Khorishman Polina
Faculty of Engineering and Economics Department of Management and Economic LawSpecialty "Management of organizations"
The mechanism for ensuring the strategic development of a food industry enterprise
Scientific adviser: Candidate of Economic Sciences, Associate Professor at the Kurgan Elena
Abstract on the topic of graduation work
Content
- Introduction
- Relevance of the topic and practical significance
- Purpose of the study
- 1. Theoretical aspects of managing the enterprise competitiveness system
- 2. Analysis of economic activities of slavoliya group LLC
- 3. Recommendations for improving the competitiveness of the enterprise
- Conclusions
- List of sources
Introduction
At the present stage of development and formation of a market economy, the problem of ensuring a high level of competitiveness of enterprises is especially important. The high result of the enterprise in a competitive environment is due to the continuous study of market positions, the study of the strengths and weaknesses of their own activities, the ability of competitors to adapt to changes in the external environment and the market situation. In the process of forming the concept of enterprise competitiveness, scientists could not choose one option for defining this concept. Enterprises that seek to maintain their competitiveness in the long term are forced to align their current and future interests. It is impossible to achieve success in activities by focusing only on solving current problems. The limited time for management and the growing uncertainty of external conditions does not make it possible to develop an effective policy for updating products, capital investments, relations with consumers, suppliers, investors, i.e. an effective sustainable development policy . Strategic management gives priority to the effective interaction of the enterprise with the external environment and the achievement of sustainable competitive advantages on this basis.
The modern concept of competitiveness management is at the stage of its formation, which provides for the transformation of forms and methods of management towards the effective implementation of competitive advantages, competitive potential, competitive strategies, which in turn affects the competitiveness of the enterprise. The competitiveness management process is a complex multicriteria task that is implemented at the enterprise with the help of certain management actions. Their effective use is possible only with a systematic approach in combination with objective and subjective views on the object under consideration, which makes it possible to understand the need and essence of competitiveness management. Competitiveness is considered as a systematized set of a group of components that require evaluation. The subjective and objective approaches, respectively, provide for a separate consideration of competitiveness as a certain state of the internal environment, which makes it possible to build effective relations with external counterparties, and, thus, competitiveness is the result of the implementation of such relations. From the point of view of the subjective approach, competitiveness is the result of a more efficient functioning of the internal environment of the enterprise, which is the result of optimal management.
Under market conditions, enterprises have almost equal access to resources, that is, the market equalizes the opportunities of enterprises as consumers of resources and factors of production and plays a decisive role in achieving competitiveness.
Relevance of the topic and practical significance
The relevance of the research topic is substantiated by the need for effective and efficient application of tools for competitiveness, as well as their management in a modern enterprise. The practical significance of the results obtained lies in the use and implementation of a specific project, namely the development of a competitive strategy and the release of a new product.
Purpose of the study
The purpose of the work is to develop recommendations for increasing the competitiveness of Slavolia Group LLC based on a theoretical analysis of competitiveness and an analysis of the economic activity of the enterprise.
The object of the study is the process of managing the competitiveness of the enterprise Slavolia Group LLC.
The subject of the study is the principles and methods of managing the competitiveness of an enterprise.
1. Theoretical aspects of managing the enterprise competitiveness system
The term "competitiveness" is used in relation to both the created products and the elements of economic systems, i.e. Currently, an increasing number of researchers are paying attention to the study of the competitiveness of products, individual enterprises, cities, regions, countries, technologies, workers, and even regulations. Thus, this term can be considered at the level of a product, enterprise (commodity producer), technology, an entire industry or region, country. Within this tradition, it is customary for researchers to consider that a competitive object is a product created as part of a business project and capable of providing profit in competitive markets. [2]
In general, competitiveness should be understood as the ability to compete in the markets for goods and services. The Organization for Economic Co-operation and Development ( OECD ) defines competitiveness as the ability of companies, industries, regions and nations to provide relatively high levels of income and wages while remaining open to international competition. [1] When interpreting the concept of "competitiveness", many authors rely on the term "competition", defining it in different ways (Table 1.1).
Table 1.1 - Examples of the definition of the term "competitiveness"
| Author | Definition |
| M. Porter | Competitiveness is the property of a product, service, market entity to act on the market on an equal footing with similar goods, services or competing market entities present there [3] |
| A. Chaplin | The ability of the enterprise to produce products in demand in the conditions of achieving a high level of performance [2] |
| M. Gelvanovsky | In the most general sense - the possession of properties that create advantages for the subject of economic competition [10] |
| R. F. Fatkhutdinov | The property of an object, characterized by the degree of actual or potential satisfaction of a specific need in comparison with similar objects presented on the market [10] |
| E. J. Wieser | The ability of a firm to acquire, maintain and increase market share [3] |
|
P. U. Zulkarpaev,
L. R. Ilyasova |
The integral competitiveness of an enterprise is its ability to occupy a certain share of the product market and the ability to increase / decrease this share [1] |
|
M. Mescon,
A. Albert, F. Hedouri |
Expressed competence lies in the fact that the firm does something better than its competitors, i.e. maintains competitiveness, allowing the firm to attract and retain customers [1] |
After analyzing the definitions of different authors, you can select for yourself the one that describes the term with the most appropriate words. The competitiveness of an enterprise is its property, characterized by the degree of actual or potential satisfaction of a specific need by it in comparison with similar objects presented on the market.
2. Analysis of the activities of LLC "Slavolia group"
Slavolia Group LLC is one of the largest food industry enterprises in the Republic . The structure, which includes two enterprises: Donetsk mayonnaise plant and Donetsk pasta factory. LLC " Slavolia Group" specializes in the production of oil and fat products (sunflower oil, mayonnaise, mayonnaise sauces) under the TM " Slavolia ", TM "Urozhay" and TM " Port Salute " and pasta under the trademarks "Harvest", " Kozachok " and " Port Salute ". LLC " Slavolia Group" continues to develop and brought to the market new products in the segment of canned fruits and vegetables, packaged cereals, tomato group (ketchups, sauces, pasta.) And instant vermicelli under the TM "Urozhay".
Legal address of the DPR , 83045, Donetsk, Leninsky district, Leninsky avenue , 43, room 3
The actual address of the DPR , Donetsk, Ilyich Avenue, 99
The laws governing the activities of the enterprise are presented in Appendix E.
The launch of modern automatic packaging lines has significantly increased productivity and output, and the use of exclusively natural ingredients, improved recipes and strict quality control have become a prerequisite for high popularity among consumers.
The plant constantly replenishes the product range with new products and already in 2017 a line for the production of instant vermicelli and packaging of cereals under the TM "Urozhay" was launched. A new series of cereals from TM "Urozhay" is represented by 14 positions: buckwheat, semolina, wheat, wheat "Artek", barley and pearl barley, peas, millet, rice "Round", rice " Long- grain ", rice " Long- grain steamed", rice " Kamolino ", rice "OSMAN" and rice "OSMAN Kamolino ". At the enterprises of OOO Slavolia Group, constant foreign economic activity is carried out to import raw materials and materials for production from the Russian Federation, as well as work is carried out to export their own products. [4] In the production of food products, the company mainly uses only natural and identical to natural ingredients, creating healthy, high-quality products at affordable prices for the consumer. There are strict requirements for raw materials, packaging and production process. The entire product range undergoes multi-stage quality control by the technological service of the enterprise before release.
The competitiveness of an enterprise depends on its financial stability. It affects the creation of value, because affects the processes of labor and the formation of needs. Increasing the competitiveness of an enterprise is expressed in the growth of net profit, tax payments, funds allocated to accumulation, consumption, and social sphere funds. [5]
3. Recommendations for improving the competitiveness of the enterprise
To develop the strategy of OOO " Slavolia Group" it is necessary to draw up a balanced strategy map. The selected strategies are systematized according to the selected groups. Next comes the balancing of strategies, Fig. 3.1.
Figure 3.1 - Balanced map of enterprise strategies [7]
Thus, the enterprise receives a balanced development plan that takes into account and brings into line with each other: the state and prospects for the development of the external environment; state and possible changes in the parameters of the internal environment. For Slavolia Group LLC, we will develop a strategic alternative based on the presented methodology. The mission of Slavolia Group LLC is to provide all people of society, regardless of their age, gender and religion, with quality products at affordable prices, because food is the joy of communication, taste and a way of showing care and participation. After analyzing the activities of the company, it can be concluded that in order to increase competitiveness, a diversification strategy can be taken into account.
The main goal of diversification is usually to ensure the survival of the organization, increase its competitiveness and increase profits. There are two types of related diversification: vertical and horizontal. The Slavolia Group LLC is more suitable for the horizontal diversification strategy, it involves the search for growth opportunities in an existing market through new products that require a new technology that is different from the one used. [9] The most significant threat at the moment for the mayonnaise commodity group can be defined as the promotion of a “healthy lifestyle” and the fight against “overweight”, which can lead to a decrease in the consumption of this product. This trend may reduce the popularity of mayonnaise, which will lead to a decline in demand for the company's most popular product.
The specific structure of consumption of mayonnaise and mayonnaise sauces is stable and no significant changes are expected. Traditionally, consumption is dominated by mayonnaise (fat content of at least 50%), whose share is about 90%. The remaining 10% are mayonnaise sauces (fat content of at least 15%). At the same time, despite the lack of growth in real incomes of the population, consumers are increasingly choosing products with increased added value: lighter and more natural mayonnaises (sugar-free, low in fat, carbohydrates), which is due to the fashion for proper nutrition and a healthy lifestyle. [6]
Slavolia Group LLC is a competitive enterprise, but due to changes in market demand, a new product must be introduced . Based on the actions of foreign competing firms, the best option would be the production of mayonnaise for adherents of a healthy lifestyle. So, for example, in 2013, the company TM "Schedro" began production of the first organic mayonnaise in Ukraine " Provensal ORGANIC ". The product does not contain artificial preservatives, dyes and flavor enhancers. Organic mayonnaise has been certified by Sic Global LLP (London). In 2015, TM "Schedro" produced the first ketchup in Ukraine with organic spices. And in 2016, the Schedro company began producing mayonnaise for children. Mayonnaise "Homemade" for children" is made from natural ingredients and does not contain harmful additives. [8]
Assessing the possibilities for the development of the enterprise, it was decided to simultaneously master the production of a new type of product, mayonnaise for those who adhere to a healthy diet. It will be mayonnaise developed according to exclusive recipes, with a minimum amount of calories and without sugar, fructose, starch, thickener, preservatives, flavors , without excess salt and other ingredients that are not very useful for the human body. Thanks to the unique base of qualified workers, it is not necessary to invite foreign specialists to develop the recipe, which will significantly reduce costs at this stage. In terms of taste, the new mayonnaise will not be inferior to the traditional one.
Conclusions
In the course of the work, the tasks set were solved, namely: the theoretical foundations of competitiveness management were studied, an analysis of the economic activities of Slavolia Group LLC was carried out, a strategy for diversifying the enterprise was developed, a plan for the release of a new product was developed, profitability and costs for mayonnaise "Healthy" were calculated.
In the first section, after analyzing the opinions of various authors , a definition was proposed that the competitiveness of an enterprise is its property, characterized by the degree of actual or potential satisfaction of a specific need by it in comparison with similar objects presented on this market . The principles of the enterprise competitiveness management system were considered.
In the second section of the work, an analysis of business activity, liquidity, financial stability and Slavolia Group LLC was carried out . Based on the results of the liquidity analysis, we can conclude that the company lacks the most liquid assets, but there is an increase in current assets along with a reduction in short-term liabilities, i.e., in general, the solvency of the enterprise is growing. In order to prevent a crisis, it is necessary to search for opportunities and take organizational measures to ensure an increase in business activity and profitability of the enterprise. A competitiveness polygon was built, from which it was concluded that the level of brand awareness by target audiences and the level of advertising activity are at risk. Therefore, it is necessary to pay attention to improving the quality of advertising and to promote the brand among target consumers. Analyzing the assortment of the enterprise using the BCG matrix, such product groups as: sauces, pasta and butter were identified . The product group of sauces fell into the category "Stars", butter and pasta are in the category "Questions". The competitive price of mayonnaise was calculated using weighted average parametric indices, which amounted to 53 dews . rub . The competitive price is lower than the original one, which means that the pricing policy at the enterprise is being conducted incorrectly and is subject to adjustment.
In the third section, an algorithm was developed for making diversification decisions. To implement the strategy, the following stages were developed:
Stage 1: Recruitment of personnel for a new project, calculation of the costs of their work.
Stage 2: Finding a direction for diversification. Based on the BCG matrix , in which the leading place is occupied by the commodity group of sauces, namely mayonnaise, it was decided to diversify in this direction.
Stage 3: Evaluation of directions for diversification. Choosing a direction and assessing the long-term prospects and potential of the market, it was decided to change the marketing policy at the enterprise and release a new product.
The most significant threat at the moment for the mayonnaise commodity group can be defined as the promotion of a “healthy lifestyle” and the fight against “overweight”, which can lead to a decrease in the consumption of this product. This trend may reduce the popularity of mayonnaise, which will lead to a decline in demand for the company's most popular product. Therefore, a new mayonnaise "Healthy" was developed, which does not contain sugar, dyes, preservatives and other harmful additives.
List of sources
1. Emelyanov S.A. _ International Competitiveness of Manufacturers: Factors Determining Market Position and Competitive Advantage. / S.A. _ Emelyanov - 2018. - No. 1. - P.107 -116.
3. Rodionov A.N. _ Assessment of product competitiveness // Marketing in Russia and abroad / A.N. Rodionov - 2016 - No. 1 - P. 63-77.
10. Komlev E.B. _ Analysis of the competitiveness of goods // Marketing in Russia and abroad / E.B. Komlev - 2018 - No. 3 - P. 45-59