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Abstract

Ñîäåðæàíèå

Introduction

The success of the functioning of any organization depends, ultimately, on the level of its competitiveness. Thus, it is necessary to recognize the need to improve existing methods for assessing and managing the competitiveness of an enterprise based on the close interconnection of universally recognized laws of economics and management, psychology and sociology, statistics and probability theory, and other sciences.

Item – the main object on the market. It has value and use value (or value), it has a certain quality, technical level and reliability, user defined utility, performance indicators in production and consumption, other very important characteristics. It is in the product that all features and contradictions in the development of market relations in the economy are reflected. Item & ndash; an accurate indicator of the economic strength and activity of the producer. The effectiveness of the factors determining the position of the producer is checked in the process of competitive rivalry of goods in the conditions of a developed market mechanism that allows to identify the differences of this product from the competitor's goods both in terms of the degree of conformity of a specific social need and in the costs of its satisfaction. To do this, the product must have a certain competitiveness.

1. Theme urgency

In a market economy, an unstable environment, there is a need to apply the most modern and effective concepts of the development of the national economy. The most important and, of course, a significant problem for any enterprise, organization was the problem of survival and prevention of the threat of bankruptcy.

The identification of competitive advantages of the enterprise predetermines a stable competitive position in the market. The complexity of the relationship between the company and its external and internal environment has given the argument that each enterprise needs a strictly polished and best-formed development strategy.

2. Purpose and objectives of the study.

The main problem of domestic enterprises and organizations is insufficient level of knowledge and a complete lack of practical skills in this area.

An important moment that predetermines the relevance of this topic is the threat of uncertainty in the functioning of many Ukrainian enterprises, and the urgent exploration of competitive advantages for the firm to take a firm position in the market, as well as the transition to a marketing basis.

                  

The goal of the work is to study the competitiveness of a manufacturing enterprise in an unstable environment, and to develop measures to improve competitiveness.

3. Enterprise competitiveness research.

In the conditions of economic freedom, economic entities need to observe market requirements for survival: satisfy the consumers' need more qualitatively and at a price more acceptable to them. This requirement of the market provides the desire of market economy entities to acquire the attention of buyers and encourage them to purchase the goods of the firm. Consequently, with a wide choice of different goods and services on the market, competition between economic entities is inevitable.

                  

In the sphere of production, competition between economic entities is reduced to mastering the largest share of the consumer goods market. Competition as an inevitable element of economic freedom carries simultaneously both positive and negative consequences. For example, competition encourages entrepreneurs to reduce individual production costs, improve the technology of production of goods, stimulates the improvement of the quality of goods and services, the emergence of new types of products. In a competitive environment, the winner is the one who also has the lowest quality of goods or at the same cost produces products of higher quality.

The subject of competition is a product or service through which the company & ndash; rivals seek to win recognition and consumer money. In a broad sense, this is, of course, the satisfaction of the need. The object of competition is the consumer and the buyer, and in this capacity he has the opportunity to say his last and decisive word in the market. Competition (respectively, diversity and choice) becomes a natural ally of the consumer and largely determines technological progress. Each of the firms producing a comparable type of product has to improve products, make them technically perfect, reliable and affordable. To do this, it is necessary to increase labor productivity, reduce the cost of production through new advanced technologies, materials, equipment, and improve the skills of employees. Together, this makes prices more attractive, goods and services & ndash; more competitive, and, ultimately, a higher profit is achieved for the enterprise that achieved the desired state: high quality products and low prices for it. As a result, the consumer wins [1].

                  

The ultimate goal of any company & ndash; victory in competition. Victory is not a one-time, not an accident, but a logical result of constant and competent efforts. Is it achieved or not, & ndash; depends on the competitiveness of the goods and services of the firm, that is, how much better they are compared to analogues – products and services of other companies. Competitiveness – this property of the object, characterized by the degree of satisfaction of a particular need in comparison with similar objects represented in this market. Competitiveness determines the ability to withstand competition in comparison with similar objects in this market.

Usually, the competitiveness of a commodity is understood as a relative integral characteristic that reflects its differences from the product of a competitor and, accordingly, determines its attractiveness in the eyes of the consumer. All misconceptions begin here. Most beginners focus on the parameters of the product and then, to assess competitiveness, compares some of the integral characteristics of such an assessment for different competing products. Often, this evaluation covers simply the quality indicators, and then (not infrequently) the competitiveness assessment is replaced by a comparative assessment of the quality of competing analogs. The practice of the world market clearly demonstrates the incorrectness of this approach. Moreover, studies of many commodity markets clearly show that the final purchase decision is only one-third related to the quality of the product. And the other two thirds? They are associated with significant and sufficiently significant terms for the consumer to purchase and future use of the goods.

                  

The competitiveness of an object is determined in relation to a competitive market or to a specific group of consumers, formed according to the relevant signs of market segmentation. If the market on which the object is competitive is not specified, this means that the given object at a particular time is the best world pattern. In a market economy, competitiveness is the main factor of success. However, by now in this direction is clearly not enough. International standards of the ISO 9000 series On protection against unfair competition , On limiting monopolism and preventing unfair competition in business , On protecting consumers' rights and About standardization problems of competitiveness are affected in part [2], [3].

                  

To create a competitive enterprise today, it is not just necessary to modernize, organize, and manage, but, clearly, to know for what, what is done, what is to be achieved. The main thing with this & ndash; the ability to identify and quickly, effectively use your advantages in the competition.

                  

All efforts in the organization and management of the enterprise should be aimed at developing those qualities of their enterprise or the products that it sells, which would distinguish the firm from potential or real competitors. No wonder many leading firms have formulated their comparative advantages in the form of slogans, rules that all employees of the firm must follow.

A clear focus on their comparative advantages in competition, their constant search both inside the enterprise and outwardly predetermine the entire set of functions performed by the enterprise management apparatus, the composition of management units, their approaches to the development of an economic strategy.

                  

When deciding what the comparative advantages of an enterprise should be in the competitive struggle, what aspects of production or economic activity should be paid first of all, namely, the cost of circulation, price, quality, guarantees, technical level, level maintenance, flexibility of discounts and allowances, etc. – it is necessary to outline ways to improve the position of the enterprise, to find ways to achieve advantages over competitors. The components of the structural process are decisions on such issues as:

  1. the total amount of production capacity that must be created in the enterprise;
  2. the order of distribution of production capacities for specific types of products, on which they should specialize and where they should be placed;
  3. types of equipment to be equipped with each of the units;
  4. types of goods, services, works that must be produced inside the enterprise, and which are outside the enterprise;
  5. the decision–making procedure, a clear idea of what the enterprise will be better than other enterprises of a similar profile of activity or working on the same market segment. Simultaneously decisions are made on infrastructure issues that are directly related to the formation of the management strategy of the enterprise;                        
  6. selection of HR policies and methods for human resource management, including executive selection, training and staff training;
  7. the choice of a system for measuring economic performance and stimulating labor, the processes of developing and mastering new methods of selling and advertising;
  8. Creating an optimal organizational structure for management.

The decision-making process on all these issues, in fact, is the formation of an enterprise strategy, a strategy that by analogy with computers is the software on which the effective operation of the most complex computer technology depends.

The task of managing the competitiveness of an enterprise is also included in the achievement of success in the competitive struggle, while it becomes not only a function of trade or production, but a function of management. It is important that such success almost entirely depends on the qualities, management effectiveness and organization of the enterprise's trade in the broad sense of the word.

                  

This may be a more economical management apparatus, and higher efficiency in decision-making, better employee motivation, etc. The enterprise, in order to achieve a high level of competitiveness, it is necessary to constantly seek and attract highly skilled workers, high level of professional training; constantly improve their production systems, improve technology; ensure continuous improvement of employees' skills.

                  

The most important task for a manager today is not just getting the best resources and making the right decisions, but building and providing a functional management system aimed at achieving a specific goal or solving a specific task of increasing competitiveness. Thus, management has now turned into an effective theory and practice of organizing production not only at the micro level, where entrepreneurial structures operate, but also at the macro level, where the state fulfills its administrative functions by regulating the economy, including business. Therefore, we can talk about economic management.

                  

The enterprise conducts an average analysis of economic activity, the function of motivation is reflected only in the form of piecework pay. There is no marketing service at the enterprise, however some marketing activities are carried out by the commercial director.

To assess the effectiveness of the organizational structure of management, the matrix of function distribution and the coefficient of completeness of functions were used. And then, the obtained coefficients are compared with the coefficients of competing firms. For an overall assessment of the activity of the enterprise, Electrode , it is advisable to analyze and evaluate the economic potential, i.e. a set of resources available to the enterprise and the ability to use resources in order to create and sell goods and services, to maximize income. The economic potential is determined by the real capabilities of the enterprise in this or that sphere of economic activity. In the conditions of the market, when the financial activity of an enterprise is carried out on the principles of commercial calculation at the expense of its own funds, and if there is a shortage of them, & ndash; due to borrowing, a very important characteristic is the analysis of the financial stability of the enterprise.

                  

For a comprehensive assessment of the company's activities, it is necessary to analyze the factors of micro & ndash; and macroenvironments. It is most advisable to analyze and evaluate the macro environment by PEST & ndash; factors. It should be noted that the effect of laws relating to entrepreneurial activity is hampered by their insufficient refinement, which requires constant changes and additions. Thus, the political factor of the macro environment influences the activity of the enterprise by bringing it into line with the goals and direction of the development of the state, priority sectors of the economy, regions, the possibilities and orientation of the political system, public support or resistance to government measures, i.e. the state defines the framework and the order of interaction of market entities.

                  

Next, you can say & ndash; The most important factor in the microenvironment is & ndash; it's competitors. The experience of recent years is evidence of increased competition in all areas of market activity. Increasing the supply of goods and services, on the one hand, and reducing potential demand & ndash; on the other, created conditions in which competition has developed significantly. [4]

                  

Analyzing the same impact of microenvironment factors, we can conclude that most of them have a negative impact on the enterprise as a whole [5]. The emergence of a large number of new enterprises and organizations, the liberalization of imports, the formation of the capital market, joint-stock enterprises, the introduction of foreign companies on the Ukrainian market; & ndash; all this significantly complicated the market situation and created conditions for the development of competition.

                  

The intensity of competition in the market is determined by three aggressive factors: the distribution of market shares, the growth rate of the market, its profitability. Competitiveness of the enterprise is a relative concept, i.e. It can be revealed only on the basis of comparison with other market participants. Therefore, it is not the competitiveness of an enterprise that is evaluated, but the degree of its competitiveness, which depends on the object of comparison. With the change of the comparison object, the degree of competitiveness also changes accordingly.

                  

There are a number of indicators for assessing the competitiveness of the firm. They can be qualitative and quantitative. For example, in order to assess the effectiveness of the organizational management structure, a matrix of function distribution and a coefficient of completeness of functions were used. And the absolute liquidity ratio shows how much of the short-term debt can be covered by cash and cash equivalents in the form of securities and deposits.

                  

Calculated by the formula: Recommended values: 0.2 – 0.5

                  

The coefficient of financial independence (Equity to Total Assets) characterizes the firm's dependence on external loans. The lower the value of the ratio, the more loans the company has, the higher the risk of insolvency.

                  

Calculated by the formula:   Recommended values: 0.5 – 0.8

                  

Fixed assets turnover ratio – capital productivity. This coefficient characterizes the effectiveness of the enterprise using the available fixed assets. The higher the value of the coefficient, the more effectively the enterprise uses fixed assets. The values ??of this coefficient are very different from each other in different industries.

                  

Earning per ordinary share – One of the most important indicators affecting the market value of the company. Shows the share of net profit (in monetary units) per one ordinary share.

                  

Calculated by the formula:

For the sake of completeness of the assessment of the competitiveness of CJSC Electrode , we choose two companies & rsquo; competitors: LLC Polymet and LLC Arksel . Thus, as a result of comparing the indicators of all the objects under study, a picture of the priority of enterprises will be obtained. To carry out the competitiveness analysis, the polarity profile is compiled: The first stage – the choice of the most important indicators for assessing the activities of competitors and their score. The second stage – on the basis of these indicators, the "activity profile" of enterprises is compiled. Third stage & ndash; the polarity profile of the CJSC Electrode is constructed by subtracting the corresponding scores of the competitors' performance indicators from the scores of the CJSC Electrode . The polarity profile is also called the card of strengths and weaknesses of the enterprise. In this way, you can determine by what indicators a competitor should be bypassed, for which reason it is advisable to remain with him on the same level and on what it is necessary to give in to the competitor. [6]

                 

Enhancing competitiveness & ndash; a true step to the success of an enterprise in the market of its activities. We note the conditions that may be prerequisites for improving the competitiveness of the enterprise:

  1. application of integrated and systemic approaches to the development of market relations;
  2. ensuring the unity of the development of technology, technology, economics, management;
  3. consideration in the unity of quality and total costs for all stages of the life cycle of objects;
  4. application of modern methods of research and development (functionally – cost analysis, modeling, forecasting, optimization, business case for each solution, software & target planning, etc.);
  5. consideration of the interrelationships of the management functions of any process at all stages of the object's life cycle;                        
  6. the formation of a system to ensure the competitiveness of the facility with an orientation to the interests of the consumer, using a systemic, integrated, reproductive, dynamic approaches;

    & ndash; strategic planning in the management system is the most important function that determines the effectiveness of all future activities of the company & ndash; it is a managerial process of creating and maintaining a strategic correspondence between the objectives of the company, its potential opportunities and the chances in the field of marketing. As applied to our conditions, strategic management allows us to change the planning psychology. One of the main directions of increasing the competitiveness of the enterprise will be strategic management. So there are three basic concepts of strategic management: enterprise potential, competitiveness, strategy, i.e. the degree of use of the potential, is directly dependent on the enterprise strategy, which predetermines its competitiveness [7]. No enterprise can achieve superiority over competitors in all economic characteristics of the product and the means of its promotion on the market. It is necessary to select priorities and develop a strategy that best corresponds to the trends in the development of the market situation and the best way to use the strengths of the enterprise's activities.

Conclusion and prospects for research

Thus, summing up this paper, we can draw the following conclusions: It is necessary to improve control over competitiveness, while a strategic approach to management becomes the basis for the formation of the competitiveness of an enterprise, determined by the competitive advantages and positions of the enterprise on the market.

The key factors in determining the competitive advantages are the key success factors, i.e. strengths of the enterprise. With the advent of numerous competing facilities in the market of electrodes, the competitive positions of the enterprise under investigation decreased. However, CJSC Electrode is still the leading market share in the market share. In the reporting period, significant improvements in financial performance were made for Electrode .

      

From the evaluation of the macro & ndash; and microenvironments, we can conclude that the greatest and at the same time negative impact on the activities of the enterprise was provided by the macro environment and the most insignificant - ndash; the internal environment of the enterprise.

                  

Measures to increase the competitiveness of ZAO Electrode :

  1. Rational use of resource potential & ndash; competitive advantage. Factors of possible key success of the company – all the advantages of competitors: the level of IO, the return on capital. Focusing on the optimization of these indicators, the company has the opportunity to become a leader among competitors.
  2. Strategic planning.

List of references

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