Factoring as an Integral Part of Operational and Strategic Controlling

Thomas Hentschel ()
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Thomas Hentschel: Economics and Management of Commerce Department, Universityof Economics, Varna, Bulgaria

Business & Management Compass, 2018, issue 3-4, 233-249

Abstract: The automobile trade is subject to a strong concentration process, where the profit margins are low whereas the requirements by the manufacturer, market and customers are high. To survive, extreme cost discipline and a healthy fi-nancing structure are required. Factoring in combination with a powerful opera-tive and strategic controlling are decisive factors. Lean processes and optimal use of personnel costs have led to a positive result. Dealer surveys with a quali-fied questionnaire on the use of controlling in the company and the organiza-tional structure served as a basis. In addition, the dealer management report for Volkswagen Germany was used to compare the individual personal assessment of the company with the results of the nationwide dealers depending on their size. The earnings situation of the dealers is very tense, especially in new car sales, due to low margins and a strong margin reduction in competition. Factor-ing can be used to relax the financial situation and avoid liquidity bottlenecks.

Keywords: controlling; factoring; sales controlling; process optimization (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2018:i:3-4:p:233-249

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