Abstract on the theme of master's work
Content
- Introduction
- 1. Theme urgency
- 2. The purpose and objectives of the study, the planned results
- 3. Review of research and development
- 4. Theoretical bases of formation of competitiveness of the enterprise/font
- 4.1 The economic essence of competitiveness
- 4.2 The main factors affecting the competitiveness of an enterprise
- 4.3 Modern methods for assessing the competitiveness of an enterprise
- Conclusions
- List of sources
Introduction
As you know, competition is an integral element of the market mechanism, and the economic stability of a particular enterprise is largely determined by its competitiveness. Market transformations pose fundamentally new problems and tasks for all economic entities of the domestic economy and, first of all, for the formation of a normal competitive environment. Competition creates conditions for the development of more efficient forms of management, stimulates the production of those types of products that the consumer needs. As a result of the aggravation of competition, higher parameters of the effectiveness of the economic system as a whole are established, types and methods of production, and the level of costs are determined. The economic practice of recent years shows that the complexity of the problems of getting out of the crisis is determined not only by the lack of market experience in the new conditions, but by the weak diagnosis of competitive conditions and the impossibility of their corresponding regulation.Whether it is achieved or not depends on the competitiveness of the goods and services of the firm and on the competitiveness of the enterprise itself[1].
1. Theme urgency
The problem of managing the competitiveness of an industrial enterprise is relevant both from a scientific and a practical point of view. Today, in the context of intensifying competition for each industrial enterprise, the task of maintaining and enhancing its own competitiveness comes to the fore, the successful solution of which is an inalienable and necessary attribute of a modern successful company.
In scientific terms, the study of the problem of enterprise competitiveness management is also relevant because of the lack of unity between researchers on various aspects of this problem, as well as the lack of a holistic, generally recognized understanding and interpretation of it. On the one hand the economic community to develop theoretical issues of competition and competitiveness, and on the other - there are plenty of scientific papers on narrow aspects of the problem, which are increasingly applied character [2 - 4].
2. The purpose and objectives of the study, the planned results
The purpose of this study is a comprehensive analysis of the theoretical aspects of competitiveness in an enterprise.
To achieve this goal requires the solution of the following tasks:
- disclosure of the essence and importance of the enterprise's competitiveness;
- determination of factors and indicators on which the competitiveness of an industrial enterprise depends;
- definition of modern methods for assessing the competitiveness of an enterprise;
- formation of a mechanism to manage the competitiveness of the enterprise;
- the formation of a model for the economic evaluation of the competitiveness of an industrial enterprise.
The object of research is the process of competitiveness in the enterprise.
The subject of the research is the principles, methods of management of competitiveness in the enterprise.
The main methods of research were methods of system, structural, logical, comparative analysis.
Information base of the research was thematic publications, materials of information resources of the Internet.
Scientific novelty. In the course of master's work, methodical approaches to competitiveness management will be further developed.
3. Review of research and development
Foreign scientists M. Albert, G. Armstrong, S. Bru, W. Wong, P. Drucker, T. Collins, F. Kotler, J.-Z., etc. made a significant and significant contribution to the development of the theory of enterprise competitiveness management. Lamben, K. McConnell, M. Meskon, M. Porter, S. Rapp, F. Hedouri. Studies of the theory of competition and competitiveness are devoted to the works of domestic economists G. Azagaldov, G. Azoev, S. Barashkov, E. Gorbashko, M. Dolinskaya, P. Zavyalov, J. Kormnov, A. Kunaev, I. Lifits, I. Soloviev, R. Fatkhutdinova, A. Yudanova and many others[5 , 6].
4. Theoretical basis for the formation of enterprise competitiveness
The concepts of competition and competitiveness are one of the central concepts in modern theory and practice of strategic management.
Competition - a process of struggling organizations with each other for consumers of their products. This process depends on what the structure of the market is. If there are many small competitors, barriers to entry to the market are low and all participants equally possess the necessary information, then this is perfect competition. If there are only a few competitors in the market, then this is oligopolistic competition. If in the conditions of perfect competition everything is determined by the level of quality and efficiency of output, then in the conditions of oligopoly collusion, building barriers to entry, limiting access to information, etc. become the main instruments of competition.
Competitiveness is the ability to compete, and competitive advantages are those advantages that allow you to compete. Competitive advantages are competitive competitiveness factors displayed by competitive subjects.
Competitiveness determines the ability to withstand competition in comparison with similar facilities in this market [7 - 9].
4.1 The economic essence of competitiveness
In recent years, economic theory and practice have made significant progress in studying the issues of competitive advantage and applying the theory's conclusions in practice. Among the authors of recent years, it should be noted M. Porter - a professor at the Harvard Business School, the founder of the modern theory of competition and competitiveness. He developed the foundations of many modern ideas about the nature of competition and, accordingly, competitiveness. M. Porter identifies the following main groups of factors of competitiveness of a commercial organization:
- barriers to entry to the market (investment, licensing, know-how);
- price power of consumers;
- price authority of suppliers;
- the threat of substitutes for services and goods;
- degree of competition of existing firms (industry structure, demand conditions) [9 - 11].
The characteristics of a particular production may suggest certain barriers to entry. For example, a new automobile plant involves significant investments, the pharmaceutical business assumes the existence of certain licenses, various types of knowledge-intensive business presuppose special skills of personnel, etc. As a barrier to entry into the market, the amount of starting capital for starting a business, the strength of a brand of already existing ones producers, or access to the distribution of goods or services produced. The higher these barriers, the higher the competitiveness of firms already existing in this market in relation to newcomers.
The economy does not yet clearly define a single criterion of competitiveness, because such a complex concept can not be characterized by a single indicator. Therefore, competitiveness can be determined by several indicators, in particular: economic, financial, marketing, investment-innovative, technical-technological, social, environmental. Their structure is shown in Figure 1.
Figure 1 - Structure of enterprise competitiveness indicators (animation: 7 frames, 6 repetition cycles, 19 kilobytes)
The price power of consumers manifests itself when consumers are few and they can dictate their price. The extreme case - if there is only one consumer (they may be, for example, the state). In this case, the consumer receives absolute price power, which consequently reduces the competitiveness of suppliers. The strength of consumers' influence on sellers depends on how easily the seller can change the buyer and, conversely, how much will the seller's replacement cost.
The power of the buyer increases if he is interested in acquiring the supplier. If there is no such interest, then its price power is reduced.
The presence of substitute products increases the power of the buyer, as he can switch to other, similar in properties, products. Thus, the manufacturer or seller is always interested in reducing the price of power for themselves and in increasing it for competitors. As factors of power buyers can act:
- the concentration of buyers and the magnitude of their demand;
- the price of replacement of the buyer in comparison with the price of replacement by the buyer of the firm-seller;
- the possibility of integration "back" (when the buyer is interested in acquiring a supplier firm);
- availability of substitute products;
- the strength of its own brand and its impact on customers [12].
The price authority of the supplier is manifested when there are few suppliers, and they therefore can dictate their price delivery conditions. If the supplier is on the market alone, it acquires absolute price power over its counterparties. The firm, struggling for its competitiveness, is interested in lowering the supplier's price power over itself and in increasing its power over its competitors. The power of suppliers depends on:
- degree of concentration of suppliers;
- the size of the supplier;
- the replacement price of the supplier as compared to the replacement price of the supplier of the buyer company;
- the share of purchases in costs;
- threats of integration "forward" - with individual producers and even consumers.
The threat of substitutes for services or goods arises every time a similar product or similar service appears on the market, capable of replacing existing goods or services and having better qualities or a better price. Each producer of goods or services strives to protect himself from the threats of substitutes, and vice versa, seeks to directly or indirectly create the maximum number of such threats to his competitors.
The modern context of competition implies that products can be cloned, technology is duplicated. Advantages in physical production conditions no longer play the role they played decades ago, with advantages in non-material production conditions (skills, experience, qualifications, innovative capabilities, know-how, information systems, databases, understanding market, distribution) [13 , 14].
4.2 The main factors affecting the competitiveness of an enterprise
In the modern world, there is a dependence of the company's competitiveness on various economic phenomena, that is, many factors influence it. Factors of competitiveness are considered in the works of both domestic and foreign authors.
In the literature various classifications of key factors of competitiveness of the enterprise are resulted. M. Porter factors into three approaches:
- Human resources - the number, qualifications and cost of labor.
- Physical resources - quantity, quality, availability and cost of plots, water, minerals, forest resources, sources of hydroelectric power, fishing grounds; climatic conditions and geographical location of the country of the enterprise's location.
- Knowledge resource is the sum of scientific, technical and market information affecting the competitiveness of goods and services and concentrated in academic universities, state sectoral research institutes, private research laboratories, market research data banks and other sources [5 , 6].
- Monetary resources - the amount and cost of capital, which can be used to finance industry and a separate enterprise. Naturally, capital is heterogeneous, it has such forms as unsecured debt, secured debt, shares, venture capital, speculative securities, etc. Each of these forms has its own functioning conditions. Given the different conditions of their movement in different countries, they will largely determine the specific economic activities of entities in the country.
- Infrastructure - the type, quality of the available infrastructure and payment for its use, affecting the nature of competition. This includes the country's transport system, the communication system, postal services, the transfer of payments and funds from the bank to the bank inside and outside the country, the health and cultural system, housing and its attractiveness in terms of living and working [15].
The second approach includes:
- Common factors, which include the system of highways, debit capital, personnel with higher education. As a rule, they can be used in a wide range of industries and give the company advantages of limited nature.
- Specialized factors include highly specialized personnel, a specific infrastructure, databases in certain branches of knowledge. These factors create a more significant long-term basis for ensuring the competitiveness of enterprises.
The third approach is:
- The main factors that unite natural resources, climatic conditions, geographical location of the country, unqualified and semi-skilled labor, debit capital;
- Developed factors, including a modern infrastructure for information exchange, highly qualified personnel (specialists with higher education, specialists in the field of personal computers) and research departments of universities engaged in complex high-tech disciplines [2].
You can consider such key factors of competitiveness, which are distinguished by domestic scientists (Table 4.1).
Table 4.1 - Classification of factors affecting the competitiveness of the organization, in the understanding of domestic authors
Factors are divided into external and internal. Table 4.2 lists external factors.
It should also be noted that increasing the strength (intensity) of competition increases the competitiveness of goods (services). With the increase in the indicator "labor resources", the competitiveness of the firm increases, as well as the factor of social and political growth. Based on Table 4.2, we can conclude that the organization can not influence external factors. The most interesting factors are internal, as they directly have the greatest importance for the organization.
The internal factors that determine the competitiveness of an enterprise, to which it can directly influence, include the quality management system, marketing activities, management quality, management system, economic security, enterprise reputation, financial, innovation, investment activity, corporate culture, personnel, competitive strategy, technology, scale of outsourcing application, production processes, sales (dealer) network.
4.3 Modern methods for assessing the competitiveness of an enterprise
There are many methods for assessing the competitiveness of an enterprise, each of which focuses on determining the benefits of specific indicators. In general, the methods for assessing the competitiveness of an enterprise can be classified as follows:
- matrix evaluation methods are fairly simple and give visual information. Moreover, they are based on consideration of the process of competition in development and, in the case of the availability of truthful information, make it possible to carry out a sufficiently qualitative analysis of competitive positions;
- methods that are based on assessing the competitiveness of products are linked through the concept of "effective consumption" the competitiveness of the enterprise and the competitiveness of the product. It is believed that competitiveness is higher, the higher the quality of the product and the less its cost. Among the positive features of these methods can be called: the simplicity and visibility of the assessment. But at the same time they do not give a complete picture of the strengths and weaknesses in the work of the enterprise;
- methods that are based on the theory of effective competition, according to it, the most competitive firms are those in which the work of all departments and services is best established. Evaluation of the effectiveness of any such structure implies an assessment of the effectiveness of its use of resources. This evaluation technique is used most in the assessment of industrial enterprises and includes all the most important estimates of economic activity, excluding duplication of specific indicators, it makes it possible to create a general picture of the competitive position of the firm in the domestic and foreign markets quickly and accurately.
The implementation of integrated methods for assessing the competitiveness of an enterprise is carried out using the integrated assessment method. This method includes two components: first, a criterion characterizing the degree of satisfaction of the needs of the consumer, and secondly, the criterion of production efficiency. A positive feature of this method is the simplicity of the calculations and the ability to unambiguously interpret the results. At the same time, an important shortcoming is an incomplete description of the company's activities.
Conclusions
Thus, after studying the theoretical section, it can be concluded that competition as the foundation of market methods of farming is the basis for the formation and manifestation of competitiveness at all levels. Achieving competitiveness is the strategic goal of every industrial enterprise. To solve this problem, enterprises need to develop their own concept of enterprise competitiveness management, which will serve them as a guarantor of successful entrepreneurial activity.
Also, the main factors of enterprise competitiveness were considered in the opinion of different authors. The main methods for assessing the competitiveness of the enterprise are revealed, on the basis of which, it can be said that there is no ideal method of comprehensive assessment of the enterprise's competitiveness from all sides. In order to correctly assess and further increase the competitiveness of the enterprise, a number of methods have been developed that can be applied both individually and in a complex, depending on the tasks assigned before the assessment begins. The variety of existing methods today makes it possible to select the most effective and simple method of assessment for each particular enterprise.
List of sources
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