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Description
Flashcards by ESTEFANIA OLIVA, updated more than 1 year ago
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Created by ESTEFANIA OLIVA
over 7 years ago
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| Question | Answer |
| WHAT IS CONTROLLING | It is the process of planning, analyzing and controlling activities and forces to support the management of a company or organization. It provides the management useful information for decision-making processes. |
| DUTIES OF CONTROLLING | - development and control of the company's strategy -implementation of the company's goals - transmission of important information to provide transparency in results, decisions, finances and processes - support decisions taken by the management future-oriented cross-sectional planning and management function |
| BASIC 3 ELEMENTS OF CONTROLLING | 1. early recognition system - to predict problems and develop information 2. management instrument - to optimize functions and coordinate management decisions 3. constant learning process |
| CLASSIFICATION OF COSTS | FIXED - remain constant and are independent from the outputs VARIABLE - vary with the output and generally rise as production increases and fall as production decreases DIRECT: can be traced directly to a product OVERHEADS: cost that relates to an operation as a whole and doesn't become an integral part of a good or service. |
| CONTRIBUTION MARGIN (DECKUNGSBEITRAG) | It is defined as revenues minus variable expenses. The contribution margin reveals how much of a company's revenues will be contributing (after covering the variable expenses) to the company's fixed expenses and net income. |
| BREAK EVEN POINT | Point at which costs and revenues are equal and there is no loss or gain. It is useful to calculate the margin of safety for a company based on the revenues and costs. |
| PARTIAL COSTS CALCULATION (TEILKOSTENRECHNUNG) | 1. tool to decide between third party production or assuming new tasks inside the company. 2. helps to decide on closing a production line or service 3. tool to define an optimal production programme. 4, will the company take additional tasks with prices which lie under the sales price? Do they cover at least the variable costs? |
| PORTFOLIO ANALYSIS | Tool to predict the future and to define the potential of a company. It is possible to create a new strategic business field based upon the combination of the following dimensions: CLIENTS, PRODUCTS, CUSTOMERS' NEEDS, TECHONOLOGIES and SELLING CHANNELS. |
| EXPERIENCE CURVE (ERFAHRUNGSKURVE) | Show the consistent relationship between the costs of production and the cumulative production quantity. The real value-added production cost declines by 20-30% for each doubling of production quantity. |
| THE 6 STAGES OF A PRODUCT LIFECYLE MODEL | 1. development 2. introduction 3. growth 4. maturiry 5. saturation 6. decline |
| BCG GROWTH SHARE MATRIX | portfolio planning model based on the observation that a company's business units can be classified into 4 categories based on the combination of MARKET GROWTH (attractiveness) AND MARKET SHARE (competitive advantage). |
| STARS | HIGH MARKET SHARE + HIGH MARKET GROWTH. Are cash generators and users and can generate profits to support other products. |
| QUESTION MARKS | LOW MARKET SHARE + HIGH MARKET GROWTH. They consume cash and hold low market share in a fast growing market. |
| CASH COWS | HIGH MARKET SHARE + LOW MARKET GROWTH. They generate more money than they consume and exist in established markets that reached maturity. |
| POOR DOGS | LOW MARKET SHARE + LOW MARKET GROWTH. Neither generate nor consume cash and offer little scope for profit-making. |
| PHILOSOPHY OF CONTROLLING | a) oriented to the present and the future b) promotes and needs efficient structures c) must be created and experienced individually d) needs motivated people |
| OPERATIVE - STRATEGIC TIME | short-term (daily business) - logn.term (sustainable success) |
| OPERATIVE - STRATEGIC INFORMATION | concrete reporting based on quantitative info - strategic reporting based on qualitative info |
| OPERATIVE - STRATEGIC GOALS - ORIENTATION | results-oriented - adaptation to changes and control of today and the future. |
| OPERATIVE - STRATEGIC PERIOD OF ACTION | yearly success (liquidity) - potential success in the future |
| OPERATIVE - STRATEGIC PLANNING | plan the actual performance, through costs and returns - plan the potential for development through strategic planning |
| OPERATIVE - STRATEGIC CONTROLLING | conrol of the budget, production and performance - adjusting operative goals to strategic potentials |
| OPERATIVE - STRATEGIC ANALYSIS OF VARIANCE | plan-is comparison - compare strategic and operative planning |
| OPERATIVE - STRATEGIC TOOLS | Break Even Analysis, Contribution Margin - Portfolio Analysis, SWOT analysis |
| OPERATIVE - STRATEGIC FIELD OF ACTION | particular areas or departments in the company - the whole organization |
| OPERATIVE - STRATEGIC MANAGEMENT LEVEL | supporting the management level - taking part in the management/board of directors |
| OPERATIVE - STRATEGIC RELATION OPER.-STRAT. | operative controlling is the basis for strategic controlling - strategic controlling is the basis in which operative controlling executes actions. |
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