World changes in the last 20 Years

New economicsuperpowers

New economicsuperpowers

Worldeconomic crisis

Worldeconomic crisis

Tourismdevelopement

Tourismdevelopement

ICTdevelopement

ICTdevelopement

Adaptation life style/business/public/

activities

Adaptation life style/business/public/

activities

Different roleof business process

management

Newchallenges

Newthreats

Karel Havlíček

2

Geopolitical world

Local political influence

Economic world

Supranational institutional influence

20th century

21st century

Finance transfer Knowledge transfer

Global view

Karel Havlíček

30 years in the development of small and medium producers

1990-20001990-2000

Product(physical)Product

(physical)

FinanceFinance

2000-20102000-2010 2010-20202010-2020

Product +

Service

Product +

Service

Product +

Service+

Knowledge

Product +

Service+

Knowledge

MarketingMarketing InnovationInnovation

Local marketsLocal

markets

European markets

European markets

World marketsWorld

markets

Karel Havlíček

4

Success in the past

Success in the future

Turnover/Total sales

Number of employees

Ownership of many companies

SME´s - success criteria

Market share Profit (ROS)

Karel Havlíček

M-C model Model of business management process

Strategicplan

Operational plans

Strategic objectives

Operational objectives

Strategiccontrolling

Operationalcontrolling

Risk management

MANAGEMENT CONTROLLING

Karel Havlíček

Specifics of SME´s

A different system of relations with the owners (Owners involved in the operational management)

A different process management system (Universal staff – overlapping/mixing activities)

A different financing system(Balance sheet – intuitive management of fin.sources)

A different system of managing financial results (Optimization)

A different system of financial planning (P/L, C/F)

Karel Havlíček

Management- Controlling

Marketing management

Sales management

Innovation management

Financial management

Quality management

Marketing controlling

Sales controlling

Quality controlling

Innovation controlling

Financial controlling

Personnel management Personnel controlling

Controlling & management accounting

Financial accounting

RevenuesCosts

Cash inflowCash outflow

AssetsLiabilities

Equity

Opportunity costsOpportunity revenues

Direct method – FAIndirect method– MA

Free cash flow

The real value of assetsLease transactionReal WC budget

Management accounting

Karel Havlíček

Key ratios of strategic controlling

Controlling balance sheet optimisation

Controlling of ownershipsratios

Controlling of investmentdecisions

Controlling of debt optimisation

Controlling of company value

Balance rules

ROE, ROI, ROS, ROA, EVA

Evaluating and forecasting of the company value

Method of evaluating investments

Key indicators of indebtedness(Times interest earned ratio )

Karel Havlíček

Key ratios of operational controlling

Controlling of free cash flow

Controlling of operationalratios

Controlling of calculations

Controlling of short-termdebts and relationships with

financial institutions

Controlling of direct financialrisks

Evaluation and forecasting of futurevalue of FCF

Liquidity ratios, activity ratios

Evaluation and management of currency, interest, share, commodity

and credit risks

Setting, evaluating and arrangement of calculation methods

Balance sheet optimisation (short-term debts/current assets),

diversification of risks

Karel Havlíček

Failure of controlling in SMEs

Long-term performance failure

Corporate crisisStages of crisis:

Strategy crisisProfitability crisis

Liquidity crisisLoos of confidenceThreat in the form

of crediting fixed assets

1.Operational restructuring2.Financial restructuring

Immediateperformance failureOperational crisis

Stages of crisis:Failure of operational activitiesDefects in WS management

Threats of solvency

Threat in the form of crediting current assets

Operational restructuring

SC OC

Karel Havlíček

Absence of controlling has a major impact on long-term and short-term performance of SMEs

Interdisciplinary approach based on Management - Controlling

The basis of controlling in SMEs is management accounting

Controller = Coordinator in business process management

Controlling application strengthens the credibility of SMEs

Conclusion: M-C model

Karel Havlíček

INDIA

Enterpreneurial tradition

Philosophy and mentality

English

New technology

Enterpreneurial tradition

Philosophy and mentality

English

New technology

++

Contrasts

Only city

Import barriers

CF -Off shore

Contrasts

Only city

Import barriers

CF -Off shore

--

Karel Havlíček

CHINA

The rate of investment

Growing regions

Consumer hunger

Gradual liberalization

The rate of investment

Growing regions

Consumer hunger

Gradual liberalization

++

English

Patents, Designs

Business immaturity

Local competition

English

Patents, Designs

Business immaturity

Local competition

--

Karel Havlíček

SOUTH KOREA

Jaebol system

Work ethic

Technological level

Level of education

Jaebol system

Work ethic

Technological level

Level of education

++

Jaebol system

Closed economy

High costs

Local competition

Jaebol system

Closed economy

High costs

Local competition

--

Karel Havlíček

JAPAN

Entrepreneurial culture

Innovation and quality

Toughness

Purchasing power

Entrepreneurial culture

Innovation and quality

Toughness

Purchasing power

++

High Costs

Incredulity

Conservativeness

Inscrutability

High Costs

Incredulity

Conservativeness

Inscrutability

--

Karel Havlíček

VIETNAM

Long-term relations

Hard work, humility

Investment development

Privatization

Long-term relations

Hard work, humility

Investment development

Privatization

++

Corruption

Non-system approach

Technological facilities

Local and Chinese

competition

Corruption

Non-system approach

Technological facilities

Local and Chinese

competition

--

Karel Havlíček

RUSSIA

Close mentality

Traditional relations

Technical capacity

Potential financial

Close mentality

Traditional relations

Technical capacity

Potential financial

++

The Grey Zone

Details - management

Forecasts

The specifics of the purchase / sale

The Grey Zone

Details - management

Forecasts

The specifics of the purchase / sale

--

Karel Havlíček

ISRAEL

Education

The migration effect

Army - The Strategy

Innovation

Education

The migration effect

Army - The Strategy

Innovation

++

War Zone

Muslim barrier

Business aggression

Intransigence

War Zone

Muslim barrier

Business aggression

Intransigence

--

Karel Havlíček

European Union

A stable environment

Technological level

Entrepreneurial tradition

Quality-brand-image

A stable environment

Technological level

Entrepreneurial tradition

Quality-brand-image

++

EU = Social and expensive

The difference (culture, language ..)

Competitive environment

Labor migration

EU = Social and expensive

The difference (culture, language ..)

Competitive environment

Labor migration

--

Karel Havlíček

SOUTH AFRICA

EU-USA-INDIA impact

The rate of growth (Gauteng)

Resources

Climate

EU-USA-INDIA impact

The rate of growth (Gauteng)

Resources

Climate

++

Criminality

Zone area

Politics x Economy

Isolation

Criminality

Zone area

Politics x Economy

Isolation

--

Karel Havlíček

BRASIL

Mix population

Cultural influences

Design, Image

Resources

Mix population

Cultural influences

Design, Image

Resources

++

Contrasts

Criminality

Leftist tendencies

Regional differences

Contrasts

Criminality

Leftist tendencies

Regional differences

--

Karel Havlíček

MEXICO

U.S. influence

Locality

Education

Infrastructure

U.S. influence

Locality

Education

Infrastructure

++

U.S. influence

Criminality

Mañanismus

Corruption

U.S. influence

Criminality

Mañanismus

Corruption

--

Karel Havlíček

U.S.A.

Stability and consistency

Openness

Technological equipment

Innovation

Stability and consistency

Openness

Technological equipment

Innovation

++

Competitive Environment

Extreme + / -

Distribution mrktg

A strong legal environment

Competitive Environment

Extreme + / -

Distribution mrktg

A strong legal environment

--

Karel Havlíček

WHO ?

is interested in the market is not afraidprofessional overviewis capable of problem solvingunderstand foreign languageseeks opportunitieswill not be deceivedis diplomaticis competitive

conquer the marketis confidentgeneral overviewlooks forward to problemsis not afraid to speakmakes use of opportunitiesuses advantagesadapts to the environmenetknows no failure

Karel Havlíček