Modern Industrial Management

492 Pages·2018·376.927 MB·English

by  Mats Engwall,Anna Jerbrant,Bo Karlson,Per Storm

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