Enterprise Management and Economics
- Department of Management and Economics
The course is designed to give students the understanding of economic principles. The economical part of the course is consisted from: explanation of relationship between costs and revenues, expenses and income, concept of investment and calculations per product, presentation how to assemble a basic operating budget and explanation of the basic structure of the financial statements. The management introduces the basic managerial functions and their contents, the uses of network analysis in project management, with the application of multi-criteria decision, the basics of marketing and strategic management.
1. Limitation of resources and its consequences. Benefit, marginal benefit, benefit and price, demand function, demand analysis. Cost and Revenue functions interaction. Market equilibrium.
2. Cost functions: total, average, and incremental. Cost - revenue variants.
3. Basic enterprise balances (assemblies) - a three-balances system. Main items of balance sheets and their contents. The main conclusions for a technically oriented manager.
4. Balance Sheet: Main items of the Balance Sheet, link to other company balances (assemblies). Balance sheet item size requirements.
5. Analysis of Income statement (Profit and Loss statement). Forms of profit and loss account. Cash-flow statement. Assembly methods.
6. Basic managerial cost breakdown. Costs of products and orders. Its key factors. Role of the calculation unit (+ examples of costing units).
7. Approaches to Cost Calculation (Preliminary, Final). Target costing (limit, target costing).
8. Purpose of costing. Surcharge Calculation. Hourly rate method (overhead rates). Calculation with a payment contribution - Using a multi-step contribution in the calculation formula.
9. Operating budgets: Purpose. Content. Creation. Evaluation.
10. Static and dynamic methods of evaluation of investment projects - major differences. Key features of dynamic evaluation methods.
11. Short-term and long-term financial resources to cover the need for capital.
12. Static and dynamic analysis of the economy, reporting capacity of indicators and financial balances. Measurement of business activity, profitability, liquidity and indebtedness.
13. Development of management, position of manager in the company, management hierarchy in the company and their basic tasks, prerequisites for managerial work, management functions.
14. The nature of business planning, business goals, network analysis and its application in planning.
15. Basic concepts of organization, organization of organizational structures.
16. Leadership, motivation theories, human resources management, control, control and audit, analysis, implementation.
17. Decision-making, decision-making conditions, classification of decision processes, multi-criteria decision making, methods of determining the importance of criteria, methods of aggregation of evaluation criteria.
18. Marketing and its definitions, basics of marketing concept, marketing mix and its tools, basic segmentation of market relations.
19. Segmentation, targeting, positioning, marketing access to the market.
20. Products and their market position, BCG matrix and GE matrix.
21. Strategic management and its basic concepts, the difference between operational and strategic management, macro analysis and microanalysis of the business environment and the internal environment of the enterprise.
- Syllabus of lectures:
1. Current marketing, definition of marketing. Marketing concept. Marketing breakdown, targeted marketing. Stages of action of a company with targeted marketing. Marketing mix.
2. Limitation of resources and its consequences. Benefit, marginal benefit. Benefit and price. Demand and Supply Curves, Formulas. Market equilibrium. Demand and Supply functions. Cost Functions: Total, Average, and Incremental. Cost-revenue variants, profit function.
3. Cost and revenue functions. Cost breakdown, reasoning of cost breakdown. Breakpoint (= turn point) = break-even point (BEP). Practical usage of BEP. Costs and revenues per entity (products, processes, activities, etc.) of the enterprise. Cost-revenue variants, profit function.
4. Annual budget, monthly. Budgets per units. Budgets: the reason why their content of. Budgeting process. Links to capacities, resources, sales. Work with budgets on regular basis, their evaluation. Responsibility, processing and compliance.
5. Calculation (Costing) - its purpose and importance. Calculation formula, calculating unit. Calculation: Price/Cost, Preliminary /Final, Internal / Commercial. Absorption and variable costing. Surplus calculation - principle, weaknesses / advantages of usage. Hourly cost (overhead) rate - principle, weaknesses / advantages of usage. Calculation with a payment contribution. Target costing.
6. Basic enterprise reports, balance sheet system. Balance sheet (BS), assets and resources of its coverage. Assets and Liabilities. Profit and Loss Account (PL). Basic structure of the Profit and Loss Account and their usage. Links between Balance Sheet and Profit and Loss Account. Cash Flow (CF), methods of compilation, usage and its link on the Balance Sheet. Link (key links) among three statements. Why it makes sense to combine all three statements, what each one offers.
7. Financial analysis tools = indicators. Indicator types - absolute, ratio, indicator sets. Indicators of profitability, activity, liquidity, indebtedness. Working capital management.
8. Investment decision making. Value of money. Static methods of investment evaluation (Payback period). Dynamic methods of investment evaluation (Net Present Value, Internal Rate of Return). Life cycle of investment.
9. Specificity of project management. What we call a project. Four characteristics of the project (project objective, project uniqueness, project resources, project activities organization). Three-dimensional project. Network chart and network analysis methods. Set up a network chart using the CPM method.
10. Basic decision matrix. Two conditions for determining the weight of criteria in all methods. Methods of determining the weight of criteria (Method of order, method of scoring, pairing method). Determining the order of variants using aggregation methods of evaluation criteria (Serial Function Method, Scoring Method, Basic Method).
11. Management and its understanding. Manager, position in the company, prerequisites for managerial work. Developing a manager's capability. Hard skills and soft skills. Historical development of management (Classical schools of managerial thinking, modern approaches in management).
12. Managerial functions and their meaning. Sequential Managerial Functions (Planning, Organization, Leadership, Human Resource Management, Control).
13. Parallel Managerial Functions (Analyzing, Decision Making, Implementation). The importance of strategic management. Business vision and mission, strategy. SWOT Analysis, PESTLE Analysis, Porter's Model of Five Competitive Forces, Generic Strategies.
- Syllabus of tutorials:
1. Organizational. Course work. Rules of work before the seminar and the seminar.
2. Selected chapters from marketing. Examples to practice: BCG matrix and GE matrix.
3. Examples to practice: demand function, total revenues.
4. Examples to practice: BEP - understanding the break-even point.
5. Examples to practice: surplus calculation.
6. Examples to practice: hourly cost (overhead) rate calculation. Calculation with a payment contribution.
7. Examples to practice: budget.
8. The final test in the field of ENTERPRISE ECONOMY.
9. Examples to practice: network chart and CPM method.
10. Examples to practice: network chart and CPM method.
11. Examples to practice: multi-criteria decision-making.
12. Examples to practice: multi-criteria decision-making.
13. The final test in the field of ENTERPRISE MANAGEMENT.
- Study Objective:
The aim is to enable students to compile an operating budget and to easily calculate the cost of products and services and to understand the basic structure of the financial statements. In the field of management, he acquaints himself with basic managerial functions and their content, ways of using network analysis in project management, application of multi-criteria decision making, marketing fundamentals and strategic management.
- Study materials:
Povinná literatura pro přednášky:
1) FREIBERG, František a Martin ZRALÝ. EKONOMIKA PODNIKU. 1. vyd. Praha: České vysoké učení technické v Praze, 2008, 126 s. ISBN 978-80-01-04144-4.
2) ŽÁČEK, Vladimír. MANAGEMENT PODNIKU. 2. přepracované vydání. Praha: České vysoké učení technické v Praze, 2016. ISBN 978-80-01-05980-7.
3) ŽÁČEK, Vladimír: PRŮMYSLOVÝ MARKETING. 1. vyd. Praha: České vysoké učení technické v Praze, 2010. ISBN 978-80-01-04492-6.
Povinná literatura pro cvičení:
1) ZRALÝ, Martin a kol. MANAGEMENT A EKONOMIKA PODNIKU - SBÍRKA ÚLOH PRO CVIČENÍ. 2. přeprac. vyd. Praha: České vysoké učení technické v Praze, 2014, 218 s. ISBN 978-80-01-05460-4.
Doporučená literatura k předmětu:
1) SAMUELSON, Paul A. a William D. NORDHAUS. EKONOMIE. 1. vyd. Praha: Svoboda, 1991, xl, 1011 s. ISBN 80-205-0192-4.
2) ŽÁČEK, Vladimír: MANAGEMENT: Teorie, zásady, praxe. 1. vyd. Praha: České vysoké učení technické v Praze, 2014. ISBN 978-80-01-05594-6.
3) KOTLER, Philip: MARKETING OD A DO Z (Osmdesát pojmů, které by měl znát každý manažer). Praha: Management Press, 2003. Knihovna světového managementu. ISBN 80-7261-082-1.
- Further information:
- No time-table has been prepared for this course
- The course is a part of the following study plans:
- 10 62 67 00 BTZI 2012 P základ (compulsory course in the program)
- 11 68 73 00 BTZI 2012 K základ (compulsory course in the program)
- 02 26 31 34 BSTR EPT 2012 P základ (compulsory course in the program)
- 03 26 31 36 BSTR IAT 2012 P základ (compulsory course in the program)
- 04 26 31 38 BSTR KPP 2012 P základ (compulsory course in the program)
- 06 40 45 48 BSTR EPT 2012 K základ (compulsory course in the program)
- 07 40 45 50 BSTR IAT 2012 K základ (compulsory course in the program)
- 08 40 45 52 BSTR KPP 2012 K základ (compulsory course in the program)
- 05 40 45 46 BSTR TZP 2012 K základ (compulsory course in the program)
- 05 40 45 46 DSTR TZP 2012 K základ (compulsory course in the program)
- 06 40 45 48 DSTR EPT 2012 K základ (compulsory course in the program)
- 07 40 45 50 DSTR IAT 2012 K základ (compulsory course in the program)
- 08 40 45 52 DSTR KPP 2012 K základ (compulsory course in the program)
- 10 62 67 00 DTZI 2012 P základ (compulsory course in the program)
- 11 68 73 00 DTZI 2012 K základ (compulsory course in the program)