Business Management
Karel Havlíček
2012
Ing.
Karel Havlicek,
PhD., MBA
Dean
Faculty of Economic Studies
VSFS
www.vsfs.cz
General Manager
SINDAT
President
AMSP
www.sindat.cz
www.amsp.cz
Changes
New economic
superpowers
NO political
barriers
New
challenges
Internal
processes
Business tourism
developement
IS/IT
developement
New
threats
Adaptation
management activities
External
processes
EU - Environment
Strengths
 Stable environment
 Technological facilities
 Tradition of business conduct
 High level of education
Opportunities
 New world-wide territories:
trade and investment
 Brand products and applications
 Open resources of workforce
Weaknesses
Threats



EU=social and expensive state
Different territories
Low level of mobility of labour



New competitors
Steady rise of costs
High level of bureaucracy
Internal & External Factors
PEOPLE
IDEAS
MARKETS
HR management
Innovation management
Marketing management
AVAILABILITY
MONEY
PLAYGROUND
Infrastructure
Financing
Institutional environment
Role of management in hypercompetitive environment
knowledge
experience
recognition
Knowledge
management
Practical
management
Relationships
management
Owners & Corporate & Management strategy
Objectives , goals of owners
Owners strategy
Objectives , goals of company
Corporate /business/ strategy
Objectives, goals of management
Management strategy
Strategic Plan
Strategic
analysis
Vision
Mision
Strategic
scenario
Strategic
controlling
STEEP
PORTER
SWOT
Summary of
strategic
objectives
Noncommercial
ambitions
How to meet
strategic
goals
Quantitative
Methods
Strategic Changes in Sindat Group
Turnover: average
Added Value: high
Risk: small
Barriers:no
1990
Turnover: big
Added Value: small
Risk: great
Barriers: average
2000
Service
Consulting -Financial servicesEngeneering
Industrial acquisitions
and exports
Textiles -Finalized chemicals
Turnover: small
Ad. Value: extremly high
Risk: small
Barriers:great
2010
Basic research investments
Nanotechnologies
Biomedicine - Cell therapy
Stategie of Economic Growth of Czech Republic 2005-2013
2005
2013
GDP:
68% of EU
average
HR Development
Ministry of
Industry
GDP:
100 % of EU
average
RD, Innovations
Infrastructure
Ministry of
Education
Ministry of
Finance
Sources of
financing
Ministry of
……..
Institutional
environment
……….
Factors of economic growth of the small and medium
enterprises
PEOPLE
Human resources development
"People are competitive advantage, neither price
nor product"
It is necessary to: provide, manage, and educate
human resources
Factors of economic growth of the small and medium
enterprises
IDEAS
Research, development
and innovations
"Change is a way out of the hyper-competitive
environment"
Change of products, processes, communication,
and relations (from 4P to 4C)
Factors of economic growth of the small and medium
enterprises
AVAILABILITY
Infrastructure
"Flexibility is a starting point of reduction of
product life cycle"
Flexibility of decision-making, labour, adaptation,
and territorial change
Factors of economic growth of the small and medium
enterprises
MONEY
Sources of financing
"Accurate and timely information is a basis of
managing financial resources"
Information on bank, private, public, and
European funding resources
Factors of economic growth of the small and medium
enterprises
PLAYGROUND
Institutional environment
"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.
Management – Controlling model
(Planning – Controlling – Risk)
C
P
Strategic
planning
Strategic
controlling
Risk
management
Operative
planning
Operative
controlling
Involved persons - Customers & stakeholders
Stakeholders
Minority
groups
Employees
Customers
Government
Creditors
Suppliers
Buyers
Shareholders
Marketing management
Transaction marketing
Relationship marketing
Orientation towards single purchase
Limited direct customer contact
Focus on product benefits
Emphasis on short-term performance
Limited level of customer service
Goal of customer satisfaction
Quality is the manufacturing resp
Orientation towards repeat sales
Close, frequent customer contact
Focus on value tu customer
Emphasis on long-term performance
High level of customer service
Goal of „delighting the custome“
Q is the whole organization´s resp
Marketing mix 4Ps & 4Cs
MIX four Ps
MIX four Cs
Product
Price
Place
Promotion
Customers needs&wants
Cost to the customers
Convenience
Communication
four
Ps
four
Cs
Summary : What is „CRM“ ?
Exchange of marketing mix
four Ps
four Cs
Exchange of customers
customers
stakeholders
Exchange of marketing
transaction
relationship
Exchange of quality management
QMS
TQM
Marketing management
Marketing
research
Marketing
planing
Marketing research
macro
micro
FAR
environment
analysis
NEAR
environment
analysis
sociological
technological
economic
environmental
political
competitors
buyers
suppliers
substitute products
potential competition
Marketing plan
SWOT
analysis
Objectives
Strategies
Strengths
Weaknesses
Opportunities
Threats
Specific
Measurable
Achievable
Realistic
Time
Product s.
Pricing s.
Distribution s.
Communication s.
Controlling
Strategic c.
Operative c.
Marketing strategies
Product
strategy
Pricing
strategy
four
Cs
Distribution
strategy
Communication
strategy
Product strategy (customers needs & wants)
four
Cs
Product
strategy
Brand&Image
management
Life-cycles
management
Product range
management
Pricing strategy (cost to the customers)
four
Cs
Pricing
strategy
Pricing
new
Pruducts
Price skimming,
penetrartion pricing
Calculating a
price
Pricing
existing
Products
Price cutting-leadingfolowing
Distribution strategy ( convenience )
four
Cs
Distribution
strategy
Internal
service
management
Mix
of distribution
channels
Channels
conflict
managemnet
Communication strategy ( communication )
four
Cs
Communication
strategy
Internal
communication
management
External
communication
management
Conditions for opening new markets
1.
2.
3.
4.
5.
6.
7.
Conquering
Orderliness
Conviction
Competitive advantages
Patience
Humility
Personnel and financial sources
INDIA
+
-
Enterpreneurial tradition
Contrasts
Philosophy and mentality
Only city
English
Import barriers
High Tech
CF -Off shore
CHINA
+
-
The rate of investment
English
Growing regions
Patents, Designs
Consumer hunger
Business immaturity
Gradual liberalization
Local competition
SOUTH KOREA
+
-
Jaebol system
Jaebol system
Work ethic
Closed economy
Technological level
High costs
Level of education
Local competition
JAPAN
+
-
Entrepreneurial culture
High Costs
Innovation and quality
Incredulity
Toughness
Conservativeness
Purchasing power
Inscrutability
VIETNAM
+
Long-term relations
Hard work, humility
Investment development
Privatization
Corruption
Non-system approach
Technological facilities
Local and Chinese
competition
RUSSIA
+
-
Close mentality
The Grey Zone
Traditional relations
Details - management
Technical capacity
Forecasts
Potential financial
The specifics of the purchase
/ sale
ISRAEL
+
-
Education
War Zone
The migration effect
Muslim barrier
Army - The Strategy
Business aggression
Innovation
Intransigence
EU
+
A stable environment
Technological level
EU = Social and expensive
The difference
(culture, language ..)
Entrepreneurial tradition
Competitive environment
Quality-brand-image
Labor migration
SOUTH AFRICA
+
EU-USA-INDIA impact
The rate of growth (Gauteng)
Resources
Climate
Criminality
Zone area
Politics x Economy
Isolation
BRASIL
+
-
Mix population
Contrasts
Cultural influences
Criminality
Design, Image
Leftist tendencies
Resources
Regional differences
MEXICO
+
-
U.S. influence
U.S. influence
Locality
Criminality
Education
Mañanismus
Infrastructure
Corruption
USA
+
-
Stability and consistency
Competitive Environment
Openness
Extreme + / -
Technological equipment
Distribution mrktg
Innovation
A strong legal environment
Marketing - WHO ?









is interested in the
market
is not afraid
professional overview
is capable of problem
solving
understand foreign lang
seeks opportunities
will not be deceived
is diplomatic
is competitive









has the urge to conquer
the market
is confident
general overview
looks forward to
problems
is not afraid to speak
makes use of opportun.
uses advantages
adapts to the envir.
knows no failure
Sales management
Management of
sales plans
Management of
forecats
Management of
receivables
Management of sales plans
Sales
Plan
Product
Groups
Basis:
Products trend
Terriotories
Basis:
Geografical research
Customer
segments
Basis:
Demand and distributors
condition
Management of forecasts
Forecasts
Negative
deviations
Positive
deviations
Threats:
Drop in Profit and CF
Immediate measures
-Cost reduction
-Procurement resources
-Involved persons
Threats:
Lack of sources
-Finance
-People
-Material
-Technology
Management of receivables
1st
stage
Client
searching
Receivables
First client look
Negative sign
CREDIT – MATURITY
Guarantees management
2nd
stage
Payment
Problems
Classification overdue
Recovery of overdue
Active
deals
Observation and
evaluation:
Changes, problems,
other business activities
Sales motivation systems
BASIC SALARY
plan
forecasts
receivables
Comparison
Comparison
Comparison
PLAN
REALITY
AVERAGE
FORECAST
RECEIVABLES
TURNOVER
MOTIVATIONAL COMPONENT
Financial management
Revenues – costs view
Financial
Plan
Profit & loss
account
Receipt/income
and outlay/expenditure view
Property - view
Balance Sheet
Casf flow
statement
Financial management
Investment planning
Net Present Value Method
Investment
costs
Future
CF or FCF
WACC
Present
Value CF
NPV
Innovation management
Innovation
Management
innovation
Product
innovation
Operational
innovation
Innovation management
Changes
Innovation process
Top management
Innovation Comitee
Project team
Decision
Controlling
Ideas
BRSTG
Proposals
Business plan
Realization
Quality management
Quality
models
QMS
Standards
Procedures
Selected groups of
employees
Objective:
obtain certificat
TQM
Strategy of permanent
improvement
Philosophy
All the employees
Objective:
satisfaction of
customers
Examination
Oral examination: two questions (according to
methodological papers)
Terms: May, June, September
Literature: Management - Role of Managers in Company
Management (Karel Havlicek, ISu) + Powerpoint
presentations (lectures, ISu)