Sustainable Development

Preface: Management of an Industrial Company 7

1 The Business  13

The Atlas Copco Group 13

The Business Logics of Atlas Copco Industrial Technique 24

Atlas Copco: A Group of Limited Companies 32

Entrepreneurship 34

2 Planning the Business  37

The Atlas Copco Culture 37

From Mission to Action 39

Management Control 44

Models Used in Strategic Work 56

Forecasting 59

3 Acting in the Market  65

Markets 65

Product-Driven and Customer-Focused 68

What Does a Customer Focus Mean? 69

Market Segmentation 73

Two Perspectives on Marketing 75

The Network Perspective 76

Marketing Mix: The 4P Model 79

4 Organizing the Business  91

Organizational Structures 91

Organizational Structures in Theory 98

Leadership 104

Inventory Carrying and Procurement 121

5 Costing Products and Orders  125

Use of a Costing System 125

Basic Concepts 126

Different Costing Systems 131

The Costing System: At First Glance 133

The Full Cost 134

Contribution Margin Costing 143

Other Costing Methods 148

Stepwise Costing 150

6 Decisions about Investments  153

What is an Investment? 153

The Concept of Interest 154

Concepts in the Calculations 158

Methods for Investment Appraisal 164

Investment Classification 172

An Investment Proposal 173

Investments in Companies 175

7 Following up the Business  177

Enterprise Resource Planning (ERP) 177

Bookkeeping 179

Monthly Internal Reports 184

The Annual Report 193

Accounting Measures 206

Measures for Profitability 210

Sustainable Development 213

8 Analyzing Change  217

What Happens when Volumes Change? 217

The PK-bridge 224

Variance Accounting 229

9 Financing the Business  231

Finance 231

Operational and Financial Risks 232

The Need for Capital 233

Reducing Capital 235

Need for Capital 236

Acquiring Capital 243

Cash Flow Statement 247

Financial analysis 252

Tables  257
Reading list 261
Index 263