Small and Medium-Sized Enterprises in Rural Areas of the Czech Republic and Their Approach to Management Auditing

Daniel Raušer,Z Caha,V Velková,M Ruschak

doi:10.1051/shsconf/20219001017

Daniel Raušer, Z Caha + Show 2 more

Open Access

https://doi.org/10.1051/shsconf/20219001017

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Abstract

Regarding small and medium-sized enterprises (SMEs) and their conditions in the present business environment, it is determinative for them to be prosperous and ambitious. In order to achieve their defined goals, such enterprises are advised to conduct periodical marketing environmental analyses and various audits. However, an audit process that examines overall enterprise management and measures its performance, i.e. management auditing, tends to be overlooked at times or mistaken for other activities. Related research involving Czech SMEs located in rural areas and operating in diverse industries discovered that management audit process capabilities, specifically in terms of organization and resources, are not fully utilized resulting in the enterprises’ lower competitiveness. In connection with broader assessment of enterprise management systems, the objective of this paper consists in introducing a particular sub-model titled “Comprehensive and Individual Resource Analysis”, which finalizes the previously developed and published “Two-Stage 7S Evaluation Model” [1]. Implementing the eventually completed model of management auditing on a regular basis would allow the SMEs to remove faults (and raise efficiencies) in their management processes, and enhance their enterprise value in the domestic and international markets.

Highlights

Nowadays, perhaps all business enterprises, especially small and medium-sized enterprises (SMEs) based outside urban areas, aim for sustainability and profitability supplemented by taking competitive advantages over other enterprises
In connection with broader assessment of enterprise management systems, the objective of this paper consists in introducing a particular sub-model titled "Comprehensive and Individual Resource Analysis", which finalizes the previously developed and published “Two-Stage 7S Evaluation Model” [1]
As for model development, the primary objective was to extend the already compiled “Two-Stage 7S Evaluation Model” [1] by proposing an additional sub-model, which would constitute the third stage in management audit implementation and would be a further action connected with two preceding submodels

Summary

Introduction

Perhaps all business enterprises, especially small and medium-sized enterprises (SMEs) based outside urban areas, aim for sustainability and profitability supplemented by taking competitive advantages over other enterprises. The most significant aspect of such advantages may be seen, for instance, in thorough knowledge of enterprise environment and customer needs and wishes [2], an efficient use of enterprise management systems [3], internal stability [4], a quality workforce [5], or quality marketing and advertising [6]. [12] and Maayan, Carmeli [13] all state that management audits tend to be either omitted or replaced with internal audits in relation to audited areas (such as management, production, marketing and finance). Management as such, should be regarded as the essential area in terms of management auditing Depending on their discretion, managers or auditors may concentrate on other areas, e.g. human resources, marketing, production, finances and IT systems, as advised by Wheelen, Hunger [4]. E.g. Ujwary-Gil [19], Pascual, Kumar [20] note that certain efficiency of used resources is to be considered as well

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