Chapter 01-Introduction
Chapter 01-Introduction
Chapter 01-Introduction
Internal managers
Use information for
• short-term planning and controlling
routine operations
• making non-routine decisions and
formulating overall policies and
long-range plans
External parties
(investors, bankers, government
authorities,…) use information for
making decisions about the company
Labor is intensive.
Benefits Costs
Obtain
Benefits > Costs system
Seek
Benefits < Costs alternatives
productivity Competitor
analysis
Financial
Accounting Advertising
System impact
• A budget is a quantitative
expression of a plan of action and
is an aid to coordinating and
implementing the plan.
• Budgets are the chief devices for
disciplining management planning.
Product Introduction
Development to market
Mature Product
Market Phase-out
Research and
Design Production
Development
Customer
Marketing Distribution
Service
Design…
is the detail and engineering of products
Production…
is the coordination and assembly of resources to
produce a product or deliver a service.
Marketing…
is the manner by which individuals or groups
learn about the value and features
of products or services.
Distribution…
is the mechanism by which products or
services are delivered to the customer
Customer service…
is the support activities provided to the customer
Controller
General Internal
Taxes
Accounting Audit
1. Supply of capital
2. Investor relations
3. Short-term financing
4. Banking and custody
5. Credits and collections
6. Investments
7. Risk management (insurance)
Advances in technology