Business Controlling in an International Context (CON5041)

Transcription

1 Prof. Dr. Joachim Paul Office hours: Thu, 11:30 13:00 Business Controlling in an International Context (CON5041) Syllabus Summer Term 2015 Time: Wed, 09:45 13:00 Room: W Start: Wed, March 18, 2015 Course Language: English ECTS Credits: 5 Level: Expert Level Contact hours: 60 (45 minutes each) (4 weekly contact hrs.) Workload: 180 hours Target Group: 2. Semester Assessment: written examination (90 minutes) Frequency: Once per year Teaching methods: Interactive lecture, exercises, case studies Pedagogical Approach: Interactive approach Prerequisites: Corporate Finance and Financial analysis Accessibility: Course is compulsory for 2 nd semester MBA-IM students and open to international guest students on MBA-level Reason for higher workload: Students have to work through readings and prepare exercises, extensive class preparation Learning Objectives: This course is designed to introduce students to advanced managerial accounting and controlling techniques. The focus is on (internal) accounting and controlling in multinational enterprises. By the end of the course, students should be able to Understand the concepts of accounting and controlling in a global business context Apply basic managerial accounting concepts Explain, operate and evaluate the usefulness of different controlling tools, Apply major controlling instruments Participants are required to make an active contribution to case studies and to develop spreadsheets to be used by controllers. 1

2 Course contributions to the MBA program goals / learning outcomes Program Goal /Learning Outcome 1. Knowledge of business functions and processes as well as methods and models Through their master thesis, students demonstrate their well-founded knowledge of business functions and processes as well as of the relevant tools. 2. Analytical competence, critical thinking and creative problem solving Students demonstrate analytical competence and problem solving skills. 3. Leadership and team competence Students demonstrate social competence of being able to co-operate effectively in a team in order to achieve their aims. 4. Mastery of challenges of global and European integration Students demonstrate that they are able to examine and assess the challenges of European and global integration. They also demonstrate that they are able to recognize and assess intercultural challenges and make suggestions how to deal with them effectively. 5. Mastery of the challenges of global sustainability Students have basic knowledge of sustainability and are able to examine issues of global sustainability and their causes as well as develop strategies for sustainability. 6. Innovation management Students are able to identify innovation potential for a given case and develop complex technological strategies. Communication skills Course Contributions to Learning Outcome Basic concepts of managerial accounting, financial controlling and value-based management Potential and limits of the instruments of accounting and controlling Assessment Written Examination Written Examination Students demonstrate that they are able to express complex matters on scientific basis. Students demonstrate their oral communication skills. 8. Ethical awareness Students are able to develop strategies for solutions and communication based on company ethics and are able to apply them to typical decision making problems Ethical problems in accounting and controlling Written examination 2

3 Main course topics: The controller s role in the organization Anglo-Saxon and German concepts of (financial) controlling and managerial accounting Cost-Volume Profit analysis (CVP) Job costing Activity based costing (ABC) Flexible budgeting Business Intelligence (BI) tools as a basis for financial controlling Corporate planning and budgeting Controlling and communication Reporting tools and report design Value based management (VBM) and shareholder value concept Key performance indicators (KPI) and performance measurement systems Strategic controlling Basic outline and organization: Lectures including group discussions, case studies, and exercises. Grading: Assessment is based 100% on a closed book examination of 90 minutes. Course Materials: Paul, J.: Paper: Financial Controlling, Pforzheim, available for download on the elearning platform Paul, J.: Paper: Managerial Accounting, Pforzheim, available for download on the elearning platform river, N.J. /USA (latest edition) Further Readings: Ehrbar, A., EVA, New York et al 1998 Rappaport, A., Creating Shareholder Value, New York et al 1986 Rappaport, A.: A Guide for Managers and Investors, Creating Shareholder Value Free Press, Rev Sub edition. Stewart, G. B.: The Quest for Value, Collins Business, New York. Kaplan, R.S; Norton, D.P.: The Balanced Scorecard, Harvard Business School Press, Boston. Kaplan, R.S; Norton, D.P.: The Strategy-focused Organization: How Balanced Scorecard Companies thrive in the new business environment., Harvard Business School Press, Boston. Availability of the lecturer and teaching philosophy: Prof. Dr. Joachim Paul Office: W Office hours: Thu, 11:30 13:00 or after prior appointment joachim.paul@hs-pforzheim.de 3

4 Preliminary schedule for ACC 5101 Business Controlling in an International Context 1 Introduction Definition(s) of Managerial Accounting, accountant s role in the company, internal vs external accounting Definition(s) of Controlling, the role of the controller in the company, differences between controlling concepts in Anglo-Saxon and German speaking countries 2 Terms and definitions costs, expenses direct vs indirect, fixed vs variable costs Ethical issues in Controlling; whistleblowing vs confidentiality 3 Cost Volume Profit Analysis I Basic Concepts river, N.J. /USA (latest edition), chapter 2,3 4 Cost Volume Profit Analysis II Applications river, N.J. /USA (latest edition), chapter 3,4 5 Job Costing I Introduction Applications, exercises river, N.J. /USA (latest edition), chapter 4 6 Job Costing II Normal costing Applications, exercises river, N.J. /USA (latest edition), chapter 4 7 Activity Based Costing I Introduction Theory river, N.J. /USA (latest edition), chapter 5 8 Activity Based Costing II Exercises Applciations river, N.J. /USA (latest edition), chapter 5 9 Flexible budgeting I Types of budget variances Application: direct costs 4

5 river, N.J. /USA (latest edition), chapter 7 10 Flexible budgeting II Types of budget variances Application: direct costs river, N.J. /USA (latest edition), chapter 7 11 Flexible budgeting III indirect costs river, N.J. /USA (latest edition), chapter 7,8 12 Flexible budgeting IV fixed costs, revenue costs river, N.J. /USA (latest edition), chapter 8 13 ERP-Systems and Business Intelligence (BI) Systems The basic IT-tools for controllers the IT environment Excel vs professional BI Systems 14 BI and Executive Information Systems (EIS) How to analyze data OLAP-systems Management cockpits and EIS Case study / exercise: development of an OLAP system for a company 15 BI: project management How to implement BI systems Case study: selecting a BI software 16 Value Based Management (VBM) Basic concepts of VBM Differences between conventional accounting and VBM Ehrbar, A.: EVA: The Real Key to Creating Wealth, Wiley, New York. Stewart, G. B.: The Quest for Value, Collins Business, New York 17 VBM: Economic Value Added (EVA) Components of EVS From Profit after Tax fot NOPAT WACC (Weighted Average Cost of Capital) Ehrbar, A.: EVA: The Real Key to Creating Wealth, Wiley, New York. Stewart, G. B.: The Quest for Value, Collins Business, New York 18 VBM: ROI, ROCE, RONA Differences between absolute values (eg. EVA) and ROI The concepts of Capital Employed (CE), Net Assets (NA), book values vs market values Ehrbar, A.: EVA: The Real Key to Creating Wealth, Wiley, New York. 5

6 Stewart, G. B.: The Quest for Value, Collins Business, New York 19 VBM: Shareholder Value I Methods to determine the value of a company Rappaport s shareholder value concept Rappaport, A.: A Guide for Managers and Investors, Creating Shareholder Value Free Press, Rev Sub edition 20 VBM: Shareholder Value II Exercise / Case study in shareholder value Rappaport, A.: A Guide for Managers and Investors, Creating Shareholder Value Free Press, Rev Sub edition 21 Planning and Budgeting I Traditional planning concepts in companies Long-range, mid-range and operational planning Forecasts Budgetary slack 22 Planning and Budgeting II New concepts in planning and budgeting Beyond budgeting, advanced budgeting, better budgeting 23 Strategic controlling: Balanced Scorecards I Monetary and non-monetary key performance indicators (KPM) From KPM to Balanced Scorecard Aligning the KPMs to corporate strategy Kaplan, R.S; Norton, D.P.: The Balanced Scorecard, Harvard Business School Press, Boston 24 Balanced Scorecards II Case study: development of a Balanced Scorecard Strategy maps Kaplan, R.S; Norton, D.P.: The Balanced Scorecard, Harvard Business School Press, Boston Kaplan, R.S; Norton, D.P.: The Strategy-focused Organization: How Balanced Scorecard Companies thrive in the new business environment., Harvard Business School Press, Boston 25 Discussion, exercises, previous exam papers 26 Wrap up / Revision Evaluation 27, 28 Open / back up 6