Darko Karić, Đuro Horvat – PROFITABILITY OF PARTICIPANTS IN SUPPLY VALUE CHAIN IN CROATIA

Darko Karić, Đuro Horvat – PROFITABILITY OF PARTICIPANTS IN SUPPLY VALUE CHAIN IN CROATIA

Darko Karić
EFFECTUS University College for Law and Finance, Croatia
E-mail:
darko.karic@podravka.hr


Đuro Horvat
EFFECTUS University College for Law and Finance, Croatia
E-mail:
dhorvat@vsfp.eu


Abstract


The management system in supply value chain covers wide range of activities.
The goal of the implementation of the system is to create strong value in the process
between producers and final customers or consumers. In recent years, Croatian
economy was faced with many significant changes in profitability of its participants.
Production, distribution and retail sector had passed through significant changes since
2009. Production sector decreased -12,3% in 2009 compared with the same period of
previous year, afterwards wholesale, distribution and retail sector decreased -11,6%
compared with year 2008. The economic crises from 2009, caused by crises of
mortgage loans in United States of America, left significant consequences on
Croatian economy as well (GDP decreased -7,4%). The movements of consumer’s
preferences and habits changed rapidly in period of recession from 2009 to 2014.
Nevertheless, the changes in consumer preferences and habits had an impact on other
key players in the chain. The players are: producers, distributors and retailers.
According to all mentioned facts, the main subject and the goal of this Paper is to
analyse profitability of each participant in the supply value chain. Focus is on
Croatian producers in Food and Beverage industry (National Classification of
Activities abbreviation NKD C10 and NKD C11), distributors (NKD G46.90 and
NKD G46.36) and retailers (NKD G47.11 and NKD G47.19). The hypothesis in this
paper is emphasizing the disproportionately in division of a profitability between
main players in value chain, where producers are the most negatively affected. The
paper analysis TOP 10 participants in production, distribution and retail sector. The
period which was taken into observation in this paper is 2011 – 2015, together with
data from 2016 (only the companies listed on Croatian stock exchange market). The
identified trend is the same for 2016 as for the period 2011 – 2015.


Key words: profitability, supply value chain, food and beverage industry sector,
distribution, retail

Last Update: October 26, 2017  

View Full Paper -

October 26, 2017   340    BLMM 2017  
Total 0 Votes:

Tell us how can we improve this post?

+ = Verify Human or Spambot ?