Introduction
competition economic management
The decisive factor in the commercial success of a product in a competitive market is its competitiveness. Since competitiveness is the key to the market success of an enterprise, and solving the problem of competitiveness is the most difficult task in the activities of any manufacturing company, requiring coordinated, focused work of all departments with the leading role of the marketing service, a special area of activity of the company is the development of strategic approaches to solving this problem .
When developing competitiveness strategies, special attention is paid to creating competitive advantages. Another important direction in the competitiveness strategy is achieving economic superiority over competitors by reducing the costs of production, sales, transportation of products, increasing the efficiency of R&D, advertising, and marketing activities in general.
The above explains the relevance of the topic of this diploma project “Development competitive strategy organizations using the example of the company "Arkon Auto" LLC."
The purpose of the study is to develop a competitive strategy for the company Arkon Auto LLC, an action plan for the implementation of the enterprise’s competitive strategy and economic justification the effectiveness of its implementation.
To achieve the goal of the study, the following tasks were set and solved:
Reveal the essence of competitive strategy, determine the types of competitive strategies, indicate the factors of the external and internal environment that influence its formation
Explore modern approaches to the analysis and assessment of the organization's strategy;
Provide methods for analyzing the competitive strategy of an organization and describe the methodology for their application;
Describe the stages of implementing the enterprise strategy;
Conduct an analysis of the competitive strategy of Arkon Auto LLC;
Develop a competitive strategy in order to improve the competitive position of Arkon Auto LLC;
Propose an action plan for the implementation of the enterprise’s competitive strategy and provide an economic justification for the effectiveness of its implementation.
The subject of the study is the theoretical and methodological foundations for assessing the competitiveness of enterprises, as well as the tools for forming competitive strategies and their development.
The object of the study is Arkon Auto LLC and its competitive strategy.
A significant contribution to the study of methodological aspects of the analysis of competitiveness and competitive advantages of organizations was made by domestic scientists G.P. Podshivalenko E.I. Mazilkina, G.G. Panichkina N.I. Pertsovsky, I.A. Spiridonov, S.B. Barsukova L.G. Zaitseva, M.I. Sokolova A.G. Ivasenko, Ya.I. Nikonova, A.O. Sizova. and etc.
Strategic management of an organization and its competitiveness is considered in the works of Barancheev V.P. Bazilevich A.I. Moiseeva, N.K., Aniskin, Yu.P. Zabelin, P.V., Moiseeva, N.K. and etc.
The economic and mathematical apparatus for assessing competitiveness is presented in the works of Gurkov, I.B. Berezhnoy, V.I., Fursov, V.A., Berezovskaya, A.B. Aristov, O.V. Azoev, G.A. Abrameshin, A.E. and etc.
The theoretical and methodological basis of the study was the scientific works of domestic and foreign scientists and economic specialists, touching on the problems of competitiveness and strategic management at the micro level.
The instrumental and methodological apparatus of the research includes general scientific methods of cognition, systemic, comparative and economic-statistical methods of analysis. During the study, expert assessment methods were used.
The information and empirical base of the study consisted of materials from monographic studies by domestic and foreign authors; accounting reporting, electronic Internet resources.
1. Features of developing an organization’s competitive strategy
1.1 The concept of an organization’s competitive strategy and factors influencing its formation
There are two opposing views on understanding strategy. In the first case, strategy is a specific long-term plan to achieve some goal, and strategy development is the process of finding some goal and drawing up a long-term plan. This approach is based on the fact that all emerging changes are predictable, the processes occurring in the environment are deterministic in nature and can be fully controlled and managed.
In the second case, strategy is understood as a long-term, qualitatively defined direction of development of the enterprise, relating to the scope, means and form of its activities, the system of intra-production relations, as well as the position of the enterprise in the environment . With this understanding, strategy in general can be characterized as a chosen direction of activity, functioning in. which should lead the organization to achieve its goals. An example of a strategy of the first type is a long-term plan for the production of certain products, which records the volume and range of output for each time period.
The strategies of the second type include the following:
increase the share of sales volume on the market to 35% (conditionally) without reducing prices;
penetrate distribution networks controlled by competitors.
In business life, strategy refers to the general concept of how an organization's goals are achieved, the problems it faces are solved, and the limited resources needed to achieve this are allocated. This concept (corresponds to the second type strategy) includes several elements
First of all, they include goal system, including mission, organizational and specific goals. Another element of the strategy is policy, or a set of specific rules of organizational actions aimed at achieving set goals.
Finally, the third element of strategy is plans, i.e. a system of specific actions to implement the adopted policy, designed to solve the problems of resource allocation. Thus, resources can be directed primarily to solving the most important and pressing problems for the enterprise, or allocated in proportion to needs, or provided equally to all departments if they are close in size and engaged in similar types of activities. The first of the mentioned approaches is more appropriate at turning points in the activity of an enterprise, when there is a need to concentrate forces on decisive areas of activity. The second and third - during a period of quiet development.
Typically, a strategy is developed several years in advance, specified in various types of projects, programs, practical actions and implemented in the process of their implementation. Significant costs The labor and time of many people required to create an enterprise strategy does not allow it to be changed frequently or seriously adjusted. Therefore, it is formulated in fairly general terms. This is the intended strategy.
At the same time, new unforeseen circumstances appear both inside and outside the organization that do not fit into the original concept of the strategy. They can, for example, open up new development prospects and opportunities for improving the existing state of affairs or, conversely, force the abandonment of the proposed policy and plan of action. In the latter case, the initial strategy becomes unrealizable and the enterprise moves on to consider and formulate urgent strategic objectives.
There have been debates for quite some time about whether the essence of strategy is predetermination or flexibility. On the one hand, strategy involves certain obligations, so make decisions carefully. The strategy does involve making certain commitments, but this recommendation makes as much sense as the advice “buy low, sell high.” There is no answer to the question of how to ensure careful decisions.
Henry Mintzberg (McGill University, Montreal, 1987) put forward the idea that the term "strategy" is used ambiguously. He proposed his definition of strategy within the framework of the “five Ps”. In his opinion, the strategy includes:
) plan - This is a concept that refers to pre-planned actions, the course of which is controlled from start to finish. Planners develop internal documentation that details the course of the company's activities for a certain period of time;
) technique as a tactical move - means a short-term strategy, which is characterized by very limited goals and, if necessary, can be changed. Mintzberg describes the technique, i.e. tactical move as “a maneuver with the aim of outplaying your opponent or competitor.” He notes that some companies use this strategy as a threat. In order to destabilize competitors, a company may, say, announce a reduction in the price of its products without actually intending to do so. A manager may threaten to fire an employee if he does not perform well, not because he actually intends to carry out his threat, but because he expects to achieve improvement in performance;
) behavioral model (behavioral model strategy) - it is a strategy of change by following an accepted form of behavior. Unlike plans and tactics, behavioral patterns emerge as the result of consistent behavior. Such behavior patterns are often unconscious, i.e. spontaneous. If they turn out to be successful, then in such cases they say that consistent behavior spontaneously led to success. This model is a direct contrast to planned behavior;
) position in relation to others, or positional strategy - will be appropriate when its position in relation to competitors or its position in the market is important to the organization;
) perspective or strategy of prospects - This is a course aimed at changing the culture (system of beliefs and perceptions, system of views on the world) of a certain group of people, usually members of the organization itself. Some companies want their employees to think in a certain direction as part of their success. Similar strategies are used by religious organizations such as the Anglican Church. It has a set of basic theological tenets and encourages its members to accept them as the basis of their beliefs. Sermons, teachings, services and other religious practices are aimed at deeply instilling Christian teachings into the consciousness of believers. Success comes when the members of the organization are like-minded, i.e. they believe in the core doctrines and practice them in their daily work and life.
Strategy is the pattern of organizational actions and management approaches used to achieve organizational objectives and goals of the organization.
Determining the scope of business, goal setting, defining short-term and long-term goals (programs), determining a strategy for achieving the goal forms a strategic plan. The main components of the company's strategy are shown in Figure 1.1.
Strategy considers the most long-term organizational reasons, goals, decisions and actions. All businesses (and all organizations) need to have a clear understanding of the reasons for their existence, the main purpose of existence, the main objectives and (most fundamentally) how to achieve their goals and objectives.
Strategy determines the main ways through which an enterprise can create and maintain its competitiveness: strategy determines the type or types of activity of the enterprise, including those in which it competes with others;
In a free market economy, many firms will compete to satisfy customers' wants and needs, but usually only a few will prosper. These are mainly those firms that most carefully chose the type(s) of business to be engaged in, and also had a clear idea of how to interest the client. Strategy is the most fundamental component of a competitive position and prospects.
Companies around the world use a variety of means to attract customers, gain their trust through repeat sales, outpace competitors and maintain their place in the market. Since company management began to combine short-term and long-term maneuvers to match the company's specific situation and market environment, there are countless variations and nuances of strategy. Let's look at general competitive strategies.
Cost leadership strategy. The basis of competitive advantage for cost leaders is lower total production costs compared to competitors. Successfully operating companies - cost leaders - find it extremely easy to find ways to reduce costs in their business.
To achieve cost advantages, the firm's total production costs across the entire value chain must be less than the total costs of its competitors. There are two ways to achieve this:
) do a better job than competitors by effectively carrying out operations in the internal value chain and managing the factors that determine the level of costs in the value chain;
) correct the company's value chain, even to the point of consolidating operations or eliminating high-cost activities in the value chain.
Differentiation strategy. This strategy becomes an attractive competitive approach as consumer needs and preferences become diversified and can no longer be satisfied by standard products.
Successful differentiation allows a firm to:
Set an increased price for a product/service;
The key to a successful differentiation strategy is creating customer value in a way that is different from competitors. There are three approaches to creating customer value. One of them is to develop such characteristics and features of the product that help reduce the total cost to the buyer of using the company's products.
The second approach is to create such features of the product that the effectiveness of its use by the consumer increases. The third approach involves giving the product features that increase the degree of consumer satisfaction, but not through savings, but in some other way.
Optimal cost strategy. This strategy focuses on giving customers more value for their money. This involves a strategic focus on low costs while providing the customer with more than the minimum acceptable quality, service, performance and attractiveness of the product. The idea is to create increased value that meets or exceeds customer expectations on the quality-service-performance-appeal scale, while at the same time convincing customers that the price is reasonable.
The strategic goal is to become a low-cost producer of a product/service with good to excellent characteristics, and then use its cost advantage to undercut the price of similar products produced by competitors.
The optimal cost strategy has the greatest attractiveness from the point of view of the possibility of competitive maneuvering. It provides an opportunity to create exceptional value for the customer while balancing low-cost and differentiation strategies.
Focused low cost and differentiation strategies. In contrast to differentiation and cost leadership strategies, focused strategies target a narrow portion of the market. The target segment, or niche, can be determined based on geographical uniqueness, special requirements for the use of the product, or special characteristics of the product that are attractive only to a given segment. The goal is to do a better job of serving the target segment's customers. In this strategy, you can achieve an advantage if you have lower costs than competitors in a given market niche, and be able to offer consumers in this segment something different from competitors.
A focused low-cost strategy is associated with a market segment in which customer cost (and therefore price) requirements are significant in contrast to the rest of the market space. A focused differentiation strategy depends on the customer segment that requires unique product characteristics and attributes.
Using a focused strategy to compete on cost is a fairly typical business approach. Manufacturers of individually branded products reduce their marketing, distribution and advertising costs by concentrating on direct sales to retailers and chain stores selling no-frills, discounted, manufacturer-branded products.
Let's consider the factors that determine the choice of one or another competitiveness strategy.
There are a lot of these factors. A simple model of the primary factors that must be taken into account and essentially determine the strategy is shown in Figure 1.2. The interaction of these factors is usually complex and has specific differences for the industry and the company. As a rule, a strategy does not ensure success if the boundary between internal and external situations is not drawn, the acquisition of significant competitive advantages is not ensured, and the company's performance is not improved.
As a conclusion, we note the following: Strategy is the image of organizational actions and management approaches used to achieve organizational objectives and goals of the organization. Strategy considers the most long-term organizational reasons, goals, decisions and actions. The factors determining the choice of one or another competitiveness strategy are divided into external (socio-economic and organizational relations that allow the enterprise/industry to create products that are more attractive to consumers in terms of price and non-price characteristics) and internal (scientific and technical potential, financial and economic potential , human resources, advertising effectiveness, conditions of storage, transportation, packaging of products, level of service and warranty service etc.).
1.2 Features of the analysis of the organization’s competitive strategy
In order to begin developing the right competitive strategy, company management must first answer two questions. The first is how attractive the industry to which the company belongs is in terms of long-term profitability. Not all industries offer equal opportunities for long-term profitability. The second, no less important, is what factors determine the relative competitive position of enterprises in the product market. In most cases, some companies are more profitable than others, regardless of the amount of capital or the health of management.
Both attractiveness and competitive position depend largely on the company itself. At the same time, the attractiveness of an industry or region is a reflection of factors that, as a rule, a company can influence very little. Hence, a competitive strategy can make a given company (and with it, to some extent, the entire industry) more or less attractive. Thus, competitive strategy not only responds to the requirements of the environment, but also shapes this environment.
Quick Changes external environment domestic enterprises are stimulated by the emergence of new methods, systems and approaches to competitiveness management. The most common methods are to assess the capabilities of competitors through special expert research and indirect calculations based on known data. The “reflection method” is also widely used in practice to analyze competitors, which consists in identifying information about the company of interest from clients or intermediaries of this company. Competitor research should be aimed at the same areas that were the subject of the potential analysis own enterprise. This can ensure comparability of results. A convenient tool for comparing the capabilities of an enterprise and its main competitors is the construction of competitiveness polygons, which are a graphical display of assessments of the position of the enterprise and competitors in the most significant areas of activity, depicted as vector axes.
At the first stage of constructing the model, it is proposed to construct a competitiveness polygon of the internal competitive advantages of the compared enterprises, based on the following methodological premises.
A certain clearly limited number of parameters can be selected as the areas of activity of the enterprise and its main competitors to be assessed. The list of parameters used and the degree of their specification were determined by the following methodological premises.
The grouping of parameters is based on the analysis of a wide range of problems of a technical, economic and social nature, as a result of which the variables that ensure competitiveness are identified. The starting point of such an analysis is the determination of a list of technical and economic factors of competitiveness, which are interpreted as a set of criteria for quantitative assessment of the level of competitiveness of an enterprise.
Internal competitive advantages that determine the market position of an economic entity are proposed to be grouped into six most significant aspects:
Product competitiveness;
Financial condition of the enterprise;
Efficiency of marketing activities;
Sales profitability;
Image (brand capital) of the enterprise;
Management efficiency.
Thus, a quantitative assessment of the factors of internal competitive advantages of an economic entity can be presented in the following form.
Product competitiveness. For a product to be of interest to the buyer, it must have certain technical, operational and economic parameters. The condition for purchasing a product is that these parameters correspond to the basic characteristics of the buyer’s satisfied needs. During the purchasing process, the consumer selects a product, establishes distinctive features that characterize superiority of this product over similar competitors' products on the market. By purchasing a product, the buyer thereby evaluates its attractiveness, the possible degree of satisfaction of his specific needs and his willingness to bear the costs associated with the acquisition and use of this product.
Financial condition of the enterprise. Along with absolute indicators, the financial stability of an organization is characterized by the ratio of its own funds (K about), which is determined by the “Instructions for analyzing control over the financial condition and solvency of entities entrepreneurial activity" and is equal to:
K ob = (IIIP + line 640 - IA) / II A), (1.1)
where III P is the total section III liabilities of the balance sheet (line 490); A - the total of section I of the asset of the balance sheet (line 190); A - the total of section II of the asset of the balance sheet (line 290).
The specified document establishes a normal limit for this indicator: K about 0.1 (for trade organizations). If the ratio of own working capital at the end of the reporting period is less than 0.1, then the structure of the organization’s balance sheet is considered unsatisfactory, and the organization itself is considered insolvent.
Efficiency of marketing activities. Analyzing various definitions and formulations, we believe that the most accurate definition of the effectiveness of marketing activities can be formulated as follows - this is the degree of use of marketing tools in conjunction with the means and capabilities of the enterprise. IN value form this characteristic can be assessed by the ratio of commercial results and costs of marketing activities.
Data on gross income and gross costs is information contained in the accounting and financial statements of the enterprise, so obtaining such information does not cause any particular difficulties. Some difficulties arise when collecting other data, since marketing costs are more difficult to calculate, because accounting does not contain information on printing costs, advertising costs, etc.
According to the developers, the final formula for determining the effectiveness of an enterprise’s marketing activities, using the parameters of marketing potential and the resulting parameters of commercial activity (gross income, marketing costs, gross costs) will have the following form:
, (1.2)
where - assessment of the effectiveness of marketing activities;
Marketing potential;
D in - gross income;
Z m - marketing costs;
Z in - gross costs.
In turn, marketing potential (P mar) is proposed to be calculated as follows:
where K 1 is potential marketing research;
K 2 - potential of the marketing information system;
K 3 - potential for segmentation (selection) of the target market;
K 4 - potential of the enterprise's product policy;
K 5 - potential of the pricing process;
K 6 - potential of the enterprise's sales policy;
K 7 - personal (personal) sales potential;
K 9 - potential for stimulating product sales (for example, coupon sales);
K 10 - potential for forming public opinion.
Thus, the final expression for calculating the assessment of the effectiveness of marketing activities is industrial enterprise(E mar) will look like:
In order to quantitatively assess the effectiveness of the marketing activities of any industrial enterprise, it is necessary to first describe the characteristics of the subcriteria that adequately reflect the marketing capabilities of a given group of enterprises (industry). During the testing process, all subcriteria were assessed on the following scale:
The enterprise does not use the marketing tool described by this subcriterion in its marketing activities;
The enterprise in its marketing activities does not fully use the marketing tool described by this subcriterion;
In its marketing activities, the enterprise fully uses the marketing tool described by this subcriterion.
In order to objectively evaluate each subcriterion, characteristics developed to determine the effectiveness of the marketing activities of enterprises are formulated; depending on the industry, they can be adjusted or changed.
Sales profitability. Profitability is an indicator of the economic efficiency of a business, characterizing the ratio of income and costs for a certain period of time, which is identified with the commercial efficiency of commodity production.
From our point of view, return on sales is a comprehensive characteristic of the specific profitability per ruble of costs for the production of a specific type of product.
In general, this indicator (R k) can be calculated using the following formula:
where P is the selling price of the enterprise; is the cost per unit of production.
Image (brand capital) of the enterprise. According to V.A. Moshnov, the focus on conquering more and more new markets, satisfying customer requests through product differentiation encourages firms to strive to meet consumer preferences to the maximum extent possible, as well as to work to simplify the process of informing consumers about the increasingly complex properties and parameters of manufactured products. Through the advertising activity of companies, a trademark (the name under which a company advertises and sells its products), as one of the marketing tools, helps disseminate information about the quality of the product, reducing the distance between the manufacturer and the consumer. In conditions of growing competition, the buyer is interested in expanding his awareness of the quality of the product.
Research carried out by G. Foxall (UK), R. Goldsmith (USA) and S. Brown (Ireland) confirmed the existence of patterns in a stable market (sales indicators are stable and tend to grow slightly annually) based on the assertion that consumer intentions make a purchase of any of the brands they previously purchased are closely related to future purchasing behavior. That is, a consumer who is satisfied with the use of a particular brand is likely to demand it again, and “ongoing” purchases of that brand are very likely to follow. Buyer intentions are a function of past experience and its consequences, which can be assessed as follows:
where I is the intention to repurchase the brand; is past use; is a constant that varies across different markets.
The importance of attitudinal research here is not that it predicts purchases of specific brands, but that it explains why consumers buy certain brands and not others.
According to P. Doyle, a successful company image is “the unity of three elements: a quality product (P), a clear identity (D) and added value (AV):
, (1.7)
This relationship is multiplicative in nature, since all three elements are needed to create a successful brand. Since creating a brand usually begins with having good product, then most often its perception is studied using so-called “blind” tests. Then the product must have a fairly clear identity, the degree of which is usually assessed based on indicators of directed and “spontaneous” awareness. Finally, a successful brand must have added value that instills in the buyer the feeling that the brand and product are of higher quality or superior to its competitors. The measurement of value added takes the form of attitude and preference surveys.
In general, the image component of an enterprise’s competitiveness (K them) can be calculated as follows:
where is the volume of repeated applications in value terms;
Total sales volume.
Management efficiency. V.A. Abchuk in his research defines management as the management of an organization in a market economy, and its goal is the most complete satisfaction of constantly taken into account human needs through the market mechanism of demand, supply and profit. In his opinion, the effectiveness of management is understood as its quality, which ensures that the organization achieves its goals. Quantitatively, management efficiency is defined as the ratio of the result to the costs required for this.
As performance criteria, it is proposed to choose such indicators that make it possible to:
predict the expected result - the organization’s achievement of its goal;
assess the actual degree of achievement of the goal;
compare different goal options with each other.
The basic principle for choosing an efficiency criterion was substantiated in 1945 by Academician A.N. Kolmogorov and consists in establishing a strict correspondence between the goal that can be achieved by the organization as a result of its actions and the accepted indicator of success. In this sense, the success rate (performance criterion) is called objective function.
In the most general terms, choice the best option solving the problem of achieving goals by an organization can be represented mathematically as finding the maximum of the objective function (W):
where b i are the specified parameters (indicators) for solving the problem, for example, the number of allocated resources;
in j are the controlled parameters for solving the problem, i.e. those that we can change, for example, prices, terms;
h k - unknown parameters for solving the problem, for example, market conditions, exchange rate, inflation index.
The problem of choosing the best solution can be formulated as follows: find such values of the controlled parameters in 1, in 2, ..., which, for given parameters b 1, b 2, ..., taking into account the unknown parameters h 1, h 2, ..., provide the maximum of the objective function - the criterion of efficiency.
In a market economy, the interest of participants in the economic process in objective and reliable information about the financial condition and business activity enterprises. All subjects of market relations: owners, investors, suppliers, buyers are interested in an unambiguous assessment of the competitiveness and reliability of their partners. Such an assessment can be obtained on the basis of a comprehensive financial analysis based on data from public reporting of enterprises, which allows all participants in the economic process to control the nature and extent of changes in the market position of the enterprise. As a component of such a comprehensive assessment, a characteristic of the efficiency of enterprise management is used, which is usually assessed by the ratio of profit to the entire turnover of the enterprise (revenue from the sale of products (works, services) without VAT) and the result of other sales and non-sales operations.
Thus, a quantitative measure of the efficiency of management () of an enterprise is an indicator calculated by the formula:
where P r - profit from sales of products.
To ensure quantitative comparability of indicators, reducing coefficients of calculated values should be used: for the effectiveness of marketing activities - 0.05; for profitability of sales - 0.1; for the financial condition of the enterprise - 10.
As a conclusion, we note the following. We propose to group internal competitive advantages that determine the market position of an economic entity into six most significant aspects: competitiveness of the product; financial condition of the enterprise; effectiveness of marketing activities; profitability of sales; image (brand capital) of the enterprise; management efficiency.
The given list of competitiveness indicators is not constant and exhaustive. The number of components of an enterprise's competitiveness depends on the required accuracy of the assessment, the purpose of the study and other factors.
1.3 Implementation of the organization’s competitive strategy
The entire sequence of formation of the strategic behavior of an enterprise can be represented in the form of four stages:
) “Analysis” - assessment of the external and internal environment, definition of the mission, formulation of goals;
) “Planning” - strategy planning, task setting;
) “Implementation” - developing plans, carrying out structural changes, forming budgets;
) “Control” - operational management, assessment and control.
Taking into account the results obtained during the strategic “analysis”, the “planning” of the strategy is carried out.
The connecting link between the stages of “planning” and “implementation” is “setting tasks”. The role of this step in the overall strategic management process should be strengthened. The point is that if it is necessary to make adjustments to strategic behavior that do not require a revision of the mission and an analysis of the internal environment, it is advisable to limit the management process by setting additional (corrective) tasks.
The “implementation” block in the strategic management process is essentially preparatory to the effective achievement of selected goals. And the stage of “assessment and control” closes the strategic management process in a continuous cycle.
Thus, having briefly examined the sequence of the strategy formation process, we will dwell in more detail on the stage of strategy implementation as one of the key stages of strategic enterprise management.
The implementation stage allows you to answer the question: with the help of what resources, by whom, when and how can the goals set by the organization be achieved? The nature of actions that ensure the effectiveness of achieving specified target parameters depends on the management characteristics of a particular enterprise and may vary in one way or another. But basically there is the following sequence of strategy implementation: development of plans - implementation of structural changes - formation of budgets.
The system of plans of an organization is a unique form of materialization of planned activities, because the drawing up of plans presupposes their thorough feasibility study.
Basic strategic plan. It describes the company's core business and includes the corporate strategy for the long-term future. Depending on the operating conditions of the enterprise, this plan is developed for a period of 3 to 5 (10) years. It serves as a guide for all other plans. At the same time, it is a limitation in decision-making by strategic business units (SBUs) relating to the main areas of activity, in order to prevent the goals of individual units from being opposed to the overall development goals of the enterprise;
) Tactical plans for the development of specific business areas of individual SBUs. Their main content is business strategies aimed at growth, maintaining stability and increasing competitiveness, as well as eliminating certain unpromising areas of business. Such plans are drawn up for a period of 1 to 3 (5) years and are drawn up, as a rule, in the form of business plans;
) Operational plans. They regulate the current activities of departments and services to achieve the corporate strategy of the enterprise as a whole and the business strategy of the SBU, of which these departments are part. For more effective control and evaluation of execution, such plans are drawn up for a period of 1 month to a year;
) Programs and plans-projects. This group is targeted in nature and includes programs such as developing new products, penetrating new markets, conducting a large-scale advertising campaign, reducing production costs, modernizing production, saving energy resources, etc. The programs, in turn, are supported by specific projects characterized by specific costs and a certain investment attractiveness.
As we see, the system of organization plans is complex, consistent, interconnected and, at the same time, individual in nature. Each enterprise can independently determine the structure, content, form of plans, as well as the main approaches and methods for their development and implementation, because their only consumer is the enterprise itself.
However, the development of a system of plans for the effective implementation of strategic management is considered insufficient. Here the problem of disconnection between the planning system and the management system may arise. In particular, expanding the scope economic activity and entering new markets requires the involvement of additional personnel. And, conversely, leaving unpromising economic zones and closing unprofitable industries leads to a reduction in personnel. Hence the need to successfully integrate the overall business strategy and organizational human resource management practices. In other words, here it is necessary to establish a relationship and find subordination between the strategy and the main responsible executors of the developed system of plans.
Coordination of business strategy and organizational management has the following purposes:
) introduction of structural changes due to growth (merger, acquisition, consolidation, implementation) or reduction (partial suspension of activities, temporary closure, complete liquidation) of individual SBUs;
) increasing the efficiency of assessment and control over the achievement of set goals and objectives;
) coordination of resources and implementers of plans, programs and project plans;
) avoiding opposition and duplication of individual functions.
The next step on the path to “strategy implementation” is “formation of budgets.” Here, the main approaches and principles applied to the development of budgets coincide with the principles of building organizational management. Budgets at all levels must be subordinated to the overall goal of enterprise development and prevent the financial support of some departments from being opposed and inconsistent with other plans.
“Formation of budgets” completes the stage of “strategy implementation”.
To summarize, we can conclude that the essence of the formation of strategic management for enterprises lies in determining the direction of development, developing a system of measures to effectively approach the chosen benchmark, as well as assessing and monitoring the process of implementing the chosen strategy. In this case, the behavior of the enterprise in the market is of primary importance.
And, as practice shows, those enterprises that carry out comprehensive strategic planning and management operate more successfully and achieve increased efficiency in all areas of business.
Main summary conclusions for the chapter
1. Competitive strategy considers the most long-term organizational reasons, goals, decisions and actions. Factors that determine the choice of a particular competitive strategy are divided into external (socio-economic and organizational relations that allow the enterprise/industry to create products that are more attractive to consumers in terms of price and non-price characteristics) and internal (scientific and technical potential, financial and economic potential , human resources, advertising effectiveness, conditions of storage, transportation, packaging of products, level of service and warranty, etc.).
Determining the scope of business, goal setting, defining short-term and long-term goals (programs), and defining a strategy make up the company’s strategic plan.
The strategic plan must contain: actions to change the strategy, fine-tune it to the situation, to find and consolidate new opportunities for the company, to improve the company's activities, improve competitive positions and influence industry conditions.
The strategy depends on the external and internal operating conditions of the company. The main external factors are: social, political, legislation, social influence, attractiveness of the industry, market threats and favorable opportunities for the company.
2. Analysis of the competitive strategy of Arkon Auto LLC
2.1 Characteristics of the activities of the enterprise LLC "Arkon Auto"
The organizational and legal form of the company "Arkon Auto" is a company with limited liability. Authorized capital in the amount of 10,000 rubles, Arkon Auto LLC was fully paid at the time of state registration.
Geographically, Arkon Auto LLC is located in Vladivostok, st. Shoshina, 6 in one of the central residential areas of the city, in close proximity to the main transport routes (5 min drive to 100 Let Vladivostok Avenue (Federal Highway M-60), 3 min drive from the bypass road on Vyselkovaya street.
The company is located in the production building of the former plumbing plant VTsRTO, it owns 1.3 production premises with total area 1500 m2, of which 340 m2 are occupied by the company's offices, here are located an assembly shop, engine and fuel equipment repair rooms, an auto electrician, an oil change station, body repair boxes (construction of additional office premises with an area of 300 m2 is also underway), in front of the facade The building has a conveniently located parking lot "Arkon Auto" with a total area of 1500 m2.
Today "Arkon Auto" offers the following services:
Buying cars, motorcycles and special equipment at Japanese auctions without intermediaries.
Delivery of cars, special equipment, boats throughout Japan to the port of Fukui.
Supply of cars, special equipment, designers, front halves of cars, boats from Japan to Russia through the port of Fukui.
Dismantling/cutting of cars, storage of cargo before shipment from Japan.
Assembly of purchased cars.
Purchase and delivery of any lots on Yahoo auction.
Search and replacement of any spare parts.
The organizational structure of Arkon Auto LLC is presented in Appendix A.
This structure is linear-functional.
Advantages of the linear-functional structure of Arkon Auto LLC:
High competence of functional managers;
Reducing duplication of effort and consumption of material resources in functional areas;
Improved coordination in functional areas;
High efficiency with a small variety of products and markets;
Maximum adaptation to production diversification;
Formalization and standardization of processes;
High level of capacity utilization.
Disadvantages of the structure of Arkon Auto LLC:
Excessive interest of managers in the performance results of “their” departments. Responsibility for overall results is only at the highest level;
Problems of cross-functional coordination;
Excessive centralization;
Increased decision-making time due to the need for approvals;
The reaction to market changes is extremely slow;
Entrepreneurship and innovation are limited.
The main functions of Arkon Auto LLC specialists are enshrined in job descriptions. Yes, it's a duty general director is the management and control of the activities of the enterprise.
IN job responsibilities The head of the sales department includes negotiations with counterparties, preparation of foreign trade contracts and other commercial documents necessary for import operations, conducting transactions at all its stages.
Sales managers are engaged in searching for new clients, and are also involved in directly concluding transactions.
The duties of a logistician-declarant include carrying out customs clearance of imported goods, conducting customs inspections, and resolving transport issues.
Drivers are responsible for the delivery and forwarding of goods in Vladivostok.
The chief accountant monitors the maintenance of accounting records at the enterprise, draws up financial reporting forms, conducts settlements with banks, suppliers and customers, opens, maintains, changes and closes transaction passports, provides supporting documents to the authorized bank, etc.
The main legislative act within the framework of which Arkon Auto LLC operates is the federal law“On Limited Liability Companies” dated January 28, 1998 No. 14-FZ.
Arkon Auto LLC maintains accounting records and submits financial statements to the tax authorities in the manner established by the Federal Law “On Limited Liability Companies”, the Tax Code of the Russian Federation and other legal acts. Responsibility for the organization, condition and reliability of accounting, annual reports and submission of other financial statements to the relevant authorities lies with the General Director of Arkon Auto LLC in accordance with the Federal Law “On Limited Liability Companies”.
Foreign economic activity of Arkon Auto LLC is carried out on the basis of the laws of the Russian Federation, regulations, such as:
Federal Law “On Export Control” dated July 18, 1999 No. 183-FZ (as amended on December 6, 2011);
Federal Law of December 8, 2003 No. 164-FZ “On the fundamentals of state regulation of foreign trade activities”;
Other regulations.
Financial results activities of Arkon Auto LLC are shown in Table 2.1.
Table 2.1 - Financial results of Arkon Auto LLC for 2010-2012.
Index Absolute deviations Growth rate, % 2011 to 2010 2012 to 2011 2011 to 2010 2012 to 2011 Revenue from sales of products (services), thousand rubles. Cost of products (services), thousand rubles. Costs per 1 rub. products sold, rub. Profit from sales, thousand rubles. Profit before tax, thousand rubles. Profitability, % Figure 2.1 shows the dynamics of sales revenue, product costs and sales profit of Arkon Auto LLC for 2010-2012. In 2011, revenue increased by more than at a fast pace than in 2012. The growth rate of the cost of products (services) is higher than the growth rate of revenue, therefore, in 2012, profit and profitability decreased, i.e. The company's operations as a whole have become less efficient. Based on the general goals of the enterprise, the goal of the sales service is to develop recommendations for the formation and implementation of the production and sales policy of the enterprise, as well as to coordinate the activities in this area of all divisions of the enterprise. Management recommendations for market orientation production, economic and sales activities of the enterprise, after approval by the management of the enterprise, are mandatory for the relevant departments engaged in these types of activities. The sales department does not replace other divisions, but orients the activities of other divisions to the market and correlates their work with the goals of market activity common to the entire enterprise. The sales department of Arkon Auto LLC was created three months after the establishment of the enterprise. When the enterprise began its production activities at full capacity. The sales department includes a deputy director for sales and sales specialists of 5 people. There are three groups of functions of the sales service of Arkon Auto LLC based on marketing orientation: planning; organization; control and regulation. Each of these groups of functions, in turn, consists of a number of specific functions (works), reflecting the specifics of each group. Planning involves performing the following functions: Analysis and assessment of market conditions; Formation of an assortment production plan based on customer orders; Selection of distribution and distribution channels. Sales organization includes following functions: ) organization of warehouse and packaging facilities for finished products; ) organization of sales and delivery of products to consumers; The functions of control and regulation include the following: Evaluation of the results of sales activities; Monitoring the implementation of sales plans; Statistical accounting and operational accounting and reporting of sales activities. The goal of the sales department is to develop recommendations for the formation and implementation of the production and sales policy of the enterprise, as well as to coordinate the activities in this area of all divisions of the enterprise. His recommendations on the market orientation of the production, economic and sales activities of the enterprise, after approval by the management of the enterprise, are mandatory for the relevant services engaged in these types of activities. Decisions affecting the market orientation of the enterprise are made by all divisions of the enterprise on the basis of recommendations and in agreement with the sales service. All divisions of the enterprise are required to provide the sales service with any information about the nature and results of their activities. In turn, the sales department is obliged to provide all other divisions of the enterprise with the information necessary for the market orientation of their activities. The main tasks of the sales service: Assessment of market conditions; Together with other divisions of the enterprise and the management of the enterprise, developing goals and strategies for the enterprise’s market activity in the domestic and foreign markets; Development of long-term and current marketing plans for the enterprise as a whole and individual product groups and coordination of the activities of enterprise divisions in this area; Operational information support for marketing activities of the entire enterprise and its divisions; Development, based on orientation towards market activities, recommendations for improving the efficiency of the enterprise, etc.; Creating an image of a successful and reliable company. The sales department interacts with other divisions of Arkon Auto LLC (internal marketing environment): With production department; With the logistics department. Thus, to ensure the effectiveness of sales activities at the enterprise, all the necessary conditions have been created: the department is fully staffed with relevant specialists who have the opportunity to cooperate with other services of the enterprise to obtain the necessary information, as well as continuously improve their skills. The company finds customers in the following ways: Distribution of catalogs at exhibitions; Receiving applications for the supply of products from customers. Let us present the main directions for increasing the efficiency of the sales strategy of Arkon Auto LLC. The strategy of Arkon Auto LLC is to increase sales by expanding sales markets and increasing the company's share in occupied sales markets through a flexible response to changes in market conditions, the development of new services, in particular auto repair, and the development and implementation of an effective marketing policy. The company plans to move on to sales new strategy sales of products and sales methods, including: creation of a dealer network; analysis of the level of effective demand for goods; The choice of such a strategy will make it possible to implement the tasks of expanding existing markets and penetrating new markets, ensuring break-even sales of goods. Thus, Arkon Auto LLC, like any enterprise, experiences certain difficulties in carrying out marketing activities, due to both subjective factors, for example, the imperfection of the organizational structure of the Marketing Department, and objective factors, for example, increased competition in foreign markets for product sales. An analysis of the governing documents of Arkon Auto LLC is presented in Table 2.2. Table 2.2 - Characteristics of governing documents of Arkon Auto LLC
Type of regulations 1. System-wide The charter is a comprehensive document designed to consolidate the status of an organization. - Internal regulations are local normative act organizations that regulate, in accordance with the Labor Code of the Republic of Belarus and other laws: the procedure for hiring and dismissing employees; basic rights, duties and responsibilities of the parties to the employment contract; operating mode; Time relax; incentive and penalty measures applied to employees; as well as other regulatory issues labor relations In the organisation. 2. Elemental Job description is a document regulating the production powers and responsibilities of an employee; - technical regulations on fire safety requirements; - sanitary rules; - regulations on the department - legal act, establishing status, functions, rights, duties and responsibilities structural divisions. Final control carried out immediately after the work is completed. Either immediately upon completion of the controlled activity, or after a predetermined period of time, the actual results obtained are compared with the required ones. Here there is a comparison of the planned profit with the received one, staff turnover, etc. The management of Arkon Auto LLC analyzes the actual results obtained and required and evaluates how realistic the plans were drawn up. This procedure also allows you to obtain information about problems that have arisen and formulate new plans to avoid these problems in the future (which is the function of analysis). The second function of final control is to promote motivation, since the salaries of most employees directly depend on the results of the organization's activities. For example, in the credit risk analysis department it is represented by the progress reports provided by employees. These reports are then analyzed and provide management with information to make forecasts. Let's consider the number of reports accepted and sent for revision in 2011-2012. (Table 2.3). Table 2.3 - Number of reports accepted and sent for revision
Deviation Accepted first time sent for revision Accepted first time sent for revision by number of accepted by the number of items sent for revision Marketing department Production Department Table 2.3 shows that in 2012 the growth of reports sent for revision was higher than the growth of those accepted in such departments as accounting - by 12 units, sales department - by 7 units. and by 5 units. respectively. It can be concluded that control has become tighter. It is necessary to improve the control function in an organization to build a decision-making scheme in the department based on identified deficiencies and the fulfillment of the desired conditions for improving the procedure for generating a report and implementing the management system, for the further use of the free functionality that has appeared in the distribution of responsibilities structure. The internal structure of an organization is also called the internal environment. This includes the functional structures of the company that provide management, development and testing of new products, promotion of goods to customers, sales, service, relationships with suppliers and other external bodies. The concept of the internal environment also includes personnel qualifications, information transmission system, etc. Sales structure. Arkon Auto LLC imports goods from Japan and Korea. At the same time, the geographical structure of supplies is dominated by goods from Japan, but in 2011-2012 the share of goods from Korea increased. The share of supplies from Japan decreased from 95% in 2010 to 71% in 2011 due to the introduction of technical regulations in Russia establishing more stringent requirements for the characteristics of cars, as well as due to an increase in duties on used imported cars. The increase in supplies from Korea is also due to the fact that the South Korean auto industry has increased production rates in recent years and strengthened the requirements for the quality of its products. The product structure is dominated by passenger cars; in 2010 they accounted for 84% of total imports, but in 2012 their share decreased to 59% due to the growth in imports of trucks and special equipment. The latter is due to the large number of construction projects in Vladivostok on the eve of the APEC Summit. Staff. The total number of ArkonAvto employees, including management, is 52 people. % of ArkonAvto personnel are old personnel with experience in the company of 3 years or more, the team is stable (conflicts rarely arise, and if they arise, they are resolved with the involvement of management). When hiring, applicants are subject to certain requirements, depending on the position they are applying for. For example, the main requirements for an accountant are having a higher specialized education, at least 3 years of experience in this profession and knowledge of 1C. Employment contracts are concluded with all employees. An employment contract is nothing more than an agreement between an employer and an employee, according to which the parties have mutual responsibilities. The legal status of an employee at Arkon Auto LLC is regulated by the job description. This document establishes the functions, rights, duties and responsibilities of the organization's employees. Currently, at Arkon Auto LLC, all employees have job descriptions, corresponding to their profession, employment contracts have been concluded with all employees. All employees receive a salary, i.e. fixed, specified in employment contract wages. The Far Eastern coefficient and the Far Eastern bonus are applied to the basic salary. The Far Eastern coefficient is calculated in the amount of 20% of the amount accrued wages, and the Far Eastern bonus is set differentially and is accrued only to permanent employees (Table 2.4). Thus, the wages of employees of Arkon Auto LLC consist of the basic wage and allowances. Based on the results of the year, the so-called “thirteenth salary” is paid at the end of December. Declarants of Arkon Auto LLC take part in ongoing seminars, which helps improve their professional skills. Table 2.4 - Amount of the Far Eastern surcharge
Taxes and taxation. Arkon Auto LLC pays all types of taxes and fees provided for by the legislation of the Russian Federation. The tax field of Arkon Auto LLC for 2012 is presented in Table 2.5. Table 2.5 - Tax field of Arkon Auto LLC for 2012
Tax name Payment deadline Federal taxes cost of goods (works, services), calculated based on market prices at the end of each tax period no later than the 20th day of the month following the expired tax period (quarter) Taxpayers are required to submit a tax return to the tax authorities no later than the 20th day of the month following the expired quarter. Corporate income tax monetary value of profit subject to taxation The tax at the end of the year is paid no later than March 28 of the following year. During the reporting period, taxpayers calculate the amount of the monthly advance payment: in the 1st quarter of the year = advance payment due in the last quarter of the previous year. in the 2nd quarter of the year = 1/3 × advance payment for the first quarter in the 3rd quarter of the year = 1/3 × (advance payment for the first half of the year - advance payment for the first quarter). in the 4th quarter of the year = 1/3 × (advance payment for nine months - advance payment for half a year) Personal income tax (as a tax agent) all income of taxpayers (employees), received in cash and in kind, and income in the form of material benefits. Tax agents transfer tax amounts no later than the day of actual receipt of cash from the bank Money for payment of income or the day of transfer of income to the taxpayer’s bank account. Organizational property tax average annual value of property recognized as an object of taxation Tax payment is made by making advance payments at the end of the reporting periods - the first quarter, half a year, nine months, no later than 30 days from the end of the reporting period. Transport tax engine power vehicle in horsepower depending on the number of hp Taxpayers make advance payments quarterly before the 20th day of the third month of the quarter of the current tax period in the amount of one-fourth of the annual transport tax amount. The difference between the amount calculated according to the tax return and the amount of advance payments paid during the tax period must be paid to the budget no later than January 31 of the year following the expired tax period. Regional taxes Insurance premiums Insurance premiums The amount of payments and other remuneration accrued for the billing period in favor of individuals, with the exception of amounts not subject to taxation. During the billing period, the policyholder pays insurance premiums in the form of monthly mandatory payments until the 15th day of the calendar month following the month for which it is accrued. According to table 2.5, Arkon Auto LLC makes quarterly advance payments for property tax and transport tax. VAT is paid by the company quarterly. Income tax is paid every year. Pricing. The basis for determining the selling price of a product is the import price. The basis for the formation of the import price is the information received and the offer price of specific exporters. Arkon Auto LLC calculates all possible options for importing goods and selects the one at which the cost of the goods will be minimal. When determining the selling price, all costs incurred by Arkon Auto LLC when importing goods are taken into account, including overhead costs: Expenses abroad (Japan, Korea): Price of the product (car) in Japan or Korea; Preparation of export documents, customs clearance; Auction fees; Delivery within Japan (Korea); Freight to Vladivostok; Foreign partner commission; Bank commission for transferring funds in the amount of 0.2%. Expenses in Russia: Duty; Bank commission 0.65%; Agreement; Temporary storage warehouse services; Customs broker services; Transits; Forwarding services of Arkon Auto LLC; Commission of Arkon Auto LLC. Thus, Arkon Auto LLC uses a cost-based pricing method, using the “costs plus planned profit” scheme. We present a table in which we consider the pricing process at Arkon Auto LLC (Table 2.6). Table 2.6 - Percentage of costs to total cost of goods
Share in the total cost of goods, % Car price in Japan Preparation of export documents, customs clearance Auction fees Delivery within Japan Freight to Vladivostok Japanese partner commission Commission of the bank Temporary storage Broker services Transits Forwarding company services Ordering and delivering a car from a foreign auction is a rather labor-intensive and lengthy process that includes a large number of actions from different specifications. That is why it is quite relevant to use the company Arkon Auto LLC in this case. The commission that the company itself takes is only about 2%, which is quite insignificant if you take into account the fact that it takes on all the work and responsibility. Although, of course, some actions have to be carried out by the client himself. So, for example, he must make an advance. At Arkon Auto LLC, this is a fixed amount of 30,000 rubles, which at the end of the transaction is credited towards payment of the final cost of the car. And also the client must fill out and sign some documents, such as: Agreement with the company "Arkon Auto" LLC on the provision of services; Contract of sale; The main direction of the Arkon Auto company was and remains the selection of a car at the request of the client from automobile auctions in Japan; almost all areas of the company work in this area of activity to one degree or another. Everyone knows that there is no longer a need to buy cars in person from parking lots in Japan. A more civilized way is to buy cars via the Internet from car auctions. Today, the Arkon Auto company has access to all major Japanese auctions. It was not easy to achieve this, the Japanese put forward a number of serious demands, including registering a company in Japan and purchasing real estate, but the Arkon Auto company fulfilled all the conditions, thereby gaining the trust of its partners in Japan. Now Arkon Auto works directly without intermediaries, thereby guaranteeing the quality of the car and its compliance with all client requirements. Reasonable price The price for services was also achieved due to the fact that the company directly charters the ships and only carries out all technical work on the vehicles with its own personnel, which reduces the risk of damage to the cargo, its theft and contributes to the timely detection of “defects.” As a result, it often turns out that a car purchased through Arkon Auto costs less than on the markets, but its quality is guaranteed. There is no vehicle or special equipment offered on the Japanese domestic market that you could not buy together with Arkon Auto and bring to Vladivostok. This applies to both right- and left-hand drive vehicles, oversized vehicles and watercraft. Payment for the cost of a car selected at Japanese auto auctions at the Arkon Auto company does not occur immediately, which is also convenient for the client. The purchase payment stage is carried out in three stages: Prepayment Payment for the cost of the car and delivery costs to Vladivostok after purchase in Japan Full payment of customs duties and company services directly upon receipt of the car. For the complete convenience of clients, the company has opened the “Car Lending” direction; it is not the company’s area of income, therefore its registration at the Arkon Auto office does not require additional costs (in addition to bank fees). There is another important point that immediately inspires trust among clients. The company's office is located in the same place where the company develops its activities. In the windows of the head office you can immediately see a parking lot with cars that have already been delivered; there is also a workshop for collecting construction kits, repair bays - all in one place. Here you can always see how the company's craftsmen work. On average, 4 ships arrive per month, delivering from 200 to 400 units of various equipment and cars from the Land of the Rising Sun. True, not all of this equipment belongs to Arkon Auto; there are a number of clients who simply use the services of transporting goods purchased on their own. Also often, large-sized cargo is loaded onto Arkon Auto ships - boats, boats, special equipment. The main office of the Arkon Auto company is located in Vladivostok on Shoshina Street 27, but the scope of its activities extends far beyond the Primorsky Territory. Orders come here through company representative offices in other regions. People in other cities receive the same complete information about the cars that are offered to them as those who are located in Vladivostok closer to the main office, and most importantly, they receive the same guarantee for order delivery. Delivery to the company's representative offices in Khabarovsk and Blagoveshchensk is carried out on the company's car transporters, which ensures the shortest possible delivery time for the car to the client. When purchasing a car by a client from any other city in Russia, in addition to delivery, there is no additional charge. Delivery is also carried out by rail. The Arkon Auto company initially focuses on mass purchases. By not inflating the cost of services, providing full guarantees, and finding an individual approach to the client, the company knows that by doing so they earn the trust of clients who will come here for their next purchase and recommend the company to their friends and colleagues. That is why the Arkon Auto company has a large circle of regular wholesale customers, which is expanding daily. The portrait of the company's buyer is presented in Table 2.7. Table 2.7 - Portrait of the buyer of the Arkon Auto company
Portrait of a buyer of auto-moto, trucks and special equipment business active man aged 30-45, well versed in technology, purposefully focused on purchasing from the Japanese domestic market both for his own needs, his friends, as well as for further resale or delivery to other regions. Portrait of a consumer of auto repair services 70% man 25-38 years old, knowledgeable, had experience in servicing the company, knows about the main advantages of the company (quality of body and painting work, realistic payment terms, polite staff, discounts for regular customers up to 20%) -30% woman 30-40 years old, independent (appreciating time and money) who wants to shift maximum worries about routine repairs and maintenance to the company’s specialists Arkon Auto LLC carries out its main activities in Vladivostok. Vladivostok is a city and port in the Far East of Russia, the administrative center of the Primorsky Territory, part of the Vladivostok urban district, the terminus of the Trans-Siberian Railway. The city's population is 622,500 (estimated as of January 1, 2013). The city is located on the coast of the Sea of Japan on the Muravyov-Amursky Peninsula. In 2008, analysts from the Autostat agency studied 170 cities with a population of over 100 thousand people. They analyzed the structure of the vehicle fleet by year of manufacture and by main brands. Thus, at the beginning of 2008, the Russian automobile fleet numbered more than 30 million. passenger cars. It turned out that it takes root mainly due to the northern and eastern regions. Far Easterners, it turns out, live much better than residents of Central Russia. Vladivostok eventually became the most car-heavy city in terms of car density. In Vladivostok, according to Avtostat estimates, there are 566 cars for every thousand residents. And this despite the fact that officially 622.5 thousand people live in the regional center. That is, more than half of the city gets into cars every day. The results of an analytical study conducted by the Avtostat agency indicate that the vehicle fleet of the city of Vladivostok consists of 48.7% Toyota cars. Also, according to agency analysts, the second most popular brand here is Nissan (15% of the car park), and the third is Mitsubishi (7% of the car park). The remaining places in the leadership group are distributed between the Japanese Mazda (4.1%), Suzuki (2.4%), Subaru (2.1%) and Isuzu (1.6%). Thus, in the Vladivostok vehicle fleet, the share of foreign cars was 89.7%. Quantitative indicators are clearly not in favor of Russian brands, the share of cars of which does not exceed 11% of the total. The most popular are Lada cars (4.4%), and in second place are Moskvich (2.3%). Next come “Zaporozhtsy”, “UAZ” and “GAZ”. All other brands (European, American and South Korean) occupy only three percent of the local vehicle fleet. It should also be noted that the average age of cars operated in Vladivostok turned out to be noticeably higher than in other large cities of Russia. So, about 80% of the local vehicle fleet are cars older than 10 years, despite the fact that in Moscow or St. Petersburg, “ten-year-olds” make up only 37 and 38% of the fleet, respectively. And the most popular brand in Moscow at the end of 2007 (based on data on newly registered cars), in contrast to Vladivostok, was the Ford brand. Table 2.8 - PEST analysis
PEST factors: P - political Stabilization of the political situation in the country. This makes it possible to begin to systematically build a system of connections between the enterprise and the external environment. Positive side activities of the state (for society as a whole) - strengthening the position of the ruble, monitoring the quality of goods, creating services for standardization and certification of products. Negative side: restrictions on the import of right-hand drive cars, promotion of left-hand drive PEST factors: E - economic The main factors that negatively affect production growth are: - rising prices for components. - staff demands for salary increases. - rising energy prices. Some stabilization of the economy makes it possible to move from emergency planning measures (long-term purchases of raw materials, focusing on the “short-term” buyer, reducing available funds) to drawing up long-term plans, concluding contracts with both consumers and suppliers and financial organizations. Positive economic factors are: - increasing the availability of loans (reducing requirements for borrowers, reducing interest rates, shortening the period for obtaining approval of an application and issuing money). - increasing the level of income of the population, shifting demand from cheap goods (used cars) to high-quality ones (new cars from car dealerships). S-sociocultural There is no way to provide workers with the wages they deserve. Most motorists do not show interest in emerging new products on the market due to the lack of financial opportunity to buy a new car. T-technological The general complication of vehicle design requires increasingly qualified personnel and time spent on work. Tightening of vehicle exhaust toxicity standards both worldwide and in Russia. This makes maintenance and repair impossible without the use of expensive equipment. There is a positive economic environment on the market that is conducive to business development, which makes it possible to move from emergency planning measures to drawing up long-term plans. Factors from the technological group also have a negative impact on the enterprise. They must be taken into account when developing a strategy. Some negative influences are exerted by political and social groups. All of them are hardly predictable, but must be taken into account when developing strategic alternatives. The next stage of analysis is competitor analysis. The main competitors of Arkon Auto LLC in the automotive market are: CJSC "Summit Motors" (Vladivostok)"; LLC "Altair-Auto"; - “Triumph Auto Far East”; Pacific Auto LLC; LLC "Vostok-UAZ" Grand Motors LLC LLC "Champion-Vladivostok" A more detailed assessment of competitors is presented in Section 4 of this report. Suppliers. The main suppliers of Arkon Auto LLC are: MihairuCo LTD Japan, Network of Japanese auctions Aauc, USS, TAU, HirohamaCo LTD. In strategic management, the most commonly used method for analyzing the organization's environment is called SWOT analysis. Using this method, it is possible to establish lines of communication between strength and weakness and external threats and opportunities. Such connections are subsequently used to develop strategy. In the process of developing a strategy, it is necessary to take into account that opportunities and threats can turn into their opposites. To successfully apply a SWOT analysis of an organization’s environment, it is important to be able to not only identify threats and opportunities, but also try to evaluate them from the point of view of how important it is for the organization to take into account each of the identified threats and opportunities in its behavior strategy. For such an assessment, the method of positioning on matrices of opportunities and threats is most often used (see Appendix B). For the Arkon Auto company, after the analysis, the most significant and probable opportunities were to expand market share, expand the range and develop a new direction for the sale of related products (accessories for cars), as well as the development of such a direction as auto repair. After positioning the threats, it was revealed that: A company can be brought to a critical state either by the entry of a large number of competitors into the industry and a radical change in consumer tastes; The destruction of a company or its exit from the industry can be caused by restrictive policies of government bodies, for example, an even greater increase in customs duties and taxes, an increase in transport tariffs, or changes in trade rules. We will present basic information about the competitors of Arkon Auto LLC in the local market in Appendix B. Then we will evaluate competitors in the local market. It should be noted that competition in this market very tough. Such services are provided by a large number of both small and large enterprises. Competitors are assessed on a five-point system. Weight of factors: Quality - 0.3 Assortment - 0.2 Delivery time - 0.1 Location - 0.05 Popularity - 0.05 To assess competitors, a selective study was conducted on the main competitors selected for study due to the fact that these companies have a similar product range. Table 2.11 - Assessment of competitors in the local market
Grand Motors LLC LLC "Altair-Auto" LLC "Arkon Auto" 2. Quality 3. Assortment 4. Delivery time 5. Location 6. Popularity Competitiveness coefficient Grand Motors LLC = 1 × 0.3 + 0.3 × 4 + 0.2 × 3 + 0.1 × 5+ 0.05 × 5 + 0.05 × 5 = (0.3 + 1.2 + 0.6 + 0.5 + 0.25 + 0.25) / 6 = 0.517 Altair-Avto LLC = (0.3 × 1 + 0.3 × 5 + 0.2 × 4 + 0.1 × 5 + 0.05 × 5 + 0.05 × 5) / 6= (0, 3 + 1.5 + 0.8 + 0.5 + 0.25 + 0.25) / 6 = 0.6 Arkon Auto LLC = (5×0.3 + 5×0.3 + 0.2 × 5 + 0.1 × 2+ 0.05 × 5+ 0.05 × 5) /6 = (0.9 + 1.2 + 0.8 + 0.5 + 0.25 + 0.25) / 6 = 0.78 From the above calculations it is clear that only in terms of the “Delivery time” factor does Arkon Auto LLC lose to its competitors (Figure 2.8). However, in terms of price and quality, that is, indicators that have greater weight, the enterprise wins significantly. As a result of assessing competitiveness indicators, Arkon Auto LLC scored 0.78 points, which is significantly higher than that of its competitors. Based on the analysis and assessment of the competitive environment, it was concluded that none of the enterprises under study is able to compete with Arkon Auto LLC in terms of quality of services, quantity, assortment, and prices. Due to the fact that the need of this market for quality services is very great and is not fully satisfied, Arkon Auto LLC can repeatedly increase the volume of sales of its products in this region. To increase the competitiveness of products, Arkon Auto LLC must actively use marketing tools: advertising, discounts, etc., expand the market, sales markets. The Arkon Auto company began to develop in the mid-90s, then its founders transported cars and trucks for their use, to friends, for the purpose of subsequent resale, and spare parts for sale, which were purchased at car parks at ports of call of Russian ships. Since 2002, as a result of the constantly growing demand for cheap and high-quality used cars and motorcycles, household appliances, spare parts, crane installations, car tires the company's sales begin to be regular, regular customers companies, demand is formed, prerequisites for capital formation are created. Main strategic objectives for that period: Business consolidation (company growth); Expansion of services provided; Improving the quality of goods supplied and services provided; Purchase of real estate (with production premises) for company placement. By 2003, the company's activities represented an average company in relation to competitors, well-standing on its feet, with partners in Japan in the form of several recycling companies of the company (Scrubs). In Japan, "Arkon Auto" is represented by a logistics department (5-7 people) located in close proximity to Japanese partners, a rented site in the port of Fukui (temporary storage warehouse) made it possible to independently form batches for shipment to Russia (disassemble, cut into spare parts, transport and delivery of vehicles), accept and describe vehicles and equipment in preparation for shipment, monitor the delivery of goods by Japanese partners in Japan, prepare loading documents, which in itself was a significant advantage over competitors. Complex In Russia, Arkon Auto developed two main (at that time) directions: Parking lot for the sale of trucks and special equipment, crane installations, truck spare parts; At the same time, such a direction of the automotive business as the import of cars in the form of auto parts of the first complete set of engines and bodies with subsequent assembly (replacement with outdated auto units) begins to develop dynamically. From 2003-2008, this area of activity became the main one for the company. In 2004, the Company received Accreditation and registered at domestic Japanese auctions to which previously foreign citizens and companies did not have access; accordingly, cars at these auctions were intended for resale with subsequent use in the domestic market of Japan, they had a special evaluation system that allows one to form an idea of the condition of the item being sold - purchased car. Access to auctions allowed one of the first companies to introduce a new service for its clients - purchasing cars to order (the choice was made directly by the client of the company in Vladivostok), a department of managers with knowledge of the Japanese language is being formed. The volume of transactions to provide the service of “purchasing a car from an auction in Japan and delivering it to the company’s warehouse in Vladivostok” is growing exponentially every month. The company is moving from irregular deliveries of limited quantities of cars, in the form of additional loading onto ships attracted to call at the port of Fukui once a month, to targeted chartering of ships for the needs of regular deliveries of collected cargo to Russia (with a regularity of 1-2 ships every 1-2 weeks Later, Kazakhstan opens its borders for the import of Japanese cars, Arkon Auto does not stand aside and finds partners in Japan from Kazakhstan who want to automate their work, since supply routes lie through the territory of the Russian Federation, this area of work is regular in the form of 1-2 deliveries per month, was successful until Kazakhstan adopted protective duties on right-hand drive cars in 2006. Gradually the company grew to a large range of services: Sale of cars from the company's warehouse Buying cars at Japanese auctions without intermediaries Delivery of cars, special equipment, boats, cargo throughout Japan to the port of Fukui. Storage of cargo prior to dispatch from Japan. Lifting large watercraft (boats, yachts) from the water, loading and sending to Vladivostok Supply of cars, special equipment, designers, front halves of cars, boats from Japan to Russia through the port of Fukui, Noshiro on ships chartered by the company. Car dismantling/cutting. Customs clearance in Russia. Assembly of purchased cars (constructors) Not all areas of the company's activities developed dynamically; the company sought to develop and shape its offer in accordance with changes in consumer demand. Such areas of activity as auto repair, supply and sale of auto parts existed in parallel, performing auxiliary functions to the main activity of the company, and such types as the sale of cars from the company's warehouse, purchase, supply and sale of water equipment began to be local in nature. In 2008, new customs legislation came into force which significantly adjusted customs duties in relation to automotive equipment imported to Russia, as well as spare parts of the first complete set (in particular, automobile bodies). Due to the introduction of protective duties, the market share began to decrease and, in some cases, shift in favor of purchasing “left-hand drive” cars, and there was a jump in prices for used cars. As a result, the cooperation of Japanese cars decreased, buyer preferences began to change dynamically from purchasing used ones. luxury class cars with a long service life from Moscow and Moscow Region before purchasing a “new product” on the automobile market of Valadivostok - new and used Korean cars due to their low cost. Currently, there is an equalization of demand relative to the preferences of car owners who have experience in operating high-quality Japanese equipment, experiments with the acquisition of well-worn cars from Moscow and Moscow Region, as well as cheap Korean cars, are coming into the background. The preferences of motorists are gradually returning to “right-hand drive” Japanese cars, which often bear the names of folk cars, but due to the high cost of cars in Japan of “passing years” (from three to five years inclusive) and duties on them, the dynamics of cooperation with this category of cars is growing not significant. A differentiation strategy is proposed as a competitive strategy for Arkon Auto LLC. This strategy becomes an attractive competitive approach as consumer needs and preferences become diversified and can no longer be satisfied by standard products. The essence of a differentiation strategy is to find ways to be the only one that offers customers the additional product features they want and to continually maintain that advantage. For a differentiation strategy to be successful, a company must study the needs and behavior of customers, know what they prefer, what they think about the value of the product and what they are willing to pay for. After this, the company offers one, or perhaps several, distinctive characteristics of the product/service in accordance with customer requests, and these offers must be tangible and memorable. Competitive advantage arises when a significant number of buyers become interested in the differentiated attributes and characteristics of the product offered. The greater the interest of buyers in the various characteristics of the products offered, the stronger the company's competitive advantage. Successful differentiation allows a firm to: Set an increased price for a product/service; Increase sales volume (because a large number of buyers are attracted due to the distinctive characteristics of the product); Gain customer loyalty to your brand (as some customers become very attached to additional product features). Differentiation is successful if the costs of its implementation are covered by increasing the price of the updated and changed product. Differentiation fails when customers do not see enough value in a brand's uniqueness to buy that product over a competitor's product, and/or when the company's approach to differentiation can be easily copied and applied by competitors. The key to a successful differentiation strategy is creating customer value in a way that is different from competitors. There are three approaches to creating customer value. One of them is to develop such characteristics and features of the product that help reduce the total cost to the buyer of using the company's products. The second approach is to create such features of the product that the effectiveness of its use by the consumer increases. The third approach involves giving the product features that increase the degree of consumer satisfaction, but not through savings, but in some other way. The basis of differentiation in gaining a competitive advantage is a product whose characteristics differ significantly from the characteristics of goods produced by competitors. Typically, differentiation provides a lasting and more profitable competitive advantage when it is based on: Technical excellence; Product quality; Excellent customer service. Such distinctive characteristics are widely recognized by customers and have value. As part of the competitive strategy of Arkon Auto LLC, it is proposed to develop such a direction as auto repair. Since the company’s capacity, specialization, human resources, partners, availability of equipment, special tools and technology contribute to the development of activities in this direction. This choice is due to the fact that with the loss of the market in 2008 (after the adoption of protective duties on the designer), the market was restructured - cooperation with whole cars decreased and, as a result, the demand for spare parts and repair services increased. Competing companies in the industry have refocused on specialization (providing one service): Trade in new spare parts, Trade in used spare parts (showdown), Trade in related products (autochemicals, accessories), Car delivery only. There was an increase in income in the provision of repair and maintenance services, but the quality of the services provided did not increase. All companies were forced to face a decrease in the number of employees, except for Arkon Auto due to the large client base predominantly wholesale clients, as well as representative offices in Blagoveshchensk and Khabarovsk, a large list of services provided by the company softened the company’s losses. Thus, Arkon Auto should use the targeted attraction of customers - acquaintances, partners of the company in auto repair, as well as develop a new direction - the purchase and delivery of goods from the Japanese flea market Yahoo. Table 3.1. The current strategy of the enterprise and proposals for its improvement
The strategy used is
"Focused" Characteristics of the strategy Measures taken by the company as part of the implementation of this strategy Focused Strategy
consists of targeting only a certain segment or niche of the market, which can be determined based on geographical parameters, income level of consumers, etc. The goal of the company is to best serve the customer in this market segment. Business consolidation (company growth); - expansion of services provided; - improving the quality of goods supplied and services provided; - acquisition of real estate (with production premises) to house the company. Proposed strategy - "Service differentiation" Differentiation involves achieving competitive advantage by creating products or services that are perceived by consumers as unique. The strategy is implemented when consumer needs and preferences cannot be satisfied with standard products or the previous composition of sellers. service differentiation is the offer of a higher and more diverse level of related services Targeted attraction of clients - acquaintances, partners of the company in auto repair - to develop a new direction - purchase and delivery of goods from the Japanese flea market Yahoo. We will develop an action plan for opening a car service center. Table 3.1 Plan - schedule for opening a car service enterprise, developing a new direction - purchasing and delivering goods from the Japanese flea marketYahoo
Particular attention is expected to be paid to the selection of personnel, which should be carried out, if possible, from men under the age of 35-45 years with at least 5 years of experience in this industry, with at least secondary specialized education, since the installation and development of new equipment is expected to be carried out by the company’s personnel . Also important are such qualities of employees as the ability to learn and be creative, the ability to psychologically adapt in a team, sociability, etc., since the personnel factor is quite significant in ensuring the competitiveness of the company. Table 3.2 Traditional types of work and range of car service services of Arkon Auto LLC
Types of jobs A range of services for maintenance cars lubricating stations diagnostics control and diagnostic tire fitting and balancing electrical engineering repair of components, systems and assemblies tire fitting and balancing body work (welding, wallpaper, painting), etc. assembly and dismantling air conditioner repair and refill tin welding restoration of the working surface of the brake disc (grooving the disc on both sides) steering repair washing the injector, cleaning the injectors steering repair Change of oil steering system repair wheel alignment engine repair brake disc repair battery repair and charging body repair, body work painting car painting repair of plastic bumpers refilling the car air conditioner installation of parking sensors computer car diagnostics car window tinting car glass reservation In addition, the company will provide specialized services not offered by competitors. Table 3.3 - Specialized types of car service services of Arkon Auto LLC
Spare parts will be purchased according to the order and needs of each client; only spare parts with a low purchase cost and inexpensive consumables will be available from the enterprise. The profitability of the Arconauto LLC car service can be increased by increasing the flow of customers and reducing costs. To do this, the following steps will be taken: expanding the range of services provided by the company in the second and third years of the project; minimizing the cost of purchasing equipment (by placing orders for certain works in specialized companies); reduction in rental payments; We consider the main method of attracting buyers of our service (of course, along with its optimal price and quality) to be competent organization of the service, which includes: provision of service guarantees for at least 6 months. from the date of service provision, providing the opportunity, if necessary, to deliver the vehicle to the repair site, application of a flexible system of discounts for consumers who regularly use the services of our company, the possibility of providing services under direct contracts with transport companies, maximum provision of the repair time required by the consumer, systematic assessment of the quality of service through questionnaires (possibly a “Book of Reviews” and other forms of “feedback” with consumers of services), ensuring continuous improvement of means and methods of serving consumers, The last point involves the distribution of advertising and non-advertising articles in the local press, highlighting the level and quality of services and guarantees provided by the Arkon Auto LLC car service center, the production of 4-5 billboards, and advertising in transport. In this case, it is planned to pay special attention to a carefully thought-out text of the appeal to consumers, a suitable design that attracts attention and emphasizes the business qualities and advantages of our company. Personal contacts with consumers also play an important role in attracting the attention of consumers. Perhaps this measure will be no less effective than advertising. Based on the above criteria, the following types of promotion were chosen to achieve the goals: Installation of a sign; Purchasing branded clothing for staff; Advertisements in the newspaper; Despite the fact that these events will require additional financial costs, they will be targeted, will provide the company with the necessary publicity and will create demand among potential customers who have not yet used the services of a car service. Cost estimates for the implementation of these activities are presented in Table 3.4. Table 3.4 - Cost estimate for promoting the car service center of Arkon Auto LLC
The amount of funds spent on promoting the service (advertising activities) must be adjusted monthly based on a comparison of the number of consumers attracted by each of the above methods. The planned number of personnel of the company is 7 people. The composition of personnel, as well as planned labor costs are reflected in Table 3.5. Table 3.5 - Staffing table car service LLC "Arkon auto"
Job title Salary, thousand rubles Social Security contributions(34%), thousand rubles. Payroll per year, thousand rubles. Payroll with deductions per year, thousand rubles. Accountant-cashier Chief mechanical engineer Diagnostic department mechanic - electrician Repair shop mechanic Vulcanization mechanic Painting area technician Territory cleaner Thus, monthly labor costs amount to 165.5 thousand rubles; annual wages with deductions will amount to 2502.36 thousand rubles. The planned work schedule of the Arkon Auto LLC car service is from 9:00 to 21:00, 7 days a week, 365 days a year. Work schedule for key process personnel is every other day. The work schedule of management personnel is 5 days a week from 10 a.m. to 5 p.m. The cleaner's work schedule is 5 days a week from 10 a.m. to 5 p.m. Table 3.6 presents the calculation of financial investments in the implementation of the project for the acquisition of a set of equipment. Table 3.6 - Calculation of costs for car service equipment of Arkon Auto LLC
Name of equipment Cost of purchased equipment, thousand rubles. 3 lifts PR-3 Lifts PR-5 with a lifting capacity of 5 tons Wheel alignment stand AMD-520 HuntekPSP400 electronic 3D stand Painting and drying chamber Etman (Russia). Lutro (Italy) model PSPBT Diagnostic complex AM1-M (Russia). Bosh (Germany) FSA 750. Body repair equipment WelPe CAR Bench (Italy) model Pirarha S130. Other equipment "EUROSIV" (Moscow) The costs of delivery, installation and personnel training are 15% of the cost of the equipment: 8410×15%=1261.5 thousand rubles. The total cost of the equipment will be 8410+1261.5=9671.5 thousand rubles. Table 3.7 presents the forecast for the sales volume of the Arconavto LLC car service for 3 years of operation. Based on the experience of competitors and the general patterns of consumer reaction to marketing efforts, the optimistic version of the forecast is more likely, so all further calculations will be made on its basis. Table 3.7 - Sales forecast for the car service center of Arkon Auto LLC
Based on the prices for the company’s services presented in the application, the average 1 set of car service services will be 5,500 rubles. It should be noted that prices for small consumables will be included in the cost of the client’s service in the amount of 20% on average, and the client will pay for expensive spare parts separately. We will make a forecast of revenue from the sale of these areas of work of the Arkon Auto LLC car service. The sales revenue forecast is as follows (Table 3.8). As can be seen from the data in Table 3.8, the projected volume of sales of services for 2014 is 6,033,500 rubles. Over the next two years, the company plans to consistently increase the volume of sales of its services by 20% and 51%. Achieving such indicators is quite realistic, since during this time the company will be able to declare itself in the market household services, create demand from organizations and enterprises, as well as acquire regular customers. Table 3.8 - Forecast of revenue from sales of car service center "Arkon Auto" LLC
Indicator name 2014 quarterly 2014 total Volume of services provided, pcs. Average price per unit of service, rub. Total revenue. rub. Next, let’s move on to drawing up a plan for fixed and variable costs for organizing the work of the Arkon Auto LLC car service center. The calculation was also made on the basis of average prices for certain goods and services in 2013 and is presented in table 3.9. Table 3.9 - Plan of fixed and variable costs for organizing the project for 2014
Name of cost item Amount, thousand rubles Variable expenses Raw materials and materials (costs of small spare parts and consumables) Salary with deductions Fixed expenses Depreciation Other expenses (rent, communal payments, fare) Selling and administrative expenses (stationery, communications) Full cost VAT included 11. Fixed expenses 12. Variable expenses Thus, the total cost of car service services of Arkon Auto LLC in 2014 will be 5,620.36 thousand rubles, including fixed costs in the cost price will be equal to 2,110 thousand rubles, and variable costs will be 3,510.36 thousand rubles. In the next two years, the total cost, taking into account inflation, will increase by 10 - 25% and will amount to 6210 - 7057 thousand rubles. Basics technological equipment taking into account commissioning costs costing 9671.5 rubles. will be taken on credit from OJSC VTB 24 Based on previously calculated data, we will make a forecast of profit from sales for the planned period (Table 3.10). Table 3.10 - Plan for receipt of profit from the sale of the car service center of Arkon Auto LLC, thousand rubles.
Indicator name 2014 quarterly Revenues from sales Full cost Profit from sales Net profit Return on sales, % The return on sales by the end of the first year will be 5.82%, in the next two years it will increase to 11.94% and 19.14%, respectively. Let's calculate the critical annual production volume using the following equation: P x Q = FC + VC, where Q is the critical sales volume, units; P - selling price, rub.; FC - fixed costs, rub.; VC - variable costs, rub./unit. Based on this, we will calculate the critical sales volume of services of IP “Bogdanov Motor” during the first year of operation based on the following data: unit price of services - 5500 rubles; variable costs per unit of production - 3600 rubles; fixed costs - 1,693,700 rubles. Based on this, the critical volume of service provision per month (Q) will be: Q = 1693700+ 3600 Q Q -3600 Q = 1900 Q = 1693700/1900 Q = 892.42 (units) Thus, the critical volume of car service services is 892.42 units. Considering that the planned average sales volume is 1097 units, the critical sales volume is 81% of this volume. Therefore, the stock financial strength of the planned project is (100%-81%) 29%. This allows the company, in case of failure to achieve the planned sales volume, to reduce production volume by approximately 30%. Going forward, the financial strength of the business will increase as monthly volumes are projected to increase. It is believed that different values of the discount rate can be selected for different classes of investments. In particular, investments related to maintaining the market position of the enterprise are assessed at a standard of 6%, investments in the renewal of fixed assets - 12%, investments in order to save current costs - 15%, investments in order to increase the income of the enterprise - 20%, risky investments - 25%. Since the project to open a car service center involves investments in updating fixed assets, according to the above recommendations, a discount factor of 12% was chosen. In inflationary conditions, the discount rate must take into account the inflation rate. The adjusted discount factor is: r=(1+r)×(1+i) - 1, where i is the inflation rate; r - discount rate. r=(1+0.12)×(1+0.07) - 1=0.20 or 20% per year. The net present value of the investment is calculated using an adjusted discount factor of 20%. The project implementation period is 3 years. The calculation of net present value is presented in Table 3.11. Project profitability index:= 18742213.30/9671500= 1.93 Simple payback period for the project: PP = 9671500/(18742213.30/3)= 1.54 years. Discounted payback period of the project: DPP = 9671500/(12832137/3) = 2.26 years. Table 3.11 - Net present value of the project, thousand rubles.
Investments Economic effect Discount coefficient Discounted net profit Net present value So, the calculated data allow us to conclude that the project is quite effective and will allow the company to receive constant additional profit. The pricing strategy will be based on the “follow the leader” method (neutral strategy). With this strategy, our company will focus on the prices and activities of competitors who are more developed in this market, have a larger number of customers and experience in working with them. Therefore, at the initial level of activity, in this segment, we need to be similar to leading competitors, study them, and subsequently, based on information about their shortcomings, form our advantages. Table 3.12 - Sales volume for the first year
Sales volumes thousand rubles June (+0.5%) July (+0.5%) primary market secondary market We will also need to take into account demand, expenses for the total cost of purchased goods, sales volume, and other factors individual to our company that affect the setting of prices for goods. By the second year, sales volumes are expected to increase by 10% compared to the beginning of the first year, through marketing and advertising activities. By the third year, sales are expected to increase by another 7%. During the third year - by 5%. Table 3.13 - Sales volume for the second and third years
The advertising strategy will be based on attracting potential buyers and building the image of our auto parts store through technical advertising methods, which will cover a larger number of the audience we need. To attract customers and create the image of our company, the following information methods will be used: Banner located on a billboard measuring 3x6. Myself billboard will be placed close to our store directly next to a busy section of the road. Thus, we will reach a fairly wide range of car enthusiasts who will know where our store is located.
2.2 Analysis of the operating environment of the enterprise Arkon Auto LLC
2.3 Assessment of the competitive position of Arkon Auto LLC
3. Development of a competitive strategy for the organization Arkon Auto LLC
3.1 Development of a competitive strategy in order to improve the competitive position of the company Arkon Auto LLC
3.2 Action plan for the implementation of the enterprise’s competitive strategy
3.3 Economic justification for the proposed measures
The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage is those characteristics and properties of a product that create for an enterprise a certain superiority over its competitors, and for the consumer - an optimal combination consumer characteristics goods. Superiority is assessed in comparison, therefore it is a relative characteristic and is determined by various factors.
For successful operation, an enterprise needs to develop the right competition strategy based on its competitive advantages, which actualizes the study of forms of competition in modern conditions.
The importance of strategic behavior that allows a firm to survive in competition in the long term, has increased sharply in recent decades. All companies, in conditions of fierce competition and a rapidly changing situation, must not only focus on the internal state of affairs in the company, but also develop a strategy for long-term survival that would allow them to keep up with the changes occurring in their environment. Now, although the task of rational use of potential in current activities is not removed, it is becoming extremely important to implement such management that provides competitive advantages in a rapidly changing environment.
Business practice has shown that there is no competitive strategy that is the same for all companies, just as there is no single universal strategic management. Each company is unique in its own way, and the process of developing a competitive strategy for each company is unique, since it depends on the company’s position in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of the goods it produces or the services it provides, the state of the economy, cultural environment and much more.
Thus, the relevance of studying and applying competitive methods in company management is increasingly increasing. This is what determined the choice of the topic of the course work.
The object of the study was JSC "Perm Spring and Spring Plant".
The purpose of the course work is to analyze the competitive properties of PPRZ CJSC and develop a competition strategy for it. This goal determined the formulation of the following research tasks:
1. Consider the theoretical foundations for developing an enterprise’s competition strategy; characterize the main types of competition strategies and justify the choice of competition strategy;
2. Analyze the competitive position and competition strategies of PPRZ CJSC;
3. Suggest directions for improving the competition strategy of PPRZ CJSC;
4. Calculate the economic efficiency of the proposed measures.
The structure of the work corresponds to the assigned tasks.
Chapter 1. Theoretical foundations for developing an enterprise competition strategy
1.1. The essence and types of competition strategies
Competition - (from the Latin Concurrer - to collide) - the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating on the market in order to provide better opportunities for marketing their products, satisfying the diverse needs of customers.In the marketing system, a company operating in the market is considered not on its own, but taking into account the entire set of relationships and information flows connecting it with other market entities. Conditions environment, in which the company operates, is usually called the marketing environment of the company. Kotler F. defined the marketing environment of a company as follows: The marketing environment of a company is a set of active subjects and forces operating outside the company and influencing the ability of the management of the marketing service to establish and maintain successful cooperative relationships with target clients.
Strategy is long-term actions aimed at achieving assigned objectives. Implementation of strategy is a set of actions that contribute to increasing business activity in the organizational and financial spheres, developing company policies, creating a corporate culture and motivating staff, and managing everything aimed at achieving the intended results.
A competitive strategy is a set of specific steps and approaches that a firm takes or plans to take in order to successfully compete in a given industry.
For the first time, business was faced with the problem of strategic planning in an economic crisis. It is in such conditions that all the weaknesses of some enterprises and the strengths of others become clearly visible. And it is precisely in such periods that it becomes more obvious than ever where enormous resources were wasted, which will never give the expected effect. Then the competition intensifies to the limit, and the winner is the one who manages to achieve greater competitive advantages - advantages not over competitors, but advantages in relation to the consumer.
Competitive advantage is the assets and other strengths of a firm that give it an advantage over its competitors. Competitive advantages must ensure the uniqueness of the brand and satisfy the specific needs of the client. Strategic success factors are based not on objective, but on subjectively perceived benefits by the consumer. The task of management is to identify and develop the potential for success and transform it into appropriate factors.
Conquering and maintaining competitive advantages is, as is known, a key function of strategic enterprise management. It is especially important to achieve advantages in saturated markets where demand is satisfied by many suppliers.
According to competition researcher F. Kotler, a firm in competition can play one of four roles. Marketing strategy is determined by the company's position in the market, whether it is a leader, challenger, follower, or occupies a certain niche:
1. The leader (market share of about 40%) feels confident.
2. Contender for leadership (market share about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the challenger can use the following attack options:
· “frontal attack” - is carried out in many directions (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources.
· “encirclement” - an attempt to attack all or a significant market area of the market.
· “bypass” - the transition to the production of fundamentally new goods, the development of new markets.
· “gorilla attack” - small impetuous attacks using not entirely correct methods.
3. Follower - (20% share) a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of imitator or double.
4. Entrenched in a niche market - (10% share) serves a small segment of the market that large firms do not care about. Several niches are preferable to one. Such firms do not have any special competitive advantages other than that large firms They don’t see them as competitors and don’t put pressure on them.
The task of a competitive strategy, according to M. Porter, is to bring the company to a state in which it can fully use its advantages. It follows that in-depth competition analysis is an important part of strategy formulation.
M. Porter identified five forces of competition that determine the level of profit in the industry. This:
- penetration of new competitors;
- the threat of the appearance on the market of substitute goods produced using a different technology;
- buyer capabilities;
- supplier capabilities;
- competition between companies that have already established themselves in the market.
Competitive strategies (business strategies) come from an understanding of the rules of competition that operate in an industry and determine its attractiveness. The goal of competitive strategy is to change these rules in favor of your company. The rules of competition can be represented as the five forces of competition shown in the figure.
Rivalry, according to Porter, occurs when one or more competitors experience difficulties or see opportunities to improve their position. The intensity of competition can vary from polite gentlemanly forms to the most severe "cut-throat" techniques.
Porter notes a number of the following factors that determine the intensity of competition:
- a large number of competitors or approximately equal strength;
slow industry growth;
high level fixed costs in the form of overhead or inventory costs;
lack of differentiation (no conversion costs);
quantitative leap in capacity;
various types of competitors;
high strategic importance;
high output barriers.
There are three basic strategies for this:
- leadership in cost reduction;
differentiation;
focusing (special attention).
To provide differentiation, it must be able to offer something unique of its own.
Cost leadership is perhaps the most distinctive of the three. general strategies. It means that the company strives to become a low-cost manufacturer. The company's supplies are diverse and serve many industry segments. This scale is often the key to cost leadership. The nature of these types of advantages depends on the structure of the industry, and may be a matter of economies of scale, advanced technology, or access to raw material sources.
Porter points out that a company that has achieved cost leadership cannot afford to ignore the principles of differentiation. If consumers do not consider the product to be comparable or acceptable, the leader will have to discount prices to weaken its competitors and thereby lose its leadership. Porter concludes that a cost leader in product differentiation must be on par with, or at least not far behind, its competitors.
Differentiation, according to Porter, means that a company strives to be unique in some aspect that is considered important by a large number of customers. It selects one or more of these aspects and behaves in such a way as to satisfy the needs of consumers. The price of this behavior is higher production costs.
The third type of strategy is to focus efforts on some aspect of the activity. It is radically different from the previous two and is based on choosing a narrow area of competition within an industry.
The point of focus is to select a segment of an industry market and serve it with your strategy better and more effectively than your competitors. By optimizing its strategy for a selected target group, the company that chooses this course tries to achieve competitive advantages in relation to the selected group.
Let us also consider the types of behavior strategies of firms according to A.A. Thompson and A.J. Strickland. Famous authors of the book “ Strategic management» A.A. Thompson and A.J. Strickland describes the strategies of firms in sufficient detail and with reasoning. They distinguish the following strategies: offensive, defensive and vertical integration strategies.
1. Offensive strategies to maintain competitive advantage. Competitive advantage is usually achieved through the use of creative offensive strategies that are not easily countered by competitors. There are six main types of offensive strategy:
- actions aimed at countering or surpassing the strengths of a competitor;
- actions aimed at exploiting the competitor’s weaknesses;
- simultaneous offensive on several fronts;
- capture of unoccupied spaces;
- guerrilla warfare;
- pre-emptive strikes.
2. Defensive strategies for protecting competitive advantage are aimed at maintaining one’s market position, reducing the risk of being attacked, withstanding a competitor’s attack with fewer losses, and putting pressure on challengers to reorient them to fight other competitors.
A good defensive strategy presupposes the ability to quickly adapt to a changing situation in the industry and, if possible, proactively block or prevent competitors from attacking blocking actions.
The second approach to a defensive strategy is to communicate to competitors that their actions will not go unanswered and the company is ready to attack. The purpose of such signals is to prevent the start of attacking actions (since the expected results of challenging competitors may be significantly lower than the costs incurred) or to redirect them towards less protected targets.
Another way to counter the offensive actions of competitors is to try to reduce the profits that attract them and push them to offensive actions. When the profitability of a firm or industry is very high, it acts as a lure to a large number of firms and creates a desire to take offensive action, even if barriers to entry are high and defenses are strong. In this situation, a firm can protect itself from competitors, especially new entrants, by forgoing short-term profits and using accounting mechanisms that show relatively low returns.
3. Vertical integration strategy. The essence of this strategy is that firms can expand their activities towards suppliers (backward) or towards consumers (forward). A firm that builds a new facility to produce input components that were previously purchased from suppliers is clearly still in the same industry as before.
1.2. Rationale for choosing a competition strategy
An enterprise's individual competition strategy is a set of methods, techniques and measures aimed at strengthening the organization's competitive position, the specific content of which depends on the characteristics of the enterprise's competitive environment and its competitive strategic potential.The need to choose a competition strategy lies in the fact that the modern market economy is competitive in nature. The opportunity and freedom to strive to satisfy private interests for each economic entity and the economic isolation of commodity producers create the preconditions for the existence of competition. In the process of marketing research, carrying out calculations to assess the competitiveness of services or goods is aimed at identifying competitive advantages and vulnerable positions.
The most profitable strategies for PPRZ CJSC seem to be market expansion and diversification strategies according to M. Porter. An individual (private) competitive strategy reflects both specific ways of implementing the selected standard competitive strategy depending on the organization’s capabilities, as well as decisions about behavior in relation to its main competitors.
The challenge is to maintain and develop your competitive advantage.
To do this, a business (competitive) strategy must be formed for each strategic business unit. To solve this problem, M. Porter's model of competitive strategy can be used.
To find and implement strategic positioning, this model provides a combination of the following three criteria:
- mainly in terms of costs;
- product differentiation;
- concentration on markets.
As a result, five main positions and their corresponding competitive strategies are fundamentally possible.
Let's look at the features of these strategies:
- the strategy of leadership in transport costs involves reducing the total costs of producing transport services, which attracts a large number of consumers;
- a strategy of broad differentiation is aimed at giving services or goods specific characteristics that distinguish them from the services of competing organizations, which attracts a large number of consumers (clients);
- optimal strategy transport costs focuses on providing consumers with more value for money through a combination of low costs and broad differentiation of services or products, which is challenging and therefore an unsustainable and transitional strategy;
- a focused low-cost strategy is based on low costs and is aimed at a narrow market segment where the organization is ahead of its competitors due to lower production costs;
- a focused differentiation strategy is based on the differentiation of services or products that best meets the requirements of a narrow market segment.
These strategies create their competitive advantages, while each strategy requires the presence of the necessary economic resources, certain skills and the correct management actions of managers.
In accordance with the starting positions, one of the following competitive strategies can be used: cost reduction transport services, differentiation, market segmentation and selection of a market niche, introduction of innovations, focus on market needs.
When developing a competitive strategy, it is necessary to take into account that all types of competitive advantages are divided into two groups: low-order advantages and high-order advantages.
Low-order advantages are associated with the possibility of using cheap labor and material resources. The low order of these competitive advantages is due to the fact that they are very unstable and can easily be lost either due to rising prices and wages, or because these are cheap production resources competitors can use the same thing. In other words, low-order advantages are advantages with low sustainability, unable to provide an advantage over competitors for a long time.
High-order advantages are: unique transport services, unique technology for transporting goods, optimal marketing structure, organization of production of transport services, good reputation ATO. If a competitive advantage is achieved through the provision of unique transport services using new rolling stock or additional equipment based on their own design developments, then to destroy such an advantage, competitors will either have to develop similar equipment, purchase new rolling stock, or come up with something better. All these options are not cheap and require a lot of time to implement.
The most valuable competitive advantage is the good reputation of the organization, which is achieved with great difficulty, slowly and requires large costs to maintain it.
The type of strategy chosen depends on the position the organization occupies in the market and the nature of its actions.
Along with the strategy for ensuring competitiveness, it is necessary to develop tactics and methods of competition that will be used, as well as outline activities aimed at improving its competitive position.
The development of a competitive strategy requires the appropriate formation of the entire marketing mix, since there is a certain, although not rigid, connection between the competitive strategy model and the instrumental strategies of the marketing mix.
An essential point influencing the choice of strategy is the definition of performance indicators and their justification. The parameters of the strategic plan are important criteria for assessing the effectiveness of the chosen strategy.
As a rule, the choice of criterion for strategic effectiveness is not limited to any one indicator, since it depends on the characteristics of the current situation, prevailing (dominant) goals, as well as the availability of reliable and reliable information about the state of the external and internal environment.
It should be said that the implementation of the developed competitive strategy and the corresponding activities that make up the marketing mix will improve the following main elements of the competitiveness of transport services: the list of transport services offered, the quality of the transport services provided, the availability of the services provided.
An effective quality strategy creates a sustainable competitive advantage and increases the intensity of the organization's activities. Ultimately, it is this factor that is decisive in a dynamic and unpredictable environment.
The content and structure of the competitive field of PPRZ CJSC is determined by many factors; To simplify the analysis, it is advisable to present all factors in the form of an analysis of the enterprise environment.
To summarize the chapter, we note that modern stage economic development, the goals and methods of competition change, changes occur in the behavior of business entities associated with adaptations to the changing conditions of the competitive environment, all this determines the importance of having a competitive strategy at PPRZ CJSC as the main factor of success in competition.
Chapter 2. Analysis of competition of an enterprise (using the example of ZAO PPRZ)
2.1. Brief characteristics of PPRZ CJSC
Corporate name of the Enterprise: full - Closed Joint Stock Company "Perm Spring and Spring Plant"abbreviated as “PPRZ” CJSC
Legal address: 614014, Perm, street 1905, 35
date state registration– 07/20/2000
CJSC "PPRZ" is one of the largest manufacturing enterprises spring products for various industries in Russia and the CIS countries.
The enterprise is a legal entity, has a company name containing an indication of the organizational and legal form, the owner of its property and the nature of the activity of the enterprise, enshrined in the right of economic management. The company has separate property, an independent balance sheet, a bank account, a round seal with its name, a stamp, forms, a trademark (service mark). An enterprise can, on its own behalf, acquire and exercise property and personal rights, bear responsibilities, be a plaintiff and defendant in court, arbitration and arbitration courts.
The company operates in accordance with the legislation in force in the territory Russian Federation, acts of local government, as well as the Charter.
The enterprise is liable for its obligations with all its property. The founder is not liable for the obligations of the enterprise, except for cases provided for by current legislation, and the Enterprise is not liable for the obligations of the founder.
The enterprise was founded in 1994 on the basis of specialized workshop No. 38 of Motovilikha Plants OJSC. Currently, JSC "PPRZ" includes workshop 38 and workshop 35.
The main specialization of workshop 38 is the serial production of leaf spring products for passenger cars and light-duty trucks.
Workshop 35 specializes in small-scale production of screw, leaf and disc springs, retaining rings and spring parts for various industries.
Production and technological capabilities of the enterprise.
Workshop No. 38 was put into operation in 1969 to supply the assembly line of the Izhevsk Automobile Plant with spring products.
The workshop houses 3 conveyor lines for the serial production of springs and springs for cars, including:
- automatic line for coiling springs from the American-Italian company Gogan-Holcroft, launched in 1980;
- spring winding line produced by the Azov Automatic Forging Plant (Azov), put into operation in 2002.
- line for the production of springs for cars.
Currently, only two lines are operating - 1 for the production of springs and 1 - for the production of springs, the Azov Line is mothballed. The Azov Line is currently being modernized for the production of springs for railway rolling stock.
Workshop 38 produces springs and springs for Volga, Zhiguli, IZH (Moskvich), UAZ vehicles, as well as for special equipment - electric forklifts and PAUS mine carts.
The production capacity of workshop 38 for the production of springs for cars is 500 thousand pieces. per year, spring production capacity - 250 thousand pcs./year. Actual loading production capacity in terms of spring production it is 25%, in terms of spring production - 40-50%. Low production utilization is associated with a decrease in demand for products from Russian automakers and increased competition in the market. But perhaps this problem will be solved soon, because... V this moment, negotiations are underway on the supply of spring-spring products with such large concerns as HYUNDAI, RENAULT and UZ-DAEWOO.
Product quality:
Manufactured spring and spring products for automobiles are certified in GOST R systems and have a ROSS certificate of conformity. YAP. MT25. B 06138 No. 6218520 (certificate validity period from July 27, 2004 to July 27, 2010).
The main limiting factors for further increasing production volumes in workshop 35 are;
- outdated equipment (70-80s of manufacture) and a high percentage of its wear and tear (70-80%);
- small-scale quantity of ordered parts
- lack of a certificate for the production of springs for railway transport.
- insufficient number of specialists in the repair and maintenance of machine tools (mechanics and toolmakers), which leads to equipment being idle.
The main goals of creating the Enterprise are: meeting social needs in the results of its activities and making a profit.
The enterprise has the right:
- on its own behalf, participate in economic turnover, enter into contractual and other obligations with legal entities and individuals;
plan and carry out your financial and economic activities;
sell your products, perform work and provide services at prices and tariffs established independently or on a contractual basis;
for one’s own needs, acquire, rent, accept for free use or on other terms any property;
- provide safe working conditions for all workers;
carry out the work developed in accordance with the established procedure production program;
carry out only those types of activities established by its Charter;
ensure the safety and proper use of municipal property assigned to the Enterprise.
Organizational structure of marketing and sales management of CJSC PPRZ.
Marketing and sales activities at CJSC "PPRZ" are carried out by the marketing and sales department under the leadership of the deputy. director of sales, marketing and logistics (see Fig. 2).
Rice. 2. Structural scheme marketing and sales management
The marketing and sales department consists of 4 people. Marketing and sales department specialists perform the following functions:
pre-contractual work with customers, conclusion of contracts;
sales planning;
placing orders at the enterprise and monitoring their implementation;
tracking payment of bills by consumers of products;
analysis of product shipments to customers (nomenclature, quantity, price);
product advertising, organization of participation and participation in exhibitions;
Marketing and Sales Department, reporting directly to the deputy. The director of sales, marketing and logistics closely interacts with the planning and dispatch department (PDD), the financial and economic department and the accounting department.
Volumes of production and sales of products at CJSC "PPRZ"
Based on the results of 2008 and 3 months of 2009, the plan for production and sales of products at PPRZ CJSC is being fulfilled. The production volume at ZAO PPRZ in 2008 amounted to 91.4 million rubles, sales volume was 90.6 million rubles. The main income is generated through sales of products to third parties (96.1%). At the same time, the main part of it (64.5%) is due to the sale of automobile springs and leaf springs, which bring approximately the same income.
In 2009, it is planned to receive 120.0 million rubles from sales. The company operates breakeven, but the return on sales is very low - only 0.7%.
Data on production and sales volumes for 2008 and for 3 months of 2009 are shown in Table 2.1.
Table 2.1 - Production and sales volumes at PPRZ CJSC
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Am 7universum.com ECONOMICS AND JURISPRUDENCE DEVELOPMENT OF COMPETITIVE STRATEGY OF THE ENTERPRISE BASED ON ANALYSIS OF ITS ACTIVITIES Savchenko Denis Davidovich Bachelor of Economics, Federal State Budgetary Educational Institution of Higher Professional Education "Moscow State University of Civil Engineering", RF, Moscow E-mail: [email protected] Panteleeva Margarita Sergeevna Ph.D. economy sciences, senior lecturer of the department economics and management in construction, Federal State Budgetary Educational Institution of Higher Professional Education "Moscow State University of Civil Engineering", RF, Moscow E-mail: [email protected] THE DEVELOPMENT OF COMPETITIVE STRATEGY OF THE ENTERPRISE BASED ON THE ANALYSIS OF ITS ACTIVITY Bachelor of Economics, FSBEIHPO “Moscow State University of Civil Engineering”, Margarita Panteleeva Candidate of Economic Sciences, Senior Lecturer of Economics and Management in the Construction Industry Chair, FSBEI HPO “Moscow State University of Civil Engineering”, ANNOTATION This article updates strategic planning within the framework of economic competition that is intensifying every year. The market economy forces us to look differently at the external conditions of activity Savchenko D.D., Panteleeva M.S. Development of a competitive strategy for an enterprise based on an analysis of its activities // Universum: Economics and jurisprudence: electronic. scientific magazine 2015. No. 8(19). URL: http://7universum.com/ru/economy/archive/item/2467 companies, and one of the most important aspects of the changing behavior of subjects economic sphere is the frequency of changes in customer preferences, quality and range of products of the main competitors. The article actualizes the strategic planning within the framework of growing economic rivalry year by year. The market economy makes us have another look at the external environment of the company's activity, and one of the most important aspects of the changing behavior of the subjects of the economic sphere is the rate of consumer preferences change, quality and product assortment of leading competitors . Key words: economics, competitiveness, management, goods, services, management, financial and economic indicators, financial activities, strategy. Keywords: economics, competitive ability, management, product, services, management, financial and economic indicators, financial activity, strategy. The purpose of this study is to create an algorithm for developing a competitive strategy, as well as to develop a model for diagnosing the competitiveness of an enterprise. The methodology developed in this article has practical significance and can be used by organizations to develop a competitive strategy. The strategy itself is the foundation in enterprise management, which should ensure the growth and development of the enterprise, as well as increasing the competitiveness of the products, goods and services provided by the enterprise. Market "rules" determine the behavior of all firms: new and established, small and huge corporate giants. Unified strategy does not exist for the enterprise, because its formation is a very difficult process, depending on many factors, such as the potential of the enterprise, the characteristics of the services or goods it produces, as well as the behavior of its competitors. The significance of the problem of a single strategic development For Russian enterprises necessitates additional development of the theoretical and methodological foundations of marketing, research on strategy development, as well as theoretical and practical recommendations aimed at increasing competition in the enterprise and its development. Whatever the enterprise, it needs to choose a certain model of behavior in the market (see table 1) in order to maximize profits and stay afloat. Table 1. Types of competitive strategies (source: compiled by the author) Types of competitive strategies Description Leadership strategy in cost minimization Reducing the costs of producing goods and services, as well as their sales. The goal of working in the format of this strategy is to find ways to reduce these indicators without resorting to deterioration in product quality. Diversification strategy Implies the presence of positive qualitative differences between the proposed product and competitors' products. Within this strategy, minimizing production costs is not a priority. Focus strategy Implies concentration on a specific market segment, while using cost minimization and product differentiation strategies, both simultaneously and separately. The main difference from previous competitive strategies is that the enterprise will compete in a narrow market segment. This choice depends directly on the level of competitiveness of the enterprise that independently analyzes the market. Based on the scope of activity of enterprises, competitiveness depends on the following factors: 1. specificity of services or goods offered on the market; 2. features of the competitive market. Whether it is a monopolistic, oligopolistic or a completely competitive market; 3. how developed is the enterprise’s production activities, logistics, enterprise management, response time to new information; 4. comparative advantage of the enterprise in relation to competitors. In addition, it should be noted that the competitiveness of an enterprise is a relative value and the basis for comparing its level is the same indicators as for assessing competing enterprises. Factors of competitiveness are divided into internal and external. Internal factors of competitiveness: 1. reputation, 2. staff level, 3. quality of goods and services, 4. enterprise value, 5. technology, 6. logistics, 7. quality management level, 8. staff motivation. External factors competitiveness: 1. customs policy, quotas, 2. public insurance in the country, 3. legal protection of consumers, 4. level of economic development, 5. credit policy. External factors do not depend on the organization of the enterprise and can influence its activities. Internal factors, on the contrary, directly depend on the actions of company leaders. To ensure the competitiveness of an enterprise, it is also necessary to pay great attention to management. That's why internal factors competitiveness, special attention is paid to the level of company management. The general idea of developing a competitive strategy is a program of action that allows you to obtain a positive economic effect due to the fact that the company finds itself in a stronger position. The development and implementation of a competitive strategy can be represented in the form of a diagram shown in Figure 1. 5. Analysis of the selected competitive strategy through SWOT analysis and comparison with preliminary goals 7, Analysis of results; received from the implementation of a competitive strategy 1. Missions and corporate development strategy of the enterprise 2. Setting corporate goals and formulating them based on them preliminary tasks in competition H. Collection and analysis of information about the external and internal environment of the enterprise Industry Analysis Competitor analysis Index intensity competition Competitive advantages; Ranking competitors possibilities 4. Selection of a strategic alternative based on competitive data position of the enterprise and intensity of competition 6.Implementation of competitive strategy through developed and approved competitive plan Adjusting the existing strategy taking into account the reaction of competitors elimination of defects Figure 1 Algorithm for developing and implementing a competitive strategy This diagram shows that the competitive function strategic planning at the enterprise is carried out using basic principles, that is, the rules for the formation and implementation of a strategy in the market: 1. continuity and accumulation; 2. sequence of stages performed; 3. cyclicality. 1) Continuity and accumulation. Before developing a strategy, an enterprise must analyze previous experience, find out what actions were useful in the competitive struggle, and check their relevance at the current moment. Studying past experience will allow the company to avoid old mistakes when developing a new strategy. 2) The sequence of stages performed. This rule is caused by the dependence of the subsequent stage on the previous ones. This will allow you to avoid mismatch between the competitive strategy and market conditions, mistakes that have already happened in the past, and evaluate the results obtained during the implementation of this strategy. 3) Cyclicity is manifested in the fact that the results of implementation must be analyzed and taken into account in subsequent developments of strategies, since the competitive strategy is constantly adapted to the competitive environment. Competitive strategy is an important tool in the hands of managers, since it is aimed at solving a number of tasks and problems that the company faces. Firstly, all the material obtained and structured during the creation of the strategy allows both management and executors to clearly consider the situation on the market, the company’s position in it, the reality of goals and ways to achieve them. Secondly, a competitive strategy acquires the force of an organizational and administrative document, that is, it concentrates forces in the required direction. And thirdly, by analyzing its past activities, a company can constantly improve and expand its scope of activities, respond to market changes, strengthen its position and conquer new markets and niches. In practice, one often encounters a situation where there is a gap between the theory of competitive strategies and the practice of its application in an enterprise. The algorithm proposed below for developing and implementing a competitive strategy for an enterprise can help minimize this gap. According to the algorithm in Figure 1, the development and implementation of a competitive strategy is carried out through the sequential implementation of 8 main stages. 1. Mission and corporate development strategy of the enterprise. 2. Formulation of tasks in competition in the market. 3. Collection and analysis of information about the external and internal environment of the enterprise. 4. Choosing a competitive strategy for an enterprise in the market. 5. Analysis of the chosen strategy. 6. Implementation of competitive strategy through a developed plan. 7. Analysis of results. 8. Adjustment of an existing strategy or development of a new one effective strategy, which will be able to implement the tasks set by the overall corporate strategy of the enterprise. It is important to note that in the hierarchy of strategic planning, competitive strategy is lower than the general corporate strategy for enterprise development. The development of a competitive strategy should begin after completion of work on the overall corporate strategy of the enterprise. Due to the fact that the development and implementation of a competitive strategy affects various functional units, it is necessary to differentiate each stage of the algorithm into three phases: I. Preparation phase (1 and 2): allows you to determine the nature of the fight. For example, retreating or defensive. II. Development phase (3, 4, 5): tasks are transferred to functional units that are responsible for marketing and sales. Subsequently, analysts of this division analyze the market, with the key points of analysis being the intensity of competition in the market and the competitive position of the enterprise. III. Implementation phase (6, 7, 8): the actual implementation of the strategy occurs. Figure 2. Model for diagnosing the competitiveness of enterprises However, a detailed step-by-step plan for creating and implementing a competitive strategy as part of a market analysis requires an assessment of its effectiveness. For this purpose, competitiveness is considered as an integral indicator consisting of the following components: 1. competitiveness of products; 2. efficiency of the enterprise; 3. commercial efficiency of the enterprise; 4. level of market concentration. The first component, which largely determines the competitiveness of a construction enterprise, is its products (services). Classically, the competitiveness of a product is understood as the totality of its quality and cost characteristics that ensure that products (goods, works, services) meet market requirements in a certain period of time. All product parameters in the construction industry are classically divided into consumer, economic and marketing. To assess the level of product parameters, it is proposed to use an expert scoring method, according to which the rating scale has the form (P1): from 0 to 0.5 - if the parameter is worse than the competitive one; 0.5 - if the parameter is completely identical to the competitive one; from 0.5 to 1.0 - if the parameter exceeds the competitive one. According to the integral level, the competitiveness of products (CI) of an enterprise will be determined by the formula shown in Figure 2. It is advisable to use the above-mentioned approach in relation to the assessment of product parameters in each product group. According to the results obtained, if Ki exceeds the limit of 0.5, then the product is competitive in comparison with the products of competitors, but if this indicator approaches 1, then the product can be identify as highly competitive. If Ki is less than the limit of 0.5, then this indicates the non-competitiveness of the product in the relevant market. The next component of diagnosing the competitiveness of a construction enterprise is assessing the effectiveness of its functioning according to the following components: financial and economic efficiency, production efficiency and commercial efficiency. It is proposed to evaluate the financial and economic efficiency of an enterprise by selecting the most representative indicators of financial condition, in particular, the ratios of return on assets, total liquidity, autonomy, and capital productivity. The above indicators allow us to identify the profitability and intensity of use of the enterprise's capital, capital structure and solvency. It is proposed to assess production efficiency based on relative indicators of capital productivity, material productivity, productivity, profitability of production and the share of defects in output volume. This allows us to determine the level of resource efficiency of production, profitability and quality of products (services). In order to diagnose commercial efficiency, it is proposed to be guided by such indicators as the profitability ratio of product sales, the level of supply reliability, and the level of warehouse overstocking finished products, average repayment terms of receivables and payables. The above indicators allow us to evaluate the profitability of product sales, the quality of sales activities and work with consumers of the enterprise. To form an integral level of enterprise operating efficiency, there is a need to convert indicators into relative values according to the developed scale: from 0 to 0.5 - if the indicator is worse than the basic one; 0.5 - if the indicator is completely identical to the base one; from 0.5 to 1.0 - if the indicator exceeds the basic one. It is worth noting that the industry average or market average should be taken as the basic indicators. According to the noted expert scale, the above indicators are converted into point estimates, they are also given weights, which makes it possible to obtain integral levels of various components of the efficiency of the enterprise. Based Generalizing the values of these levels using the geometric mean, the integral level of efficiency of the enterprise is determined using the formula shown in Figure 2. The interpretation of the results obtained is carried out in a similar way: if Er exceeds the value of 0.5 and approaches 1, then we can talk about a high level of operating efficiency of the enterprise and exceeding the industry average or market average level for this parameter; if Er is equal to 0.5, then this indicates full compliance with the efficiency standards established in the region. If Er is less than 0.5, then this demonstrates significantly worse performance parameters of the enterprise compared to its competitors. An important component of diagnosing the competitiveness of a construction enterprise is taking into account the level of market concentration, because if the market is highly monopolized, then even if there are high-quality and inexpensive products and a high level of operating efficiency, the enterprise will not be able to gain a foothold in it. Considering that the indicator for assessing the level of market concentration in our method is corrective in its content, to calculate it we will use the Herfindahl-Hirschman coefficient (Ik), the calculation formula for which is shown in Figure 2. If Ik approaches 0, then this indicates a lack of market concentration and competitiveness; if Ik approaches 1, then we're talking about about a highly monopolized market. This indicator is used on a reverse scale. Based on the above, the integral level of competitiveness of the enterprise is calculated taking into account market concentration using the formula shown in Figure 2. Based on the calculation results, we will obtain the integrated level of competitiveness of the enterprise. If the CFR approaches 1, then this indicates a high level competitiveness of the enterprise, if equal to 0.5, then the enterprise is equal to a competitor, but if Kcr is less than 0.5 and approaches 0, then the enterprise is uncompetitive. The proposed approach allows us to take into account all the essential parameters that shape the competitiveness of a construction enterprise: products, operating efficiency and concentration of the operating market. This method is also intended for self-diagnosis of the competitiveness of an enterprise, since it is largely based on expert assessment specialists of the enterprise own competitive advantages. Today, competition has become an important problem in the country's economic climate, since competition acts as an accumulator for the activities of many economic agents. The problem also lies in the fact that the emergence of modern construction enterprises occurs in conditions of a fierce struggle, which they are not ready and do not know how to fight. A timely created and applied competitive strategy is an effective tool for the development and economic activities of any construction organization, therefore modern direction The marketing policy of an enterprise should be closely intertwined with the external environment of the company, which includes not only competing firms, but also buyers and suppliers. Bibliography: 1. Borozdina S.M., Panteleeva M.S. Marketing policy of an enterprise as the basis of a systematic approach to the analysis of its activities // Internet journal “Naukovedenie”. - 2015. - T. 7, No. 2 / [Electronic resource]. - Access mode: http://naukovedenie.ru/index.php?p=pricing (access date: 07/13/2015) 2. Borozdina S.M., Panteleeva M.S. Increasing the competitiveness of a construction enterprise on the basis of a marketing information system // Scientific Review. - 2013. - No. 3. - P. 277-280. 3. Vainshtok N.R. Managing the competitiveness of specialized construction organizations in modern market conditions // Economics and Entrepreneurship. - 2013. - No. 11 (40). - pp. 459-462. 4. Kogotkova I.Z. Marketing research in construction. - M., 2009. - 328 p. 5. Kutuzova T.Yu. Marketing management. - M., 2015. - 255 p. 6. Marketing: a textbook for students / B.A. Soloviev, A.A. Meshkov, B.V. Musatov. - M.: Infra-M, 2013. - 335 p. In the context of the development of a market economy, the issues of forming new competitive potential, identifying, developing and creating prerequisites for the sustainability of competitive advantages, and choosing the right form are of particular importance for the successful functioning of an enterprise. competitive behavior. The very concept of competitive advantage has now become particularly relevant as the growth of companies around the world has slowed down and the behavior of competitors has become increasingly aggressive. The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage is those characteristics and properties of a product that create for the enterprise a certain superiority over its competitors, and for the consumer - the optimal combination of consumer characteristics of the product. Superiority is assessed in comparison, therefore it is a relative characteristic and is determined by various factors. For successful operation, an enterprise needs to develop the right competition strategy based on its competitive advantages, which actualizes the study of forms of competition in modern conditions. The importance of strategic behavior that allows a firm to survive competition in the long term has increased dramatically in recent decades. All companies, in conditions of fierce competition and a rapidly changing situation, must not only focus on internal state affairs in the company, but also to develop a strategy for long-term survival that would allow them to keep up with the changes occurring in their environment. Now, although the task of rational use of potential in current activities is not removed, it is becoming extremely important to implement such management that provides competitive advantages in a rapidly changing environment. Business practice has shown that there is no competitive strategy that is the same for all companies, just as there is no single universal strategic management. Each company is unique in its own way, and the process of developing a competitive strategy for each company is unique, since it depends on the company’s position in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of the goods it produces or the services it provides, the state of the economy, cultural environment and much more. Thus, relevance The study and application of competitive methods in company management is increasingly increasing. This is what determined the choice of the topic of the course work. The object of the study was JSC "Perm Spring and Spring Plant". Target The course work consists of analyzing the competitive properties of PPRZ CJSC and developing a competition strategy for it. This goal determined the formulation of the following research tasks: 1. Consider the theoretical foundations for developing an enterprise’s competition strategy; characterize the main types of competition strategies and justify the choice of competition strategy; 2. Analyze the competitive position and competition strategies of PPRZ CJSC; 3. Suggest directions for improving the competition strategy of PPRZ CJSC; The structure of the work corresponds to the assigned tasks. Chapter 1. Theoretical basis developing an enterprise competition strategy1.1. The essence and types of competition strategiesCompetition - (from the Latin Concurrer - to collide) - the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating on the market in order to provide better opportunities for marketing their products, satisfying the diverse needs of customers. In the marketing system, a company operating in the market is considered not on its own, but taking into account the entire set of relationships and information flows connecting it with other market entities. The environmental conditions in which the company operates are usually called the marketing environment of the company. Kotler F. defined the marketing environment of a company as follows: The marketing environment of a company is a set of active subjects and forces operating outside the company and influencing the ability of the management of the marketing service to establish and maintain successful cooperative relationships with target clients. Strategy is long-term actions aimed at achieving assigned objectives. Implementation of strategy is a set of actions that contribute to increasing business activity in organizational and financial spheres, developing company policy, creating a corporate culture and motivating staff, managing everything aimed at achieving the intended results. A competitive strategy is a set of specific steps and approaches that a firm takes or plans to take in order to successfully compete in a given industry. For the first time, business was faced with the problem of strategic planning in an economic crisis. It is in such conditions that all the weaknesses of some enterprises and the strengths of others become clearly visible. And it is precisely in such periods that it becomes more obvious than ever where enormous resources were wasted, which will never give the expected effect. Then the competition intensifies to the limit, and the winner is the one who manages to achieve greater competitive advantages - advantages not over competitors, but advantages in relation to the consumer. Competitive advantage is the assets and other strengths of a firm that give it an advantage over its competitors. Competitive advantages must ensure the uniqueness of the brand and satisfy the specific needs of the client. Strategic success factors are based not on objective, but on subjectively perceived benefits by the consumer. The task of management is to identify and develop the potential for success and transform it into appropriate factors. Conquering and maintaining competitive advantages is, as is known, a key function of strategic enterprise management. It is especially important to achieve advantages in saturated markets where demand is satisfied by many suppliers. According to competition researcher F. Kotler, a firm in competition can play one of four roles. Marketing strategy is determined by the company's position in the market, whether it is a leader, challenger, follower, or occupies a certain niche: 1. The leader (market share of about 40%) feels confident. 2. Contender for leadership (market share about 30%). Such a company aggressively attacks the leader and other competitors. As part of special strategies, the challenger can use the following attack options: · “frontal attack” - is carried out in many directions (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources. · “encirclement” - an attempt to attack all or a significant market area of the market. · “bypass” - the transition to the production of fundamentally new goods, the development of new markets. · “gorilla attack” - small impetuous attacks using not entirely correct methods. 3. Follower - (20% share) a company that strives to maintain its market share and get around all the shallows. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of imitator or double. 4. Entrenched in a niche market - (10% share) serves a small segment of the market that large firms do not care about. Several niches are preferable to one. Such firms do not have any special competitive advantages, except that large firms do not see them as competitors and do not “pressure”. The task of a competitive strategy, according to M. Porter, is to bring the company to a state in which it can fully use its advantages. It follows that in-depth competition analysis is an important part of strategy formulation. M. Porter identified five forces of competition that determine the level of profit in the industry. This: Penetration of new competitors; The threat of the appearance on the market of substitute goods produced using a different technology; Buyer capabilities; Supplier capabilities; Competition between companies that have already established themselves in the market. Competitive strategies (business strategies) come from an understanding of the rules of competition that operate in an industry and determine its attractiveness. The goal of competitive strategy is to change these rules in favor of your company. The rules of competition can be represented as the five forces of competition shown in the figure. Rivalry, according to Porter, occurs when one or more competitors experience difficulties or see opportunities to improve their position. The intensity of competition can vary from polite gentlemanly forms to the most severe "cut-throat" techniques. Porter notes a number of the following factors that determine the intensity of competition: 1. a large number of competitors or approximately equal strength; 2. slow growth of the industry; 3. high level of fixed costs in the form of overheads or inventory costs; 4. lack of differentiation (no conversion costs); 5. quantitative leap in capacity; 6. various types of competitors; 7. high strategic importance; 8. high output barriers. By general strategies, Porter means strategies that have universal applicability or are derived from some basic postulates. In his book “Competitive Strategy,” M. Porter presents three types of general strategies aimed at increasing a company’s competitive advantages. A company that wants to create a competitive advantage must make strategic choices so as not to “lose its face.” There are three basic strategies for this: · leadership in cost reduction; · differentiation; · focusing (special attention). To satisfy the first condition, the company must keep costs lower than those of its competitors. To provide differentiation, it must be able to offer something unique of its own. Cost leadership is perhaps the most representative of the three general strategies. It means that the company strives to become a low-cost manufacturer. The company's supplies are diverse and serve many industry segments. This scale is often the key to cost leadership. The nature of these types of advantages depends on the structure of the industry, and may be a matter of economies of scale, advanced technology, or access to raw material sources. Porter points out that a company that has achieved cost leadership cannot afford to ignore the principles of differentiation. If consumers do not consider the product to be comparable or acceptable, the leader will have to discount prices to weaken its competitors and thereby lose its leadership. Porter concludes that a cost leader in product differentiation must be on par with, or at least not far behind, its competitors. Differentiation, according to Porter, means that a company strives to be unique in some aspect that is considered important by a large number of customers. It selects one or more of these aspects and behaves in such a way as to satisfy the needs of consumers. The price of this behavior is higher production costs. The third type of strategy is to focus efforts on some aspect of the activity. It is radically different from the previous two and is based on choosing a narrow area of competition within an industry. The point of focus is to select a segment of an industry market and serve it with your strategy better and more effectively than your competitors. By optimizing its strategy for a selected target group, the company that chooses this course tries to achieve competitive advantages in relation to the selected group. Let us also consider the types of behavior strategies of firms according to A.A. Thompson and A.J. Strickland. Famous authors of the book “Strategic Management” A.A. Thompson and A.J. Strickland describes the strategies of firms in sufficient detail and with reasoning. They distinguish the following strategies: offensive, defensive and vertical integration strategies. 1. Offensive strategies to maintain competitive advantage. Competitive advantage is usually achieved through the use of creative offensive strategies that are not easily countered by competitors. There are six main types of offensive strategy: Actions designed to meet or exceed a competitor's strengths; Actions aimed at exploiting the weaknesses of a competitor; Simultaneous offensive on several fronts; Capturing unoccupied spaces; Guerrilla warfare; Preemptive strikes. 2. Defensive strategies for protecting competitive advantage are aimed at maintaining one’s market position, reducing the risk of being attacked, withstanding a competitor’s attack with fewer losses, and putting pressure on challengers to reorient them to fight other competitors. A good defensive strategy presupposes the ability to quickly adapt to a changing situation in the industry and, if possible, proactively block or prevent competitors from attacking blocking actions. The second approach to a defensive strategy is to communicate to competitors that their actions will not go unanswered and the company is ready to attack. The purpose of such signals is to prevent the start of attacking actions (since the expected results of challenging competitors may be significantly lower than the costs incurred) or to redirect them towards less protected targets. Another way to counter the offensive actions of competitors is to try to reduce the profits that attract them and push them to offensive actions. When the profitability of a firm or industry is very high, it acts as a lure to a large number of firms and creates a desire to take offensive action, even if barriers to entry are high and defenses are strong. In this situation, a firm can protect itself from competitors, especially new entrants, by forgoing short-term profits and using accounting mechanisms that show relatively low returns. 3. Vertical integration strategy. The essence of this strategy is that firms can expand their activities towards suppliers (backward) or towards consumers (forward). A firm that builds a new facility to produce input components that were previously purchased from suppliers is clearly still in the same industry as before. 1.2. Rationale for choosing a competition strategyAn enterprise's individual competition strategy is a set of methods, techniques and measures aimed at strengthening the organization's competitive position, the specific content of which depends on the characteristics of the enterprise's competitive environment and its competitive strategic potential. The need to choose a competition strategy lies in the fact that the modern market economy is competitive in nature. The opportunity and freedom to strive to satisfy private interests for each economic entity and the economic isolation of commodity producers create the preconditions for the existence of competition. In the process of marketing research, carrying out calculations to assess the competitiveness of services or goods is aimed at identifying competitive advantages and vulnerable positions. The most profitable strategies for PPRZ CJSC seem to be market expansion and diversification strategies according to M. Porter. An individual (private) competitive strategy reflects both specific ways of implementing the selected standard competitive strategy depending on the organization’s capabilities, as well as decisions about behavior in relation to its main competitors. The challenge is to maintain and develop your competitive advantage. To do this, a business (competitive) strategy must be formed for each strategic business unit. To solve this problem, M. Porter's model of competitive strategy can be used. To find and implement strategic positioning, this model provides a combination of the following three criteria: Mainly on costs; Product differentiation; Market concentration. As a result, five main positions and their corresponding competitive strategies are fundamentally possible. Let's look at the features of these strategies: The transport cost leadership strategy involves reducing the total costs of producing transport services, which attracts a large number of consumers; The strategy of broad differentiation is aimed at giving services or goods specific characteristics that distinguish them from the services of competing organizations, which attracts a large number of consumers (clients); The optimal transport cost strategy focuses on providing consumers with more value for the same money through a combination of low costs and broad differentiation of services or products, which is a complex task and therefore an unsustainable and transitional strategy; A focused low-cost strategy is based on low costs and targets a narrow segment of the market where the organization is ahead of its competitors due to lower production costs; A focused differentiation strategy is based on differentiating services or products that best meet the needs of a narrow market segment. These strategies create their competitive advantages, while each strategy requires the presence of the necessary economic resources, certain skills and the correct management actions of managers. In accordance with the starting positions, one of the following competitive strategies can be used: reducing the cost of transport services, differentiation, market segmentation and choosing a market niche, introducing innovations, focusing on market needs. When developing a competitive strategy, it is necessary to take into account that all types of competitive advantages are divided into two groups: low-order advantages and high-order advantages. Low-order advantages are associated with the possibility of using cheap labor and material resources. The low order of these competitive advantages is due to the fact that they are very unstable and can easily be lost either due to rising prices and wages, or due to the fact that these cheap production resources can be used in the same way by competitors. In other words, low-order advantages are advantages with low sustainability, unable to provide an advantage over competitors for a long time. High-order advantages are: unique transport services, unique technology for transporting goods, optimal marketing structure, organization of production of transport services, good reputation of the ATO. If a competitive advantage is achieved through the provision of unique transport services using new rolling stock or additional equipment based on their own design developments, then to destroy such an advantage, competitors will either have to develop similar equipment, purchase new rolling stock, or come up with something better. All these options are not cheap and require a lot of time to implement. The most valuable competitive advantage is the good reputation of the organization, which is achieved with great difficulty, slowly and requires large costs to maintain it. The type of strategy chosen depends on the position the organization occupies in the market and the nature of its actions. Along with the strategy for ensuring competitiveness, it is necessary to develop tactics and methods of competition that will be used, as well as outline activities aimed at improving its competitive position. The development of a competitive strategy requires the appropriate formation of the entire marketing mix, since there is a certain, although not rigid, connection between the competitive strategy model and the instrumental strategies of the marketing mix. An essential point influencing the choice of strategy is the definition of performance indicators and their justification. The parameters of the strategic plan are important criteria for assessing the effectiveness of the chosen strategy. As a rule, the choice of criterion for strategic effectiveness is not limited to any one indicator, since it depends on the characteristics of the current situation, prevailing (dominant) goals, as well as the availability of reliable and reliable information about the state of the external and internal environment. It should be said that the implementation of the developed competitive strategy and the corresponding activities that make up the marketing mix will improve the following main elements of the competitiveness of transport services: the list of transport services offered, the quality of the transport services provided, the availability of the services provided. An effective quality strategy creates a sustainable competitive advantage and increases the intensity of the organization's activities. Ultimately, it is this factor that is decisive in a dynamic and unpredictable environment. Summing up the chapter, we note that at the present stage of economic development, the goals and methods of competition are changing, changes are occurring in the behavior of business entities associated with adaptations to the changing conditions of the competitive environment, all this determines the importance of PPRZ CJSC having a competitive strategy as the main factor success in competition. Chapter 2. Analysis of competition of an enterprise (using the example of ZAO PPRZ)2.1. Brief characteristics of PPRZ CJSCCompany name: full – Closed Joint Stock Company “Perm Spring and Spring Plant” abbreviated as “PPRZ” CJSC Legal address: 614014, g . Perm, street 1905, 35 State registration date – 07/20/2000 CJSC "PPRZ" is one of the large enterprises producing spring products for various industries industry of Russia and CIS countries. The enterprise is a legal entity, has a company name containing an indication of the organizational and legal form, the owner of its property and the nature of the activity of the enterprise, enshrined in the right of economic management. The company has separate property, an independent balance sheet, a bank account, a round seal with its name, a stamp, forms, a trademark (service mark). An enterprise can, on its own behalf, acquire and exercise property and personal rights, bear responsibilities, be a plaintiff and defendant in court, arbitration and arbitration courts. The company operates in accordance with the legislation in force on the territory of the Russian Federation, acts of local government, as well as the Charter. The enterprise is liable for its obligations with all its property. The founder is not liable for the obligations of the enterprise, except for cases provided for by current legislation, and the Enterprise is not liable for the obligations of the founder. The enterprise was founded in 1994 on the basis of specialized workshop No. 38 of Motovilikha Plants OJSC. Currently, JSC "PPRZ" includes workshop 38 and workshop 35. The main specialization of workshop 38 is the serial production of leaf spring products for passenger cars and light-duty trucks. Workshop 35 specializes in small-scale production of screw, leaf and disc springs, retaining rings and spring parts for various industries. Production and technological capabilities of the enterprise. Workshop No. 38 was put into operation in 1969 to supply the assembly line of the Izhevsk Automobile Plant with spring products. The workshop houses 3 conveyor lines for the serial production of springs and springs for cars, including: An automatic line for coiling springs by the American-Italian company Gogan-Holcroft, launched in 1980; The spring winding line produced by the Azov Automatic Forging Plant (Azov) was put into operation in 2002. Line for the production of springs for cars. Currently, only two lines are operating - 1 for the production of springs and 1 - for the production of springs, the Azov Line is mothballed. The Azov Line is currently being modernized for the production of springs for railway rolling stock. Workshop 38 produces springs and springs for Volga, Zhiguli, IZH (Moskvich), UAZ vehicles, as well as for special equipment - electric forklifts and PAUS mine carts. The production capacity of workshop 38 for the production of springs for cars is 500 thousand pieces. per year, spring production capacity - 250 thousand pcs./year. The actual utilization of production capacity in the part of spring production is 25%, in the part of spring production - 40-50%. Low production utilization is associated with a decrease in demand for products from Russian automakers and increased competition in the market. But perhaps this problem will be solved soon, because... At the moment, negotiations are underway on the supply of spring-spring products with such large concerns as HYUNDAI, RENAULT and UZ-DAEWOO. Product quality: Manufactured spring and spring products for automobiles are certified in GOST R systems and have a ROSS certificate of conformity. YAP. MT25. B 06138 No. 6218520 (certificate validity period from July 27, 2004 to July 27, 2010). The main limiting factors for further increasing production volumes in workshop 35 are; Outdated equipment (manufactured in the 70-80s) and a high percentage of its wear and tear (70-80%); Small-scale quantity of ordered parts Lack of a certificate for the production of springs for railway transport. There is an insufficient number of specialists in the repair and maintenance of machine tools (mechanics and toolmakers), which leads to equipment being idle. The main goals of creating the Enterprise are: satisfaction of public needs in the results of its activities and profit. The enterprise has the right: · on your own behalf participate in economic transactions, enter into contractual and other obligations with legal entities and individuals; · plan and carry out your financial and economic activities; · sell your products, perform work and provide services at prices and tariffs established independently or on a contractual basis; · for one’s own needs, acquire, rent, accept for free use or on other terms any property; The enterprise is obliged: · provide safe working conditions for all workers; · carry out the production program developed in accordance with the established procedure; · carry out only those types of activities established by its Charter; · ensure the safety and proper use of municipal property assigned to the Enterprise. Organizational management structure Organizational structure of marketing and sales management of CJSC PPRZ. Marketing and sales activities at CJSC "PPRZ" are carried out by the marketing and sales department under the leadership of the deputy. director of sales, marketing and logistics (see Fig. 2). Rice. 2. Block diagram of marketing and sales management The marketing and sales department consists of 4 people. Marketing and sales department specialists perform the following functions: Pre-contractual work with customers, conclusion of contracts; Sales planning; Placing orders at the enterprise and monitoring their implementation; Tracking payment of bills by consumers of products; Analysis of product shipments to customers (nomenclature, quantity, price); Marketing and Sales Department, reporting directly to the deputy. The director of sales, marketing and logistics closely interacts with the planning and dispatch department (PDD), the financial and economic department and the accounting department. Volumes of production and sales of products at CJSC "PPRZ" Based on the results of 2008 and 3 months of 2009, the plan for production and sales of products at PPRZ CJSC is being fulfilled. The production volume at ZAO PPRZ in 2008 amounted to 91.4 million rubles, sales volume was 90.6 million rubles. The main income is generated through sales of products to third parties (96.1%). At the same time, the main part of it (64.5%) is due to the sale of automobile springs and leaf springs, which bring approximately the same income. In 2009, it is planned to receive 120.0 million rubles from sales. The company operates breakeven, but the return on sales is very low - only 0.7%. Data on production and sales volumes for 2008 and for 3 months of 2009 are shown in Table 2.1. Table 2.1 - Production and sales volumes at PPRZ CJSC Table 2.1 shows that in 2009 production volumes in monetary terms increased by 15.7%, sales volumes increased by 26.6% compared to the same period in 2008. It should be noted that due to the reduction in production volumes of domestic passenger cars in 2009, there is a tendency to reduce purchases of springs and springs by Russian automakers. The demand for springs is falling especially sharply, which leads to a significant decrease in their production at PPRZ CJSC. This is due to a reduction in production volumes of Moskvich cars at the Izh-Avto automobile plant, the main consumer of springs and springs of PPRZ CJSC. Negative dynamics in the production of springs at the enterprise have been observed since 2008. Compared to 2008, the drop in spring production volumes in 2009 was 60%. In 2009, spring production volumes at PPRZ CJSC decreased by another 26%. For springs, production volumes are increasing, in 2009 the growth was 22%, in 2008 - 28% (over the same period). A similar situation is observed in sales of PPRZ CJSC products - a drop in sales of automobile springs and an increase in sales of springs. In the structure of sales of products from workshop 38, the largest share is occupied by springs for Zhiguli cars (62-64%) and Moskvich cars (33-35%), the predominant share of springs (79-80%) goes to cars "Moskvich". For workshop 35, the volume of orders increased in 2009 from 2 to 4 million rubles per month. The demand for the products of workshop 35 and the number of customers is growing, and production volumes are increasing accordingly. The company receives its main income (about 50%) from the site of large springs supplied to metallurgical plants and the repair of railway rolling stock of JSC Russian Railways (700-800 springs/month). For a more complete picture of the company’s activities and its position in the market of spring products, it is necessary to conduct a SWOT analysis (see Table 2.2). This analysis involves analyzing the internal environment of the company, as well as identifying opportunities and threats for the company from the market. Based on this analysis, it is possible to develop strategies for further behavior to overcome dangers and enhance the company’s strengths. Table 2.2 - SWOT -analysis CJSC "PPRZ"
2.2. Analysis of the competitive position and competition strategies of PPRZ CJSCThe most famous marketing model for describing competition in the market, used in domestic and foreign literature, is Porter’s five forces of competition model. Let's consider the direction of activity of PPRZ CJSC using M. Porter's five-factor model of competition analysis (Fig. 3).
Rice. 3. Five driving forces of competition according to M. Porter Figure 3 shows all 5 driving forces of M. Porter: competition among existing firms, substitute products, the threat of new companies entering the market, suppliers and buyers. Based on this, we can distribute the forces listed above according to the degree of dominance. The most important and influential force of industry competition for PPRZ CJSC is the market power of consumers (60% of influence). Next in importance is competition among existing firms (30% of influence). The remaining three forces, although they have an impact on competition in the industry under consideration, are not significant compared to the two listed above (approximately 10%). Competition analysis. Of the five main competitive advantages proposed by M. Porter, the strategy of PPRZ CJSC can be attributed . Let's consider each of them sequentially. Strategy differentiation becomes attractive when consumer needs and preferences become diverse and can no longer be satisfied by standard spring products. In order for the differentiation strategy to be successful, PPRZ CJSC periodically studies the demands and behavior of market consumers in order to know which products customers prefer, what they think about the quality of the products and what they are willing to pay for. In this regard, the product range of PPRZ CJSC includes springs and springs that differ in special qualities and content from competitors’ products. It is due to this that PPRZ CJSC achieves a competitive advantage. Because more and more buyers are becoming interested in the differentiated characteristics of the products offered by PPRZ CJSC. It's usually a good idea to add features that don't cost a lot of money but are designed to better meet customer needs. For example, PPRZ CJSC should pack springs and leaf springs to prevent damage and loss of consumer properties of goods or carry out free loading of sold products. When pursuing a differentiation strategy, you need to carefully ensure that unit costs do not significantly exceed the level of competitors, as this can lead to the fact that the prices of PPRZ CJSC will increase so much that buyers will not want to pay. Due to the strategy for the inhabitants of niches, PPRZ CJSC maintains its position in the market, taking competitive moves aimed either at attacking competitors, or in order to protect itself from the threat posed by competitors. In this industry, there are generally recognized leaders in the regional Kama market that have a large market share and are usually ahead of other companies in price changes, the introduction of new products to the market, coverage of the distribution area and sales promotion costs. JSC "PPRZ" is looking for opportunities and means to increase aggregate demand; seeks to further increase market share even if market size remains unchanged; constant cost reduction must remain strong point; protecting your current market share through defensive and offensive actions. The strategic goal (development of new parts or segmentation of production) is chosen depending on which of the competitors the company chooses as its rival. JSC "PPRZ" also adopts the experience of the leader, copies new technological moves and improves products and marketing programs, investing significantly less money and can achieve a fairly significant level of profit. PPRZ CJSC, focusing on serving market niches, tries to find one or more such niches that would be reliable and profitable. The ideal market niche must be large enough to be profitable and have the potential for growth, otherwise there is a risk of not finding a buyer. Due to strategy concentration on the segment JSC "PPRZ" directs its actions to a specific market segment. At the same time, an enterprise can strive for leadership through cost savings, or product differentiation, or a combination of one or the other. The competitor of PPRZ CJSC, the Chusovsky plant, is constantly improving the quality of its products. To date, JSC ChMZ has certified more than 100 types of springs in the GOST R certification system. ChMZ springs installed on Russian KamAZ trucks never let drivers down during the Paris-Dakar transcontinental race. In the “Mosstroysertifikatsiya” system, the certification body “NIIZhB-certification” certified reinforcing steel of class A500C with a diameter of 10-25 mm and 28-32 mm. In response, PPRZ CJSC concentrated on the production of springs of a different type, but best quality, which allowed us to take a leading place in the regional market in sales of this product. When demand falls due to the availability of a product over High Quality, PPRZ CJSC uses a strategy of immediate response to market needs. Unlike such enterprises, CJSC "PPRZ", which sells strategy for immediate response to market needs, are aimed at meeting emerging needs in various areas of business as quickly as possible. In October 1997, the management of PPRZ CJSC decided to create a quality system that meets the requirements ISO standard 9000 series. Have been revised organizational structure, regulations on structural units and job descriptions; New documents relating to all levels of production and management have been developed. The Quality Policy of PPRZ CJSC was adopted, the main objective of which is to maximally satisfy consumer requirements for product quality. Accordingly, such an immediate response to market needs made it possible to carry out reorganization and increase the quality of the product in the shortest possible time. Sales have increased. The plant conducted personnel training from the general director to the worker in order to ensure an understanding of the place and role of everyone in this system. In 2000, the quality system was successfully certified by the German company TUV CERT for compliance with the requirements of the ISO 9002:1994 standard, and in November 2003, auditors of the same company confirmed the compliance of the quality management system (QMS) with the requirements of the ISO 9001:2000 standard. When switching to new version standards, the QMS documentation was revised, adjustments were made in accordance with the requirements of the ISO 9001:2000 standard, a methodology for assessing customer satisfaction was developed, in order to quickly respond to consumer preferences, QMS processes, criteria for their effectiveness were determined, procedures for monitoring them were worked out, and the inputs and outputs of interacting processes were agreed upon. This allows you to streamline the interaction of all departments of the plant. In the future, JSC PPRZ is developing and implementing a methodology for accounting for quality costs, which would allow identifying the costs of preventing and correcting inconsistencies and taking timely measures to reduce them. In modern conditions, the main component of the competitiveness of any enterprise is the ability to meet the ever-increasing demands of the consumer market and specific customers. Let's consider the results of using competitive strategies. The position of the main participants in the Perm market (the companies PPRZ, ChMZ, KTIAM, NPO ROSTAR LLC) is shown in Fig. 2.3. Four leading manufacturing companies form one strategic group of competitors. Based open information and methods comparative analysis calculations were carried out, modified by the author, of analytical estimates of market dynamics and competitive positions of the main players in the market in terms of value and in kind, used to construct a market map (Fig. 4) and assess the competitive positions of manufacturing companies (Table 3).
Rice. 5. Market map: competitive positions of companies. Table 2.3 - The company’s role in the market and changes in the competitive position of participants in the Perm market The analysis shows that all companies are violent and adhere to a product differentiation strategy. The companies use a strategy of individual brands with a similar range, the products of all companies are represented in each of the price segments of the market. In general, we can conclude that the companies in question have similar functional strategies. The process of competition occurs through corporate and business-level strategies. The proposed methodological approach allows us to identify the competitive strategies of market participants and give a reasonable assessment of their comparative competitive position. The complex nature of the competition strategy determines the need to further improve the methodological approach to the formation of the competitive strategy of JSC PPRZ in the industry market as market relations develop in the country. Thus, a differentiation strategy is necessary. It will allow JSC PPRZ: · set higher prices for the products offered; · increase sales volume (because a large number of buyers are attracted due to the distinctive characteristics of springs and springs); · win customer loyalty to your brand (because some customers become very attached to the additional characteristics of manufactured products, primarily related to their quality). In the next chapter, we will consider the directions for improving the competition strategy of PPRZ CJSC. Chapter 3. Improving the competition strategy of PPRZ CJSCTo increase the economic efficiency of an enterprise and increase its market share, it is necessary to: 1. Develop a strategic plan to reduce production costs in order to increase the competitiveness of manufactured products and achieve price superiority over competitors. Due to this, enter new market segments and attract those consumers who currently purchase from competitors. 2. Establish strict control over direct and overhead costs in order to reduce the cost of manufactured products. 3. Ensure high and stable quality of produced springs and leaf springs. 4. In order to increase profits and improve the financial and economic condition of the enterprise, modernize worn-out equipment, an annual increase in sales volume by at least 25-30% is necessary. 5. Ways to achieve such growth include: Localization of the project “supply of springs to the assembly line” Kia; Start delivery to OJSC AvtoVAZ. To increase the production volume of Chevy Niva and Lada Kalina cars, the capacity for producing springs is beginning to decline, so AvtoVAZ will soon switch to external purchases of springs; Due to the increase in cash turnover and the share of exported products, I consider it necessary to add a highly qualified tax planning specialist to the staff Analysis of supplies to the assembly line of various brands of cars produced in Russia and neighboring countries, for example, the production of Daewoo Nexia in Uzbekistan The main strategies of PPRZ CJSC that existed at the moment are the following: differentiation, niche, segment concentration, immediate response to market needs . When performing the competitiveness management process of PPRZ CJSC, the following resources are required: Qualified and competent personnel (general director, executive director, deputy general director for strategic management and first-level business process owners); Equipment (computer facilities); Information about the state and development trends of the external and internal environment. The main result of the competitiveness management process of PPRZ CJSC is a structured system of goals and indicators aimed at maintaining current results and achieving better results in competition. Based on an assessment of the potential competitive advantages of an enterprise and its competitiveness, as well as a comparison of indicators characterizing business processes with similar indicators of its main competitors or standards, a competitive strategy of the enterprise is developed. Thus, the outputs of the competitiveness management process of PPRZ CJSC are: corrective actions; preventive actions; suggestions for improvement. Consumers of the competitiveness management process are managers of all levels and structural divisions of the enterprise. The study revealed that the most important functions of the enterprise competitiveness management process are the identification of potential competitive advantages, assessment of the enterprise's competitiveness, as well as the development and implementation of its competitive strategy. The stages of development and implementation of an enterprise's competitive strategy are presented in Figure 3.1.
Rice. 5. Stages of development and implementation of the enterprise’s competitive strategy When developing a competitive strategy, the main financial goals of an enterprise in competition are to increase its productivity, reduce costs and increase sales. To achieve financial goals, the market goals of the enterprise are defined: increasing market share and ensuring better conditions supplies. Internal goals are: reducing production costs; improving production quality based on increased efficiency and quality of procurement, increased motivation of workers, introduction of advanced technologies and innovations; improving financial planning and management; improving the quality of customer service. Thus, we can conclude that the basic competitive strategy of PPRZ CJSC, as for many enterprises, in our opinion, should be a strategy for increasing productivity and product quality. The proposed strategy is based primarily on reducing production costs. However, on the other hand, it focuses on the uniqueness of products, comprehensive services for a specific market segment, encourages the enterprise to look for untapped markets where there are no competitors, through the introduction of innovations, and also helps to stay ahead of competitors by building a more mobile management system, since all of these types competitive advantages directly affect sales volume. A SWOT analysis was conducted to systematize the strengths, weaknesses, opportunities and threats after the implementation of new strategies. The data is shown in Table 3.
So, the main condition for the development, preservation and strengthening of the brand of PPRZ CJSC is the optimal quality of the product provided to it, the use of growth and differentiation strategies. Chapter 4. Economic efficiency of the proposed measuresLet's calculate the economic efficiency of the proposed measures. The projected profit from implementing the differentiation and growth strategy is determined taking into account the average annual growth, which is determined by the formula:
where P p is the coefficient of average annual growth; n – number of years of periods; P and – profit from sales in the original year, thousand rubles; P s – average profit for the previous 5 years, thousand rubles. where Y forecast is the projected profit, thousand rubles; 1,2,3… - the period for which the profit is predicted (one year, two years, etc.). Table 4.1 - Profit dynamics over 5 years (thousand rubles)
Y forecast = 5769 + (1.024 – 1) * 5252 * 2.3, etc. Table 4.2 - Projected profit for 2011-2014 The strategy implementation period is 4 years. According to this calculation, the annual increase in profit will be 2.4%, and the total increase by 2014 will be 11%, which characterizes the economic efficiency of the proposed measures. The implementation of the proposed strategies will allow PPRZ CJSC to reduce risks. As a result of studying the main trends and features of the development of PPRZ CJSC, a set of specific features was identified that distinguish the company from other companies in this regional market, including: a) variety of offers, etc.; b) elasticity in price, income, and time; c) significant territorial disunity and mobility; d) high degree of substitutability. Based on the SWOT analysis method, a development matrix of PPRZ CJSC in modern conditions has been built, which makes it possible to trace and evaluate the real socio-economic problems and dangers that the company faces, as well as to identify the strengths of PPRZ CJSC and promising opportunities, effective implementation which can become a tool for overcoming potential threats and the basis for the successful positioning of PPRZ CJSC in the market, taking into account the emerging prospects. At the present stage of market development, new trends are emerging that allow us to talk about improving the quality of the product in competition. Changes in the surrounding business environment, combined with the search for ways to survive in the market, dictate the need for a new vision of the efficiency of enterprises. To successfully conduct business, you must not only be able to provide high-quality services, but also know for which categories of clients they are intended. The quality of services largely depends on the style of doing business; which, in turn, forms the image of PPRZ CJSC. Depending on the stages of the life cycle at which various products are located, the company's product strategy is built. The implementation and use of these strategies at PPRZ CJSC will allow: Create a unified system of accounting and control over the formation and movement of the product; Reduce the time parameters for promoting material, financial and information flows; Automate the processes of accounting and control of material, financial and information flows; reduce time and improve customer service for the product; Reduce the number of service personnel, reduce the volume of circulating documentation, significantly reduce the number of errors in accounting and reporting documentation, etc. To summarize, it should be noted that the following processes are currently taking place in the practice of PPRZ CJSC: 1. gradual increase in turnover, Experience shows that in this market it is impossible to act separately. 4. detailed development of a marketing and logistics complex in order to influence decisions to purchase a product by potential clients of PPRZ CJSC; 5. reducing time and improving the level of service to consumers of the product; 6. carrying out strategic planning of activities to determine sales products on the market; 8. attracting specialists in entering new segments of the national and international service markets, product positioning, marketing analysis, and logistics support. It should be emphasized that for PPRZ CJSC, as a company striving for development, it is especially important to use the experience of foreign companies in the development of marketing and management policies. ConclusionLet us summarize the results of the study by drawing the following conclusions: Competition is the struggle of independent economic entities for limited economic resources. This is an economic process of interaction, interconnection and struggle between enterprises operating on the market in order to provide better opportunities for marketing their products, satisfying the diverse needs of customers. The main strategies of PPRZ CJSC that existed at the moment were the strategies of differentiation, niche, concentration on a segment, and immediate response to market needs. As a result of the analysis of the competitive position and competition strategy of PPRZ CJSC, it was determined that the most important and influential force of industry competition for PPRZ CJSC is the market power of consumers (60% of influence). Next in importance is competition among existing firms (30% of influence). The remaining three forces, although they have an impact on competition in the industry under consideration, are not significant compared to the two listed above (approximately 10%). Consequently, the main marketing strategy is the fight for the consumer. A segmentation strategy is also necessary - deepening the degree of saturation of all consumer groups with goods and services offered, choosing the maximum depth of market demand, including its smallest shades. Currently, the following processes are taking place in the practice of PPRZ CJSC: 1. gradual increase in turnover, 2. increased competition and the strengthening of the role of other firms. Experience shows that in this market it is impossible to act separately. To interact with competitors, it is recommended to create a strategic alliance, which involves taking into account their economic interests and refusing to use direct pressure measures in competition. 1. creation of a unified system of accounting and control over the formation and movement of the product; 2. market differentiation in order to identify target consumers; 3. organizing product positioning in order to consolidate a certain image and distinctive features of the product in the minds of consumers; 4. carrying out strategic planning of activities to determine sales products on the market; Proposed the following directions improving the competition strategy of PPRZ CJSC. Localization of the project “supply of springs to the assembly line” Kia; Supplies to OJSC AvtoVAZ. To increase the production volume of Chevy Niva and Lada Kalina cars, the capacity for producing springs is beginning to decline, so AvtoVAZ will soon switch to external purchases of springs; Search for large wholesale dealers in each region of the country; Carrying out an aggressive marketing policy, improving the quality and effectiveness of advertising. Analysis of supplies to the assembly line of various brands of cars produced in Russia and neighboring countries, for example, the production of Daewoo Nexia in Uzbekistan. Provided that PPRZ CJSC adheres to the above recommendations, the enterprise will be able to increase operational efficiency, reduce costs and enter new markets. Bibliography1. Bakanov M.I.: Sheremet A.D. The theory of economic activity analysis. - M.: Finance and Statistics, 2007. 2. Balabanov I.T. Analysis and planning of finances of a business entity. M.: Finance and Statistics, 2008. 3. Belousova S.N., Belousov A.G. Marketing. Second edition - Rostov n/d.: Phoenix, 2006. 4. Vesnin V.R. Management for everyone. M.: Lawyer, 2006. 5. Vikhansky O.S. Strategic management: a textbook for undergraduate and graduate students of universities majoring in “Management.” M.: MSU, 2005. 6. Drucker P.F. Market: how to become a leader. Practice and principles. Per. from English M. SPb: Book Chamber INTERNATIONAL, 2008. 7. Kovalev A.M., Voylenko V.V. Marketing analysis. M.: Center for Economics and Marketing, 2006. 8. Kotler F. Fundamentals of Marketing. Short course - M.: Williams Publishing House, 2003. 9. Murakhtanova N.M. Marketing. Textbook - M.: Publishing Center "Academy", 2005. 10. Shekshnya S.V. Personnel Management modern organization. Educational and practical manual. Moscow: JSC Business School Intel-Sintez, 2003. 11. Eriashvali N.D. Marketing. Second edition - M.: UNITY-DANA, 2007. Development of a competitive strategyThe development of a competitive strategy implies a set of directions along which the enterprise will develop. The development of the strategy was preceded by an analysis of the company’s internal and external environment. An analysis of the internal environment showed that the company has certain opportunities for development and the potential to increase production and sales. An analysis of the external environment showed that the market is unsaturated and is still at the growth stage, but the growth rate is already declining and sales are approaching their peak value. Optimization of strategic management is of decisive importance for the formation of a competitive strategy of an enterprise. One of the ways to improve the strategic management of IKEA DOM LLC is the integration of a balanced scorecard with strategic planning and the budget formation process. Most businesses use the budget as the main management system for setting goals, allocating resources, controlling and summarizing results. However, most companies argue that budgeting and performance analysis occur in isolation from the strategic planning process. In organizations where the budget is the primary means of control, management's attention tends to shift to short-term financial goals. Budgeting is more suitable for solving operational tactical issues, and is not intended for strategic management. The enterprise development strategy cannot be controlled in the short term. At the same time, the process of drawing up budgets in an organization is not interconnected with strategic goals. As a result, a gap is formed between strategic and operational management, which impedes the implementation of the company’s strategic goals and slows down its long-term development. There is a need to create a link between strategic planning and budgeting and combine these two concepts into a single system. The most developed concept of the balanced scorecard should be used as this link. Today, when strategy is the most important key to a company's success, the balanced scorecard has become an innovative strategy management system. However, it must be tied to the old one - the budget, in order to manage tactics. This is necessary precisely because strategic planning and operations budgeting are so different. The number and variety of goals and objectives of management are so great that no organization, regardless of its size, specialization, type, or form of ownership, can do without a programmatic approach to determining their composition. These tasks include the following: 1. Improving the company's activities. To accomplish this task, it is necessary to carry out the following activities: Increasing sales volumes, which will lead to increased efficiency of the company and increased financial performance; Organizing market promotion to increase demand and increase sales volumes; Construction of new production units, which will lead to an increase in the market share and profit growth. Increasing cash flow in the organization to accelerate asset turnover; Normalization of the level of raw material reserves in accordance with turnover, which will lead to financial stability organizations; Increasing the turnover of working capital, which will lead to an increase in trade turnover, thereby ensuring an increase in profits; Optimization of management expenses. 2. Increasing sales of products and their promotion on the market. To accomplish this task, it is necessary to carry out the following activities: Formation of a marketing department at the enterprise to conduct marketing research on the market and monitor its development trends; Studying demand, building new production units in accordance with demand; Searching for the most profitable product suppliers to reduce distribution costs and ensure uninterrupted supply. When analyzing the management system of the company IKEA DOM LLC, the optimal strategy for the further development of the company’s work was determined. It consists of gaining a larger market share through optimization and expansion of the assortment. This strategy is a strategy for concentrated growth of the company. The main goal for the company to achieve this strategy is to create conditions for competitiveness and management in the long term. The main advantages of the modernized strategy management system will be: 1) the ability to implement strategic initiatives while saving enterprise resources; 2) the presence of interrelated plans at all levels of management, both in departments and in the company as a whole; 3) the possibility of transforming strategic goals into specific action plans with budgetary and non-financial indicators specified in quantitative terms; 4) distribution of resources in accordance with the developed strategic directions of development; 5) expanding the range of indicators used (financial and non-financial) to assess performance results and the degree of achievement of set goals. It's worth starting with the fact that in the process of developing a balanced scorecard, organizations often view their own planning process as follows: Strategy --> Initiatives --> Indicators Following this process, businesses often forget that initiatives are a means, not an end. The entire planning process should be turned to reverse side. Strategy is not a means of managing initiatives. Strategic planning based on the balanced scorecard should be carried out in the following order: Strategy --> Goals --> Indicators --> Objectives --> Initiatives The final stage of this process will be the budgeting process, which involves cascading the strategy and parameters of its initiatives to the enterprise budget level. In its overall scope, this strategic planning scheme clearly represents an innovative model for consolidating strategy and budget, where the balanced scorecard serves as the connecting link. The implementation of the above framework must first begin with the process of formalizing the strategy, which will allow us to define a set of goals within the framework of the five perspectives of the balanced scorecard. In this case, the author identifies an additional, separate block of the balanced scorecard - the “innovation” block. To determine goals, it is necessary to answer a number of questions that each perspective contains: 1) Finance: what goals need to be set based on the financial expectations of investors and shareholders? 2) Customers: What goals will improve customer satisfaction and achieve financial goals? 3) Business processes: what goals need to be set in order to improve the internal business processes of the enterprise and ensure the achievement of goals in the client and financial perspectives of the BSC? 4) Innovation: what goals need to be set to increase customer value, beat competitors or even create a “blue ocean” - ideas and markets that avoid competition, creating a market within a market, innovation strategy? 5) Training and development: what goals will contribute to creating infrastructure and increasing the level of education in the organization in accordance with the chosen strategy? Isolating strategic goals based on the 5 perspectives of a balanced scorecard is not enough. Following this selection, a huge list of goals can be compiled on which to concentrate. However, as practice shows, no more than 5-7 strategic goals should be defined within each perspective. When developing strategic goals, it is best to adhere to the following selection criteria: 1) based on the basic strategic orientation of the company, developed when creating the strategy, possible areas of the company’s activity are determined in 5 perspectives; 2) for each area of activity, action options are established that will contribute to the implementation of the strategy; 3) ordering and structuring options for action, differentiating them into immediate goals and possible strategic measures, and subsequently dividing them into operational and strategic goals. Ideally, each strategic goal should be described by only one indicator. If this cannot be achieved, then to reduce the complexity of the system being developed and focus on key aspects, it is recommended to limit yourself to a maximum of three indicators for each strategic goal. The result of this stage should be the documentation of target values for indicators of individual periods. This is necessary to connect the balanced scorecard with budgeting and management accounting systems. After determining the indicators, the next step is to identify tasks and activities that ensure the achievement of the specified indicator values. These tasks must be fully consistent with the chosen strategy, must be clearly formulated, and feasible. The criterion of “feasibility” of the task plays an important role, since setting difficult or completely impossible tasks in advance will lead to a waste of financial and human resources. It is necessary to set tasks that are not interrelated with each other, otherwise the implementation of one task will influence the other, which will lead to a distortion of the actual results achieved. After setting the objectives, the question arises of defining strategic initiatives, which are a set of specific programs, plans, projects that must be completed to achieve the set strategic goals. At the beginning of the process of identifying strategic initiatives, current projects being implemented in the company are analyzed for their impact on the strategic goals of the balanced scorecard. However, to implement the strategy, current projects carried out at the enterprise are not always enough. Additional work is necessary to develop proposals for additional activities needed to achieve the company's strategic goals. This is followed by a clarification of the main parameters of strategic programs: projected costs for the implementation of strategic programs; implementation stages, work plans; The project team; deadlines; as well as identifying among them those projects that require priority implementation. Once initiatives have been identified and approved, project teams need to be created and budgets created. An organization may fail to implement a strategy precisely because the necessary human and financial resources are not only not reflected in the budget, but the formation of the budget itself occurs in isolation from the planning process. As a result, the implementation of these initiatives wastes the time of the enterprise’s personnel, who are busy with completely different tasks, and resources are spent from the operating budget, which is not designed for this at all. If an organization is strategy-oriented, it must separately include human and financial resources dedicated to strategic initiatives in its plans and budgets and manage them as a separate area. Returning to strategic initiatives, the question of assessing their significance and feasibility remains acute. When assessing the significance of initiatives for the strategic development of an enterprise, the balanced scorecard will act as a “filtering” link: it is necessary to select and promote those initiatives that will significantly improve the performance of this system. This approach will allow you to discard unnecessary initiatives and thereby free up human and financial resources. The balanced scorecard as a means of selecting initiatives has the following advantages: It makes it possible to prioritize and identify those initiatives that contribute to the achievement of strategic goals, taking into account changes in the market; Correctly distributes and saves human and financial resources to achieve assigned tasks; Among other things, projects whose goal is defined as improving existing processes and capabilities, in the opinion of the author, should be rejected. It is necessary to consider only those that contribute to achieving the company's goals and creating new opportunities, i.e. have a strategic focus. As a result, the determination of balanced key performance indicators, an action plan with planned values of target indicators allows us to move on to creating enterprise budgets and linking the budget management system to the balanced scorecard and directly to the strategy. It is necessary to reflect the complex of developed and approved strategic measures in the system of functional and investment budgets, as well as project budgets. Thus, the financial budgeting model must ensure the transformation of strategic activities that are planned to be carried out within the framework of business processes into the necessary financial parameters: costs, payments, assets and liabilities. Some financial parameters can be established through a system of indicators, on the basis of which strategic measures were developed. You can project a balanced scorecard to the budget level as follows: · financial indicators are directly projected from the BSC into budgets; · indicators that measure the characteristics of the functioning of business processes are transferred to the budget circuit, as they identify factors influencing the formation of budgets (leading indicators); · indicators reflecting the implementation of strategic initiatives are transferred to budgets, as they form the corresponding budget items. After integrating the balanced scorecard, new system Budgeting should become the main tool for quantitative planning and modeling of strategic initiatives in the company. This system will allow not only to analyze strategic activities highlighting the main financial characteristics, but also to determine the periods when these financial parameters will arise: assets, costs, payments. With this approach to budget planning It will be easier to carry out scenario analysis, in addition, the process of approving budgets will be more reasonable. In order to expand the consumer audience, use new distribution channels and reduce costs for the sale of furniture, IKEA DOM LLC, it is advisable to use e-commerce tools, the main of which is an online store. Depending on the functions performed, electronic stores are divided into: Electronic showcase. It is a specialized website that hosts an electronic catalog of products. Communication between buyer and seller can be carried out through Email, telephone conversations. The peculiarities of this type of store include the lack of automatic checkout and mechanisms for accepting electronic payments. The advantages of an electronic storefront include: 1. The structure of trade does not change; 2. Low opening cost; 3. New customers. The disadvantages include: 1. Inconvenience for buyers (requires additional actions); 2. The possibility of no positive effect on the organization’s activities. Automated store. Contains an electronic catalog, a shopping cart of customer orders, and additional attributes. The Internet trading system is directly linked to the internal automated system commercial organization. It is the most effective of the above, due to deep integration into all parameters of the organization (warehouse, finance, reporting, goods flow). One example is the Enter online store, which combines elements of both online and offline sales, including furniture. The peculiarities of creating a furniture online store include, firstly, the consumer’s desire to “touch” the furniture and see it. An important problem is the replacement of defective goods. Creating an online store is associated with enterprise costs, which can be divided into pre-launch, start-up and operating costs. Pre-launch costs include: Costs of drawing up a business plan. These are the costs of researching the target market, segmenting it, identifying the consumer and his needs. On large enterprise who has marketing databases in offline retail, as a result, the costs of drawing up a business plan can be reduced. Start-up costs include: Costs of opening an online store. This cost item is formed by the requests of the customer’s organization. Development can be done using your own resources and by a specialist, using templates and installations of Joomla, Magento, WordPress - from $10 for installing a store and templates. Registration of a website address (domain) from 8...15 $. Purchasing a package of website maintenance services (hosting package) for a year from $49. For a furniture company, it is necessary not to forget that an online store reflects not only the company’s image. The website should become a new sales channel, so a special role in the development should be given to design and provide branded services in the most understandable form. Based on the costs listed above, the budget for creating an online store can vary from $1,000 to $50,000. Operating costs include: Salaries of employees. Other expenses. When talking about efficiency, online stores use the concept of conversion. Conversion in Internet marketing is the ratio of the number of site visitors who performed any targeted actions on it (hidden or direct instructions from advertisers, sellers, content creators - purchase, registration, subscription, visiting a specific page of the site, clicking on an advertising link) to the total number of site visitors, expressed as a percentage. Creating an online store is advisable only if income from sales of goods consistently covers pre-launch, start-up and operating costs. In this regard, it is advisable to calculate not only the ways to generate income, but also the required volumes, identifying the factors that determine the latter. It has been established that the most significant factors determining the effectiveness of online stores are: The popularity of the online store, which is determined through the number of visits to the website (conversion). Average bill (average price per order). Channel profitability. Knowing these factors, you can determine the comparability of the Internet sales channel with the traditional sales channel.  Loading... | |||||||||||||||||
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