In nowadays competitive world for the firm to succeed is to manage well the internal processes in the firm as well as to detect and overcome the challenges offered by the market. This diploma thesis is focused on the internal processes using the controlling concept within particular company Coxys, s.r.o. In the theoretical part I’m concerned about definition of controlling and its conceptual determination to lay down the foundations for the further research. What comes after is the loose transition from theory to practice by outlining the actual application of the controlling concept using various indicators and techniques to construct an internal controlling system. The controlling system is designed to fit the best the company’s needs and to inform the management if the company operates in desired limits and if the strategic and/or functional plans can be met. The practical part describes in depth the particular sections of the controlling system and proves its functionality on the real company’s financial data by subsequent analysis. In the end I discus the controlling outcome of the analysis and present these results using the so called controlling report (Appendix of this thesis).

In nowadays competitive world for the firm to succeed is to manage well the internal processes in the firm as well as to detect and overcome the challenges offered by the market. This diploma thesis is focused on the internal processes using the controlling concept within particular company Coxys, s.r.o. In the theoretical part I’m concerned about definition of controlling and its conceptual determination to lay down the foundations for the further research. What comes after is the loose transition from theory to practice by outlining the actual application of the controlling concept using various indicators and techniques to construct an internal controlling system. The controlling system is designed to fit the best the company’s needs and to inform the management if the company operates in desired limits and if the strategic and/or functional plans can be met. The practical part describes in depth the particular sections of the controlling system and proves its functionality on the real company’s financial data by subsequent analysis. In the end I discus the controlling outcome of the analysis and present these results using the so called controlling report (Appendix of this thesis).

Chapter 1: Theoretical Definitions and Limitations of Controlling………………….1
1.1. Principle of Controlling…………………………………………………………….1
1.2. Planning……………………………….…………………………………………….4
1.3. Control....…………………………………………………………………..………..5
1.4. Governance…………………………………………………………………………7
1.4.1. Feed-back Process………………………………………………………7
1.4.2. Feed-forward Process...………………………………………………...9
1.5. Controller’s Objectives…………………………………………………………...10
1.6. Objectives of Controlling…………………………………………………………11
1.7. Controlling Methods and Indicators Applied…………………………………...13
Chapter 2: Methodology…………………………………………………………….………14
2.1. Development of System of Internal Control……………………………………14
2.2. Indicators…………………………………………………………………………..15
2.2.1. Short-term solvency measures…………………………………...…..16
2.2.2. Long-term solvency measures………………………………………..17
2.2.3. Profit ratios………………………………………………………………18
2.2.4. Turnover measures…………………………………………………….20
2.2.5. Short-term economic result method………………………………….21
2.2.6. Analysis of Products……………………………………………………22
2.2.7. Analysis of Business units…………………………………………….22
2.2.8. Benchmarking……………………………………………………..……23
Chapter 3: Introduction of Observed Company Coxys, s.r.o………………………...24
3.1. Company profile…………………………………………………………………..24
3.2. History of Coxys, s.r.o. …………………………………………………………..25
3.3. Company structure……………………………………………………………….26
Chapter 4: Development of Controlling system and Implementation………………27
4.1. Introduction of the Chapter………………………………………………………27
4.2. Controlling System (Controller’s report)…..…………………………………..28
4.2.1. Section I. - Financial Ratios..…………………………………………………28
4.2.1.1. Short-term Solvency Measures…………………………………….29
4.2.1.2. Long-term Solvency Measures……………………………………..30
4.2.1.3. Profit Ratios…………………………………………………………..31
4.2.1.4. Turnover Measures…………………………………………………..34
4.2.2. Section II. – Overall performance, Retail. vs. Wholesale……...…..………36
4.2.3. Section III. - Retail Business Units Result Analysis………………………...38
4.2.4. Section IV. – Products Results Analysis……………………………………..40
Chapter 5 – Conclusion……………………………………………………………………..46
5.1. Analysis summary………………………………………………………………..46
5.2. Suggestions…………………………………………………………………….…50
References…………………………………………………………………………………….52
Appendix……………………………………………………………………………………….53

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2.) INTERNATIONAL GROUP OF CONTROLLING. Slovník controllingu česko-anglický / anglicko-český: 120 nejdůležitějších termínů pro práci controllera. Management Press, Praha, 2003, p.122, 228-229

3.) Synek, M. a kol. Manažerská ekonomika. Grada Publishing, Praha, 2001, p.414
4.) Dr. Losbichler, H. Mission Statement of Controller. Available: http://www.igc-controlling.org/EN/_leitbild/leitbild.php. Last accessed 18.5.2013

5.) Vysušil, J.: Účetnictví v éře controllingu, Účetnictví 6/98, str.164-167, Účetnictví 7/98, p. 206-210
6.) Eschenbach, R. (2008). Profesionální controlling - nástroje a koncepce. Praha: Wolters Kluwer. p. 93, 120-122.

7.) Zralý, M.: Vývoj pojetí controllingu, vydává společnost pro controlling a podnikové řízení, Controlling, 4/2003, p. 3-9

8.) Ross, Randolph, Jeffrey,Bradford (2011). Corporate finance - core principles and application. 2nd ed. Lake Forest, CA, U.S.A.: McGrew-Hill.
9.) Zralý M. a kol: Controlling a manažerské účetnictví jako nástroj integrace v podnikovém řízení, závěrečná publikace shrnující výsledky stejnojmenného projektu, stran: 239, ISBN: 80-01-03362-7, Vydavatelství ČVUT v Praze, 2005, p. 56-59

10.) Investopedia.com: Definition Acid – Test Ratio, http://www.investopedia.com/terms/a/acidtest.asp#axzz2F0JAsxK6

11.) Král, B. (2009). Manažerské účetnictví. Praha: EKOPRESS. p.27.

12.) Moles P., Terry N. (1999). The Handbook of International Financial Terms. USA: Oxford University Press.

13.) Zralý M., Král, B.: Controllingové pojetí manažerského řízení a úloha účetnictví v něm, In: Účetnictví 9/2006, p. 34-40, ISSN 0139-5661

14.) Kredit: Controlling, Specialized magazine for financial planning, 5/2011, p. 25-29

15.) Kredit: Controlling a jeho metody, Specialized magazine for financial planning, 6/2011, p. 24-29