Key Business Concepts: Integration, Location, PDCA, Shareholder Rights
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Regional Integration Processes
Regional integration takes place between states, and its objective is the elimination of barriers and obstacles to trade and relations between them.
Causes of Regional Integration
- Economic improvement for all parties
- Avoiding conflicts
- Fostering international influence
Effects of Regional Integration
- Trade creation and diversion
- Achievement of economies of scale (declining average costs by increasing production volume)
- Increased competition, beneficial for consumers
- Increased consumption and growth
- Stimulating investment, improving business expectations, leading to industrial growth
Location Factors
Industrial Location Factors
- Availability and price of industrial land
- Access to raw materials and other supplies
- Availability of skilled industrial labor
- Existence of auxiliary industries
Industrial Estates (Polygons)
Usually located on the periphery of cities, they provide advantages to companies:
- Good communication and transport
- Easy access to markets with a high number of consumers
- Existence of skilled labor
- Abundant municipal services with capacity to serve companies (water, security, etc.)
Commercial Enterprise Location Factors
- Good communications
- Visibility
- Transit zone location
- Nearby activities
- Comfort of premises
- Adapting to market purchasing power
Continuous Improvement
PDCA Cycle (Shewhart)
Applied to all activities of an organization.
Phases of the PDCA Cycle
- Plan: Prepare and plan thoroughly (observation, data acquisition, setting targets).
- Do: Execute in a controlled, planned manner, and verify the application.
- Check: Monitor results using indicators and compare them with objectives.
- Act: Decide what to keep and what needs to be corrected.
Shareholder Rights
Shareholders typically have the following rights:
- Right to participate in the distribution of company profits
- Pre-emption rights for new shares to be issued
- Right to attend and vote at general meetings of shareholders (normally, each share is entitled to one vote)
- Right to challenge social arrangements that are contrary to law or the constitution of the society
- Right to information on matters to be discussed at the shareholders' meeting