Working curriculum of the course

4) personnel;

5) personnel policy of firm;

6) planned schedule;

7) plan of social development;

8) legal support of activity of firm.

The organizational structure represents a way and a form of association of workers for achievement of the put before enterprise production and administrative purposes. It is documentary fixed in graphic schemes of structure, staffing tables of the personnel, regulations on divisions of management personnel of the enterprise, duty regulations of certain performers. The organizational structure is characterized by quantity of links, hierarchy, nature of distribution of powers and responsibility on a vertical and a horizontal of structure of a control system.

The organizational structures used in the industry, depend on a set of factors – the sizes of the enterprise, volumes of funds, number busy, a principle of work, market structure etc.

Data are provided in the business plan:

1) about production and technological structure of the enterprise;

2) about functions of key divisions;

3) about structure of subsidiaries and branches, their organizational interrelations with head firm;

4) about organizational structure of management;

5) about the organization of coordinating of interaction of services and firm divisions;

6) about control system automation.

The assessment of compliance of organizational structure is given to the purposes and enterprise strategy.

Organizational structure it is documentary fixed in graphic schemes, staffing tables of the personnel, regulations on divisions of management personnel of firm, duty regulations of certain performers.

At the description of organizational structure it is necessary to show accurately, what structure of management of firm.

Thus it is necessary to emphasize advantages of organizational structure of the organization and its compliance to criteria of rationality as which it is possible to call:

1) compliance of volume of carried-out administrative works to number of their performers;

2) concentration at each step of management (link) of objectively necessary functions and the rights for their realization;

3) lack of overlapping and duplication of functions;

4) optimum combination of centralization and decentralization of functions and rights;

5) observance of standards of controllability, i.e. number of the performers leaving on one head or the coordinator of their activity;

6) degree of reliability, efficiency, flexibility, adaptability, profitability and production efficiency and management;

7) efficiency of offered organizational structure.

In the business plan the size of a salary and extra fees of the key administrative personnel also is noted. For the director his share in authorized capital is specified.

Information on a ratio between number of the administrative and managerial personnel and number of workers of firm is provided.

In the business plan data on necessary number and structure of shots proceeding from requirements of production are specified.

When planning requirement for the personnel are considered:

1) prospects of development of a labor market, possible deficiency or labor surplus;

2) cost of preparation of the personnel, emergence of new specialties and professions;

3) need of retraining of the personnel. It is specified, what measures are planned for accepting on completion of shots of necessary qualification.

Personnel policy of firm is separately described. The designed system of selection of shots is estimated at employment.

For again created enterprises, and also at implementation of large-scale enterprise projects and actions at the operating enterprise the planned schedule (the business schedule) is provided.

Questions for self-examination

1. Contents of the organizational plan

          2. Creation of organizational structure of the enterprise

          3. Plant management characteristic

          4. Human resource management

          5. Staffing table

Literature

1. Ershov V. F. Business design: Application guide / Century F.Ershov. - SPb.: St. Petersburg, 2005. - 288 pages.

2. Small business program. Management in small business. Business plan. - M: "DECK" IKK, 1993. - 59 pages.

3. Small business program. Management in small business: How to make financial decisions. - M: "DECK" IKK, 1993. - 70 pages.

4. Small business program. Management in small business: Budget drawing up. - M: "DECK" IKK, 1993. - 79 pages.

5. Ushakov I.I. Business plan / I.I.Ushakov. - SPb.: St. Petersburg, 2008. - 224 pages - (Practice of management)

6. Financial analysis and planning [Electronic resource]: A training course. - Electron. applied прогр. (520 Mb). - M: Kordis & Media, 2005. - 1 эл. wholesale. disk (CD ROM): зв. -

 

Subject 11 Financial plan and enterprise budget

Lecture purpose – to study a technique of drawing up of the financial plan and the annual budget

Lecture questions:

1. Elements of the financial plan. 

2. Structure of the financial report.

3. Plan of the income and expenses

Content of lecture

This section of the business plan considers questions of financial security of activity of firm and the most effective use of money (own and involved) on the basis of an assessment of the current financial information and a forecast of volumes of realization of the goods in the markets during the subsequent periods, i.e. the authentic system yielded, reflecting expected results of financial activity of firm here is represented. The forecast of financial results is urged to answer the main issues exciting the manager., from this section the manager learns about profit on which he can count, and the creditor – about ability of the potential borrower to serve a duty. In this section are represented:

1) profit and loss report;

2) balance of cash expenditures and receipts;

3) look-ahead balance of assets and passives (for the enterprise);

4) break-even analysis;

5) financing strategy.

Besides, on the basis of the presented data in the analytical purposes additional calculations of indicators of a financial condition of the enterprise (such as liquidity, solvency, profitability, use of assets, use of the share capital etc.), indicators of profitability of investments, etc. are made.

At once we will make a reservation that this structure of the business plan has only recommendatory character and doesn't apply for a role of the exemplary. The list of sections and their contents in each case can be supplemented or specified depending on conditions in which the firm functions.

Let's pass now to detailed consideration of structure of the business plan and contents of its sections.

The forecast of profits and losses reflects operating activities of firm during the planned period. The purpose of drawing up of this forecast – to present in the generalized form results of activity of the enterprise from the point of view of profitability. The forecast of profits and losses shows, how the profit will be formed and change, and, in essence, is a forecast of financial results. In the business plan it is necessary to present all types of the taxation.

All values are given in a forecast of profits and losses without the VAT, payments on sales and direct expenses are displayed at the moment of production delivery.

The look-ahead balance characterizes a financial position of the enterprise for the end of the counted period of time and reflects enterprise resources in a uniform monetary assessment on their structure and use directions, on the one hand (asset), and on sources of their financing – about other (passive). By drawing up of a forecast of balance acquisitions of fixed assets, changes of cost of the material stocks, caused, for example, are considered by growth of sales volume, etc. In the section "Passives" planned loans, a share issue etc. are noted.

The forecast of cash flow contains information supplementing data of look-ahead balance and a forecast of profits and losses regarding definition of inflow of money, necessary for performance of the planned volume of financial and economic activities. All receipts and payments are considered during the periods of time corresponding to the actual dates of implementation of their payments, taking into account time of a delay of payment of realized production (service), time of a delay of payments and delivery of materials and accessories of products, conditions of realization of production (on credit, with advance payments), and also conditions of formation of production stocks.

The forecast of cash flow doesn't join amortization though depreciation charges belong to the category of calculation expenses, but they don't represent the liability. Actually added sum of amortization remains on the enterprise account, filling up the rest of liquid means. All values in a forecast are reflected taking into account the VAT, payments on sales and direct expenses are displayed at the moment of the actual commission of payments.

According to three major fields of activity of the enterprise – operational (or production), investment and financial – the forecast of cash flow consists of three sections:

1) kesh-flo from the current primary (production) activity;

2) kesh-flo from investment activity;

3) kesh-flo from financial activity.

Questions for self-examination

1. Contents of the financial plan

2. Assessment of a financial condition

3. Balance of the income and expenses

4. Drawing up of the budget of cash flows

Literature

1. Ershov V. F. Business design: Application guide / Century F.Ershov. - SPb.: St. Petersburg, 2005. - 288 pages.

2. Small business program. Management in small business. Business plan. - M: "DECK" IKK, 1993. - 59 pages.

3. Small business program. Management in small business: How to make financial decisions. - M: "DECK" IKK, 1993. - 70 pages.

4. Small business program. Management in small business: Budget drawing up. - M: "DECK" IKK, 1993. - 79 pages.

5. Ushakov I.I. Business plan / I.I.Ushakov. - SPb.: St. Petersburg, 2008. - 224 pages - (Practice of management)

6. Financial analysis and planning [Electronic resource]: A training course. - Electron. applied прогр. (520 Mb). - M: Kordis & Media, 2005. - 1 эл. wholesale. disk (CD ROM): зв. -

 

 

Subject 12 Risk analysis

Lecture purpose–  to study a technique of an assessment of risks

Lecture questions:

1. Risks in commercial activity.

2. Definition of types of risks.

3. Organizational measures of prevention of risks. 

4. Concept of bankruptcy and methods of diagnosing of its possibility.

Content of lecture

Types of risks:

1) sovereign (country) risk. Represents the risk connected with a financial position of the whole state when the majority of his economic agents, including the government, refuse execution of the external debts;

2) political risk;

3) production risk. The sense of production risk is that at the moment of enterprise creation his owners, in fact, accept strategically important and at the same time very brave decision – to invest the capital in this type of business;

4) the financial risk caused by structure of sources of means. The essence of financial risk and its importance are defined by structure of long-term sources of financing – the share of the extra capital is higher, the level of financial risk is higher;

5) risk of decrease in purchasing power of monetary unit. This type of risk is inherent in business activity as a whole, and its sense is that inflation can lead to decrease in business activity, profit, profitability etc.;

6) the percentage risk representing risk of losses as a result of change of interest rates. The risk of change of interest rates should be considered in long-term and short-term aspects, with differentiation by types of assets, obligations, tools;

7) systematic, or market, risk. Represents risk (characteristic for all securities) which can't be элиминирован by means of a diversification;

8) specific, or not systematic risk, is called risk of a security which isn't connected with changes in a market portfolio and consequently can be элиминирован a way of a combination of this paper with other securities in well diversified portfolio;

9) the design risk directly connected with business planning. Probability of insufficiency of profit according to the project for calculations with investors;

10) currency risk;

11) transaktsionny risk;

12) the aktuarny risk covered by insurance company in exchange for payment of an award.

The section structure, as a rule, has the following appearance:

1) formation of the full list of possible risks;

2) assessment of probability of manifestation of risks;

3) ranging of risks on probability of manifestation;

4) an assessment of the expected sizes of losses at their implementation;

5) establishment and justification of an acceptable risk level (definition of area of admissible risk);

6) allocation of the most essential risks;

7) insurance of risks.

Questions for self-examination

 1. Concept of enterprise risk

2. Types of risks

3. Methods of an assessment of risks

4. Risk management

5. Insurance of risks

Literature

1. Ershov V. F. Business design: Application guide / Century F.Ershov. - SPb.: St. Petersburg, 2005. - 288 pages.

2. Small business program. Management in small business. Business plan. - M: "DECK" IKK, 1993. - 59 pages.

3. Small business program. Management in small business: How to make financial decisions. - M: "DECK" IKK, 1993. - 70 pages.

4. Small business program. Management in small business: Budget drawing up. - M: "DECK" IKK, 1993. - 79 pages.

5. Ushakov I.I. Business plan / I.I.Ushakov. - SPb.: St. Petersburg, 2008. - 224 pages - (Practice of management)

6. Financial analysis and planning [Electronic resource]: A training course. - Electron. applied прогр. (520 Mb). - M: Kordis & Media, 2005. - 1 эл. wholesale. disk (CD ROM): зв. -

 

 

Glossary

Business – economic activity of the subject in the conditions of the market economy, aimed at receiving profit by creation and realization of certain production or service

 

Business incubator – the organization providing small enterprises with physical space for work, rooms and constructions on the basis of sharing, access to means and services in the field of business. Activity of business incubators promotes implementation of an initial stage of development of small enterprise new, as a rule, development of new production and implementation of innovative projects

 

The businessman – the businessman, the businessman, the businessman; in general – the person who is engaged in any kind of economic activity, making profit or other benefits

 

The business area is an area of commercial activity of the firm, answering to the following criteria: ability to a strategic autonomy, foreign market, distinguishable circle of consumers, distinguishable circle of competitors, special chain of pricing, interchangeability of production, office or elimination influence, real income

 

Gross profit - a difference between the price received from the first buyer of production, and variable expenses.

 

Venture firm – the business scientific and technical concern which is engaged in development and introduction of new technologies and production with uncertain in advance in the income (a risky contribution of the capital)

 

Differentiation of the prices. According to marketing strategy, production will have the various prices if it is on sale on various channels of distribution in various packing. For mass distribution selling price of the producer are established so that to cover limiting expenses for the purpose of maintenance of great demand for production (for example, the main food) while for "niche" strategy the price will be established at level of average prime cost that small orders remained profitable.

 

The added cost - an important element of any process of production which creates profitability of business. Represents the cost added to the price of production or service, being a difference between prime cost and the revenue received after sale of production (service).

 

Share in the market - a share in the general demand for production which is delivered by a certain producer or trading company.

 

Distribution channels - exist various ways of receipt of production to the consumer. The choice of channels of sale is a preparatory stage of marketing of production. Each company can have own points of delivery of production to the end user (for example, shops of retail trade) or sale to wholesale purchasers which then will realize production to retail sellers. The company can have the own trading personnel which is carrying out sale to production or to employ direct-sales representatives for obtaining orders from intermediaries. According to it the company establishes the selling prices, packs and advertizes the goods.

 

Commission sale - sale of the goods provided by his owner on realization, without advance payment the seller. Different types of commission sale, including obtaining the exclusive license and establishment of the relations between business and its representatives can be chosen that should be carefully adjusted for ensuring accurate distribution of production, (the concept also is used: consignment sale)

 

The end user - the valid consumer of production.

 

Goods imposing - the channel of mass distribution of invaluable production. The method of sale was born in the West at the initiative of specialized shops (reduced prices for a consignment of goods, made well-known trading companies and having shortcomings or on which payment obligations, or the goods which have got out of fashion) aren't carried out. Imposing of the goods occurs now in factory shops or in big wholesale warehouses. It is known also, as a method of "a firm discount", on the basis of which the usual goods with very low marches or the "souvenir" goods - with the low added cost which will be on sale in large numbers with very low costs of distribution (sale, packing, advertizing, a constant stock) and without consultations and the help of sellers are offered, (the concept also is used: discount sale)

 

Non-standard production - production which doesn't correspond to the established level of quality, requirements to appearance or service life.

The good marketing approach allows to reveal the channels of distribution interested in production of this type and, can be got good profit on production of poor quality if suitable buyers are chosen.

 

Working capital - the stock of money necessary for maintenance of process of production or trading operations. It consists of stocks and liquid resources.

If the enterprise has to finance the clients, or the production cycle is rather long, in this connection sales bring available funds after the long period of time, it will be necessary to cover expenses at the expense of own means, either the credits, or other sources, but not at the expense of receipts from sales. When significant increase in production is predicted, it is necessary to pay attention to additional need for working capital.

 

Variable expenses - expenses which change in proportion to volume of let-out production, for example expenses on materials, (the concept also is used: factor cost)

 

The intermediary - the direct consumer and at the same time the seller of the goods. The intermediary represents an intermediate level for business which doesn't want to work directly with the end user. Delivery, a stock of production, possibility to pack, trading rooms, terms of payment are a subject of care of these partners of business. The choice of intermediaries is very important, as they influence image of production. Often criticized, intermediaries, nevertheless, play important role: they are a link between the producer and the consumer. Small business which has no means to run business directly with the washed-up user, needs intermediaries for sale of the production.

 

Constant expenses - expenses which don't change depending on volume of release of end products, i.e. expenses which should be compensated at any results of production, even in case of lack of finished goods (the concept also is used: indirect expenses, overhead charge).

 

Advance on the market - any means to inform the market on production.

Besides advertizing, in the market it is necessary to present business by distribution of leaflets, booklets and use of other means of communication in points of retail trade.

 

Success determinant - factors on which the success of your business is based.

The most important and difficult task for the top management of the company consists in identification of such factors which will nullify all efforts of business if them not to consider: they can concern deliveries, marketing, pricing, packing, distribution of production, production (quality of the final product) and also the general organization of business, labor or financial security of the project.

Each factor influencing business, is essential, but only some of them can define the future of all enterprise therefore they should be revealed at early stages and constantly be supervised.

 

Public relations - a component of a strategic approach to the market.