Business Diagnostics

Syllabus

Thematic definition of lectures: 1. The essence of business diagnostics and its differentiation from business process analysis, auditing and controlling. Approaches to understanding business diagnostics. Division of business diagnostics into basic areas of its investigation: - diagnostics of the relationship between the enterprise and its environment - diagnostics of individual phases of the enterprise life cycle - diagnostics of enterprises in terms of selected typological criteria /size of the enterprise, legal form, individual functional areas of the enterprise, production factors, etc./ 2. History of enterprise diagnostics. Normality of the enterprise. Stages and steps of individual procedures of enterprise diagnostics. Definition of normality criteria and normality typology. Entry into diagnostic activity - preliminary diagnosis of the situation in a certain area, definition of problems, setting of objectives and conditions of solution. Self-diagnosis - creation of prerequisites for the processing of the diagnosis, finding out the background and information about the actual situation. Diagnostic analysis and prognosis. Creation of a causal network of factors of further development of the enterprise. Implementation proposal - elaboration of a summary study and proposal of solution alternatives. Evaluation of the proposed alternatives. Completion of the diagnostic activity - evaluation of the diagnostics and further possibilities of its improvement. 3. Diagnostics of the relationship between the enterprise and its environment I. Environment and surroundings of the enterprise. The essence of the environment of the enterprise and its division for the purposes of enterprise diagnostics. Factors influencing the environment of the enterprise. Degree of influence of the world environment processes on the enterprise activity. Sectors and elements of the general environment of the enterprise affecting its activity (macroeconomic, political-legal, socio-cultural and technological sectors). Impact of elements of the specific environment of the enterprise with regard to its nature, sector of activity, size, legal form, etc. The importance of the State in shaping the environment of the enterprise. 4. Diagnostics of the relationship between the enterprise and its environment II. Business environment - country assessment according to Doing Business, WEF, rating agencies, PAS. Diagnostic methods of business environment - diagnostic mission, monitoring, PESTEL, Pasport and study of business environment. 5. Business life cycle diagnostics. Assumptions of the establishment and creation of the enterprise. Positions of different typological types of enterprises in terms of the needs of society and in terms of their own needs. Diagnosis in terms of the future activity of the enterprise, external and internal organizational and legal structure, financial assumptions and social aspects. Use of statistical documents and methods. Preparation of a business project as a basis for the establishment of an enterprise. 6. Selection of the location of the enterprise as an important managerial decision. Justification of the choice of the location on the basis of the evaluation of the individual factors of the location of the enterprise. Acquisition-oriented factors - land, its availability and price, natural resources, their size, location and possibilities of use in terms of the future enterprise, infrastructure, qualification and structure of the workforce. Production-oriented factors - the natural and technical characteristics of a location. Factors oriented towards marketing - purchasing power of the population in the locality, possibilities of operation of marketing policy instruments in the locality. Factors regulated by the state - taxes, duties, subsidies, support for small and medium-sized enterprises, support for regions with high unemployment, etc. Localisation methods applied in business diagnostics - utility value analysis, scoring method and Steiner-Weber model, zero point analysis, Lorenz curve. 7. Enterprise growth and its measurement. The nature of business growth and sustainable business growth. Methods of enterprise growth. Internal growth of the enterprise and its forms - development of core activities, complementary and associated activities. External growth of the enterprise. Forms of different types of enterprise growth. Marris model of managerial enterprise growth. Graphical representation of the Marris model. Penrose effect and its application in the Marris growth model. Estimation of firm growth under uncertainty. Deterministic equity-based growth of the firm. Deterministic firm growth based on sales. Mathematical modelling of enterprise growth under uncertainty. Enterprise growth crisis. Other models of enterprise growth and growth crises. 8. Stabilization of the enterprise and possibilities of its measurement. Criteria of evaluation and indicators of individual positions of the enterprise. Evaluation of indicators of the market position of the enterprise. Internal and external analysis. Case study aimed at evaluating individual indicators and determining the position of the enterprise (dominant, strong, suitable, stable and weak position). Possibilities to evaluate positions in the light of the legal norms of the Slovak Republic. Elaboration of strategies for further functioning of the enterprise. Measures to maintain the existing positions of the enterprise. 9. Crisis of the enterprise and its diagnosis. Causes of corporate crises and starting points. Identification and diagnosis of crisis. Crisis as a state, crisis as a development. Quick, rough and detailed analysis of the enterprise. Application of diagnostic methods in crisis identification - economic normal, crisis barometer, Du Pont analysis, Altmanovindex, Tamari risk index financial-economic analysis, methods of multicriteria evaluation of variants, etc. Methods of solving the enterprise crisis - formal, informal. Consolidation, rehabilitation, restructuring and its forms. 10. Enterprise bankruptcy and possibilities of its quantification. Diagnosis of the grey economy. Dissolution of an enterprise with and without liquidation. Liquidation, bankruptcy and settlement. Substantive and legal regulation of bankruptcy proceedings. Phases of bankruptcy. Liquidation project and its parts. Case study on the preparation of a liquidation plan for a company. Settlement of property relations between creditors and debtors. The legal regulation of composition as a form of winding-up of a company. Winding-up of a company and its legal regulation. 11. Diagnosis of the grey economy. Enterprise therapy. Categorization of the grey economy, causes and consequences. Methods and procedures of grey economy diagnostics. The position of enterprise therapeutics in enterprise diagnostics. Therapeutic methods and procedures. Enterprise diseases and their categorisation. 12. Specifics of diagnostics of small, medium and large enterprises. Use of diagnostic methods in business practice and expert activity. Positions of different size types of enterprises in terms of the needs of society. Efficiency of arrangement of legal and organizational relations in enterprises. Diagnostics of possibilities of development of activities and fields in which individual types of enterprises operate. Optimization of the location of small and medium-sized enterprises by means of selected diagnostic methods. Application of diagnostic methods in monitoring the life cycle of an enterprise. Possibilities of using diagnostics in expert activity and its individual fields. 13. Enterprise diagnostics and specific areas of enterprise monitoring - business risk and human capital controlling. The essence of enterprise risk monitoring and its interrelation with diagnostics. Methods of enterprise risk assessment and availability of their application in the conditions of enterprise practice. Human capital and possibilities of its measurement as a subject of enterprise diagnostics. Human capital controlling as a tool of enterprise diagnostics. Thematic definition of exercises: 1. Introducing students to the system of working on exercises. Introduction to the issues. Creation of business models. Formulation of problems and objectives of modelling, identification of the system, representation of the system by the model. Quantification of the model, i.e. filling it with numerical data, conducting model experiments, i.e. algorithmization and calculation of the model. Testing and logic checking of the results of the model calculations. Implementation analysis, i.e. analysis and possible modification of the results of the model calculations before their implementation. 2. Methods of enterprise location assessment I. Clarification of the essence of location methods used in enterprise diagnostics. - Utility value analysis - Location analysis using the zero point method - Scoring method - Steiner - Weber model - Locational analysis - Weighting method - Traffic tasks - Enterprise vulnerability analysis 3. A case study on the use of utility value analysis, zero point analysis and Steiner - Weber model. Presentation of the results of the processed methods by the teacher. Discussion of the advantages and disadvantages of the methods. 4. Selected methods and techniques to diagnose the environment of the enterprise. Criteria for data collection. Use of databases for data collection, data analysis and evaluation methods. Enterprise environment studies, PESTEL analysis, macroeconomic analysis of countries. Detailed characteristics of diagnostic methods. Creation of work teams, distribution of countries to be analysed for the teams. Preparation and collection of data, use of available national and regional statistical databases available on the Internet. Data sorting and analysis. 5. Evaluation of the analysed data, tabulation and graphical processing of the analysed results, accompanied by a verbal commentary justifying the procedure and the results. Drawing conclusions and recommendations. Preparation of the presentation in POWERPOINT - students work in groups. Presentation of the achieved results in front of the whole study group, guided discussion of the study group, evaluation of the work. Final summary of the most frequently occurring errors in the processing of the method. 6. Passports of the company's surroundings - spreadsheet processing of information about a certain site of interest according to the selected site factors. Structure of the passport. Detailed characteristics of individual parts, possibilities of variability of the structure of the passport. Preparation and data collection. Use of enterprise data, which students evaluate in their upcoming final theses. Individual work of students. Data sorting and processing according to the structure of the passport - homework. 7. Evaluation of analysed data, tabulation and graphical processing of analysed results, accompanied by verbal commentary justifying the procedure and results. Drawing conclusions and recommendations. Preparation of the presentation in POWERPOINT - individual work of the students. Presentation of the results to the study group, guided discussion of the study group, evaluation of the work. Final summary of the most frequently occurring errors in the method processing. 8. Quantification of enterprise growth - use of Marris model in optimization of growth rate and profit rate of the enterprise. Growth functions of capital supply and demand. Comparison of enterprise growth and industry growth. Modelling the growth curve and constructing the enterprise growth function using computer technology. Illustrative presentation of the results of the teacher's scientific research. 9. The Penrose model as a basis for optimizing the number of managers for a given growth of the enterprise - a case study using computer support. 10. The use of methods of multicriteria analysis in assessing the position of an enterprise in the stabilization phase, evaluation of the results of the position of a particular enterprise on the basis of the chosen method and determination of the position of the enterprise - case study. Defining a group of evaluated indicators, assigning a negative or positive characteristic of an indicator based on its desired development, creating a basic matrix of input data for conducting multicriteria analyses - students will prepare input data from enterprises, which they will analyze in their final theses, which will contribute to a more qualitative processing of the analyses, as they are familiar with the situation of the enterprise and know the positive and negative influences, professional opinions of the enterprise management. 11. Weighted sum ranking method and scoring method - explanation of the essence of the method, advantages disadvantages, calculation method, graphical representation of the results and their interpretation method - explanation, demonstration in Excel. Processing of enterprise data by students in Excel, continuous checking and consultation with the teacher, interpretation of results and graphical evaluation of the life cycle curve of the enterprise based on the method used. Study group discussion on the presented results. Evaluation. 12. Normalized variable method and method of distance from a dummy variable- explanation of the essence of the method, advantages and disadvantages, method of calculation, graphical representation of results and their interpretation - explanation, demonstration in Excel. Processing of enterprise data by students in Excel, continuous checking and consultation with the teacher, interpretation of results and graphical evaluation of the life cycle curve of the enterprise based on the method used. Study group discussion on the presented results. Evaluation. 13. Enterprise crisis - its identification and solution options based on the selected method - case study. Crisis barometer. Liquidation project of the enterprise and its parts - elaboration of the liquidation plan as a part of the liquidation project - case study. Comprehensive diagnostics of the enterprise on the basis of the methods used in the individual stages of the life cycle. Evaluation of students' performance during the semester and fulfillment of the conditions for the award of credit.