1. 1 World changes in the last 20 Years New economic superpowers New economic superpowers World economic crisis World economic crisis Tourism developement Tourism developement ICT developement ICT developement Adaptation life style/business/public/ activities Adaptation life style/business/public/ activities Different role of business process management New challenges New threats Karel Havlíček

2. 2 2 Geopolitical world Local political influence Economic world Supranational institutional influence 20th century 21st century Finance transferKnowledge transfer Global view Karel Havlíček

3. 3 30 years in the development of small and medium producers 1990-2000 Product (physical) Product (physical) Finance 2000-2010 2010-2020 Product + Service Product + Service Product + Service + Knowledge Product + Service + Knowledge Marketing Innovation Local markets Local markets European markets European markets World markets World markets Karel Havlíček

4. 4 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

5. 5 M-C model Model of business management process Strategic plan Operational plans Strategic objectives Operational objectives Strategic controlling Operational controlling Risk management MANAGEMENTCONTROLLING Karel Havlíček

6. 6 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

7. 7 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

8. 8 Controlling & management accounting Financial accounting Revenues Costs Cash inflow Cash outflow Assets Liabilities Equity Opportunity costs Opportunity revenues Direct method – FA Indirect method– MA Free cash flow The real value of assets Lease transaction Real WC budget Management accounting Karel Havlíček

9. 9 Key ratios of strategic controlling Controlling balance sheet optimisation Controlling of ownerships ratios Controlling of investment decisions 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

10. 10 Key ratios of operational controlling Controlling of free cash flow Controlling of operational ratios Controlling of calculations Controlling of short-term debts and relationships with financial institutions Controlling of direct financial risks Evaluation and forecasting of future value 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

11. 11 Failure of controlling in SMEs Long-term performance failure Corporate crisis Stages of crisis: Strategy crisis Profitability crisis Liquidity crisis Loos of confidence Threat in the form of crediting fixed assets 1.Operational restructuring 2.Financial restructuring Immediate performance failure Operational crisis Stages of crisis: Failure of operational activities Defects in WS management Threats of solvency Threat in the form of crediting current assets Operational restructuring SCOC Karel Havlíček

12. 12 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

13. 13 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

14. 14 CHINA The rate of investment Growing regions Consumer hunger Gradual liberalization + + English Patents, Designs Business immaturity Local competition - - Karel Havlíček

15. 15 SOUTH KOREA 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

16. 16 JAPAN Entrepreneurial culture Innovation and quality Toughness Purchasing power + + High Costs Incredulity Conservativeness Inscrutability - - Karel Havlíček

17. 17 VIETNAM Long-term relations Hard work, humility Investment development Privatization + + Corruption Non-system approach Technological facilities Local and Chinese competition - - Karel Havlíček

18. 18 RUSSIA 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

19. 19 ISRAEL Education The migration effect Army - The Strategy Innovation + + War Zone Muslim barrier Business aggression Intransigence - - Karel Havlíček

20. 20 European Union A stable environment Technological level Entrepreneurial tradition Quality-brand-image + + EU = Social and expensive The difference (culture, language..) Competitive environment Labor migration - - Karel Havlíček

21. 21 SOUTH AFRICA EU-USA-INDIA impact The rate of growth (Gauteng) Resources Climate + + Criminality Zone area Politics x Economy Isolation - - Karel Havlíček

22. 22 BRASIL Mix population Cultural influences Design, Image Resources + + Contrasts Criminality Leftist tendencies Regional differences - - Karel Havlíček

23. 23 MEXICO U.S. influence Locality Education Infrastructure + + U.S. influence Criminality Mañanismus Corruption - - Karel Havlíček

24. 24 U.S.A. Stability and consistency Openness Technological equipment Innovation + + Competitive Environment Extreme + / - Distribution mrktg A strong legal environment - - Karel Havlíček

25. 25 WHO ?  is interested in the market  is not afraid  professional overview  is capable of problem solving  understand foreign language  seeks opportunities  will not be deceived  is diplomatic  is competitive  conquer the market  is confident  general overview  looks forward to problems  is not afraid to speak  makes use of opportunities  uses advantages  adapts to the environmenet  knows no failure Karel Havlíček