role of managers in company management karel havlíček 2015

Role of Managers in Company Management

Karel Havlíček 2015

Karel Havlíček: Small Business Management & ControllingApril 2014University Ukraine in Collaboration with University of Finance and AdministrationEupress (Estonská, Vltavská)

Changes

New economicsuperpowers

New economicsuperpowers

NO politicalbarriers

NO politicalbarriers

Business tourismdevelopement

Business tourismdevelopement

IS/ITdevelopement

IS/ITdevelopement

Newchallenges

Newchallenges

NewthreatsNew

threats

Adaptation management activities

Adaptation management activities

InternalprocessesInternal

processesExternal

processesExternal

processes

EU - Environment

Strengths Stable environment Technological facilities Tradition of business conduct High level of education

Strengths Stable environment Technological facilities Tradition of business conduct High level of education

Weaknesses

EU=social and expensive state Different territories Low level of mobility of labour

Weaknesses

EU=social and expensive state Different territories Low level of mobility of labour

Opportunities New world-wide territories:

trade and investment Brand products and applications Open resources of workforce

Opportunities New world-wide territories:

trade and investment Brand products and applications Open resources of workforce

Threats

New competitors Steady rise of costs High level of bureaucracy

Threats

New competitors Steady rise of costs High level of bureaucracy

Internal & External Factors

PEOPLEHR managementPEOPLE

HR management

IDEASInnovation management

IDEASInnovation management

MARKETSMarketing managementMARKETS

Marketing management

AVAILABILITYInfrastructure

AVAILABILITYInfrastructure

MONEYFinancing

MONEYFinancing

PLAYGROUNDInstitutional environmentPLAYGROUND

Institutional environment

Role of management in hypercompetitive environment

knowledgeknowledge experienceexperience recognitionrecognition

Practicalmanagement

Practicalmanagement

KnowledgemanagementKnowledge

managementRelationshipsmanagementRelationshipsmanagement

Owners & Corporate & Management strategy

Objectives , goals of companyCorporate /business/ strategy

Objectives , goals of companyCorporate /business/ strategy

Objectives, goals of managementManagement strategy

Objectives, goals of managementManagement strategy

Objectives , goals of ownersOwners strategy

Objectives , goals of ownersOwners strategy

Strategic Plan

Strategic analysis

Strategic analysis

VisionMisionVisionMision

Strategic scenario

Strategic scenario

StrategiccontrollingStrategic

controlling

STEEPPORTERSWOT

STEEPPORTERSWOT

QuantitativeMethods

QuantitativeMethods

Summary of strategic objectives

-Noncommercial

ambitions

Summary of strategic objectives

-Noncommercial

ambitions

How to meet strategic

goals

How to meet strategic

goals

Strategic Changes in Sindat Group

19901990 20002000 20102010

Service

Consulting -Financial services-Engeneering

Service

Consulting -Financial services-Engeneering

Industrial acquisitionsand exports

Textiles -Finalized chemicals Industrial acquisitions

and exports

Textiles -Finalized chemicals

Basic research investments

NanotechnologiesBiomedicine - Cell therapy

Basic research investments

NanotechnologiesBiomedicine - Cell therapy

Turnover: averageAdded Value: highRisk: smallBarriers:no

Turnover: averageAdded Value: highRisk: smallBarriers:no

Turnover: bigAdded Value: smallRisk: greatBarriers: average

Turnover: bigAdded Value: smallRisk: greatBarriers: average

Turnover: smallAd. Value: extremly highRisk: smallBarriers:great

Turnover: smallAd. Value: extremly highRisk: smallBarriers:great

Stategie of Economic Growth of Czech Republic 2005-2013

20052005 20132013

HR DevelopmentHR Development

GDP:68% of EU

average

GDP:68% of EU

average

GDP:100 % of EU

average

GDP:100 % of EU

average

RD, InnovationsRD, Innovations InfrastructureInfrastructureSources of financing

Sources of financing

InstitutionalenvironmentInstitutionalenvironment

Ministry of Industry

Ministry of Industry

Ministry of Education

Ministry of Education

Ministry of Finance

Ministry of Finance

Ministry of ……..

Ministry of ……..

……….……….

Factors of economic growth of the small and medium enterprises

"People are competitive advantage, neither price nor product"

It is necessary to: provide, manage, and educate human resources

PEOPLEHuman resources development

PEOPLEHuman resources development

Factors of economic growth of the small and medium enterprises

"Change is a way out of the hyper-competitive environment"

Change of products, processes, communication, and relations (from 4P to 4C)

IDEASResearch, development

and innovations

IDEASResearch, development

and innovations

Factors of economic growth of the small and medium enterprises

"Flexibility is a starting point of reduction of product life cycle"

Flexibility of decision-making, labour, adaptation, and territorial change

AVAILABILITYInfrastructure

AVAILABILITYInfrastructure

Factors of economic growth of the small and medium enterprises

"Accurate and timely information is a basis of managing financial resources"

Information on bank, private, public, and European funding resources

MONEYSources of financing

MONEYSources of financing

Factors of economic growth of the small and medium enterprises

"Partnership and respect between State and entrepreneur is the only way towards mutual

prosperity"The State has to understand that the company is its

customer. The entrepreneur has to respect that the State is its stakeholder.

PLAYGROUNDInstitutional environment

PLAYGROUNDInstitutional environment

Management – Controlling model(Planning – Controlling – Risk)

Strategicplanning

Operative planning

Strategiccontrolling

Operativecontrolling

Risk management

P C

Involved persons - Customers & stakeholders

StakeholdersStakeholders

CustomersCustomersGovernmentGovernment

SuppliersSuppliers BuyersBuyersShareholdersShareholders

CreditorsCreditors

Minority groups

Minority groups

EmployeesEmployees

Marketing management

Transaction marketing

Orientation towards single purchaseLimited direct customer contactFocus on product benefitsEmphasis on short-term performanceLimited level of customer serviceGoal of customer satisfactionQuality is the manufacturing resp

Relationship marketing

Orientation towards repeat salesClose, frequent customer contactFocus on value tu customerEmphasis on long-term performanceHigh level of customer serviceGoal of „delighting the custome“Q is the whole organization´s resp

Marketing mix 4Ps & 4Cs

MIX four Ps

ProductPricePlacePromotion

MIX four Cs

Customers needs&wants

Cost to the customersConvenienceCommunication

fourCs

fourCs

fourPs

fourPs

Summary : What is „CRM“ ?

Exchange of marketing mixfour Ps four Cs

Exchange of marketing mixfour Ps four Cs

Exchange of customers customers stakeholders

Exchange of customers customers stakeholders

Exchange of marketingtransaction relationship

Exchange of marketingtransaction relationship

Exchange of quality managementQMS TQM

Exchange of quality managementQMS TQM

Marketing management

Marketingresearch

Marketingresearch

Marketingplaning

Marketingplaning

Marketing research

FARenvironment

analysis

FARenvironment

analysis

sociologicaltechnological

economicenvironmental

political

sociologicaltechnological

economicenvironmental

political

NEARenvironment

analysis

NEARenvironment

analysis

competitorsbuyers

supplierssubstitute products

potential competition

competitorsbuyers

supplierssubstitute products

potential competition

micromicromacromacro

Marketing plan

SWOTanalysisSWOT

analysisObjectivesObjectives StrategiesStrategies ControllingControlling

StrengthsWeaknessesOpportunities

Threats

StrengthsWeaknessesOpportunities

Threats

SpecificMeasurableAchievable

RealisticTime

SpecificMeasurableAchievable

RealisticTime

Product s.Pricing s.

Distribution s.Communication s.

Product s.Pricing s.

Distribution s.Communication s.

Strategic c.Operative c.Strategic c.Operative c.

Marketing strategies

Product strategyProduct strategy

Communicationstrategy

Communicationstrategy

Distribution strategy

Distribution strategy

Pricingstrategy Pricing

strategy

fourCs

fourCs

Product strategy (customers needs & wants)

ProductstrategyProductstrategy

fourCs

fourCs

Life-cyclesmanagementLife-cycles

management

Product rangemanagement

Product rangemanagementBrand&Image

managementBrand&Imagemanagement

Pricing strategy (cost to the customers)

PricingstrategyPricing

strategy

fourCs

fourCs

Calculating aprice

Calculating aprice

PricingexistingProducts

Price cutting-leading-folowing

PricingexistingProducts

Price cutting-leading-folowing

Pricing new

PruductsPrice skimming,

penetrartion pricing

Pricing new

PruductsPrice skimming,

penetrartion pricing

Distribution strategy ( convenience )

Distributionstrategy

Distributionstrategy

fourCs

fourCs

Mix of distribution

channels

Mix of distribution

channels

Channels conflict

managemnet

Channels conflict

managemnet

Internal service

management

Internal service

management

Communication strategy ( communication )

Communicationstrategy

Communicationstrategy

fourCs

fourCs

Externalcommunicationmanagement

Externalcommunicationmanagement

Internalcommunicationmanagement

Internalcommunicationmanagement

Sales management

Management of sales plans

Management of sales plans

Management of forecats

Management of forecats

Management of receivables

Management of receivables

Management of sales plans

Sales Plan

Sales Plan

ProductGroups

ProductGroups

CustomersegmentsCustomersegmentsTerriotoriesTerriotories

Basis:Products trend

Basis:Products trend

Basis:Demand and distributors

condition

Basis:Demand and distributors

conditionBasis:

Geografical researchBasis:

Geografical research

Management of forecasts

ForecastsForecastsPositive

deviationsPositive

deviations

NegativedeviationsNegative

deviations

Threats:Lack of sources

-Finance-People

-Material-Technology

Threats:Lack of sources

-Finance-People

-Material-Technology

Threats:Drop in Profit and CF

Immediate measures-Cost reduction

-Procurement resources-Involved persons

Threats:Drop in Profit and CF

Immediate measures-Cost reduction

-Procurement resources-Involved persons

Management of receivables

ReceivablesReceivablesClient

searchingClient

searching

Activedeals

ActivedealsPayment

ProblemsPaymentProblems

First client lookNegative sign

CREDIT – MATURITYGuarantees management

First client lookNegative sign

CREDIT – MATURITYGuarantees management

Observation and evaluation:

Changes, problems,other business activities

Observation and evaluation:

Changes, problems,other business activities

Classification overdueRecovery of overdue

Classification overdueRecovery of overdue

1ststage1st

stage

2ndstage2nd

stage

Sales motivation systems

planplan forecastsforecasts receivablesreceivables

ComparisonAVERAGE FORECAST

ComparisonAVERAGE FORECAST

ComparisonPLAN

REALITY

ComparisonPLAN

REALITY

ComparisonRECEIVABLESTURNOVER

ComparisonRECEIVABLESTURNOVER

BASIC SALARYBASIC SALARY

MOTIVATIONAL COMPONENTMOTIVATIONAL COMPONENT

Financial management

Financial Plan

Financial Plan

Profit & lossplan

Profit & lossplan

Casf flowplan

Casf flowplanBalance Sheet

planBalance Sheet

plan

Revenues – costs view Revenues – costs view

Cash inflow – Cash outflowview

Cash inflow – Cash outflow

view

Assets–Equity-Liabilities

viewAssets–Equity-Liabilities

view

Financial plans

P/L -planP/L -plan C/F planC/F plan BS PlanBS Plan

Financial plansFinancial plans

+Sales- Operating costs- Personnel costs- Depreciations- Financial Costs------------------+/- Profit/Loss

+Sales- Operating costs- Personnel costs- Depreciations- Financial Costs------------------+/- Profit/Loss

+ Cash inflow- Cash outflow-------------------Cash flow

+ EBITDA+/- change in wc+/- interests,taxes,divid.+/- investment, fin.act.---------------------------Cash flow

+ Cash inflow- Cash outflow-------------------Cash flow

+ EBITDA+/- change in wc+/- interests,taxes,divid.+/- investment, fin.act.---------------------------Cash flow

Fixed assetsFixed assets

Currentassets

Currentassets

Shareholdersequity

Shareholdersequity

LiabilitiesLiabilities

==

Financial management

Investment planningInvestment planning

Net Present Value MethodNet Present Value Method

Future CF or FCFFuture

CF or FCF WACCWACCPresentValue CFPresentValue CF

NPVNPVInvestment

costsInvestment

costs

Innovation management

InnovationInnovationProduct

innovationProduct

innovation

Operationalinnovation

OperationalinnovationManagement

innovationManagement

innovation

Innovation management

ChangesChanges

Innovation processInnovation process

Top managementTop management Innovation ComiteeInnovation Comitee Project teamProject team

IdeasBRSTG

Proposals

IdeasBRSTG

Proposals

Business planRealization

Business planRealization

DecisionControllingDecision

Controlling

Quality management

QualitymodelsQualitymodels

QMSQMS

TQMTQM

StandardsProcedures

Selected groups of employees

StandardsProcedures

Selected groups of employees

Strategy of permanent improvement

PhilosophyAll the employees

Strategy of permanent improvement

PhilosophyAll the employees

Objective:obtain certificat

Objective:obtain certificat

Objective:satisfaction of

customers

Objective:satisfaction of

customers

Examination

Oral examination: two questions (according to methodological papers)

Terms: May, June, September

Literature: Karel Havlíček:Small Business.Management & Controlling + Powerpoint presentations (lectures, ISu)