Table Of Content

Modern Industrial Management MATS ENGWALL ANNA JERBRANT BO KARLSON PER STORM ' Modern Industrial Management MATS ENGWALL ANNA JERBRANT BO KARLSON PER STORM Translation: Ida Stefansson ~ Studentlitteratur Original title: Modern industriell ekonomi © Studentlitteratur, Lund 2017 Copying prohibited This book is protected by the Swedish Copyright Act. Apart from the restricted rights for teachers and students to copy material for educational purposes, as regulated by the Bonus Copyright Access agreement, any copying is prohibited. For information about this agreement, please contact your course coordinator or Bonus Copyright Access. Should this book be published as an e-book, thee-book is protected against copying. Anyone who violates the Copyright Act may be prosecuted by a public prosecutor and sentenced either to a fine or to imprisonment for up to 2 years and may be liable to pay compensation to the author or to the rightsholder. Studentlitteratur publishes digitally as well as in print formats. Studentlitteratur's printed matter is sustainably produced, as regards both paper and the printing process. Art. No 39694 ISBN 978-91-44-12102-4 First edition 1:1 © The authors and Studentlitteratur 2018 studentlitteratur. se Studentlitteratur AB, Lund Translation: Ida Stefansson Cover design: Jens Martin/Signalera Cover illustration: Shutterstock/vs148 Printed by Interak, Poland 2018 CONTENTS Preface 9 About the authors 11 Part I Industrial Management 1 INTRODUCTION 15 1.1 Industrial Management as an academic field 15 1.2 Industrial Management - yesterday, today, tomorrow . . . 18 1.3 The economic cycle of the company 23 1.4 The structure of the book 26 References 27 2 SWEDISH TRADE AND INDUSTRY 29 2.1 Swedish industry is dependent on technology and exports 29 2.2 The economic structure of Sweden 31 2.3 The companies in Sweden 33 2-4 The structure of the business sector 35 2.5 An industrial structure in transformation 45 Summary 47 References 47 3 BUSINESS OPERATIONS AS POINT OF DEPARTURE 49 3.1 The value proposition: goods and services 49 3.2 The value creation 55 3.3 Value capture 62 3.4 The business operations in the value chain 64 3.5 Efficiency, effectiveness, productivity, and profitability 69 Summary 71 References 72 3 © THE AUTHORS AND STUDENTLITTERATUR CONTENTS 4 TECHNOLOGY-DRIVEN DEVELOPMENT 73 4.1 Sources of innovation and technological development 73 4.2 The S-curves of technological development 75 4.3 How innovations diffuse 77 4.4 From product innovation to process innovation 81 4.5 Technology shifts 84 4.6 Service innovations and new business models 86 4.7 The challenge: balancing short-term efficiency and long-term innovation 87 Summary 89 References 90 Part II The value creation system 5 MARKETING 93 5.1 Marketing on different markets 93 5.2 Strategic marketing 96 5.3 Tactical marketing 101 5.4 Operational marketing and sales 107 5.5 Rules and regulations for doing business 111 Summary 114 References 115 6 PRODUCTION 117 6.1 Production under different conditions 117 6.2 Production strategy 120 6.3 Tactical production management 133 6-4 Operational production management 142 Summary 154 References 156 7 PRODUCT DEVELOPMENT 157 7.1 Product development in different types of businesses 157 7.2 The innovation strategy of the company 159 7.3 The tactical level of product development 167 7.4 Operational level: methods and techniques 175 Summary 183 References 184 4 © THE AUTHORS AND STUDENTLITTERATUR CONTENTS Part Ill The financial system 8 PRODUCT COSTING AND ANALYSIS 187 8.1 The basic concepts of accounting and costing 187 8.2 Contribution costing 194 8.3 Step costing 196 8.4 Full costing 198 8.5 Activity-based costing (ABC) 203 8.6 Operations determine the costing methods 207 8.7 Calculations - before and after 209 Summary 210 References 211 9 CAPITAL INVESTMENTS AND INVESTMENT ANALYSIS 213 9.1 What is a capital investment? 213 9.2 How are investments evaluated? 216 9.3 Investment calculations 217 9.4 How is the required rate of return calculated? 232 9.5 Capital investment analysis in practice 236 Summary 237 References 238 10 ACCOUNTING 239 10.1 What is bookkeeping? 239 10.2 T-accounts and double-entry bookkeeping 244 10.3 Systematic order of the accounts 250 10-4 Bookkeeping for VAT 253 10.5 Accurate bookkeeping is not easy in practice 254 Summary 254 References 255 11 FINANCIAL ACCOUNTING 257 11.1 Financial accounting 257 11.2 The annual financial statements - balance sheet and income statement 259 11.3 Administration report, cash flow analysis, interim report, and the auditor's report 268 5 0 THE AUTHORS AND STUDENTLITTERATUR CONTENTS 11.4 Preparation of the financial statements 269 11.5 Taxed profit compared with accounting profit 279 11.6 What do the financial statements tell us? 280 11.7 Consolidated financial statements 286 Summary 288 References 289 12 CORPORATE FINANCE 291 12.1 Capital requirements 291 12.2 Capital structure 298 12.3 Financing the operations 301 12.4 Cash flow analysis 305 12.5 Financial risks 308 12.6 Two sides of financing 314 Summary 315 References 316 13 MANAGEMENT ACCOUNTING AND FINANCIAL CONTROL 317 13.1 Financial control 317 13.2 Distributing responsibilities and measuring performance 318 13.3 Management accounting 319 13.4 Balanced scorecard - a performance measurement tool 323 13.5 Budgeting 325 13.6 The effects of financial control 330 Summary 331 References 332 Part IV Management and organizing 14 BUSINESS STRATEGY AND STRATEGY MODELS 335 14.1 There needs to be a business idea 335 14.2 The strategy realizes the business idea 337 14.3 Models for strategic analysis 345 14-4 After the development of the strategy: the implementation 355 Summary 359 References 360 6 0 THE AUTHORS AND STUDENTLITTERATUR - CONTENTS 15 LEADERSHIP AND HUMAN RESOURCE MANAGEMENT (HRM) 361 15.1 A company and its employees 361 15.2 The employee and the work 368 15.3 Working groups 376 15.4 Management and leadership 380 15.5 A company's HRM and its HR department 383 Summary 384 References 385 16 ORGANIZING THE BUSINESS OPERATIONS 387 16.1 The juridical form 387 16.2 The company as an organization 391 16.3 Organizing an organization 395 16.4 Organizational structure 397 16.5 Various organizational forms 399 16.6 To coordinate operations 404 Summary 410 References 411 17 PROJECT MANAGEMENT 413 17.1 What is a project? 413 17.2 The goal - the very core of the project assignment 414 17.3 The project process 418 17.4 Project organization 422 17.5 Project management methods 425 17.6 Projects - short-term and flexible 432 Summary 432 References 433 18 CSR AND SUSTAINABLE OPERATIONS 435 18.1 A company's social responsibility 435 18.2 The environmental issue and climate change 441 18.3 Ethical responsibility 444 18-4 Standards, systems, and guidelines 449 Summary 453 References 454 7 © THE AUTHORS AND STUDENTLITTERATUR CONTENTS Appendix Glossary: English-Swedish 457 Glossary: Swedish-English 463 Interest tables 469 Index 473 8 0 THE AUTHORS AND STUDENTLITTERATUR