the stock and currency derivatives market. In the past years this kind of instruments has been the most popular amongst the investors. In addition, we will not break away the importance of commodities derivatives provided especially in commodity trading, being the primary focus of our paper.
Virtually all agricultural, energy, and industrial commodities must undergo a variety of processes to transform them into things that we can actually consume. These transformations can be roughly grouped into three categories: transformations in space, transformations in time, and transformations in form.
Given that the place of commodity production and consumption are not connected, it shows that the time of commodity production and consumption is often unbound. This feature becomes more present for agricultural commodities, which in one side are often produced periodically (with a crop being harvested once a year for some commodities) but in the other side are consumed continuously throughout the year. Time discrepancies in production and consumption are present even in other products without being limited only to agricultural products. Commodity demand can also fluctuate due to macroeconomic events, such as extraordinary political events or financial crisis which cause a deterioration of the overall economy. For example, wells produce natural gas at a relatively steady rate over time, but there can be extreme fluctuations in the demand to consume gas due to random changes in the weather, with demand spiking during cold snaps and falling when winter weather turns unseasonably warm. In the other side, supply can also experience random changes, due to for example: a strike at a mine, or a hurricane that disrupts oil and gas production.

Derivative contracts approach in the near future commodity trading in Albania
Trying to expand the investigation about the topic, this research is focused on a specific derivatives market: oil commodity.
Trying to expand the investigation about the topic, this research is focused on a specific derivatives market: oil commodity. The vast majority of the Albanian market consists of trade. In trade sector are operating 42.7 percent of enterprises which make up 50.0 percent of net sales by all together companies. Inside trading companies, for some years on top list of most profitable companies are oil trading companies. As a result, is viewed with interest the possibility of using derivative contracts in this market, as an option to protect traders against from the exchange rate risk and price risk of buying wholesale items abroad. Our case study will focus on one of the largest distributor companies in Albania, "Kastrati group" being an elite company in the distribution of commodity oil in Albania and Kosovo. "Kastrati group" has a diversified investment portfolio almost even in alternative investment. We will take the case of one of its investments such as the trade of oil.
As all know oil prices are sensitive and exposed to the oil volatility of commodity prices, but also are exposed to foreign exchange rate risk during the trading time. Having such situations we try to convey through this theoretical study the use of derivative contracts to the possible potential investors. Albania is still a country with underdeveloped capital market, and therefore there is a very great lack of information regarding their use. Employees who are linked directly with the oil trading in the company have not yet know-how about the dimension uses of derivatives contracts. Supervisory authorities in our country still do not possess the necessary legislation to make available to potential investors these forms of contracts in order to protect against these risks giving rise to significant damage to high-value transactions.
Conclusions Commodity trading are essentially in the business of transforming commodities in space (logistics), in time (storage), and in form (processing). Their basic function is to perform physical "arbitrages" which enhance value through these various transformations. Commodity trading firms provide various forms of financing and risk management services to their customers. Offering these services to customers exploits trading firms' expertise in merchandising and risk management, utilizes the information commodity trading firms have, and provides better incentives to customers and themselves. The private ownership model is well-adapted to traditional, "asset light" transformation activities, but as economic forces are leading to increasing investments in physical assets by all types of trading firms. Commodity trading firms exhibit considerable diversity in their in-vestments in physical assets, with some firms being relatively asset intensive, and others being very asset light.
These firms or companies also exhibit diverse trends in asset intensity.

The impact of credit risk management on the banking profitability: A Survey of the Theoretical and Empirical Literature
Abstract: Banks as financial intermediation institutions are defined as businesses that receive and manage various risks. Among numerous banking risks, credit risk is identified by most researchers as the greatest risk affecting the performance of the bank. On the other hand, banking sector profitability has received great attention in recent years. The purpose of this paper is to recognize us with theoretical and empirical literature about the relationship that exists between credit management risk and banking profitability indicators. The most studies in this field have concluded that credit risk management is the primary contributor on the profitability of commercial banks. But there are and those studies that have proved that the impact of credit risk management on banking profitability is negligible.
Keywords: credit risk management, banking profitability, indicators of profitability, indicators of management credit risk

Risk management in banks
The management of bank risks is the most important factor for financial stability and economic growth in the developed economies, Ferguson [1].Van Gestel and Baesens [2] say that an appropriate procedure for risk management is the identification of risk, risk measurement and then developing strategies to manage risk. According to Adeusi at al [3], risk management issues in the banking sector have not significant impact only in the performance of the bank, but also in national economic growth and in the development of the business climate. Credit risk is considered as greater risk from all other risks affecting in the financial performance of a bank. Gieseche [4] said that the credit risk is the most important risk that are facing banks, where their success depends on accurate measurement and efficient management of this risk, in a greater extent than any other risk. Lopez [5] expressed that the credit risk is the risk of reducing of the value of the loan due to a change in the ability of borrowers to perform payment.
Chen and Pan [6] said that the credit risk is the degree of volatility of the value of debt instruments or their derivatives due to changes in the credit quality of borrowers and parties related to them . Hosna at al [7], stated that the credit risk is the most important risk that are facing commercial banks due to his connection with possible losses. According to Charles [8], risk management is essential for the survival of a bank and this enables the management to allocate resources for the risk units based on a compromise between risk and potential return. Banks that are primarily exposed to credit risk, result in the reduction of their profitability. Shelagh Heffernan [9] expressed that five main ways that a bank can minimize credit risk are: accurate determination of the price of credit, credit limits, the use of collateral, diversification of credit and "Securitisation" and/or the use of credit derivatives. Sinkey [10] singled out what he calls "Five C" to be used in a qualitative assessment of credit risk: 1. Character: A borrower is ready to repay the loan? 2. Cash flow: Has borrower reasonable liquidity?
3. Capital: What assets or equity has the borrower? 4. Collateral: It's possible that the borrower to put collateral? 5. Conditions: How is the state of the economy? How strong will be the borrower in case of an economic recession?

The profitability of commercial banks
The profitability ratios used to measure how well a business is functioning in terms of profit. In other words, profitability ratios serve to measure the success of the firm. Chin'anga [11] defines profitability reports as financial measurements assessing the capacity of a business to produce income against expenditure and business costs during a certain period of time. These reports are considered basic financial reports of banking institutions. Ruziqa [12] says, when a bank will increase and maximize its profit, it should increase the risk or reduce its operating cost. Koch and MacDonald [13] argued that bank profitability generally is related so directly with riskiness of the bank's portfolio and its operations. As a result of this, banks in order to increase their return, need to know which are risk factors that have the greatest impact on profitability, which ultimately will increase the bank's financial performance. Guru et al [14] express that the determinants of profitability of commercial banks can be grouped into two categories: domestic determinants -are determinants that are controllable by management and external determinants -are determinants which are out the control of management. We have seen some similary studies that use ROE and ROA as indicators of banking profitability.

Review of empirical literature
The profitability of the banking sector has received attention always greatly in recent years. Nowadays there is a vast empirical literature which has examined the relationship between credit risk management and bank profitability. Most studies in this field have concluded that the management of credit risk is major contributor on the profitability of commercial banks. But there are and studies who have proved that the impact of credit risk management on bank profitability is negligible. In this section of the paper we will make a summary of empirical studies that are committed by different researchers in different countries and will mention results that have emerged from each study.

Empirical studies in relation to the impact of credit risk management on banking profitability
There are numerous empirical studies about the impact of credit risk management in banking profitability and how can the effective management of credit risk to help to reduce the probability of failure and to limit the uncertainty to achieve the required level of bank profitability. Most of these studies support the idea that have impact of credit risk management in banking profitability but there are also studies that have issued conflicting results. Berger and DeYoung [15] surprisingly find a strong positive connection between capital adequacy ratio and profitability of banks in USA during the 1980s, but he found that the relationship should be negative in certain situations. In an another study Kosmidou et al [16], also found similar results for commercial banks in the UK during the period 2000-2005.
In an another study Ruziqa [17] investigated the joint effect of credit risk and liquidity risk in the profitability of the largest Indonesian banks and reveals the negative effect of credit risk and the positive effect of liquidity risk in profitability.
Felix and Claudine [18] investigated relationship between bank performance and credit risk management. Their findings concluded that return on equity and return on assets, two indicators used to measure profitability, were negatively correlated with the ratio of nonperforming loans to total loans of financial institutions, leading to a decline in profitability.
Hosna at al [19] in their study showed that credit risk management impact on profitability in the four banks involved in the study. Among the two indicators taken as proxy of credit risk management, they found that NPLR has a more significant effect than CAR on the indicator of profitability ROE. Analysis of each bank that was taken in study showed that the impact of credit risk management in profitability is not the same.
Funso et al [20] in their study found that a growing 100% in nonperforming loans reduces profitability (ROA) about 6.2%. An increase of 100% in provisions for loan losses also reduces profitability by about 0.65%, while an increase 100% in total loans and advances increases profitability by about 9.6% S. Kodithuwakku [21] in his study found that 1% increase in NPL reduce ROA with 13.7587% and 1% increase in provision for loan losses reduce ROA with 1.0139%. Also, 1% increase in loan provisions/NPL reduce ROA with 0.0792%. The regression results also showed that loan provisions/total assets of banks is positively correlated significantly with ROA. The model revealed 1% increase in the provisions for loan losses increase ROA with 0.1035%. Found results confirmed the objective of the study that a better management of credit risk brings a better banking performance.
Fan Li and Yijun Zou [22] showed that credit risk management has positive effects on the profitability of commercial banks. Among the two representatives of credit risk management, NPLR has a significant impact on two indicators, ROE and ROA. However, during the period under study, relations between all representatives were not consistent but flexible.
Gizaw et al [23] found that nonperforming loans, provisions for loan losses and capital adequacy have a significant impact on the profitability of commercial banks in Ethiopia. Loans to deposits ratio have not significant impact on bank profitability.

Conclusions of the review of theoretical and empirical literature
Banks as financial intermediation institutions are defined as businesses that receive and manage various risks. Banking risk management is the most important factor for financial stability and economic growth in developed economies. The main causes of serious banking problems are directly related to poor standards of lending to borrowers. The increase in the credit risk will increase the marginal cost of debt and equity which translates rising costs of funds for the bank. Profitability is the main concern of banks. Profitability ratios serve to measure the success of the bank. Reports of bank's profitability, higher or the same compared with previous periods also show that the bank is doing well. Most of these studies support the idea that has impact of credit risk management on banking profitability but there are also studies that have issued conflicting results. Empirical analysis helped us to get acquainted with the most useful indicators of credit risk management and banking profitability indicators. All empirical studies that we saw about this topic, have used as a model for data analysis model of multiple linear regression, where they received as dependent variables banking profitability indicators and as independent variables i ndicators of credit risk management. Most empirical studies of the above have concluded that has a strong and stable relationship between credit risk management and bank profitability. But there are and studies that claim the opposite.

The integration of Russia into the world economy
Abstract: The article contains the results of studies of agricultural production in the agricultural sector. As the study addresses the problem of improving the competitiveness of the Russian producer, expressing economic, industrial, organizational, managerial, and other opportunities not only to the individual enterprise, but also the economy.

Modeling business architecture in pension fund Russian region of Krasnodar territory Abinsk
Abstract: This article discusses the concept of enterprise architecture. The simulation of one of the main domains of enterprise architecture, namely the business architecture. Following the results of the simulations performed, conclusions and recommendations for improvement of the study of the object domain.
Keywords: enterprise architecture, the Pension Fund, modeling, integration model, decomposition of functions, location of performing the functions of business-events analysis.
Business is becoming increasingly addicted on information technology. Termination work the information system entails a losses for the organization. IT professionals need methods of management of information systems targeted at increasing efficiency.
One of these methods is the enterprise architecture. Legal Pension Fund regime defined by the Regulations of the Pension Fund of the Russian Federation, approved by the Decree of the Supreme Council of 27 December 1991 (as amended. 5 August 2000).
RF Pension Fund is subject to the Government of the Russian Federation, before whom reports annually on the results its activities. The budget of the Pension Fund is annually approved by the supreme legislative body of the country. The Fund's resources are state property. The fund is formed at the federal level and in the subjects Russian Federation, it allow realize payments to all pensioners, regardless of their seats previous work and residence. The whole system of the values Pension Fund constructed based on the respect for the guaranteed rights and freedoms of Russian citizens and the priority of national interests.
Model business process called its formalized description that reflects the really existing or prospective company activities.
Activities FIU by Abinsk district by maintenance of Russian citizens is details the into three processes: the main business processes, ancillary business processes and management. To establish links between business processes and business strategies and driving forces and factors success make use of the communication matrix.

А1. Key business processes include
So assessment "important," marked the following business processes: appointment and implementation of social payments to certain categories of citizens; Keeping system personified registration rights of participants in the mandatory pension insurance system; issuance of state certificates for maternal (family) capital; Formation, investment and pay of means pension savings. The assessment "not important," noted the following business processes: establishment and payment of insurance pensions (by category); implementation Programs governmental of co-financing of pensions.
Business processes are marked with a evaluation of «not important» carry a secondary importance, but are also strategically important for the organization.
Next, is carried construction high-level models for key business processes. Analysis business processes FIU Abinsk district is carried out through decomposition of functions/processes.
For the business process "A1. Key business processes «subprocesses will be» A1.1 Establishment and payment of insurance pensions (by category)", "A1.2 Appointment and implementation of social payments to certain categories of citizens", "A1. 3 Keeping system personified registration rights of participants in the mandatory pension insurance system", "A1.4 Implementation Programs governmental of co-financing of pensions", "A1.5 Issuing state certificates for maternal (family) capital ", "A1.6 Formation, investment and payment of means pension savings. " The person responsible for the implementation of the business process is the chief of FIU Abinsk district.
For business process "A2. Ancillary business processes «subprocesses will be» A2.1 Maintaining infrastructure (budget planning, management finance, accounting, legal support, reporting)", "A2.2 Technical support (offices content, service maintenance of equipment)", "A2. 3 Information provision (introduction of a new software, programs by destinations, storage management, and obtain information and data programs)", "A2.4 Personnel management (creation and management of strategy, development and personnel training)", "A2.5 Flow of documents". The person responsible for the implementation of a business process is a deputy director.
Analysis Business Event allows you to understand how business events caused and what kind associated processes with him occur in the value added chain of the enterprise.
For the key business process initiators and participants are the chapter of the FIU in Abinsk, the head of department of social payments, the head of the depart-ment for providing social guarantees and social service organization, head Management of the organization of the personified accounting, Head of administration Division of insurance premiums, the interaction with insurers and debt collection. Partners from the external environment: banks, businesses, investors, State, Government Russia.
For ancillary the business processes of the initiators and participants are the head of the FIU in Abinsk, the head of the personnel department, the head of the automation department. Partners from the external environment -State, Government Russia. Initialization of innovation is to improve the methods of work with clients, new software products.
For business process «Management» the initiators and participants are head of economic department, head of the personnel department, the head of the automation department. Partners from the external environment is the state, the Government of the Russian Federation. Initialization of innovation lies in the use of IT for carrying out analysis, forecasting and planning.
The model the locations identifies the place where the business functions are carried out, and provides logistics glance to function performed the organization. The purpose to locations simulation is an visualization of organizational units, definition of places, where functions are performed and links between them.
Location of main business process: accounting, legal department, administrative apparatus, analysts department, management apparatus. Requirements for the technology infrastructure and the architecture of application systems: MS Office.
Location of support business processes: social payments department, department ensuring social guarantees and the organization of social service, organization Office of personified registration, insurance premiums administration department, interaction with insurers and debt collection. Requirements for the technology infrastructure and architecture of the MS Office application systems, specialized software for accounting.
Location Business Process «Management»: social payments department, department ensure social guarantees and the organization of social service, organization management of the personified accounting, insurance premiums administration department, interaction with insurers and debt collection. Requirements for the technology infrastructure and application systems architecture: specialized software for analysis, forecasting and calculations.
Model Integration reflects the requirements for the interfaces between processes and business events. This mod-el serves as the basis for the construction of information architecture and application systems architecture.
Communication between processes «A1. Key business processes» and «A2. Ancillary business processes»: reporting departments, agreement, information about new positions, laws. Requirements for application architecture and technology infrastructure: improving the information exchange between processes, reliability, timely information on new regulations, laws, timely execution of requests, data access in several departments, the implementation of simple and complex transactions across the enterprise.
Communication between processes «A1 Main business processes» and «A3 Management»: reports departments. Requirements for application architecture and technology infrastructure: increase in efficiency, visualization software of presentation of information, access to data across the enterprise, the implementation of simple and complex transactions across the enterprise.

Development of the theory of state economic growth policy
Abstract: The article deals with questions about the role of the state and state regulation of the economy in the economic growth. It analyzes the evolution of views on economic policy since mercantilism theory to modern concepts of state policy of economic growth generated by the trends of postindustrial transformation and globalization of the economy.
State economic policy -is the main tool of macroeconomic regulation of the economy. Its role and importance is steadily increasing, which is manifested in the growth of the state share in the distribution of GDP. It is influenced by economic, political and ideological factors, as well as the existing infrastructure institutions and their complexes as a product of the activity of previous generations. Its priorities are largely determined by the economic and political situation, the influence of interest groups, election tactics. But she, in turn, has a decisive influence on the economic development of the country, the region, the world, slowing it, or vice versa, contributing to economic growth.
Economic growth is a means to achieve the goal of social development -is raising the material welfare of the population. It is therefore also the aim of economic policy. It is also a means of improving distribution relations, it is a source of employment of labor, increasing the tax base, and hence the increase of state budget revenues. It allows you to more successfully deal with many domestic and international socio-economic problems. Economic growth allows you to raise the level of education, health care, address the environmental, defense problems.
From this perspective, we must distinguish the concept of economic growth and economic development. These concepts are closely linked. At the same time, there are often significant differences and therebetween. Economic development -is a multifaceted process. The content of this concept is switched on and the process of improving the production, economic restructuring, qualitative changes in the system of socio-economic relations. These variations, though not all, in turn, are reflected in the growth. Economic development takes place during the temporary absence of economic growth. For example, in the Republic of Uzbekistan for 1991-1995, there was a significant qualitative changes in the economy.
An example may be a period of transition from one economic system to another, in particular in the transition from centrally planned to market economies. But economic growth -an essential prerequisite for improving the production, progressive changes, transformations. It is an integral part of the progress, the foundation of social development. And this is due to the great attention to the issues of economic growth, it factor, which is given in the global and domestic economic literature, in the economic policies of the various states. An example may be the conclusions remarks on this issue in economic theory, economic policy of different countries. Economic growth has a qualitative and quantitative measure. He as a quantitative measure on the macro level, act as growth rate (growth) of the physical (real) GDP as a whole, as well as the per capita income for a certain period of time.
"Analyzing the progressive advancement of the country along the path of democratic reforms and sustainable development, we have all grounds to state that made decisive steps in the past year in the implementation of fundamentally important reforms aimed at achieving our main goal -to reach the level of developed democratic countries in the world with a strong socially oriented economy, providing a decent standard and quality of life of our people, " President Islam Karimov noted [1].
Economic growth, oriented to the solution of social problems, improving sustainability and resource efficiency, is one of the promising areas of mitigation of risks and threats facing the countries of the world, especially in the post-crisis period. "To date, all developmental countries that have or are developing a long-term development strategy, as one of the major problems of its implementation put the transition to inclusive growth. " It should also change the investment project selection criteria in the formation of state investment program, identified as main number of new productive areas (sustainable and highly profitable) jobs per 1 mln. UZS. Investitsy [2,201].
As an important component of such a policy should be to create the conditions necessary for the development of industrial accelerated SME-oriented production of finished competitive on the world market.
To assess the effectiveness of implemented increase employment programs should develop and implement classifier quality of new jobs created by features their sustainability and profitability.
Currently, the historical in the developed countries of the multilayer system of regulation of economic life (spontaneously-market, corporate, government and supranational government regulation) play the leading role of the state institutions, in one way or another controlled by civil society institutions. In modern conditions, "state -this is the only and exclusive institutions of society, universal mouthpiece of the public interest. " The population of developed countries require from their governments policies aimed at maintaining high employment, price stability and economic growth.
The value of the government's economic policy has increased dramatically following the global economic crisis of 1929-1933. Have shown a lack of market and corporate regulation. It became clear that to save the capitalist economy and ensure that it is capable of further growth only sound economic policy of the state. Since the mid 30-ies. XX century scientific discussions are not conducted on the need and extent of government intervention in the economic life of society on the effectiveness of state economic policy.
In the pyramid of state regulation of the economy goals are the highest goals -social stability, preserving the dynamic performance and the creation of favorable conditions for economic growth. In the Republic of Uzbekistan, subject to the general logic of global development, also raises economic growth in the number of the priority objectives of its policy, linking it with the formation of the social state.
Concept of the state's role in the economy, speaking part of economic knowledge, formed under the influence of general scientific laws, while reflecting the change of the object of study. The complexity of the research problems of the state policy of economic growth is that its constituent parts are the two categories of "public policy" and "economic growth", the manifestation of which in real life does not always coincide.
An important place in the theory of growth take questions the state's role in this growth. Experience in the development of most countries showed that the role of the state in the economy is growing, especially in recent decades. Today it is possible to trace the evolution of views on economic policy since the theory of mercantilism, which reflected the interests of the representatives of commercial capital and justify protectionism, to modern concepts of state policy of economic growth generated by the trends of postindustrial transformation and globalization of the economy.
Throughout the study period observed correlation logic of formation of state policy of economic growth with the evolution of the concept of social production. Thus, economic liberalism, dominant in the period of classical capitalism and up to 30-ies. XX century, a priority in the regulation of the economy gave the market and economic growth linked primarily to the accumulation of capital (Adam Smith, David Ricardo). But already in the XIX century with the appearance of areas of "impotence of the market" economists express ideas enhancing the role of the state in society ( JS Mill, S. Sismondi), in favor of the priority development of the government economic functions (R. Owen, C. Saint-Simon, Charles Fourier) and even deny the necessity of the state (P. Proudhon), linking social progress with the solution of social problems.
At the end of the XIX century marginalists, and then the neo-classical (Menger, Böhm-Bawerk E., F. Wieser, W. Jevons, Marshall, A. et al.), Focusing on microeconomic issues considered, based on Say's Law, that economic growth will be supported by the market mechanism automatically with minimal government intervention. But the global economic crisis of 1929-33., Which became a shock to the neoclassical theory, brought to life the theory of regulated capitalism. JM Keynes for-