Nowadays’ enterprises are subject to continual change; internal and external changes hitting the enterprise require a large amount of flexibility to be able to keep their market position in the long run. Past experience has shown that especially small and medium sized businesses had not prepared themselves well enough for the turbulent and discontinuous environmental changes. Looking at globalization and the present economical recession, the pressure on small and medium sized businesses rises continually.
In the Federal Republic of Germany, the entirety of medium sized businesses play a vital role with respect to macroeconomics. The few empirical examinations on the status quo concerning the application of business-management methods, in particular application of planning systems in small and medium sized businesses make it clear that systematic planning and application of business-management methods in those enterprises is insufficient. In particular enterprises with a turnover of up to 10 m. Euro have shown considerable deficits regarding the application of business-management methods used for running an enterprise.
Table of Contents
1. Introduction
2. Business management in medium sized businesses
2.1. Business management: The term
2.2. The medium sized business
3. Budgeting systems as a management tool
3.1. Construction of a management system
3.2. Basics of budgeting
3.3 Construction and organization of budgeting systems
4. Functional areas of business management of medium sized businesses
4.1. The area of procurement
4.2. The area of production
4.3. The area of outlet (turnover)
5. Conception of a budgeting system for medium sized businesses
6. Summary
Research Objectives & Core Themes
This work aims to develop a practical, conceptual design for budgeting systems tailored specifically to the needs of small and medium-sized enterprises (SMEs), addressing the current deficit in systematic planning tools for this business segment.
- The theoretical foundations and terminology of business management and budgeting.
- Challenges in implementing comprehensive budgeting systems within SMEs.
- Functional area-oriented budgeting, including procurement, production, and sales.
- The integration of modular, computer-based budgeting to support short-term operational steering.
Excerpt from the Book
1. Introduction
Nowadays’ enterprises are subject to continual change; internal and external changes hitting the enterprise require a large amount of flexibility to be able to keep their market position in the long run. Past experience has shown that especially small and medium sized businesses had not prepared themselves well enough for the turbulent and discontinuous environmental changes. Looking at globalization and the present economical recession, the pressure on small and medium sized businesses rises continually.
In the Federal Republic of Germany, the entirety of medium sized businesses play a vital role with respect to macroeconomics. The few empirical examinations on the status quo concerning the application of business-management methods, in particular application of planning systems in small and medium sized businesses make it clear that systematic planning and application of business-management methods in those enterprises is insufficient. In particular enterprises with a turnover of up to 10 m. Euro have shown considerable deficits regarding the application of business-management methods used for running an enterprise.
Budgeting counts as one of the main tools for finance- and success-oriented business management. Papers on business economics generally set out the importance of and necessity of budgeting, in order to assure further existence of the enterprise. Up to now, there empirical insights into the drawing up of budgeting systems for small and medium sized businesses are rare; those examinations there are, normally have large enterprises as a target. Questions regarding the development of medium sized budgeting systems remain more or less unanswered. It is, therefore, the goal of this paper to offer some suggestions regarding the construction of effective budgeting systems for medium sized businesses on the basis of the existing theoretical know-how.
Summary of Chapters
1. Introduction: This chapter highlights the increasing pressure on SMEs due to changing environments and identifies the lack of adequate planning and budgeting tools in these companies.
2. Business management in medium sized businesses: This section defines the terminology of company management and provides a classification of SMEs based on their specific characteristics.
3. Budgeting systems as a management tool: The chapter explores the components of a management system and establishes the basics of budgeting as a core steering instrument.
4. Functional areas of business management of medium sized businesses: This part details the management requirements within specific operational areas, namely procurement, production, and sales.
5. Conception of a budgeting system for medium sized businesses: This chapter introduces a conceptual design for a modular budgeting system designed to harmonize data across different business functions.
6. Summary: The concluding chapter synthesizes the findings, reiterating the necessity of tailored budgeting systems for SME survival and the role of modern IT in this process.
Keywords
Budgeting systems, SMEs, Business management, Financial planning, Operational control, Procurement, Production, Sales budget, Corporate planning, Management tools, Information technology, Efficiency, Business-objective-related control, Resource management.
Frequently Asked Questions
What is the primary focus of this publication?
The publication focuses on the conceptual design and implementation of effective, modular budgeting systems specifically for small and medium-sized enterprises (SMEs).
What are the central thematic fields covered in the work?
The core themes include SME management, the definition and classification of budgeting, functional area-specific planning (procurement, production, sales), and the integration of these into a holistic corporate plan.
What is the central research goal?
The goal is to provide a practical guide and "to-be" concept for SME budgeting, as existing literature largely focuses on the environments of large corporations.
Which scientific methods are primarily utilized?
The work utilizes a theoretical, concept-oriented approach, synthesizing existing business economic findings and adapting them into a modular framework suitable for SME operational realities.
What topics are discussed in the main body?
The main body treats the definition of management terms, the structural requirements of a management system, specific budget types, and the interdependencies between functional areas like procurement and production.
How would you describe the key characteristics of this work?
It is characterized by its focus on practical applicability, the necessity of bridging the gap between theoretical planning models and the specific size-based constraints of SMEs, and the integration of DP-based support.
Why are standard enterprise budgeting systems often unsuitable for SMEs?
Existing systems are often designed for large organizations; SMEs typically lack the necessary in-house planning infrastructure and require simplified, modular adaptations to avoid "suboptimal" results.
How does the author propose to categorize SMEs for budgeting purposes?
The author suggests using a branch-dependent classification system that accounts for parameters like staff number and annual turnover to determine the depth and structure of the required budgeting.
What role does IT play in the proposed budgeting concept?
IT is considered essential, as manual handling of the large volume of data required for harmonizing partial budgets is inefficient; the use of pre-designed standard software is recommended for cost-benefit reasons.
What is the significance of the "Stellendifferenzierung" mentioned?
It refers to the differentiation of hierarchical and functional roles within an enterprise, which is crucial for the internal structure and consolidation of a successful budgeting system.
- Citation du texte
- Otto Stammermann (Auteur), Günter Lübke (Auteur), 2011, Budgeting systems as management tool for European small and medium sized businesses, Munich, GRIN Verlag, https://www.grin.com/document/289193
