MANAGERIAL ECONOMICS OF AN INDUSTRIAL
ENTERPRISE
K is ýna Pus ějo ská
1
Goals, Func ions and Ac i i ies o an
Indus ial En e p ise
Company Goals
Image sou ce: h ps://coampli i.com/wp-con en /uploads/2021/07/coampli i_goals-550x550.jpg
•Basic p oduc ion ac o s include:
•human labo
• angible (physical) capi al
• inancial capi al (own and bo owed)
•land, o na u al esou ces
•Joined by o he p oduc ion ac o s as echnological
knowledge, inno a ions, o iginal solu ions e c.
•Manu ac u ing en e p ise = Ins i u ion ensu ing he pe o mance o business ac i i ies,
planned and managed, which s i es o achie e se goals h ough he mos e icien
combina ion o p oduc ion ac o s
•To achie e company goals, coope a ion o all aci i i ies is necessa y
Goals
Image sou ce: h ps://digi alleade ship.com/blog/business-goals/
•Company goal is a s a e manu ac u ing company wan s
o achie e a a ce ain ime, i is a desi ed end s a e
ha he company is supposed o each in he u u e
and whe e i s plan is heading
Rules o se ing goals
•S – speci ic
•M – measu able
•A – achie able
•R – ele an
•T – ime bound
•E – e alua e
•R – ewa d
Goals
Acco ding o pe iod o which hey ela e:
•Sho - e m goals (ope a ional)
•Achie able wi hin 1 yea ,
•Implemen a ion esponsibili y belongs o lowe
le el manage s
•Long- e m goals (s a egic)
•Achie able in a ime ho izon longe han a yea
•Top managemen is esponsible
Acco ding o Pe o mance
•Sho - e m a ge s iden i ied as impo an o
ongoing business
Image sou ce: h ps://digi alleade ship.com/blog/business-goals/

Goals
Quan i a i e & Quali a i e Goals
•Quan i a i e goals
•Requi e ac ual da a
•O en e y angible, numbe s o s a is ics
•P o able measu emen s
•Quali a i e goals
•Build a ound imp essions and deg ees
•Usually how someone eels abou some hing
•o how would hey desc ibe an expe ience
•Ha de o collec
Di e ence is ype o da a collec ed o measu e success
Image sou ce: h ps://digi alleade ship.com/blog/business-goals/
Goals
Ou come & P ocess-O ien ed Goals
•Ou come-O ien ed Goals
•Success de e mined by how and when he goal is
eached
•Pass o ail si ua ions
•P ocess-O ien ed Goals
•Success is less speci ic
•Requi es he comple ion o a se o s eps ega dless o
he ou come
•I ’s he jou ney, no he des ina ion ha ma e s
•P ocess-O ien ed goals a o s he jou ney
•Ou come-O ien ed Goals ca e only abou he des ina ion
Image sou ce: h ps://digi alleade ship.com/blog/business-goals/
Ano he Possible Goals Di ision
Acco ding he a eas hey conce n:
•Economic goals – include p o i , sales olume, ma ke sha e, and inancial goals (liquidi y, o al and ek i y capi al,
inancial in es men s, ma ke alue o he company, ecei ables e c.)
•Technical goals – de elopmen and in oduc ion o new p oduc s, expansion o p oduc ion capaci ies,
de elopmen o echnologies
•Social goals – social and wo king condi ions o employees, opo uni ies o hei ca ee ad ancemen and
educa ion, employmen s abili y, wage le els, c ea ion o job oppo uni ies, en i onmen al p o ec ion,..)
Acco ding o hei hie a chy:
•Main goals (supe io , p ima y)
•Sub-goals (speci y he p ima y goals)
Acco ding o ela ionship be ween co po a e goals
•Complemen a y goals – achie ing one goal equi es achie ing ano he one
•Compe ing goals – highe ul illmen o one leads o lowe ul illmen o ano he
•Indi e en goals – ul illmen o which has no e ec on he ealiza ion o ano he goals
Business Goals
•Company usually wan s o combine hem
•Complemen a y goals – educing cos s can lead o highe p o i s
•Compe ing goals – when a company wan s o keep cos s low, bu a he same
ime shows g ea e p omo ional ac i i y, which inc eases cos s.
•Gene al p ima y goal o indus ial company is conside ed o be he maximiza ion
o he ma ke alue (o company, o owne s‘ asse s)
•In small businesses, whe e he connec ion be ween owne and his business is
much close han in la ge companies, he goals can o en p e ail, such as:
•Feeling o sa is ac ion om building a success ul business
•Possibili y o independen decision-making
•Ensu ing pe manen wo k o amily membe s
•Main aining and con inuing he amily adi ion
Image sou ce:
h ps://www.ukbusinessmen o ing.co.uk/
news/how-an-objec i e-can-help-a-
business
Business Li e Cycle
•Re e s o he e olu ion o an business h ough ou s ages
based on hei common cha ac e is ics
•Those ou s ages a e:
•In oduc ion
•G ow h
•Ma u i y
•Decline phase
•Ma u e indus ies include ood and ag icul u e, mining, and inancial se ices
•Use ul o in es o s as hey can make be e -in o med in es men decisions
Image sou ce: h ps://www.linkedin.com/pulse/unde s anding-
business-li e-cycles-na iga ing-e ol ing-mg n /

In oduc ion phase
•S a up phase in ol es he de elopmen and ea ly
ma ke ing o a new p oduc o se ice
•Ob aining in o ma ion abou he p oduc s and
indus y pa icipan s is no easy = unclea demand
•New supplie s a e de eloping, = buye s o he
goods and se ices need o lea n mo e abou hem
•Business ends o be highly agmen ed in his
s age
•Pa icipan s also end o be unp o i able since
expenses a e incu ed o de elop and ma ke he
o e ing, while e enues a e s ill low
Image sou ce: h ps://www.man ajubhi.com/4-s ages-o -a-business-li e-cycle/
G ow h Phase
•Consume s ha e come o unde s and he alue o
new o e ing, business o indus y
•Demand g ows apidly
•Few new business became appa en and compe e
o es ablish a sha e o he new ma ke
•Immedia e p o i s a e usually no a op p io i y
•Companies spend on esea ch and de elopmen o
ma ke ing
•Business p ocesses a e imp o ed
•Geog aphical expansion is common
Image sou ce: h ps://www.man ajubhi.com/4-s ages-o -a-business-li e-cycle/
Ma u i y Phase
•Begins wi h a shakeou pe iod, du ing which sales
g ow h slows, ocus shi s owa d expense
educ ion and consolida ion occu s
•As ma u i y is achie ed, ba ie s o en y become
highe , and he compe i i e ield becomes mo e
clea
•Ma ke sha e, cash low, and p o i abili y become
he p ima y goals o he emaining companies now
ha g ow h is ela i ely less impo an .
•P ice compe i ion becomes much mo e ele an
•Businesses may p olong he ma u i y phase by
eposi ioning hei o e ings, in es ing in new
ma ke s and echnology, and spu ing new g ow h.
Image sou ce: h ps://www.man ajubhi.com/4-s ages-o -a-business-li e-cycle/
Decline Phase
•Ma ks he end o an indus y‘s abili y o suppo
g ow h
•Obsolescence and end use s nega i ely impac
demand = declining e enues = ma gin p esu e
•Fu he consolida ion is common as pa icipan s seek
syne gies and u he gains om scale
•This pha e o en signals he end o iabili y o
business model
•Can be delayed wi h la gescela p oduc imp o emen
o epu posing
Image sou ce: h ps://www.man ajubhi.com/4-s ages-o -a-business-li e-cycle/
Sou ces
JANOVSKÁ, Kamila. P ůmyslo á ekonomika a managemen . Online, S udijní opo a. Os a a:
VŠB - TUO, 202.
h ps://digi alleade ship.com/blog/business-goals/
h ps://www.in es opedia.com/ e ms/i/indus yli ecycle.asp
h ps://www.man ajubhi.com/4-s ages-o -a-business-li e-cycle/
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21
NPO_VŠB-TUO_MSMT-16605/2022
Thank you o you a en ion
k is yna.pus ejo ska@ sb.cz (A513)
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