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The abstract on a theme of final work

The abstract on a theme of final work

Introduction

Modern approach to quality management is aimed at continuous improvement of the processes and results of work in all departments.

The concept of competitiveness of enterprises includes a large set of economic characteristics that define the position of the firm on a particular market.

The quality of products and services is the key factor of effective activity of enterprises. In a market economy, the huge attention is paid to quality problems. This is due to the competitive environment. Certificate on system of quality is a decisive factor for the conclusion of the contract on delivery of production. The successful implementation of a quality product to the consumer is the main source of existence of any enterprise. Strong competition has determined in the countries with developed market economies, the development of programs to enhance the quality.

1. The actuality of the topic

The relevance of this topic is that under the pressure of competition production companies are doomed to search for methods and means to increase the efficiency and quality control. The practical significance is in the study of the factors of competitiveness through innovation.

2. The purposes and tasks of research

The aim of this work is to study measures for increasing the competitiveness of enterprises through the introduction of a system of total quality management.

For this it is necessary:

3. Overview of research and development

The problem of improvement of quality of products on the basis of introduction of quality systems was considered by many domestic and foreign scientists and engineers: Andreev V.V., Arkhipov P.K., Badalov L.M., Boyko V.V., Brun M, Voitolovsky V.N., Georgi D., Glichev A.V., Kiperman G.Y., Deniele D.D., K. Ishikawa, Ildemenov V.I., Dillie H., Prokopenko N.F. and others.

Different approaches and methods of evaluation of the competitiveness of enterprises have developed and applied L.Y. Avrashkov, V.V. Kochetov, V.V. Krivorot, J.J. Lamben, Sh.Sh. Magomedov, O.G. Makarenko, E.V. Minko, N.K. Moiseeva, V.A. Moshnov, A.D. Nemtsev, A.V. Streltsov, H.A. Faskhiev, V.V. Tsarev, B.D. Skardun, etc.

To the questions of the development of the mechanism of increase of competitiveness at the enterprise level were devoted the works of scientists G.L. Asoeva, B. Bensoussan, E.D. Weisman, Z.A. Vasilyeva, D.S. Voronov, P. Drucker, P.S. Zavyalov, N.I. Pertsovsky, A.G. Porshnev, B.A. of Raizberg, B.Y. Tatar, P.A. Faghutdinova, G. Khamel, , G.I. Yakovlev and others [5, p. 184].

Enormous role in the development of quality management played A. Fayol, G. Weber, G. Ford, G. Emerson, A.  Maslow, F. Taylor, E. Deming, J. Juran, A. Feigenbaum, K. Ishikawa, W. Shewhart, G. Taguti, F. Crosby, D. Harrington.

Scheme of competitiveness

Picture 1 — Scheme of competitiveness

As can be seen from picture 1, the competitiveness depends on a number of factors such as the qualification of the personnel, technological level, motivation of personnel.

Competitiveness is a kind of rivalry, competition between the enterprises acting in the market with the aim to provide the best opportunities for salling its products, satisfying the diverse needs of customers [3, p. 79].

In General it is advisable to distinguish the following components: competitiveness of the offer in the market, the competitiveness of the resources of the enterprise, competitiveness of management and competitiveness of business idea (vision).

1) the competitiveness of the offer in the market determines the socalled current competitiveness of the enterprise. Modern marketing markets are characteristic of competition of not that was produced but of what they additionally supplied their products in the form of packaging, services, advertising, consultation for the customers financing, delivery features, warehousing services and other things appreciated by people [4, p. 18]. The word proposal of product significantly expands the extend of the considered in the analysis of competitiveness factors that determine the final choice of the buyer.

The proposal therefore includes the product, the price and related services, i.e., what determines the usefulness (profitability) of purchase for the client.

2) the Long-term competitiveness of the enterprise is determined by the competitiveness of available resources (potential of the enterprise: financial, natural, material, technological, industrial, personnel and other. In particular, the effective demand can also be seen as one of the types of resources, about which there is competition. If to consider the total demand, all companies offering goods or services in a particular area, are competitors. The availability of resources allows the company to ensure (to support) the competitiveness of the proposal for a long time. Note that the resource enterprise advantages over competitors acquire practical value only if they match the current market conditions.

3) In competition it is necessary to maintain the resource base in actual condition for the market. This process, as well as the competent use of existing resources from the point of view of competition is determined by the competitiveness of the company's management, first of all of the senior management. Ability of top managers to make key policy decisions, generate new ideas from the pace that the market demands, and the ability to organize their execution, ready to take reasonable risks are the most important factors of competitiveness management. Competitiveness of management is a comparative analysis of quality of management in the company and the competitors. First of all, these are differences in qualifications, motivation, organization of management. The assessment of the competitiveness of management is more difficult as the results of the work of every manager is integrated in the overall result, which in turn may be visible with a certain delay. The significance of such competitiveness is particularly evident in the conditions of dynamic external environment and active competitive counter.

4) A linking and a basic element of these aspects of competitiveness is the competitiveness of the business idea. Business idea includes the main idea of the product of the enterprise, the way to meet the needs of customers, the method of maintaining and developing the capacity and the means of enterprise management. Listed components are unique to each company, and their successful combination determines the competitiveness of a business idea. It is logical to assume that the competitiveness of the business idea is significantly influence by the personal characteristics of the owner (s) of business, for example, his persistence in achieving goals. Of course, the most important criteria of competitiveness of a business idea is its effectiveness from the point of view of the market prospect.

The processes of development of quality, mechanisms and conditions at the macro level should meet the following criteria: identification of goals and tasks in the field of quality, the analysis of resource potential and their implementation. Now to carry out qualitative and quantitative analysis of the products, and quality systems is almost impossible [7, p. 67].

For the stable operation and further development of any industry it is necessary to carry out activities that contribute to the effective work of the enterprises.

Parameters of quality of production, are determined by the manufacturer based on the interests of the consumer, and its competitiveness by a consumer.

The main goal of the concept is the solution to the problem of creating a more effective system and mechanism of management of safety, quality and competitiveness of products, goods and services of Ukrainian enterprises; formation and development of their export potential, as well as the creation on their basis of the prerequisites for attraction of strategic investments in promising economic activities and the formation and implementation of policy management of security, quality, competitiveness of products, goods and services [6, p. 235].

The concept of competitiveness

The competitiveness of the organization by the structure and contents is presented as interdependent unity of the two parts: competitiveness of production and resource potential of the organization.

The essence of the competitiveness of the organization is the totality of labour scientific and production potential of the organization, able to create and to produce products of a certain level of competitiveness.

The concept of competitiveness of enterprises is very multifarious and covers all components of activity of the enterprise, such as a commodity and its main characteristics, as well as organizational, financial and operational characteristics of the enterprise itself.

The competitiveness of the enterprise directly depends on the competitiveness of goods.

Competitiveness is the ability to make profitable economic activity in conditions of a rigid competition [1, p. 90].

Competitiveness can be described as potential quality, which includes:

  1. The company's ability to get a real assessment of the target group of consumers, and to track trends in consumer behavior. In other words, the enterprise shall be able promptly, objectively and accurately assess consumer demand both in the present and to predict its dynamics for the future. This assessment is possible only on the basis of the scientific model of target consumer group taking into account its economic, sociocultural and psychological factors, methods of modern sociology and marketing.
  2. The ability to organize production, the results of which will meet the expectations of the target group of consumers as the most useful of the goods in relation to quality-price. Speaking about the results, I not only the consumer quality of goods are meant, but also its marketing quality (price, warranty, after-sale service and so on).
  3. The ability to conduct effective current marketing policy.
  4. The ability to find and to create conditions for reduction of the costs of production factors capital, labor, raw materials, energy per unit of products sold.
  5. The ability to create and retain technological production above the other members of the professional community, which requires the timely update of the technologies. This may relate to production, marketing, management.
  6. Ability to plan, organize and carry out an effective strategy in the spheres of production and marketing innovation.
  7. Creation and development of high personnel potential, both at executive and managerial levels. The quality of performance of staff is manifested in its ability to use effectively the existing industrial technology and the willingness to adopt a more promising technologies [2, p. 43].

All together this extends the capability of enterprises and reduces the unit cost of financial, commodity other markets, which is reflected in the price of products and brought by it profit.

Ways of increase of competitiveness

The analysis of competitive positions of the enterprise in the market allows to determine its strengths and weaknesses, as well as those factors which, in varying degrees, influence the attitude of consumers to the company and, as a result, to a change in sales share on a particular commodity market. Faced with international and domestic competition, according to the French economists A. Ollivie, A. Dian and P. Urse [8, p. 56], it should ensure for itself a level of competitiveness on the eight factors. They are:

The key factors for market success are:

Factors of competitiveness, according to M. Porter [9, p. 85], are directly related to production factors. All factors that determine the competitive advantages of enterprises and firms of the industry, he presents in the form of several large groups:

  1. Human resources — the number, qualifications and labour costs.
  2. Physical resources — the quantity, quality, availability and cost of land, water, mineral, forest resources, sources of hydropower, fishing grounds; climatic conditions and geographic location of the home country of the company.
  3. Resource of knowledge is the sum of the scientific, technical and market information, affecting the competitiveness of goods and services and concentrated in the academic universities, public research institutions, private research laboratories, data banks on market research and other sources.
  4. Financial resources — the number and cost of capital, which can be used to finance industry and individual enterprises. Naturally, the capital is heterogeneous. It has such forms as unsecured debt, secured debt, equity, venture capital, speculative securities, etc. Each of these forms has its own conditions of functioning. And given the different conditions of their movement in different countries, they will largely determine the specifics of the economic activity of entities in different countries.
  5. Infrastructure — the type, the quality of the existing infrastructure and the fee for the use that affect the nature of competition. These include the country's transportation system, communication system, mail services, money transfers and funds from Bank to Bank inside and outside the country, the health system and culture, housing fund and its attractiveness from the point of view of living and work.

All the factors influencing the competitiveness of enterprises, M. Porter offers to divide into several types [10, p. 53].

Firstly, in basic and advanced.

The basic factors are natural resources, climatic conditions, geographical location of the country, unskilled and half qualified workforce.

Advanced factors are modern infrastructure of the information exchange, highly qualified staff (specialists with higher education, experts in the field of computers and PC) and the research departments of universities engaged in complex, high-tech disciplines.

Division of the factors on the basic and advanced is very conditional. The main factors are material either to create minor public and private investments. As a rule, the advantage generated by them is unstable, and the profit from use is low. They have a special importance for the extractive industries, industries associated with agriculture, forestry and industries, using mainly a standardized technology and low-skilled labour.

Of greater significance for the competitiveness are the developed factors as the factors of a higher order. Their development requires significant, often long in time of investment and human resources. In addition, the necessary condition for the creation of developed factors is the use of highly-skilled personnel and high technologies.

Another principle of division of the factors is the degree of their specialization. In line with this, all the factors are divided into general and specialized.

Common factors to which M. Porter refers the system of roads, personnel with higher education, can be used in a wide range of sectors [11, p. 285].

Specialized factors are specialised staff, specific infrastructure, the database in certain fields of knowledge, other factors used in one or a limited number of industries. An example is now being developed under contract specialized software, and not the standard package of programs of General purpose [12, p. 168].

Common factors, as a rule, give competitive advantages of a limited nature. They are available in many countries.

Specialized factors, which sometimes are based on common ones form a more solid, long-term basis for ensuring competitiveness. Financing of the creation of these factors is more focused and often more risky, which, however, does not mean refusal from participation of the state in such financing.

Ways of increase of competitiveness of the enterprise.

  1. Constant use of innovations.
  2. Search of new, more perfect forms of traded goods.
  3. Sale of goods in those market segments where there are the highest requirements to quality and service.
  4. Implementation of only high-quality goods.
  5. Constant training and retraining.
  6. Improving material interest of workers and improvement of working conditions.
  7. Marketing research of the market, to establish the needs of customers.
  8. Analysis of its competitors, to identify its strengths and weaknesses.
  9. The use of the most effective promotional activities.
  10. Registration of his trademark and the use of proprietary branded products.
  11. Improvement of logistics activities (especially important for large network operators).

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