Panfilkina Elina

Faculty of Engineering and Economics (EE)

Department of Economics and Marketing(EM)

Speciality Project Management

Management of the project to improve the competitiveness of food industry enterprises

Scientific adviser: Ph.D., Professor Nadtoka Tetyana

Resume Abstract

Abstract

Contents

• Introduction
• 1. Concept and significance of project implementation in the production and economic activities of a modern enterprise
• 2. actors increasing the competitiveness of food industry enterprises.
  2.1. Corporate social responsibility as a factor of an integrated approach to increasing the competitiveness of an enterprise
  
• 2.2. Diversification of production as a factor for increasing the competitiveness of food industry enterprises in the DPR
• 3. Methods for assessing and improving the competitiveness of food industry enterprises in the conditions of the DPR
• Conclusion
• References

Introduction

Project management — in accordance with the definition of the national standard ANSI PMBoK — the scope of activities in the course of which the clear objectives of the project are defined and achieved when balancing between the amount of work, resources (such as money, labor, materials, energy, space, etc.) quality and risks. The key to the success of project management is the availability of a clear pre-defined plan, minimizing risks and deviations from the plan, effective change management (as opposed to process, functional management, service level management).

The relevance

In modern conditions, there is an increasing tightening of competition, therefore, enterprise managers are forced to constantly look for new management tools and various levers to improve competitiveness.

Despite the difficult economic situation in the country, food industry enterprises are gradually developing and are in a highly competitive environment. Therefore, it is necessary to identify ways to increase the competitiveness of food enterprises in the current conditions of the Republic.

The aims and objectives of the study

The aim of the study is to generalize the theoretical foundations of the organization of project management and the selection of them basic to justify the feasibility of a specific project management system to improve the competitiveness of food industry enterprises.

To achieve this goal, we need to solve the following tasks:

1. Disclose the essence of project management;

2. To consider factors of increase of competitiveness of the enterprises of the food-processing industry;

3. Analyze the methods for assessing the competitiveness of food industry enterprises in the conditions of the DPR;

4. To consider ways of increasing the competitiveness of a food company.

The object of the study are the processes of organization of project management.

The subject of the study is the theoretical aspects and methodological foundations of project management.

Analysis of recent research and publications. Such scientists investigated project management issues: J. Harrington, VA Rach, G. Gantt, M. Romanova, D. Cleveland, A. Steshin, A. Fayol, I. Mazur, F. Taylor, O. Ilyina, V. Shapiro, E. Utkin. In the works of these scientists, the essence of project management is defined, their classification is given, indicators are developed, on which the success of the project depends directly.

1. Concept and significance of project implementation in the production and economic activities of a modern enterprise

Project management is the application of knowledge, experience, methods and tools to the project's work to meet the requirements for the project, and the expectations of the project participants. To meet these requirements and expectations, it is necessary to find the optimal combination between the goals, terms, costs, quality and other characteristics of the project.

Project management follows a clear logic that connects different areas of knowledge and project management processes.

First of all, the project necessarily has one or more goals. The achievement of the project objectives can be realized in various ways.

Project management requires leverage. To influence the way to achieve the project's results, the goals, quality, timing and cost of execution of the work can be by selecting the technologies, composition, characteristics and assignments of resources used for the performance of certain work.

Thus, the applied technologies and resources of the project can be attributed to the main levers of project management. In addition to these basic, there are also auxiliary tools designed to manage the main ones. To such auxiliary levers of management it is possible to carry, for example, contracts which allow to involve necessary resources in the necessary terms. In addition, to manage resources, it is necessary to ensure the effective organization of work. This concerns the structure of project management, the organization of information interaction between project participants, personnel management [1].

In the theory of project management, projects are classified by many features (Figure 2) [2].

Designing has a significant impact on the development of the technical progress of the industry. When developing projects of enterprises, the achievements of science and technology are maximize. Designing is, in fact, a link in the technological progress that links science with production, as research projects and advances in the field of technical and social progress are realized through projects, which allows obtaining a high economic effect. [3].

2.Factors increasing the competitiveness of food industry enterprises.
2.1 Corporate social responsibility as a factor of an integrated approach to increasing the competitiveness of an enterprise.

The development of an integrated approach to the management of enterprise competitiveness is currently the use of the principles of corporate social responsibility (CSR) in its activities in general, including marketing. CSR is a mechanism for implementing the Concept of Sustainable Development, and also becomes one of the factors of the enterprise's competitiveness and, accordingly, its increase.

The impact of CSR on improving competitiveness is a very pressing issue, however difficult. The problem is the complexity of the quantitative measurement of CSR and its accounting in the economic performance of the enterprise and, accordingly, in assessing the competitiveness of the enterprise.

Socialize the goals, the world business sets new conditions for domestic enterprises: applying the concept of CSR in the course of their activities, they should focus, first of all, on universal values, and only in the second — on market needs for goods and services of high quality [4].

Recently, requirements have increased and priorities have shifted from consumers. Even such factors as price, quality and functionality can no longer be allocated to the manufacturer against the background of competitors. Consumers want to have a relationship with a company that cares not only about their own benefits, but also about the environment and human rights.

The majority of representatives of business and the world public adhere to this point of view, in which the implementation of the principles of corporate social responsibility (CSR) has a positive impact on competitiveness, especially in the long term. However, they are not in a position to provide more accurate, quantitative estimates characterizing this effect.

The advantages of implementing CSR strategies are as follows [5]:

• increase in profit;
• companies' access to socially responsible investments, distributing their investors pay attention to indicators that characterize the company's activities in the ethical and social spheres, in the field of environmental protection. There are several indexes that allow you to assess the degree of social responsibility of companies — this is dow jones sustainable index, ftse4good and others;
• reduction of operating expenses;
• increase in growth rates;
• increase the value of the brand and reputation;
• sales growth;
• increasing customer loyalty;
• increase of productivity and quality of products (services);
• reduction of staff turnover;
• increased staff satisfaction;
• reduction of claims on the part of regulators;
• improvement of risk management;
• increasing the competitiveness of goods and the company as a whole.

Companies that do not apply CSR strategies lose competitive advantages; do not control the impact of their production on society and the environment.

2.2 Diversification of production as a factor for increasing the competitiveness of food industry enterprises in the DPR

Diversification means the process of redistribution (and sometimes additions — editing of authors) of the enterprise's resources in other spheres of activity with the aim of obtaining an economic effect or reducing the risk [6]. There are three types of diversification: horizontal, vertical and lateral ("lateral") [7].

The objectives of diversification are determined, first of all, on the basis of the main economic problems of a particular enterprise and its ability to make maximum use of its production capacity.

However, when choosing the type and specific assortment for food industry enterprises, the following features should also be taken into account: the complex nature of the raw material base, the sources of its formation, the specificity of demand for products, and the fulfillment of the requirements for the quality of finished food products [8].

In addition, when diversifying, the following economic requirements should be taken into account: the possibility of obtaining significant profits in the long term; investments in diversification should not reduce the financial stability and liquidity of the enterprise below the norm and be cost-effective.

The big dependence of the food industry enterprises on raw materials suppliers makes rational the development of vertical diversification in the formation of raw materials. This area allows you to monitor sources of raw materials and reduce dependence on suppliers, but this requires significant investment. In DNR conditions, it is advisable to use horizontal diversification in the direction of introduction of modified goods adapted to changing the composition of consumers of products (increasing the proportion of pensioners, disadvantaged groups of the population, etc.).

Diversification allows the enterprise not only to increase production volumes, use resources more efficiently, but also to increase competitiveness. A special feature of the diversification of production of food industry enterprises is also the fact that it creates the necessary conditions for the development of cooperation and integration, filling the product market with new products, reducing risks, and increasing the stability of the economy of the industry.

Under the influence of production diversification, food industry enterprises are turning into diversified complexes in which separate divisions perform functions independently producing certain types of products. The enterprises entering into the structure of the complex render transport, warehouse, logistical services.

The advantages of modern production diversification at food industry enterprises can be provided by the following factors (see Table 1 [9]).

Table 1 — Factors ensuring effective diversification of production in the food industry.

Enterprises of the food industry as objects of diversification are complex organizations. They combine agricultural production and industrial processing, and sometimes they also carry out marketing diversification, involving the sale of products through the development of new markets, the creation of their own trading network. With regard to the DNR in the food industry, marketing diversification will be rational in the development of new markets.

3. Methods for assessing and improving the competitiveness of food industry enterprises in the conditions of the DPR

With the solution of the problem of increasing the competitiveness of an enterprise, an inseparable link is an assessment of its competitiveness, since only on the basis of such an assessment can we conclude that the economic entity is competitive.

An analysis of the competitiveness of a food company of the DNR should be carried out within the framework of a comprehensive assessment of its economic activities with the aim of improving the firm's position in the market.

The competitiveness of a food enterprise can be assessed by a system of indicators that characterize: the degree of renewal of the assortment; product quality; rationality of pricing policy; level of benefits for consumers [10].

The competitiveness of an enterprise should include not only the conditions for effective current sales, but also the actions of factors of preserving competitive advantages in the future, i.e. factors of investment-innovative character.

Main directions of increase of competitiveness of food enterprises:

• Providing high quality products
• Ensuring environmental safety of consumption
• Increase of competencies and intellectualization of the personnel by creating conditions for training and professional development of employees
• Extension of assortment line
• sales expansion
• Accounting corporate social responsibility
• Application of information and computer technologies

Evaluation of the intellectual abilities of staff, ensuring the possibility of his continuing education, increasing attention to creating conditions for the creative development of the individual is one of the ways to improve the competitiveness of food enterprises.

Directions to increase the attraction of buyers by creating new consumer competitiveness qualities produced by the enterprises of the industry is a constant struggle for intellectual assets, constant updating of production of products, development technologies and flexible management strategies. Such value chains create sources of competitive advantages and innovative potential of the enterprise. The rapid transition of business to the Internet leads to the need to use specific Internet marketing tools that actively attract the attention of consumers to the electronic resources of enterprises. One of the main innovative methods of using Internet tools in the marketing strategy of the enterprise, in particular in the process of increasing competitiveness, can be named the following:

-       the creation of Internet shops,

-       the creation of guest books on web sites,

-       the creation of platforms for payment through electronic money transfer systems,

-       the use of ordering tools, where the consumer can choose the form convenient for him and the term of delivery of goods,

-       the use of the Internet network to record the history of purchase orders which will make it possible to make special profitable offers, discounts and create loyalty programs.

Using the tools of the Internet network is an objective necessity for a food company that aims to be competitive in the modern market [11].

Conclusion

In work the basic terms and concepts of project management, classification of projects are considered. The factors of increasing the competitiveness of food industry enterprises are considered. The factors of competitiveness are understood as those phenomena and the process of production and economic activities of the enterprise and the socio-economic life of society, that cause a change in the absolute and relative costs of production and sale of products, and as a result, the level of competitiveness of the enterprise itself, the whole set of factors determining the attitude consumer to the business entity and its products or services, divided into internal and external to him. Factors can affect both in the direction of increasing the competitiveness of the enterprise, and in the direction of decreasing. Getting a competitive advantage based on factors depends on how effectively they are used and where, in what industry are applied.

The focus on changing market needs through the adjustment or adjustment of existing relationships, not only within the enterprise, between individual employees, but also with elements of the external environment: consumers, competitors, suppliers, constitutes a necessary attribute of the innovative development of food industry enterprises aimed at increasing the competitiveness of products in DNR. Only in this way is the timely and adequate response of the food enterprise to changes in the conditions of the external environment ensured, and the systemic and balanced orientation of the enterprise towards achieving its developmental missions is achieved.

References

1.     Project management - basic concepts and methods. [Electronic resource]. URL: http://balans.ru/ru/library/2/article_40.html

2.     Utkin E. A. Project Management .- Moscow: TEIS, 2002.

3.     The concept and significance of projects. [Electronic resource]. URL: http://knigi.news/invest/ponyatie-znachenie-proektov-printsipyi-normyi-16752.html

4.     Barkalov Fomina, E. Social responsibility of Russian business // The Strategy of Russia. - 2004. - № 11.

5.     Andrievskaya L.S. Corporate Social Responsibility as a Factor of Increasing Corporate Sustainability. Andrievskaya, V.S. Sopin // Youth Scientific Forum: Social and Economic Sciences: Electr. Sat. Art. on materials XXIII stud. Intern. extramural scientific-practical work. Conf. - Moscow: "MCNO", 2015. - No. 4 (23)

6.     Petrov, AP Theoretical Foundations of Production Diversification in a Market Economy / AP Petrov, AA Bocharov // Theoretical Foundations of Production Diversification in a Market Economy. St. Petersburg: Special literature. - 2007. - p.295

7.     Rusakovich, MV Diversification of production as a factor of strengthening the economic security of the state // Priorities of Russia. - 2011. - №14 (107). - p.17-22.

8.     Law on safety and quality of food products No. 120-IHC of 08/04/2016, the current version as of April 26, 2016. [Electronic resource]. URL: http://dnrsovet.su/zakonodatelnaya-deyatelnost/prinyatye/zakony/zakon-donetskoj-narodnoj-respubliki-o-bezopasnosti-i-kachestve-pishhevyh-produktov/

9.     Tolkacheva, S. V. Features of diversification of food industry enterprises / S. V. Tolkacheva, A. K. Matyukhin // Crimean Scientific Bulletin. - 2016. - №2 (8). - from. 333-342.

10. Analysis and assessment of the competitiveness of food industry enterprises / L.F. Vasil'eva [et al.] // Polytechnical network electronic scientific journal of the Kuban State Agrarian University. - 2017. - No. 125 (01). - P. 1-6.

11. Sherstenikina, D.S. Socio-economic phenomena and processes / / Ways to improve the competitiveness of enterprises. - 2013. - No. 5 (051). - P. 227-232.