Budgeting and Business Performance Management Course Syllabus. Budgeting and Business Performance Management

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1 Budgeting and Business Perfrmance Management Curse Syllabus Curse name Semester Prgram Majr Availability Teachers respnsible Languages Budgeting and Business Perfrmance Management First year curse Master f Internatinal Business Crprate Finance, Cntrl and Risks Management / Financial Management Mandatry M.E. Gglukhina, PhD in Ecnmics m.gglukhina@mail.ru English ECTS Hurs Cntact hurs: 28 Self-study : 8 Ttal = 76 Pre-requisites Curse aim Curse bjectives The curse is dedicated t budgeting and assessment f business perfrmance f an internatinal cmpany. Students shuld have backgrund in accunting, financial management and ecnmics f enterprise. The treatment des nt suppse advanced mathematical knwledge f students. Essential gal f studying this curse fr students is t understand imprtance and meaning f financial planning and assessment fr Russian and internatinal cmpanies, as well as t get acquainted with methds f financial respnsibility centres management n the basis f financial and nn-financial indicatrs. Objectives f the curse are t give student theretical knwledge and prvide them with prfessinal cmpetences in planning and analysing business perfrmance f an internatinal r Russian cmmercial cmpany. Upn the cmpletin f the curse a student shuld : knw definitin and types f budgets 1

2 the main stages f a budgetary prcess the purpse and methds f business perfrmance management get skills t analyse financial structure f a cmpany t perfrm break-even and cntributin margin analysis t frm the master budget f an internatinal cmpany t frm and t analyse a cmpany s cash budgets t analyse perfrmance-t-budget variances get idea f cnnectin between strategic planning and peratinal budgets the mdern frecasting methds zer-based budgeting Curse cntent The curse prvides students with theretical understanding f the budgeting prcess f an internatinal cmpany, as well as with practical skills f its rganising. It is suitable fr thse wh intend t wrk and t apply the acquired knwledge in Russian and internatinal cmpanies. The curse starts with descriptin f the budgeting prcess and budgetary system f a firm cntinuing with analysis f the master budget, cash budgets and zer-based budgets. Tpics dedicated t business perfrmance management include break-even, cntributin and variance analysis. A majr part f the curse describes existing methds f financial frecasting. Tpics summary Class Tpic Hmewrk requirements Expectatins/assignments due fr next class Hurs, Ttal 1 Tpic 1. Intrductin. What is a budget and budgeting? Budgeting terms. Budgeting areas. What des effective budgeting require? Types f Budgets. Tpic 2. Strategic planning. What is strategic planning and what are the elements f a strategic plan? Strategic planning prcess. Cnnectin between the strategic planning and budgetary prcess. Expectatins: Please read the relevant tpics in 1. Sid Kemp, Eric Dunbar. Budgeting fr 2

3 2. Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, 2005 Graham Kenny. Strategic Planning and Perfrmance Management: Develp and Measure Winning Strategy: Elsevier, Tpic 3. Budgetary prcess. Budgetary Prcess steps. Financial structure f the cmpany. Organizatinal and financial structures f the cmpany. Organizing financial structure. Directins f the budgetary prcess. Steps t frm a budgetary structure Tpic. Break-even and cntributin margin. Break-even and Cntributin Margin Analysis. Types f csts. Sales Mix Analysis. Analytical usefulness f cntributin margin analysis. Expectatins: Please slve prblems and read the relevant tpics in 1. Sid Kemp, Eric Dunbar. Budgeting fr 2. Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, R. Charles Myer, James R. McGuigan, William J.Kretlw. Cntemprary Financial Management: West Publishing Cmpany, Tpic 5. Master budget. Master budget categries. Budgets f financial respnsibility centers. Planning hrizn & crrectins frequency. Master budget structure. Expectatins: Please read the relevant tpics in Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, 2005 Tpic 6. Variances. Budget Accuracy. Types f Standards. The perfrmance-t-budget reprt. The benefits f budgetary cntrl. Variances, causes and respnsible parties. Tpic 7. Frecasting. Frecasts users. Frecasting Methds. Criteria t select a frecasting technique. Assumptins underlying the frecasting. Steps in the Frecasting Prcess 3

4 Expectatins: Please slve prblems and read the relevant tpics in 1. Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, Graham Kenny. Strategic Planning and Perfrmance Management: Develp and Measure Winning Strategy: Elsevier, Tpic 8. Cash budget. Majr sectins f the cash budget. Flwchart f a planning mdel. Percentage f sales frecasting methd. Expectatins: Please slve prblems and read the relevant tpics in 1. R. Charles Myer, James R. McGuigan, William J.Kretlw. Cntemprary Financial Management: West Publishing Cmpany, Sue Nugus, Financial Planning using Excel: Frecasting, Planning and Budgeting Techniques: CIMA Publishing, Tpic 9. Zer-based budgeting. What is Zerbase budgeting (ZBB). ZBB ranking techniques. A decisin package cntent. 8 Tpic 10. Business-perfrmance management. Systems f Business perfrmance management (BPM). Perfrmance management framewrk. The cncept f value. Areas frm which tp management culd gain knwledge by using BPM. Teaching Expectatins: Please prepare yur presentatins and read the relevant tpics in 1. Sid Kemp, Eric Dunbar. Budgeting fr 2. Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, Tny C. Adkins. Case Studies in Perfrmance Management. A Guide frm the Experts: Wiley, 2006 Studies are held in frm f interactive seminars which is a gd cmbinatin f lectures and practical classes. Lectures are prvided with a PwerPint presentatin and handuts which cntain the utline f the lectures, details f suggested readings, prblems and questins fr discussin in classes.

5 During the practical part students are invlved int discussins, case studies and prblems slving. A special day is freseen t prblems slving with the help f Excel. Fr the last seminar students have t make their presentatins f a business case using Tny C. Adkins. Case Studies in Perfrmance Management. A Guide frm the Experts: Wiley, 2006 Assessment Students get their task t make a presentatin fr the last seminar and get a mark accrding t the standard valuatin system. At the end f the curse students have a tw-hur written examinatin based n the full syllabus. The examinatin cntains: 1. fur multiple-chice questins ( pints) 2. three pen questins (9 pints) 3. ne prblem t be slved (7 pints) Indicative reading Supplementary reading list 1. Jae K. Shim, Jel G. Siegel. Budgeting Basics and Beynd: Wiley, Sid Kemp, Eric Dunbar. Budgeting fr Managers: McGraw-Hill, R. Charles Myer, James R. McGuigan, William J.Kretlw. Cntemprary Financial Management: West Publishing Cmpany, Sue Nugus, Financial Planning using Excel: Frecasting, Planning and Budgeting Techniques: CIMA Publishing, Graham Kenny. Strategic Planning and Perfrmance Management: Develp and Measure Winning Strategy: Elsevier, Tny C. Adkins. Case Studies in Perfrmance Management. A Guide frm the Experts: Wiley, Diane C. Valenti. Training Budgets Step-by-Step: Wiley, Dn Dayananda, Richard Irns, Steve Harrisn, Jhn Herbhn and Patrick Rwland. Capital Budgeting. Financial Appraisal f Investment Prjects: Cambridge University Press, 2002 Updated n: May 5,