Lecture 1

Question 1

What is vision

Answer 1

• How do we want our customers perceive our company

- A future wanted position

Question 2

What is business idea

Answer 2

• How will the company develop its vision
• What and to whom
• What distinguishes our company from other companies

Question 3

What is strategy

Answer 3

• Clarifies how the company is going to work

- A plan on how to reach our business idea

Question 4

From strategy to operation

Answer 4

• Main goals are separated into parts

- The strategy is planned in various designs about the company

Question 5

Vision - Business idea - Strategy - Operations planning - Financial Management

Answer 5

Vision - Business idea - Strategy - Operations planning - Financial Management

Question 6

Financial management

Answer 6

• Profitability on long-term
• not individual operation, used wisely will contribute to reaching strategic goals
• includes both financial and non-financial goals

Question 7

Financial Management

is all about making goals and reaching them

Answer 7

Make a goal
Direct the operations towards the goal
Follow up
Take action

Question 8

Financial management is facilitated by

Answer 8

Clear financial goals
Information on how the company is doing
Rapid effect on the results

Question 9

Financial Management

Answer 9

It gives the company security to have an estimation about what is going to happen during the following years.

Question 10

Budget

Answer 10

A financial plan of the company

Question 11

What every company has?

Answer 11

• Financial goals
• Strategy to reach them

With the assistance of budgets it’s easier to follow up with and reach the goals

Question 12

Traditional Financial Management

“Modern” Financial Management

Answer 12

The Traditional financial management concentrates on the financial goals.

• Financial goals have been critizized concentrating too much on the past
• Doesn’t take into account how company deals with its customers and suppliers
• Financial rations don’t give information about how to reach the strategic goals of the company

“Modern” Financial management
+ Non-financial goals have become more important

Question 13

BSC - Balanced Score Card

Answer 13

• Is more and more used during the last few decades
• The point is to give a short description about the company
• Clear strategy

Question 14

Budgeting
vs
Balanced scorecard

Answer 14

Budgeting

• Traditional
• Income budget
• Cashflow budget
• Budgeted balance
• From the past towards the strategic goals.

Balanced scorecard

• New thinking
• From the vision
• Divides the company into perspectives
• Not just financial goals