Table of Contents

Introduction................................................................................................................................................... 2 Problem Formulation .................................................................................................................................... 2 Delimitations ................................................................................................................................................. 2 Theoretical considerations ............................................................................................................................ 2 Theory applied............................................................................................................................................... 3 The firm ..................................................................................................................................................... 3 The Micro Environment............................................................................................................................. 3 Suppliers ................................................................................................................................................ 3 Buyers .................................................................................................................................................... 4 Industry outsiders (other suppliers) ...................................................................................................... 5 Industry insiders (competitors) ............................................................................................................. 5 The Macro Environment............................................................................................................................ 5 Socio-Cultural Actors ............................................................................................................................. 5 Economic Actors .................................................................................................................................... 6 Political-Regulatory actors .................................................................................................................... 7 Technological actors .............................................................................................................................. 7 Conclusion ..................................................................................................................................................... 7 Annexes & Enclosures ................................................................................................................................... 8 Annex 1 .......................................................................................................................................................... 9 Enclosure 1 .................................................................................................................................................. 11

Introduction
No firm exists that is autarchic. All firms must necessarily interact with other organizations (and individuals) in their environment and therefore they have inter-organizational (or inter-firm) relationships.1 In other words, every company, in order to survive, has to plan its activity carefully taking into account all other actors from its micro environment and functioning by the rules imposed by the macro environment. Therefore, there is a symbiosis between a company and its web of relational actors. For a company to survive, a deep analysis of the macro and micro environment should be made before any strategic choice. Following the theory described in the book, an analysis of the external forces, that would affect the future company if opened in Romania, will be conducted. This project is going to be used for a business plan to open a branch for an existing company from Denmark in Romania.

Problem Formulation
Stock House, a business unit from the Auluna Group wants to open a branch in Romania. As a result the company needs to have information about its web of relational actors within this new market. The following questions are going to be answered: 1. Who are the relational actors for Stock House in Romania? 2. What are the relations between the actors and the company?

Delimitations
We are analyzing this chapter because it is viable to manage a web of partnership relations and because it provides useful vital insight into the Romanian market, necessary when opening a business unit. From this chapter we will only deepen the relational actors part due to shortage of time and length of the report. Nevertheless, this report will complement the Business Plan in the Innovation II course.

Theoretical considerations
The main object of this report will be based on the figure showing the firm and its web of relational actors from the book (Meyer and de Wit) from page 1602. It presents in a general way the environment in which a firm is conducting itself towards its business objective. Thus, the company is influenced in a direct approach on its upstream relations with the suppliers and downstream relations with their customers/buyers. On the horizontal point of view, the firm has indirect relations with the complementors (industry outsiders) and direct relations with the competitors (industry insiders). From the macro environment, there are four types of actors identified that cannot be changed by any actions of the company. These are the socio-cultural actors, economic actors, political/regulatory actors and technological actors.

1 2

Bob de Wit & Ron Meyer, Strategy Synthesis Third Edition, 2010, p. 160 View annex 1

Theory applied
The firm
Stock House is an independent member of Auluna Group A/S. The business area of Stockhouse is the

sale of goods (garments, bags and accessories) held in the warehouse whether because they have not been sold or because there have been several complaints regarding the products. The Auluna Group has been developing their skills and know how on the field of outsourcing the
production of leather garments to China and selling on the European markets. In the Auluna Group A/S are different individual brands and business units, described below: Brand Auluna leather brand for women, addicted to Scandinavian fashion. Brand Nova Bags & Accessories stylish bags and accessories. Brand Kaos addressed to young people with fashionable styles in leather and fake leather. Brand Patino leather jackets for men, specific to Scandinavian fashion. Brand Minna leather jackets for the real women. Luna Developing Company Ltd sourcing unit in Hong Kong and Hangzhou, China. Hang On A/S - custom made hangers and accessories for fashion industry Underground Spzoo warehouse and outlet shops in Poland Stock House Aps leather for outlets and leftovers.

Stock House started with the selling of old stock items from the other brands within Auluna Group A/S: Auluna, Minna, Patino and Kaos, as well as unaccepted stocks. Nowadays, the business area also consists in buying and selling stock lots of leather, fur and imitations of leather and fur of different brands, as: Zara, Company&Co, Pimkie, Orsay, Vero Moda, Review and so on. The company mainly sells garments and bags, but it can also supply with belts, hats and accessories at very competitive prices. Stock House has a great potential and place for improvements. Currently, the company reached its clients due to awareness of the brands within Auluna Group, by searching the internet or Aulunas old clients. One thing is certain and that there are significant opportunities to increase revenue, since manufactures are constantly working to minimize stock levels and the new wave of outlets and web-shops present endless prospects.

The Micro Environment

Suppliers The suppliers for Stock House Romania will consist of different companies and brands from Romania and also from Denmark and Poland. Generally speaking the suppliers will be the leather producing companies that offer samples, companies whose products present some errors made in the production process and also companies that have old collections of leather clothes that they cannot sell. It is

important to mention that the same principles will be applied when it comes to the value chain of the new company, as there will be the same suppliers as the company from Denmark has, but with the inclusion of new suppliers from Romania. Apart from Stock House Denmark as main supplier, other potential supplier within Romania market might be:
Tabel 1 Potential Suppliers

Supplier company IACOB PROD COM SRL SC ProdSim SRL TONI TRADING COMPANY

Address

Contact details

Web-site

Sebis, str. Spicului, Iacob Liviu ( CEO ) http://iacobprod.lx.ro/ jud. Arad, cod +40744 / 565729 315700 iacobprod@yahoo.com Bortis Simion ( CEO ) Sebis, str. Parcul +40257 / 311017 Libertatii, nr.25, jud. http://www.prodsim.ro office@prodsim.ro Arad Drumul Sarii nr. 1117, sc. D, etj. 2, ap. +40213 / 310203 http://www.tonicompany.ro/ 55, sector 6, office@tonicompany.ro Bucharest More in Enclosure 1 Potential Suppliers

Buyers Regarding the buyers it is also important to mention that Stock House Romania will sell mostly to other companies. This means that the company will go mainly for the B2B, but also the B2C relation will be used. Therefore, during the week the firm will sell exclusively to other companies (outlets, shops, web shops, etc), while during the weekend the final customers will have the opportunity to buy leather clothes directly from the company (at the same price as the stores).
Tabel 2 - Potential Clients

Potential client company A&G Brands Outlet

Address

Contact details

Web-Site http://www.bizoo.ro/firm a/BRANDSOUTLET/profil http://www.bizoo.ro/firm a/alexandrabacau/profil http://www.bizoo.ro/firm a/almainternationa

Alexandra COM SRL Alma International SRL

Timisoara, Str. Barna Gelu Gheorghe Lazar, nr.3, +40727 / 883163 jud. Timis Bacau, BD. Unirii, Bl 15, Ivasciuc Viorel Cod 600192, Jud. Bacau +40234 / 516470 Bucharest, Cal. Mosilor, Stavrica Eugen Nr.288, Bl 32, Sect. 2, +4021 / 2303207 Bucharest More in Enclosure 1 Potential Clients

Industry outsiders (other suppliers) The other suppliers (complementors) involved in this business would be companies that will provide different items or services needed inside the warehouse. For instance, there are stationery suppliers, suppliers of hangers, suppliers of services (transport, waste, recycling) and others. These suppliers will most likely be Romanian firms, as the costs will be lower than using companies from other countries. Industry insiders (competitors) The competitors for the Romanian market are direct competitors and indirect competitors. The direct competitors are the already established firms that also buy and sell leather garments the same way that our company will do. Also, this category includes the leather manufacturers. On the other hand, the indirect competitors are the firms that produce jackets and purses made out of different textiles (nylon, polyester, cotton, etc). As it has been said before, the products of the company includes only leather garments, accessories and bags, but as the new branch from Romania will be established, it could go on adding new leather items to be sold, because every new approach that attracts profit is immediately adopted. In other words, on the competitors list it can be added those companies that produce and sell leather furniture and footwear.
Tabel 3 - Potential competitors

Competitor company SC Mybiss SRL

Adress Suceava, Str. 22 Decembrie, Suceava

Contact details Catea Radu +40768 / 797341

Web-Site www.pradus shop.bizoo.r o/profil

Observations Intermediary between outside clothing and accessories companies and the Romanian market

Stock Outlet

+4075 / 1110390

SC FINE CLOATHES

Arad, Arad

Todea Ovidiu +40745 / 419458 office@stocurihaine.ro

http://www. stockoutlet.ro http://www. stocurihaine.ro

Sells stocks of clothes in Romania

The Macro Environment

Outside Stock Houses environment there will be all sorts of actors that will push or pull the activity of the company in a direction or another. Following, we will present what types of actors Stock House will meet along its activity in Romania. Socio-Cultural Actors These types of actors have a significant impact on the societys values, beliefs and norms. Within this headline Media resides in Romania as the highest truth speaker. In other words, if the Media does not like you, then nobody will. Its a very intelligent form of marketing if handled well, and for a newly established company like Stock House in Romania, all types of marketing tools are welcomed. Because of Stock Houses selling objective we have no doubt that the direction these types of actors could drive the company in, will be the right way.

These actors could be divided into categories as follows: Official press (newspapers Adevarul, Evenimentul Zilei, Gardianul, Cotidianul, Gandul, Jurnalul National, Ring free newspaper), Magazines (Elle, the ONE, Tabu, Joy, Bolero, Avantaje, etc.) Television, Radio (Kiss FM, Europa FM, RadioZu, Radio 21, Radio Romania Actualitati, etc.), Fashion websites (www.elle.ro , www.stiletto.ro, www.bolero.ro, www.petocuri.ro ), Social media websites (www.FaceBook.com, www.twitter.com, www.linkedin.com), Blogs (www.thisismysuit.com, http://elle-anais.blogspot.com, http://magazinechic.blogspot.com, etc.), and others. Economic Actors In Romania, these actors will be the main collaborators of Stock House as the company will probably choose a bank to do business through, be registered at a Chamber of Commerce and obey all the economical rules and policies Romania has established over the years. At the beginning, at least, the company will have to be registered in all types of organizations and follow certain steps:

Figure no. 1 - Procedures of registering the company in Romania

Also, great importance has the employee unions in the respective branch Textiles and textiles manufacturer, leather and shoes manufacturers such as PELCONEX Federation that could have certain expectation of employers within this industry branch.

http://www.doingbusiness.org/data/exploreeconomies/romania

Political-Regulatory actors Stock House could also cooperate with administrations setting or impelling the rules under which the companies must function. Some of them might be government, political parties, special interest groups, regulatory bodies and international institutions. Financial Guard www.gardafinanciara.ro The Unique Office www.biroulunic.ro The National Trade Register Office - http://www.onrc.ro Territorial Labor Inspectorate www.itmbucuresti.ro Bucharest Court House www.tmb.ro

Technological actors Within this field the company might interact with research institutes, universities, government agencies and standardization bodies. It has to do with the creation of new knowledge. There are several universities in Romania within design and textiles, leather and fur manufacturing such as: Faculty of Design (Tibiscus University Timisoara), the faculty of decorative arts and design - Fashion and Textiles department (Arts University Bucharest), Textiles, Leather and Industrial Management Faculty (Technical University Gheorghe Asachi Iasi).

Conclusion
This report provides a short overview of the future Stock House in Romania net of relationships. It represents an instrument that analyzes the eight major groups of external bodies that will influence the penetration and doing business in the Romanian market. We looked over the industry actors by researching the potential suppliers, clients and competitors; the contextual actors were not overlooked since their behavior sets the conditions under which the company will operate. This paper will be of most importance, in our research for the business plan for Stock House Romania.

Annexes

&
Enclosures

Annex 1
Theoretical considerations from the book:

Relational actors In figure an overview is given of the eight major groups of external parties with whom the firm can, or must, interact. A distinction has been made between industry and contextual actors. The industry actors are those individuals and organizations that perform value-adding activities or consume the outputs of these activities. The contextual actors are those parties whose behavior, intentionally or unintentionally, sets the conditions under which the industry actors must operate. The four main categories of relationships between the firm and other industry parties are the following (e.g. Porter, 1980; Reve, 1990): Upstream vertical (supplier) relations. Every company has suppliers of some sort. In a narrow definition these include the providers of raw materials, parts, machinery and business services. In a broader definition the providers of all production factors (land, capital, labor, technology, information and entrepreneurship) can be seen as suppliers, if they are not part of the firm itself. All these suppliers can either be the actual producers of the input, or an intermediary (distributor or agent) trading in the product or service. Besides the suppliers with which the firm transacts directly (first-tier suppliers), the firm may also have relationships with suppliers further upstream in the industry. All these relationships are traditionally referred to as upstream vertical relations, because economists commonly draw the industry system as a column.

 Downstream vertical (buyer) relations. On the output side, the firm has relationships with its customers. These clients can either be the actual users of the product or service, or intermediaries trading the output. Besides the buyers with which the firm transacts directly, it may also have relationships with parties further downstream in the industry column. Direct horizontal (industry insider) relations. This category includes the relations between the firm and other industry incumbents. Because these competitors produce similar goods or services, they are said to be at the same horizontal level in the industry column. Indirect horizontal (industry outsider) relations. Where a firm has a relationship with a company outside its industry, this is referred to as an indirect horizontal relation. Commonly, companies will have relationships with the producers of complementary goods and services (e.g. hardware manufacturers with software developers). Such a relationship can develop with the producer of a substitute good or service, either as an adversary or as an ally. A relation can also exist between a firm and a potential industry entrant, whereby the incumbent firm can assist or attempt to block the entry of the industry outsider. Furthermore, a firm can establish a relationship with a firm in another industry, with the intention of diversifying into that, or a third, industry. In reality, where industry boundaries are not clear, the distinction between direct and indirect horizontal relations is equally blurry. Besides relationships with these industry actors, there can be many contacts with condition-setting parties in the broader environment. Employing the classic September distinction, the following rough categories of contextual actors can be identified: Socio-cultural actors Individuals or organizations that have a significant impact on societal values, norms, beliefs and behaviors may interact with the firm. These could include the media, community groups, charities, religious organizations and opinion leaders. Economic actors. There can also be organizations influencing the general economic state of affairs, with which the firm interacts. Among others, tax authorities, central banks, employers' federations, stock exchanges and unions may be of importance. Political/legal actors. The firm may also interact with organizations setting or influencing the regulations under which companies must operate. These could include governments, political parties, special interest groups, regulatory bodies and international institutions. Technological actors. There are also many organizations that influence the pace and direction of technological development and the creation of new knowledge. Among others, universities, research institutes, patent offices, government agencies and standardization bodies may be important to deal with. As figure visualizes, companies can choose, but are often also forced, to interact with a large number of organizations and individuals in the environment. This configuration of external actors with which the organization interacts is referred to as the company's group of 'external stakeholders'.

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Enclosure 1
Potential Suppliers
Supplier company IACOB PROD COM SRL SC ProdSim SRL TONI TRADING COMPANY SC A&A VESA SRL SC Casa Teo SRL Artimex Napa SRL Chronos Art Impex S.R.L. Address Sebis, str. Spicului, jud. Arad, cod 315700 Sebis, str. Parcul Libertatii, nr.25, jud. Arad Drumul Sarii nr. 1117, sc. D, etj. 2, ap. 55, sector 6, Bucharest Sebis, Str. Banatului, nr.14, jud. Arad, cod 315700 Iasi, Str. Closca, nr.6, bl. B2, sc.1, cod 700750, jud. Iasi Orastie, Str. Campul Nou, Nr. 14, Jud. Hunedoara Calea Victoriei, Nr.216, Sect.1, Bucharest, Romania Odorheiu Secuiesc Str. Cetii nr. 5, cod 525600,Jud. Harghita Miercurea Nirajului, Str. Santana, Nr. 9, Cod 547410, jud. Mures Orastie, Str Armatei, Nr. 30, jud. Hunedoara Targu Mures, Str Gheorghe Doja, Nr. 80, Cod 540233, jud. Mures Targu Mures, Str Budiului, Nr. 29, Cod 540390, jud. Mues Sebis, str Magurei, Contact details Iacob Liviu ( CEO ) +40744 / 565729 iacobprod@yahoo.com
Bortis Simion ( CEO )

Web-site http://iacobprod.lx.ro/

+40257 / 311017 office@prodsim.ro +40213 / 310203 office@tonicompany.ro

http://www.prodsim.ro

http://www.tonicompany.ro/

Vesa Gheroghe Vasile +40744 / 783481 Davidescu Razvan +40232 / 216712 info@casateo.com Filip Sorin +40254 / 242161 office@artimexnapa.ro Morarite Mihaela +4021 / 3221336 mihaela.moraite@chronosserv.ro Sofavi Iolanda +40266 / 206470 office@confexjakab.ro Sabu Erne +40265 / 576221 erma@lorinfo.ro Balan Dalia, +40254 / 241727 Mkrtchyan Grigor +40265 / 307230 goldoxcontact@gmail.com Ilovan Daniela +40265 / 261191 Marius Chis

http://www.vesa.ro

http://www.casateo.com/

http://www.artimexnapa.ro/

http://www.chronos-art.ro

Confex Jakab SRL Erma Prod Com S.R.L

http://www.confexjakab.ro

http://www.erma.ro/indexro.htm

Geronimo S.R.L. Goldox S.R.L

http://www.geronimodesign.ro

http://www.geronimodesign.ro

Ilcompel Impex S.R.L Manufactura

http://www.ilcompel.ro/confectii -piele-blanuri.html http://www.manufacturamagura.

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Magura S.r.l. Patrux Grup S.r.l. Rovex S.a

Sc Icma Com Srl VIDRA CONFEX S.A. Pelmod

Nr. 44a, jud. Arad Aleea Tibles Nr.26, Bucharest Oradea, Cal Clujului, Nr. 161, Cod 410562, jud. Bihor Craiova, Bd. 1 Mai, Nr. 54, jud. Dolj Hunedoara, Str. 9 Mai Nr. 2, jud. Hunedoara Saliste, Str. Steaza, Nr. 68, Sibiu

+0257/311088 Jalba Constantin +4021 / 6372678 Uivarosan Nicoleta +40259 / 415744 Andrei Constantin +40722 / 291306 office@lederland.ro Gheorghe Graur +4092 / 620151 Cuntan Ioan +40269 / 553029

ro/ http://www.patrux.ro (under construction) http://www.rovex.ro (under construction) http://www.lederland.ro/

http://www.vidrahd.ro/

http://www.bizoo.ro/firma/PELM OD/vanzare

Potential Clients
Potential client company A&G Brands Outlet Address Timisoara, Str. Gheorghe Lazar, nr.3, jud. Timis Bacau, BD. Unirii, Bl 15, Cod 600192, Jud. Bacau Bucharest, Cal. Mosilor, Nr.288, Bl 32, Sect. 2, Bucharest Lugoj, Str. Caraiman, nr.80, Bl. 17, Sc. B, Ap. 9, Jud. Timis Cluj-napoca, Str Baba Novac, Nr. 8, Jud. Cluj Barlad, Bd Republicii, Nr. 190, Bl. 3, Cod 731136, Jud. Vaslui Al Fetesti, Nr. 3, Bl. F3, Ap. 3, Sect. 3, Bucharest str Brezoianu, nr 9, Bucuresti Str Lipscani 45, sect. 6, Bucharest Cluj Napoca, Str Cotita, Nr. 5, Cod 400104, jud. Cluj Calea Bucurestilor 291A, Otopeni, Bucharest Contact details Barna Gelu +40727 / 883163 Ivasciuc Viorel +40234 / 516470 Stavrica Eugen +4021 / 2303207 Jusca Stefana +40256 / 351735 Cosarca Dalia +40264 / 591217 Grama Ileana, +40235 / 411707 Simion Ilie +021 / 2241839 Calin Elena +40728 / 508127 Costache Mircea +4021/4565879 Diosegy Angela +40264 / 591609 Soare Elena +4021 / 3502063 Web-Site http://www.bizoo.ro/firm a/BRANDSOUTLET/profil http://www.bizoo.ro/firm a/alexandrabacau/profil http://www.bizoo.ro/firm a/almainternationa http://www.bizoo.ro/firm a/jusca http://www.bizoo.ro/firm a/dalibri http://www.bizoo.ro/firm a/edenbarlad http://www.bizoo.ro/firm a/fratiisimion http://www.bizoo.ro/firm a/helenfashion/despre http://www.bizoo.ro/firm a/katexgroup http://www.bizoo.ro/firm a/lupetex www.miniprix.ro

Alexandra COM SRL Alma International SRL Croitoria Jusca S.R.L. Dalibri S.R.L. Eden S.R.L

Fratii Simion Comprod S.R.L. Helen Fashion Lether Art Trading Katex Group S.R.L Lupetex S.R.L

SC M-Fashion COM SRL

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Mancram Impex S.r.l. Moda Mania S.R.L Sc Rom Andra Srl Sic Napa S.R.L

Vidra R.a. S.R.L. Fablor Pell S.R.L

Str. Popa Nicolae, Nr. 12, Complex Ziduri Intre Vii, Jud. Bucharest Str Veseliei, Nr. 10, Sect. 5, Cod 52165 Tg. Jiu, Geneva nr 9, jud. Gorj Orastie, Str Campul Nou, Nr. 6, Cod 335700, Jud. Hunedoara Arad, Bd Revolutiei, Nr. 66, jud. Arad Orastie, Str Pricazului, Nr. 30, Cod 335700, jud. Hunedoara

Manole Mihail, +4021/2400190 Radu Andreea +4021 / 4243675 Gheorghe Vasile +40253 / 223737 Gruia Andreea +40254 / 241809 Rasca Rdica +40257 / 254836 Borza Vetuta +40724 / 274861

http://www.bizoo.ro/firm a/mancramimpex http://www.bizoo.ro/firm a/modamaniasrl http://www.bizoo.ro/firm a/bicorubis http://www.bizoo.ro/firm a/napa http://www.bizoo.ro/firm a/vidraarad http://www.bizoo.ro/firm a/fablorpellorastie http://haineblana.wordpr ess.com/

Potential Competitors
Competitor company SC Mybiss SRL Address Suceava, Str. 22 Decembrie, Suceava Contact details Catea Radu +40768 / 797341 Web-Site www.pradus shop.bizoo.r o/profil Observations Intermediary between outside clothing and accessories companies and the Romanian market

Stock Outlet

+4075 / 1110390

SC FINE CLOATHES

Arad, Arad

Todea Ovidiu +40745 / 419458 office@stocurihaine.ro

http://www. stockoutlet.ro http://www. stocurihaine.ro

Sells stocks of clothes in Romania

13