V. Malyukov, О. Didichenko. Procedure of the unbelievable management of budget vertical-integraned companies.

Abstract

The article considers procedure of continuous budget management of the vertically integrated company. Found optimal management strategies. At the present time in the global economy there is a trend to enlargement and globalization of the production. Experience of the world leaders in the various spheres of industrial production shows that vertical integration allows to connect technological cycle of individual enterprises and increase their competitiveness on the world markets. The integration allows to strengthen economic ties, enhance incentives for obtaining the most effective results, concentrate resources on the most effective areas of technology policy, as well as more economically solve the problem of the use of industrial and social infrastructure of enterprises. Verticallyintegrated companies have common features. One of the most important features is the following - production management and cash flow is provided by the parent company. In the management of cash flows an important role is given to the budget process. The degree of effectiveness of the vertically integrated company depends on the budget balance to a great extent. This paper considers the budget management procedure which is based on the use of methods of theory of differential games with the full information. Tools of differential quality game theory allow to determine fields of possible initial income and costs states of the vertically integrated company, which have the property: if the management procedure of the budget process will start from these states, then at one point in time there is possible a situation of plan execution either on income or costs, and find the optimal (rational) strategies of this procedure management. Moreover, it allows to find multiplicity of balance of the budget process and budget management strategies, applying which this balance can be achieved.