Development of a competitive strategy for the development of a commercial organization. Development of a competitive enterprise strategy. Strengths of the company
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ECONOMY AND JURISPRUDENCE
DEVELOPMENT OF A COMPETITIVE STRATEGY OF THE ENTERPRISE BASED ON ANALYSIS OF ITS ACTIVITIES
Savchenko Denis Davidovich
Bachelor of Economics,
FSBEI HPE "Moscow State University of Civil Engineering",
RF, Moscow E-mail: [email protected]
Panteleeva Margarita Sergeevna
Cand. economy sciences,
senior teacher 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 rivalry that is growing 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 of an enterprise based on an analysis of its activities // Universum: Economics and jurisprudence: electron. scientific. zhurn. 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 economic entities is the frequency of changes in customer preferences, quality and product range of major 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: economy, 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 the development of 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 value 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 produced by the enterprise.
Market “rules” govern the behavior of all firms: new
and established, small and huge corporate giants.
There is no single strategy for an enterprise, since its formation is a very difficult process that depends on many factors,
such as the potential of the enterprise, the characteristics of the services or goods that it produces, as well as the behavior of its competitors. Significance of the problem of a single strategic development for Russian enterprises necessitates additional development of theoretical and methodological foundations of marketing, research and development of strategies, as well as theoretical and practical recommendations aimed at increasing competition in the enterprise and its development.
Whatever the company is, 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 minimizing costs Reducing the cost of producing goods and services, as well as their implementation. The purpose of work in the format of this strategy is to find ways to reduce these indicators without resorting to a deterioration in product quality.
Diversification strategy It 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 focusing on a specific market segment, while using strategies to minimize costs and differentiate the product, both simultaneously and separately. The main difference from previous competitive strategies is that the enterprise will compete in a narrow segment of the market.
This choice depends directly on the level of competitiveness of the enterprise that independently analyzes the market. Based on the scope of activities of enterprises, competitiveness depends on the following factors:
1. the specifics of the services or goods offered on the market;
2. Features of the competition market. Whether it is a monopoly, oligopolistic, or a market of absolute competition;
3. how the enterprise has developed production activities, logistics, enterprise management, response time to new information;
4. the 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.
Competitiveness factors are subdivided into internal and external ones.
Internal factors of competitiveness:
1. reputation,
2. staff level,
3. quality of goods and services,
4.the value of the enterprise,
5.technology,
6.logistics,
7.quality management level,
8. staff motivation.
External factors of competitiveness:
1.customs policy, quotas,
2.state insurance in the country,
3. legal protection of consumers,
4.level 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 the enterprise, it is also necessary to pay great attention to management. That's why internal factors competitiveness Special attention pay to the level of management of the company.
The general idea of developing a competitive strategy is an action program that allows you to get a positive economic effect due to the fact that the company is in a stronger position.
The development and implementation of a competitive strategy can be represented in the form of the diagram shown in Figure 1.
5, Analysis of the selected competitive strategy through SWOT analysis and comparison with preliminary goals
7, Analysis of results; obtained from the implementation of a competitive strategy
1. Mission and general corporate development strategy of the enterprise
2. Setting corporate goals and formulating them based on them
preliminary tasks in the competition
H. Collection and analysis of information about the external and internal environment of the enterprise
Industry analysis
Competitor analysis
Internal audit
Index
intensity
competition
Competitive advantages;
Rankings
competitors
possibilities
4. Choosing a strategic alternative based on competitive data
the position of the enterprise and the intensity of competition
6. Implementation of a competitive strategy through a developed and
approved competition plan
Adjustment of the existing strategy taking into account the reaction of competitors
elimination of defects
Figure 1 Algorithm for the development and implementation of a competitive strategy
This diagram shows that the function of competitive 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. the sequence of the steps to be performed;
3. cyclicality.
1) Continuity and accumulation. Even before developing a strategy, an enterprise must analyze previous experience, find out what actions were useful in the competition, and check their relevance to the current moment. Learning from past experience will allow the enterprise to avoid old mistakes in development new strategy.
2) The sequence of the steps to be performed. This rule is caused by the dependence of the subsequent stage on the previous ones. This will allow avoiding the inconsistency between the competitive strategy and the market situation, mistakes that have already occurred in the past, and assess the results obtained in the course of implementing this strategy.
3) The cyclical nature is manifested in the fact that the results of implementation must be analyzed and must be taken into account in the subsequent development of strategies, since the competitive strategy is constantly adapting to the competitive environment.
Competitive strategy is an important tool in the hands of managers, as it addresses a range of challenges and challenges that a company faces.
Firstly, all the material obtained and structured in the course of creating a strategy allows both management and performers to clearly consider the situation on the market, the position of the company on it, the reality of goals and ways to achieve them.
Secondly, the 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, we often have to deal with a situation where there is a gap between the theory of competitive strategies and the practice of its application in the enterprise. This gap can be minimized by the algorithm proposed below for developing and implementing a competitive enterprise strategy.
According to the algorithm in Figure 1, the development and implementation of a competitive strategy is carried out using the sequential implementation of 8 main stages.
1. Mission and corporate development strategy of the enterprise.
2. Formulation of tasks in the competitive struggle in the market.
3. Collection and analysis of information about the external and internal environment of the enterprise.
4. The choice of the competitive strategy of the enterprise in the market.
5. Analysis of the chosen strategy.
6. Implementation of a competitive strategy through a developed plan.
7. Analysis of the results.
8. Adjustment of the existing strategy or development of a new, more effective strategy, which will be able to implement the tasks set by the general corporate strategy of the enterprise.
It is important to note that in the hierarchy of strategic planning, the competitive strategy is lower than the general corporate strategy of enterprise development. The development of a competitive strategy should begin after the end of work on the general corporate strategy of the enterprise.
Due to the fact that the development and implementation of a competitive strategy affects different 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, retreat or defensive.
II. Development phase (3, 4, 5): tasks are transferred to functional units that are responsible for marketing and sales. In the future, the analysts of this department analyze the market, while the key positions of the analysis are the intensity of competition in the market and the competitive position of the enterprise.
III. Implementation phase (6, 7, 8): the strategy implementation itself takes place.
Figure 2. A model for diagnosing the competitiveness of enterprises
However, a detailed step-by-step plan for the creation and implementation of a competitive strategy within the framework of market analysis requires an assessment of its effectiveness. For this, competitiveness is considered as an integral indicator, consisting of the following components:
1. competitiveness of products;
2. the efficiency of the enterprise;
3. commercial efficiency of the enterprise;
4. the level of market concentration.
The first component that largely determines competitiveness construction company, is its products (services). Classically, the competitiveness of a product is understood as a combination of its quality and cost characteristics that ensure the compliance of products (goods, works, services) with market requirements in a certain period of time. All parameters of products in the construction industry are classically subdivided into consumer, economic and marketing.
To assess the level of product parameters, it is proposed to use the expert method of scoring, 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 with the competitive one; from 0.5 to 1.0 - if the parameter exceeds the competitive one.
According to the integral level, the competitiveness of the products (Ci) of the enterprise will be determined by the formula shown in Figure 2. It is advisable to use the above approach in relation to the assessment of product parameters in each nomenclature group. According to the results obtained, if Ki exceeds the limit of 0.5, then the products are competitive in comparison with the products of competitors, if this indicator approaches 1, then the products can be
identify as highly competitive. If Ki is less than the 0.5 limit, then this indicates the non-competitiveness of the products in the relevant market.
The next component of diagnosing the competitiveness of a construction company is to assess the efficiency of its functioning by components: financial and economic efficiency, production efficiency and commercial efficiency.
The financial and economic efficiency of the enterprise is proposed to be assessed by the selected most representative indicators of the financial condition, in particular, the coefficients of return on assets, total liquidity, autonomy, capital return. The above indicators make it possible to identify the profitability and intensity of use of the company's capital, capital structure and solvency.
It is proposed to evaluate production efficiency in terms of relative indicators of capital productivity, material productivity, productivity, profitability of production and the share of scrap in the volume of output. This allows you to determine the level of resource productivity 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, the level of overstocking of warehouses. finished products, the average maturity of accounts receivable and payable. The above indicators make it possible to assess the profitability of product sales, the quality of sales activities and work with consumers of the enterprise. To form the integral level of the enterprise's functioning efficiency, it becomes necessary to translate indicators into relative values according to the developed scale:
from 0 to 0.5 - if the indicator is worse than the baseline;
0.5 - if the indicator is completely identical to the base one; from 0.5 to 1.0 - if the indicator exceeds the baseline.
It is worth noting that it is necessary to take the industry average or market average indicators as the basic ones. According to the noted expert scale, the above indicators are converted into point estimates, they are also given weight values, which makes it possible to obtain integral levels of various components of the enterprise's functioning efficiency. Based
generalization of the values of these levels using the geometric mean, the integral level of the enterprise functioning efficiency is determined according to the formula shown in Figure 2.
The interpretation of the results obtained is carried out in the same way: if Er exceeds the value of 0.5 and approaches 1, then we can talk about a high level of efficiency of the enterprise and the excess of the industry average or market average for this parameter; if Er is 0.5, then this indicates full compliance with the efficiency standards formed in the region. If Er is less than the limits of 0.5, then this demonstrates significantly worse parameters of the efficiency of the enterprise in comparison with competitors.
An important component of diagnosing the competitiveness of a construction company is taking into account the level of market concentration, because if the market is highly monopolized, then even with the availability of high-quality and inexpensive products and a high level of operational efficiency, the company 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, then for its calculation 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 are talking about a highly monopolized market. The use of such an indicator is carried out on a reverse scale.
Based on the foregoing, the integral level of enterprise competitiveness is calculated, taking into account the concentration of the market, according to the formula shown in Figure 2. Based on the calculation results, we will obtain a comprehensive level of enterprise competitiveness. If the KKR approaches 1, then this indicates a high level
competitiveness of the enterprise, if equal to 0.5, then the enterprise is
equivalent to a competitor, but if Kcr is less than 0.5 and approaches 0, then the enterprise is uncompetitive.
The proposed approach allows one to take into account all the essential parameters that form the competitiveness of a construction company: products, operational efficiency and concentration of the functioning market. Also, this method is intended for self-diagnostics of the competitiveness of the enterprise, since it is largely based on the expert assessment of the company's own competitive advantages by the specialists of the enterprise.
Competition has become an important problem of the country's economic climate today, since competition acts as an accumulator of the activities of many economic agents. The problem also lies in the fact that the emergence of modern construction enterprises is taking place in the conditions of a fierce struggle, with which they are not ready and do not know how to fight.
A competitive strategy created and applied in a timely manner is effective tool development and economic activity of any construction organization, therefore, the modern direction of the company's marketing policy should be closely intertwined with the external environment of the company's life, which includes not only competing firms, but also buyers and suppliers.
Bibliography:
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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. - S. 277-280.
3. Weinstock N.R. Management of the competitiveness of specialized construction organizations in modern market conditions // Economics and Entrepreneurship. - 2013. - No. 11 (40). - S. 459-462.
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Introduction
1. Analysis of the economic activity of LLC "Kontur"
1.1 General information about the enterprise
1.2 Analysis of financial performance
1.3 Analysis of the external environment
1.4 Analysis internal environment
1.5 Analysis of the competitiveness of the enterprise
2. Development of a competitive strategy for Kontur LLC
2.1 Justification for the choice of a competitive strategy for LLC "Kontur"
2.2 Development of measures to implement the strategy
2.3 Economic assessment developed development strategy
LLC "Kontur"
Conclusion
List of sources used
Applications
Introduction
The urgency of the problem of developing a competitive strategy is due to a number of reasons.
Increased competition and accelerated technology advancements have forced organizations to rethink the full range of management issues for their operational units.
In a market economy, an enterprise makes decisions on its own, develops a strategy for its development, seeks the funds necessary for their implementation, recruits employees, purchases equipment and materials, solves many structural issues, including such as creation, merger, liquidation, division, reorganization of production and restructuring of the organizational structure of management.
Becoming an object of commodity-money relations, possessing economic independence and fully responsible for the results of its economic activities, an enterprise must form a management (management) system that would provide it with high performance, competitiveness and stability of the market position.
Modern companies have a complex structure determined by a wide range of activities, territorial distribution of divisions, and a variety of business relationships with partners. At the same time, the dynamism of business processes increases, caused by the changing needs of the market, the orientation of the production of goods and services to the individual tastes of the consumer, constant technological improvement, and high competition. Thus, the management of enterprises is moving from the management of individual resources and functional units to the management of business processes that link together the activities of all structures of the enterprise.
The use of world experience in building effective companies is of great value for our country, which is carrying out a global economic reform and is actively introducing itself into the world economic system.
The purpose of the study is to develop a competitive strategy for Konur LLC.
To achieve this goal, the following tasks are considered:
explore the theoretical foundations of developing a competitive enterprise strategy;
perform an analysis of the competitiveness of LLC "Kontur",
economically substantiate the competitive strategy of the enterprise.
The object of the research is a company engaged in the sale of equipment LLC "Kontur".
The subject of the FQP is the strategic management of the enterprise.
As a hypothesis of the study, it is suggested that the implementation of a competitive strategy will increase the efficiency of LLC "Kontur".
The theoretical and methodological basis of the work was the works of such foreign economists as I. Ansoff, G. Mintzberg, M. Mescon, M. Porter, A. J. Strickland, A. Thompson, K. Hatten, A. Heduori, D. Schendel; as well as the work of Russian researchers (O.S. Vikhanskiy, G.Ya. Goldstein, V.S.Efremov, V.E. Kerimov, R.A.Fatkhutdinov, A.N. Khorin and many others). methodological developments world renowned consulting firms such as Boston Consulting Group, McKinsey & Company, Arthur D. Little.
1. Competitive strategies of the enterprise
1 Factors involved in competition
The choice of a competitive strategy is based on two main points. First, the attractiveness of the industry in terms of long-term profitability, as well as the factors that determine it. Not all industries have equal opportunities in order to remain profitable over the long term, therefore the inherent profitability of the industry is also an essential component of the profitability of a single company. The second central point in the choice of a competitive strategy is the factors that determine the relative competitive position of the firm within the industry. In most industries, some companies can be far more profitable than others, no matter what the industry average is.
The choice of a competitive strategy should be carried out only taking into account both aspects, each separately is not enough. Even if the company operates in a highly attractive industry, its profit may not be high enough due to the incorrectly chosen competitive position. Conversely, if a company with an exceptional market position operates in a completely unprofitable business, all efforts to strengthen that position may be fruitless. 7Both aspects that determine the choice of competition strategy are dynamic in nature: the attractiveness of the industry and the profitability of the company can change over time, unprofitable industries and companies become profitable and vice versa; the same applies to the competitive position of the company - it is changing, reflecting the incessant struggle of rivals. No matter how long the period of stability in the market may be, an unexpected competitive move by one of the participants can destabilize the entire market at once.
The first fundamental factor in a company's profitability is the attractiveness of the industry. Competitive strategy should be developed based on a comprehensive understanding of the rules competitive struggle, which determine the attractiveness or profitability of a particular type of business. The ultimate goal of a competitive strategy is to master these rules and, ideally, to be able to change them in the best interest of the company. In any industry, be it a national or international industry, production of goods or services 9, the rules of competition lie in five driving forces of competition: the entry of new competitors into the market, the threat from substitutes, the bargaining power of buyers, the bargaining power of suppliers, and rivalry between competitors in the market (see Figure 1.1).
The combined action of these five forces determines the company's ability to generate an average return on capital in excess of its cost of capital. The total power of these five forces differs depending on the type of industry and may change as it evolves. As a result, different types of industries are far from the same in terms of their potential level of profitability. If in an industry the action of competitive forces favors the companies operating in the market (as is the case, for example, in the production of medicines, soft drinks, in the creation of databases), most of the competing companies receive high profits. But in those industries where one of the forces is acting too intensively (for example, this situation takes place in the production of rubber, steel, computer games), very few firms can count on high profits, despite all the efforts of management. The profitability of the industry does not depend in any way on appearance product, on whether it is used in its production Newest technologies, - the profitability of the industry is determined solely by its structure. Some quite “modest” industries, such as mailing scales or grain trading, are highly profitable, while some more “luxurious”, high-tech areas, such as the production of personal computers or cable TV, turn out to be far from being for many participants. the most profitable.
Rice. 1.1. Five competitive forces driving industry profitability
The profitability of the industry as a whole is determined by the action of the above five forces, since they affect the prices, costs and the level of required investments of the companies operating in the industry - all these elements are also components of the return on investment. The bargaining power of buyers most directly affects what prices a company can set for its products - just as the threat from substitute products affects prices. The bargaining power of buyers also determines costs and investments — influential buyers require expensive service. The cost of raw materials and other materials depends on the bargaining power of the suppliers. The intensity of competition also affects prices as well as the costs of competition in areas such as manufacturing, product development, advertising and trade. The constant threat of the emergence of new competitors limits the growth of prices and determines the required initial level of investment, which is a tool to restrain the influx of new competitors.
The intensity of each of these forces is determined by the structure of the industry or the underlying economic and technical characteristics of the industry. Its most important elements are shown in Fig. 1.2. The structure of the industry is relatively stable, but can change over time as it (the industry) develops. Changes in structure affect both the absolute and the relative intensity of each of the five forces, and accordingly positively or negatively affect the profitability of the entire industry. For the development of a strategy, the most important are those trends in the development of the industry that have an impact on the structure of the industry as a whole.
But if the forces of competition described above and the structural factors that determine them were simply a derivative of internal characteristics industry, competitive strategy in this case would depend solely on the choice of the "right" industry, as well as on the ability to understand the operation of the five main forces better than competitors can. But, while this is the most important challenge facing any company, and this is the essence of the strategy of competition in a number of industries, the company is usually not held hostage to the structure of the industry. By applying these or those strategies, the company can manage the forces of competition.
But if any firm can change the structure of an industry, it means that that same firm can fundamentally change the profitability of the industry - for better or worse. Many companies, having chosen a successful strategy, were able to change the rules of competition in this way.
In fig. 1.2 details of all the elements of the industry structure that affect the course of competition are presented. The Five Forces Theory reveals patterns in this complex entity and identifies those factors that are critical to competition in a given industry. This theory also allows for the identification of strategic innovations that would maximize the profitability of both the industry and the company itself. However, the theory of five forces does not negate the need for a creative approach to finding new ways to compete in a particular industry. This theory directs the creative energy of managers to those aspects of the industry structure that are particularly important for long-term profitability.
Rice. 1.2. Elements of the industry structure
Often a company makes one or another move in implementing a competitive strategy without realizing what consequences this move may have in the long term for the entire structure of the industry. If the move was successful and the company has taken a more favorable position in the industry, the company's management is unlikely to be interested in the consequences of retaliatory moves from competitors.
The two main types of competitive advantage, combined with the industry in which the company is trying to achieve these advantages, allow it to develop three of the most common competitive strategies that can achieve levels of efficiency above the industry average: cost leadership, differentiation, and focusing. The focusing strategy comes in two flavors: focusing on costs and focusing on differentiation. These three strategies are shown in Fig. 1.3.
Rice. 1.3. General Competition Strategies
Each of the general strategies presupposes fundamentally different paths to obtaining competitive advantages, which consist of a combination of the very choice of a certain type of sought advantages, as well as the scale of strategic goals within which these advantages are planned to be obtained. Leadership strategies for cost minimization and differentiation are usually focused on gaining a competitive advantage across a wide range of industry segments, while focusing strategies involve gaining cost or differentiation advantages across narrow industry segments. The specific actions that need to be taken to implement each strategy will vary depending on the type of industry, and the possibilities for implementing a particular general strategy in a particular industry will also differ. It is not easy to choose a general strategy, and even more difficult to implement it in practice, but there are logically “lined up” ways to gain competitive advantage, and these methods can be tried to be applied in any industry.
The main thing to understand about the most general strategies is that each of these strategies is inherently focused on obtaining certain competitive advantages and in order to achieve these advantages, the company must make a choice, that is, decide what type of competitive advantage it is. are necessary and to what extent the company will pursue these benefits. It is impossible to be “everything for everyone” - this is a strategic recipe for mediocre and ineffective activity; this often means that the company lacks any competitive advantage.
The strategy for minimizing costs is the most obvious and understandable. As part of this strategy, the company aims to establish low-cost production of industry goods. Typically, such a company has a wide field of activity: the company serves several segments of the industry, while capturing, if possible, related industries - often it is such a wide field of activity that allows the company to achieve leadership in minimizing costs. The sources of cost benefits can be very diverse and vary by industry type. These can be efficiency gains through economies of scale, proprietary proprietary technologies, special access rights to raw materials, and many other factors, which will be discussed in more detail in Chapter 3. For example, in the production of televisions, leadership in reducing costs involves the production of picture tubes optimal size, low-cost design, automatic assembly, and a global scale of production that funded research and development. If the company provides security services, the cost advantage comes from low overhead, excess cheap work force as well as effective training programs required due to the high turnover of personnel in this area. Being a low-cost manufacturer is about more than just capitalizing on a learning curve. These manufacturers must continually seek new sources of cost benefit and derive maximum benefit from them.
The logic of a cost-minimizing leadership strategy usually requires the company to become the sole leader, not just a group of those seeking to take that position. Many companies that refused to acknowledge this fact have made a serious strategic mistake. When there are several candidates for the leadership position in minimizing costs, the rivalry between them becomes especially fierce - after all, even the smallest fragment of the market begins to play a decisive role. Until one of the companies takes the lead, "convincing" other competitors to change strategy, the consequences of this struggle for profitability (and also for the structure of the industry in the long term) can be very detrimental, and this was the case with several enterprises. petrochemical industry... Thus, the strategy of leadership in minimizing costs is mainly based on the priority right of possessing a certain advantage - and the company is forced to give up this right, unless at some point it gets the opportunity to radically change its position in terms of costs due to major technological advances.
The third general strategy of competition is the focusing strategy. This strategy differs from the others: it is based on the selection of a narrow area of competition within a particular industry. A company that has chosen a focusing strategy selects a specific segment or group of industry segments and directs its activities to serve exclusively this segment or segments. By optimizing its strategy in accordance with target segments, a company is trying to gain certain competitive advantages in these segments, although it may not have an overall competitive advantage across the entire industry.
The focusing strategy comes in two flavors. Focusing on costs is a strategy in which a company, working in its target segment, tries to gain an advantage at the expense of low costs. By focusing on differentiation, the company differentiates in its target segment. Both strategies are based on the characteristics that distinguish the selected target segment from other segments of the industry. The target segment is likely to include both customers with special needs and the production and distribution systems that best suit them and therefore differ from industry standards. When focusing on costs, the company capitalizes on differences in their structure in different sectors of the industry, while when focusing on differentiation, the company benefits from the fact that there are special groups of buyers with special needs in certain market segments. The existence of these differences in the structure of costs and customer demand suggests that these segments are poorly served by broad-based competitors — such companies serve these special segments on an equal footing with everyone else. In this case, a company that has chosen a focusing strategy gains a competitive advantage by fully focusing its work on this segment. It doesn't matter if it's a narrow or a wide segment: the essence of a focusing strategy is that a company generates income from the features of a given segment that distinguish it from other sectors of the industry. Narrow specialization by itself is not sufficient for the company to achieve performance indicators that will be higher than the market average.
Usually a company has to choose a specific type of both for itself - otherwise it will face the fate of "stuck" between the leaders and the laggards. If a company tries to simultaneously serve a large number of different market segments, choosing to focus on costs or differentiation, it loses the benefits that it could gain by optimizing its strategy with a view to a specific target segment (focus). Sometimes a company manages to create two completely independent business units within one corporation, and each of these units implements its own strategy. The British hotel firm Trusthouse Forte is a good example of this: the company has created five separate hotel chains, each of which is focused on a specific market segment. However, such a company must strictly separate from each other the units focused on the implementation of various strategies, otherwise none of these units will achieve the competitive advantages that are expected to be obtained as a result of the implementation of the strategy chosen by the management. An approach to competition in which management allows the transfer corporate culture from one business unit to another, and also does not have a clearly defined policy in relation to each business unit, undermines the competitive strategy of both each business unit and the entire corporation, and leads to the fact that the company is among the "stalled".
If a firm succeeds in achieving leadership in minimizing costs while remaining a manufacturer of a differentiated product, it will be richly rewarded for its efforts: differentiation implies a high product price, and cost leadership implies low costs.
In this way, the benefits add up. An example of a company that has achieved both cost leadership and differentiation strategy is Crown Cork & Seal, a metal packaging company. The company specializes in the production of containers for liquid products - beer, soft drinks, aerosols. The company's products are made of steel - unlike products from other companies that produce both steel and aluminum containers. In its target segments, the company differentiates its product through dedicated service and technological support, as well as offering a full range of steel sealed cans, metal lids and can rolling equipment. This type of differentiation would be more difficult to achieve in other sectors of the industry where customers have different needs. At the same time, Crown is focusing its production on only the types of containers required by customers in targeted sectors and is investing heavily in state-of-the-art two-piece sealed can technology. As a result, Crown is likely to have also achieved low-cost manufacturer status in its market segments.
A firm can simultaneously pursue a differentiation strategy and achieve cost leadership if the following three conditions are met: The firm's competitors are stuck. When a company's competitors get stuck, nothing they do can put the company in a position where cost leadership and differentiation are incompatible. This was the case with the Crown Cork. The company's most serious competitors did not invest in low-cost steel container technology, so the company was able to achieve cost savings without sacrificing product differentiation. But if the company's competitors had adopted a cost-minimizing leadership strategy, Crown's attempt to become a low-cost differentiated product manufacturer would have been doomed: the company would have been stuck. After all, in this case, all opportunities to reduce costs without sacrificing differentiation would already be tapped by Crown's competitors.
However, the situation when competitors are stuck, and the company itself, thanks to this, achieves advantages both in the area of costs and in the area of differentiation, is often temporary. Eventually, one of the competitors will start implementing one of the general strategies of competition and will also do well in finding a balance between cost and differentiation. That is, the company still has to choose a certain type of competitive advantage to which it is focused and which it will try to maintain over a long period of time. Weak competitors are also dangerous: in these conditions, the company tries to achieve both differentiation and cost minimization, trying to combine these two directions of strategy, but as a result, such a company will be unprotected if a new powerful competitor appears on the market.
Cost levels are influenced by market share and industry relationships. It is possible to simultaneously achieve leadership in minimizing costs and differentiation if the level of costs is determined by the volume of the market, and to a greater extent than by product design, manufacturability, level of service and other factors. If a company achieves an advantage with a significant market share, the cost advantage keeps the company from losing its leading position in cost, even if the company incurs additional costs in other areas.
Each of the three strategies is associated with risks of a certain kind - these risks are presented in Table 1.
Table 1 Risks associated with each of the general competition strategies
The consistent implementation of any of the general competition strategies requires the firm to create certain barriers that make it difficult for competitors to imitate the strategy. Since it is hardly possible to create absolutely insurmountable barriers of this kind, the company must become a “mobile target” for competitors, constantly trying to advance to more and more profitable positions and investing in those measures that contribute to this. The potential threat to the company also comes from competitors who are implementing a strategy that is different from that of the given company.
Table 1 shows which methods should be used to attack competitors who have chosen a certain strategy. For example, if a company chooses only differentiation, it may be successfully opposed by another company that will sharply reduce prices and the level of product differentiation, which will ultimately lead to a shift in consumer interests towards other differentiation parameters; a company that has chosen differentiation can be attacked in another way - through focusing.
In some industries, the very structure of the industry or the dispositions of competitors are such that the use of any of the general strategies for obtaining a competitive advantage is simply ruled out. For example, a company is unable to achieve a real significant cost advantage because a number of competitors are similarly positioned in terms of economies of scale in access to raw materials as well as other sources of cost reduction. Likewise, an industry that has only a few segments, or where the differences between segments are not clear enough (for example, the production of low density polyethylene), is not fertile ground for a focusing strategy. This means that the possibilities for using each strategy are different depending on the type of industry. However, in many industries, all three general competition strategies can coexist favorably, but only on the condition that various companies choose different strategies or different bases for differentiation and focus. The most profitable industries are those where several strong companies are on the path of differentiation, but the strategy of each of them is based on different sources of use value creation. This situation usually improves the structure of the industry and leads to a stable disposition of competitors in it. But if suddenly two or more companies choose the same type of overall strategy or the same basis for differentiation and focus, the result is a protracted and unprofitable war for either side. The worst case scenario is the struggle of several companies at once for leadership in costs. The choice of strategy, therefore, also depends on which strategies are chosen by competitors, as well as how expensive it will cost a company to change its position in the industry.
The concept of the most general strategies is based on the assumption that there are certain ways to gain competitive advantage, and these ways are determined by the structure of the industry. If all firms operating in a particular industry were to build their activities on the principles of competitive strategy, everyone would choose different sources of competitive advantage. Of course, not everyone would have succeeded, but in any case, the three general strategies are three different paths to the most effective work companies. Some of the earlier theories of strategic planning were too narrow: as a rule, they were based on only one way to obtain a competitive advantage - to minimize costs. Such theories cannot explain the success of many companies - moreover, their practical application leads to the fact that all firms in the industry will strive for the same type of competitive advantage, trying to achieve these advantages in the same way. Needless to say, the results of this process are quite predictable and destructive.
1.2 Value chain and competitive advantage
The nature of competitive advantage cannot be understood by looking at the firm as simply a whole. Competitive advantage is formed as a result of the implementation of many separate activities that are part of the development, production, marketing, delivery and service of each company's product. Each of these activities can help establish a firm's competitive position in terms of costs and provide a basis for differentiation. For example, a company may have several different sources of cost-minimization advantage: a low-cost distribution system, highly efficient assembly processes, or making the most of its sales force. Differentiation can also be the result of just as different factors, including, for example, the purchase of high-quality raw materials, flexible order processing, or high-quality product design.
To analyze the nature of competitive advantage, it is necessary to research all the types of activities carried out by the company and understand their interaction.
Applying the concept of a value chain, it is possible to identify strategically important activities in a firm's activities and thus understand the cost picture and highlight potential sources of differentiation. A company that carries out strategically important activities at a lower cost or more efficiently than its competitors gains a competitive advantage.
The value chain for each company consists of a wide variety of different types activity, which is called the value creation system. Each of the company's suppliers also has a value chain (input level of value creation) where the products purchased by the company for its value chain are manufactured and delivered.
Suppliers don't just provide the required products; they have the most direct impact on the firm's performance, and in different ways. In addition, many products, on their way to the consumer, go through the entire value chain corresponding to distribution channels (value created by the channel). Distribution channels provide additional activities that directly affect the buyer, but also affect the firm's operations. The company's product eventually becomes part of the value chain created for the consumer.
It is the company itself and the role of its products in the value chain for the consumer that the ability to create a solid basis for differentiation of the company's products depends. In order to achieve and maintain competitive advantages, it is necessary to have a good understanding of both the structure of the company's value chain and the company's position in the overall value system.
Even if companies operate in the same industry, their value chains tend to differ. These differences are due to the history of each company, its strategy, as well as the success of its implementation. One of the significant differences between companies, as well as their value chains, is the scale of competition, which also represents a potential source of competitive advantage. If a company serves one specific segment of the industry, it can tailor its value chain to that segment, resulting in cost savings or differentiation in serving that segment from competitors. Expansion or narrowing of the geography of the markets in which the company operates can also affect competitive advantages; this is also true with regard to the degree of integration in certain activities. Finally, competition in related industries, where value chains are coordinated in a certain way, can lead to competitive advantages through interconnections. A company can take advantage of the scale of operations on its own OR by forming a coalition with other firms for this purpose. Each company can be thought of as a collection of different activities aimed at developing, manufacturing, marketing, shipping and servicing their products. All of these activities are combined into a value chain, which is schematically depicted in Fig. 1.4. A company's value chain, and how a company performs certain activities, is, collectively, a value chain and competitive advantage a reflection of its history, strategy, its approaches to implementing its strategy, as well as the business activities of its internal divisions.
Supporting activitiesProduction and infrastructure of the companyHuman resourcesTechnologyMaterial and technical supportSupply of raw materials, etc. Execution of workSales MarketingAfter-sales serviceProfit Primary activities Rice. 1.4. Value chain
The value chain allows you to see where value is added up; it consists of activities to create value and a profit or margin. The activities that directly create value are different, from a physical and technological point of view, operations performed by a firm. These are the building blocks by which a firm creates products of value to customers. The margin (markup) from which the profit flows is the difference between the total cost, the price of the product and the summed up costs of performing value creation operations. Margin (and hence profit) can be measured in a variety of ways. The value chains of suppliers and distribution channels of the company also include a margin, but in order to understand the sources of the company's competitiveness in relation to costs, it is important to exclude these types of profits from consideration, since the profits of suppliers and distribution channels are part of the total costs paid by the buyer. ...
Each type of value creation activity includes acquired resources, human resources(labor and management) and some form of technology with which this type of activity is carried out. Each value creation activity also uses and creates information - such as customer information (order database), parameters technical characteristics(testing), as well as statistics of low-quality products. In the course of the implementation of various types of value creation activities, financial assets- such as inventories or accounts receivable. To identify potential sources of competitive advantage, you must first describe the structure of the value chain of a company competing in a particular industry. It is necessary to start with the chain in a general way, highlighting in the company's work individual types of value creation activities. Each of the general categories is
2. Analysis of the economic activity of LLC "Kontur"
2.1 General information about the company
Limited Liability Company "Kontur" was founded in 2006.
Location of the enterprise: 236023, Kaliningrad, Sovetskiy prospect, 188 B.
The company "Kontur" is one of the group of companies operating under the trademark "KONTURTERM"
A copy of the certificate of admission to work is shown in Appendix 1. A copy of the list of works is in Appendix 2.
The main specialization is complex supplies and installation of equipment and materials for boiler houses, industrial and domestic heating systems, water supply and water treatment.
The price list for services is presented in Appendix 3.
The company's activities cover the entire complex technological processes associated with the design, preparation, installation and maintenance of equipment and materials for boiler houses, heating systems, water supply and water treatment.
Stable and long-term cooperation with reputable manufacturers such as Buderus, Viessmann, Junkers, Ariston, Purmo, KME, Grundfos, Wilo, Herz, Jeremias, etc. allow Kontur to offer customers the most modern equipment and the latest technology.
Company Services:
inspection of the object;
development of a design solution for the object;
granting design and estimate documentation;
delivery to the facility and installation of equipment;
commissioning works;
warranty and service maintenance of equipment and systems.
Basic principles of activity:
Use of modern technologies
The Kontur company supplies advanced equipment and materials from leading European manufacturers, striving to present the latest developments in the field of boiler equipment, heating technologies, water supply and water treatment.
Responsibility for quality and reliability
The organization supplies equipment and materials from manufacturers whose products have an impeccable reputation in the world market. All equipment is covered by warranty and service. In addition, the clients of Kontur LLC can always get prompt advice from specialists. The unconditional rule is to ensure the supplied equipment with all consumables and guaranteed service.
Always in stock
A distinctive feature of our company is the constant availability of goods in the assortment (more than 12,000 items).
A complex approach
The company carries out a full range of works on design, assembly, delivery, installation and service.
Collaboration and partnership
The company works in partnership with leading design organizations, architectural workshops, construction and assembly firms. All our partners, including retail customers, are provided with a loyalty card.
The Kontur company is one of the leaders in the Kaliningrad market among the companies engaged in the creation of warmth and comfort. Comfort in rooms of any complexity level is the result of many years of work of the company's employees. A wide range of accessories and tools allows you to reduce the time and cost of installation.
OOO KonturStroy, a division of the company that provides installation and maintenance services, is a member of the Non-Profit Partnership Self-Regulatory Organization Construction Union of the Kaliningrad Region.
Konturterm has built boiler houses in Kaliningrad and the region, installed heating and water supply systems in residential, administrative and industrial buildings, such as the Port Authority, the Rossiya and Zarya cinemas, the Maksik, Lazurit, Mandrev furniture factories , the sanatorium "Yantarny Bereg", the hotels "Kaliningrad", "Moscow", the "Foodstuffs" industrial complex, new apartment buildings on the streets of Litovskiy Val, Ostrovsky and many other objects.
The organizational structure of the company is presented in Appendix 4.
The structure of the company includes the following services and departments:
financial directorate (accounting, audit department and informatization department),
Marketing Directorate (marketing department for product lines and marketing department for promotion),
logistics directorate (supply department, department warehouse logistics),
general directorate (transport department, administrative department),
service directorate ( service center, production and technical department, assembly area),
technical management,
commercial management (retail department, sales department, order desk),
secretariat.
Organizational structure LLC "Kontur" can be described as combined. In general, it is built according to the linear-functional principle, however, a number of departments work as motto structures, for example, the technical department has three motto structures based on product characteristics:
heating technology department,
heating and air conditioning department,
water supply and filtration department.
In LLC "Kontur" there are 2 forms of remuneration:
- Time-bonus wages;
- Piecework system of remuneration.
With time-bonus wages, bonuses may be calculated along with wages. In this case, bonuses are set both in fixed amounts and as a percentage of the salary. Wages for time-based wages are calculated in the same way as for simple time-based wages. The amount of the bonus is added to the employee's wages and paid along with it.
Under the piece-rate system of remuneration, the employee is paid for the amount of products (work, services) that he has produced.
Consider the activities of the enterprise in the context of individual areas (see table. 1).
Table 1 The volume of services rendered by Kontur LLC by directions for the period from 2009 to 2011 (in%)
Type of activity 2009 2010 2011 Sale of gas and boiler equipment 403038 Installation of gas and boiler equipment 304045 Provision of services to the population for the repair of gas and boiler equipment 201513 Sale and installation of water treatment equipment 5102 Tool rental552
Let us graphically represent the structure of the enterprise (see Fig. 2.1).
Rice. 2.1. Kontur LLC activities
As can be seen from the figure, the main activity for the enterprise is the sale and installation of gas and boiler equipment. Tool rental and the sale of water treatment equipment play a much smaller role in the company's sales.
A more detailed analysis of the company's financial performance is shown in the next section.
Thus, LLC "Kontur" is a dynamically developing enterprise in the field of sale and maintenance of boiler, gas and water treatment equipment. The company has a good reputation as a supplier of equipment and as an employer.
2.2 Analysis of financial performance indicators
Let's analyze the main indicators of the enterprise (see table. 2).
From table 2 we can conclude:
In 2009, there was a deterioration in operating results (profit), but in 2010 the situation evened out.
Table 2 Technical and economic indicators of LLC "Kontur"
Indicator 2009 2010 2011 Deviation 2010-2009 Deviation 2011-2010 Abs. Growth rate,% Abs. Growth rate,% Revenue excluding VAT, thousand rubles 34544377984035832541092560 107 Cost price, thousand rubles 3362737759391051321121748 , thousand rubles 61739851-57868122182 Net profit, thousand rubles 349-687129-1036-197816-19 Cost of fixed assets, thousand rubles 309429531120139102124 Number of employees, people 5871861312215121 Labor productivity, thousand rubles 596 532 469 - 6389 - 6388 Return on equity,% 567 184 1412 613 119 Sales return,% 10.90,510.1-10.4-9.6-
Revenue grew in 2010 and 2011. In 2011, production costs grew at a slower pace than revenues - this is a favorable trend.
In 2010 the company had a loss.
The cost of fixed assets and the number of personnel grows systematically during the period under review.
Labor productivity is constantly decreasing, which indicates a decrease in the efficiency of the use of personnel.
The profitability of the fund increases in 2010 and 2011, which indicates an increase in the efficiency of the use of equipment.
The dynamics of key performance indicators is illustrated in Figure 2.2.
Let's evaluate the dynamics of various indicators of profitability (see table. 3).
The analysis of the dynamics of profitability showed that in 2011 all indicators were growing, and in 2010 there was a decline in most indicators, which was due to a decrease in profits.
Rice. 2.2. Dynamics of performance indicators of LLC "Kontur"
Table 3 Dynamics of profitability indicators of LLC "Kontur"
No. Indicator name Calculation method 2009 2010 Otk-ya2011 Otk-ya 2-5,50,63,83Profitability equity capital Net profit / Equity * 10,044.7149,2104,571,178.14 Asset turnover ratio Revenue from sales / Balance total 2.31.8-0.51.805 Average annual property value, thousand rubles 150442137063262304016706 Average annual equity capital, thousand rubles 780.5460, 5-32018 1.5-279
The analysis showed that the value of all property of the enterprise is growing over the period under review, and the value of equity capital is decreasing. The latest trend is driven by declining profits. Graphically, the dynamics of indicators is shown in Figure 2.3.
Rice. 2.3. Dynamics of profitability indicators of LLC "Kontur"
We will assess the organization's ability to timely and fully settle its obligations, that is, we will analyze the liquidity and solvency. To do this, we will divide the assets of OOO Kontur according to the degree of liquidity (see Table 4).
Table 4 Analysis of the liquidity of the balance sheet of Kontur LLC, at the end of the period (in thousand rubles)
ASSETS (indicator / designation) 2009 2010 2011 The most liquid assets (A1) 165 118 237 Quickly traded assets (A2) 389 434 736587 Slowly traded assets (A3) 150 601 803 815 603 Hard-to-sell assets (A4) 377 551 609 Total: 19496232242282 568 P3) 800 Equity (P4) (line 490) 804 117 246 Total: 194962322422836
Based on the data in Table 4, let us estimate the liquidity (see Table 5).
Based on the results of the analysis, we can conclude that in almost all periods the balance of the enterprise is conditionally liquid, inequalities 1 and 4 are not fulfilled.
Table 5 Assessment of liquidity of the balance sheet of LLC "Kontur"
2009 standard 2010 2011 A1? P1A1< П1A1 < П1A1 < П1А2 ? П2А2 >P2A2> P2A2> P2A3? P3A3> P3A3> P3A3> P3A4? P4A4< П4А4 >P4A4> P4
Table 6 Dynamics of liquidity and solvency indicators of LLC "Kontur"
No. Name of indicator Method of calculation of the norm 2009 2010 Otk-e2011 Otk-e1 Current liquidity ratio (A1 + A2 + A3) / (P1 + P2)? 21.020.98-0.040.98-2 Critical liquidity ratio (A1 + A2) / (P1 + P2)? 0.8-10.220.20-0.020.290.093 Absolute liquidity ratio A1 / (P1 + P2)? 0.20.0080.050,420.002-0.0484 Solvency ratio for the year (A1 + 0.5A2 + 0.3A3 ) / (P1 + 0.5P2 + 0.3P3)? 10,350,360,010.36-5 Share of circulating assets in the assets of the organization L6 = (A1 + A2 + A3) / (A1 + A2 + A3 + A4)? 0.50,980.98-0 .97-0.01
According to table 6, it can be concluded that LLC "Kontur" is not liquid for most of the indicators. Only the indicator of the share of circulating assets in the assets of the organization complies with the norm. In 2011, the situation for most indicators is only getting worse.
To assess the degree of independence of an enterprise from borrowed sources of financing, let us analyze financial stability (see Table 7).
Table 7 Dynamics of indicators of financial stability of LLC "Kontur"
No. Name of indicator Method of calculation of the norm 2009 2010 Otk-ya 2011 Otk-ya1 Capitalization ratio (page 590 + page 690) / (page 490)? 1,523,2197,7174,591,8-105,92 Coefficient of provision of own sources of financing (line 490 - line 190) / (line 290)? 0.50.02-0.02-0.04-0.0203 Coefficient financial independence (line 490) / (line 700) 0.4-060.050.005-0.0450.010.0054 Financing ratio (line 490) / (line 590 + line 690)? 0.70.040.005-0.0350 , 010.0055 Financial stability ratio (line 590 + line 690) / (line 700)? 0.50,950.990.0410.01
Table 7 shows that almost all indicators show negative dynamics and by 2010 the indicators do not reach the standards. The exception is the financial stability ratio, which has reached the standard. This means that virtually all assets are financed from sustainable sources.
In general, the calculated indicators and the analysis performed indicate an unstable financial condition LLC "Kontur".
2.3 Analysis of the external environment
Boiler and gas equipment directly depends on the development of the construction market. Therefore, first of all, let us note the main trends in this industry. Let's consider the construction market in the Kaliningrad region and analyze the favorable and unfavorable factors of the macroenvironment for the activities of OOO Kontur in the region.
Analyzing the trends in the construction industry of the Kaliningrad region, the following can be noted. One of the most important parts of this industry is equity construction. Today, about 50 construction companies... At the same time, over the past two years, their number has decreased by 15 percent - primarily due to the merger of some of them into holdings. However, official statistics show slightly different indicators. “The fact is that each company has subsidiaries with their own names, so a larger picture is drawn in the form of 150-170 organizations, including not only Kaliningrad, but also Moscow (Rosstroy) and St. Petersburg (SetlEstate) ...
Recently, companies have appeared on the construction market that have changed the founders to Muscovites, retaining the well-established name. The latter is due to the specifics of the regional market: they try to buy square meters in Kaliningrad only from developers with an impeccable reputation.
Unlike other regions of Russia, in Kaliningrad today the demand for equity participation is very specific. We rank third in Russia in terms of cost per square meter, and if in other areas, a potential shareholder first chooses required amount rooms, then in Kaliningrad he primarily looks at the price. They are not interested in the prestige of the area, the quality of housing and the materials from which it is built.
An analysis of the dynamics of the construction industry in the regional economy is shown in Table 8.
In 2011, the volume of work in the Kaliningrad region for the type of activity "Construction" amounted to 33.5 billion rubles. and in comparable prices increased by 11.5%.
In general, for the period 2007-2011, the volume of work performed in the type of activity "Construction" in 2011 amounted to 129.1 billion rubles.
Table 8 Analysis of the dynamics of the construction industry in the economy of the Kaliningrad region
Indicaestimated growth rate,% 110.3111.3153.0121.680.086.6122.0 share in GRP,% 5.65.58.810.17.76.57.4 share in the total employed,% 7,37,37,67,87,87,6 no data Productivity, thousand rubles 137,9166,8350,8486,7362,7355,4 no data
The dynamics of the main indicators of the development of the construction sector in the Kaliningrad region is presented in Table 9.
Table 9 Main indicators of the construction industry
No. Indicator Years200720082009201020111 The number of operating construction organizations 32873298319932862 The volume of work performed by the type of activity "Construction", million rubles 20650.523583.024900.026470.933495.73% to the previous year in comparable prices 100,693,688,180,6111,54 destination: 5 residential buildings, thousand sq. m total area 753,3800,6607,8524,65456 including: individual developers 268,8247,3209,3121,4118,5
In 2011, construction was completed on a number of housing and communal services facilities, work was underway on the construction of the Baltic NPP, large projects in the field of road construction.
To determine the competitive position of an enterprise in the market, it is necessary to analyze the overall position in the industry of gas supply systems, since sales of gas equipment occupy a large volume in the sales of the enterprise.
We will try to assess the scale of the gas distribution (GDO) sub-sector. The length of gas distribution networks of high, medium and low pressure in cities and countryside is 393 thousand km, of which 263 thousand km are underground gas pipelines.
The gas distribution station operates 61 gas distribution stations (GDS), more than 75 thousand gas control and cabinet control points, 405 gas filling stations (GNS) and points (GNP) with a total capacity of 2.3 million tons of liquefied gas per year.
The gas distribution system provides gas to 35.8 million apartments (including natural gas - 22.3 million), of which 11.2 million in rural areas (including natural gas 3.7 million), more than 14 thousand industrial enterprises (including in rural areas about 3 thousand), about 100 thousand public utilities (including in villages - more than 37 thousand), about 4 thousand agricultural objects and about 33 thousand boiler houses (including more than 11 thousand in rural areas).
The total number of gas distribution companies in Russia is over 500. Here it is necessary to touch upon the very term gas distribution organization. In this report, by GDO we mean organizations professionally engaged in gas distribution, namely, those transporting gas, operating gas distribution networks and supplying gas to consumers. We will call an organization that has gas distribution networks on its balance sheet and is included in the register of natural monopolists of the FEC of Russia a subject of natural monopolies. At the moment, there are a little more than 300 gas distribution organizations, and there are more than 500 natural monopolies.
Most subjects of the Russian Federation (including the Kaliningrad region) use both natural and liquefied gas. Consumption volumes natural gas population accounts for 8-12% of the annual gas supply to all consumers.
Gas consumption in Russia from October 2011 to September 2012 inclusive decreased by 36 billion cubic meters - by 9% compared to the same period in 2010-2011. Moreover, over the past 10 years, gas consumption exceeded the growth rate of its production by 3-5.5% per year. ...
It is characteristic in this regard that the potential volume of gas savings due to energy-saving technologies - 100 billion cubic meters per year - is approximately 80% of the volume of average annual supplies of Central Asian gas to Russia.
As for the trends in gas production itself, it is stagnating: in recent years, its level has remained mainly in a "falling" mode, although the industry's dependence on gas exports is growing.
Considering the gas industry in the Kaliningrad region, the following trends can be noted. At present, 15 out of 22 municipalities in the Kaliningrad Region have been supplied with gas. The construction of gas networks is carried out within the framework of the Federal Target Program (FTP), the Gazprom Program and the Regional Investment Program.
Supply of natural gas to the territory of the Kaliningrad region. is carried out through the main gas pipeline Minsk - Vilnius - Kaunas - Kaliningrad.
- commencement of work under the FTP to expand the existing capacities of the Minsk - Vilnius - Kaunas - Kaliningrad gas pipeline to ensure gas supply in the amount of 2.5 billion cubic meters 3/ year due to the fact that currently throughput the specified gas pipeline cannot cover the promising volumes of gas consumption in the region.
Natural gas is supplied to the Kaliningrad Region via the Minsk-Vilnius-Kaunas-Kaliningrad gas trunkline. As part of the FTP, in 2010, the reconstruction of the gas pipeline was completed to expand existing capacities and ensure gas supply in the amount of 2.5 billion cubic meters. m.
The volumes of natural gas consumption in 2007-2011 are shown in Table 10.
Table 10 Volumes of natural gas consumption in the Kaliningrad region for 2007-2011 (billion cubic meters)
No. Years 200720082009201020111 Consumption volumes1,211,251,211,382.05
Within the framework of the federal target program, measures for the gasification of cities and districts of the Kaliningrad region are financed from budgetary funds. In 2011, work is being carried out on the territory of 15 municipalities of the Kaliningrad region.
On the territory of the Kaliningrad Region, the Gazprom Program for the Gasification of the Kaliningrad Region is being implemented. The total length of gas networks to be built during the second stage said program, will be 210 km. Gasification of Zelenogradskiy district, Krasnoznamenskiy, Nemanskiy, Guryevskiy municipal districts, Yantarny urban district continues.
The following investment projects for gas supply are being implemented at the expense of the attracted funds under the FTP in 2011-2013:
ensuring gas supplies in excess of 2.5 billion cubic meters. m per year due to the commissioning of a terminal for receiving liquefied gas (LNG) in the Kaliningrad region and a gas pipeline to connect the terminal to the systems of main gas pipelines (responsible JSC Gazprom);
construction of an underground gas storage facility (UGS), bringing the storage volume up to 80 million cubic meters. m (person in charge of OAO Gazprom);
commissioning of the surface operational complex of the Kaliningrad UGS facility with erosion of tanks up to 230 thousand cubic meters. m (responsible for OAO Gazprom).
Let's consider the main segments of gas consumers (see Table 11). The consumption of natural gas by the population is growing rapidly, while the level of retail gas prices for the population remains significantly lower than for other categories of consumers.
Table 11 Structure of gas consumption in sectors of the national economy
No. Name of the industry Consumption, billion cubic meters of total consumption,% 1Electricity140.6392Metallurgical28.67.93Agrochemical industry17.84.94Agroindustrial complex10.12.85Petrochemical industry6.11.76Community and household facilities30.88.511Population41.75 023.6 Russia total 360.7 100
Let us analyze the influence of macroenvironmental factors (see Table 12.)
Table 12 Analysis of the influence of macroenvironmental factors
No. Factors Influence on the development of the industry 1. Russia's accession to the WTO Bringing the entire infrastructure of the economy, including construction, in line with international requirements 2. Geographical location of the Kaliningrad region Location in the center of Europe, as international relations develop, will lead to construction using new technologies and architecture. 3. Legislation on the special economic zone Benefits of the special economic zone in the Kaliningrad region contribute to an increase in the investment attractiveness of the region and, accordingly, the development of large investment projects. 4. Participation in the regional government of representatives of real business Knowledge of the economic development of business and the availability of practical experience of representatives of regional authorities will contribute to the more active development of modern infrastructure of the economy. region. 5. Political support of the region. Effective and timely implementation of the Federal targeted programs 6. The introduction of new technologies in the development of construction organizations High requirements for construction will lead to the need for industry enterprises to use new modern technologies that require significant investments and high competencies. 7. An increase in environmental requirements for activities Will lead to the necessary implementation of new progressive construction technologies and repair of buildings and structures. 8. The state of the labor market. The level of requirements for specialists will increase, there will be a need for professional retraining. 9. Consequences of the global economic crisis.
Let us characterize the external environment of enterprise development using PEST analysis (see Table 13).
Table 13 PEST Analysis Matrix
POLITICAL FACTORS · taking measures to improve the socio-economic situation of the Kaliningrad region · development of partnership and cooperation with NATO within the framework of the Founding Act on Mutual Relations, Cooperation and Security · Participation of Kaliningrad in the international project "Sustainable Urban Development" · Stricter requirements, the need to join an SRO · Due to the consequences of the crisis, there was a sharp decline in the construction industry · The investment climate in the industry is not conducive to business development. · The effective demand of the city's population is falling and is currently not supported by borrowed funds · The end customer becomes more demanding of the quality of services SOCIOCULTURAL TRENDS TECHNOLOGICAL INNOVATIONS · Demography: the growth of the population of the city and region began · State support for the poor, military and young people · Cash incomes of Kaliningraders are gradually increasing · Media Introductions: Information on the Government's Commitment to Support Domestic Products · improvement of production technology: domestic cars began to be produced according to Western technologies · Research Funding: Government Support to the Construction Industry · Substitution technologies / solutions · The maturity of technology · Change and adaptation of new technologies · Production capacity, level · Information and communication, the impact of the Internet
In general, the influence of the external environment on the activities of Kontur LLC can be characterized as quite strong, the greatest influence on the company is exerted by political and economic factors.
2.4 Analysis of the internal environment
The enterprise plans and performs direct production activities based on service orders and concluded contracts.
The company has developed and maintained in working order documented procedures that allow analyzing orders before the start of their execution and coordinating this activity with the customer.
The order (including design and technological changes to it) is analyzed in order to:
- the customer's requirements were fully understood and documented;
- all possible contradictions between the customer's requirements, the requirements of the regulatory documentation for the products, the capabilities of the enterprise were identified in advance and resolved with customers before the start of their implementation;
- all special or distinctive requirements for which it is necessary to plan in advance the development of processes, operations and ensure technical means for their implementation, control and testing;
- the company was confident in its ability to fulfill all the requirements of the order.
Based on the results of the analysis of the quality management system of OOO Kontur, it is possible to identify its strengths and weaknesses (see Table 14).
As a result of the analysis of the quality management system, the following elements have been identified that have potential for improvement:
- quality management policy;
- involvement of employees in quality control,
- design and implementation of a process for the systematic assessment of customer satisfaction;
- setting up a monitoring system for quality management work.
Table 14 Strengths and weaknesses of the quality management system of LLC "Kontur"
Strengths Weaknesses - the existence of the objectives of the quality management system; - management is aware of the need for quality management; - there is a feedback from the customer; - absence of a quality management policy; - the goals of the enterprise in the field of quality management are not communicated to all employees; - there is no systematic assessment of customer satisfaction; - internal communications are not fully debugged.
Let's characterize the marketing activities of the enterprise. Marketing Activity LLC "Kontur" aims to establish, reasonably enough, based on market demands, specific current and mainly long-term (strategic) goals, ways to achieve them and real sources of resources for economic activity; determine the range and quality of products, their priorities, the optimal production structure and the desired profit. In other words, the manufacturer is called upon to produce such products that will find a sale and will bring profit. To do this, you need to study social and individual needs, market demands as necessary condition and the background of the operation. Therefore, the understanding is deepening that activity begins not with exchange, but with consumption. This concept has found its embodiment in the marketing of the Kontur LLC organization.
In general, for 2009-2011, marketing research was carried out to analyze the state of the product market and the following was revealed:
market conditions force consumers to pay attention to the quality and cost of products;
the technical and professional level of LLC "Kontur" allows the development and sale of new types of products that meet the needs of the customer;
The search for products that provide effective demand, an increase in sales and, as a result, an increase in the mass of profits, continues.
The share of sales through the sales and commercial department has increased (that is, products intended for consumer market) in the total volume of proceeds from the sale of products.
Thus, the impact of marketing on economic activity LLC "Kontur" is growing, which at the moment has only a positive character.
For Kontur LLC, the trend towards an increase in the value of price marketing increases under the influence of a change in the structure of sales of commercial products towards an increase in the share of goods intended for the consumer market, where price competition especially great.
The firm's pricing policy is as follows:
the price should cover all costs;
the price should be high enough due to the uniqueness of the product;
the price is set on a contractual basis and may contain certain benefits.
A fragment of the price list is given in Appendix 3.
Tags: Development of a competitive strategy for the enterprise (on the example of Kontur Term LLC) Diploma in Management
INTRODUCTION 3
CHAPTER 1. THEORETICAL BASIS OF DEVELOPING A COMPETITIVE STRATEGY OF A TRADING ENTERPRISE 6
1.1. The concept and essence of competitive strategy 6
1.2. Factors Influencing the Competitive Strategy of a Trade Enterprise 12
1.3. Principles for developing a competitive strategy commercial enterprise 18
1.4. Competitive strategies in the modern market and methods of ensuring the competitiveness of a trading enterprise 21
CHAPTER 2. ANALYSIS OF THE COMPETITIVE STRATEGY OF A TRADING ENTERPRISE ON THE EXAMPLE OF LLC "BALTTERM" 30
2.1. Characteristics of the activity of LLC "Baltterm" 30
2.2. Analysis of the main technical and economic indicators of Baltterm LLC 31
2.3. Assessment of the competitive advantages of Baltterm LLC 38
2.4. SWOT-analysis LLC "Baltterm" 57
CHAPTER 3. DEVELOPMENT OF A COMPETITIVE STRATEGY LLC "BALTTERM" 61
3.1. Proposals for the formation of strategic competitive advantages of BALTTERM LLC products 61
3.2. Efficiency Score 64
CONCLUSION 69
LIST OF USED SOURCES AND REFERENCES 72
APPENDIX 76
INTRODUCTION
Relevance of the research topic. Trade services occupy a leading place in the country's economy. The modern development of trade in Russia is characterized by stable growth rates. In recent years, competition in this area has noticeably increased, which is caused both by internal factors of trade development and by the active penetration into the Russian market. foreign companies and imported products. In the current conditions, the issues of ensuring the competitiveness of trading enterprises of various formats are of particular importance, since the success of an economic entity directly depends on achieving a high level of competitiveness and the implementation of competitive approaches that ensure its long-term stable position in the market.
Ensuring the competitiveness of trade enterprises is largely determined by the formation of competitive strategies adequate to the conditions of the markets being served.
In order to ensure the survival of the enterprise in modern conditions, the management personnel must, first of all, be able to realistically assess the competitiveness of both their enterprise and existing potential competitors. In this regard, the development of a competitive strategy for a trading enterprise is of particular relevance.
Competitive strategy is a management position that an enterprise chooses for its strategic development. Therefore, the main task of developing a competitive strategy is to identify business methods and methods that are aimed at attracting buyers, competing and strengthening the market position.
Based on the theory and practice of developing a competitive strategy and the formation of the competitiveness of modern firms, the following contradictions can be distinguished, requiring resolution and characterizing the state of the phenomenon under study at various levels:
Socio-managerial nature: on the one hand, the development of a competitive strategy and an increase in the competitiveness of an enterprise is a necessary and mandatory condition for ensuring and maintaining financial stability at the proper level, and on the other hand, the unstable financial condition of an enterprise does not allow successfully solving the problem of competitiveness. Maintaining the required level of competitiveness and financial stability of the enterprise requires the full use of numerous internal and external factors of development;
Scientific and theoretical in nature: on the one hand, there are scientifically grounded strategies for increasing the competitiveness of the company, and on the other, they are not sufficiently implemented in the management practice of modern organizations.
Based on the analysis of the relevance and contradictions, the research problem is formulated, which consists in the formation of special actions (events), and the development of a competitiveness strategy for a modern trading enterprise, which will advantageously distinguish this trading enterprise from competitors, that is, to increase its competitiveness.
The need to resolve the above contradictions led to the choice of the research topic - "Development of a competitive strategy of a commercial enterprise."
Purpose of the study is to develop a competitive strategy for a trading company.
Object of study- competitive strategy of Baltterm LLC.
Subject of study- the process of developing a competitive strategy at Baltterm LLC.
In accordance with the goal, the following were set and resolved in the work. tasks:
to study the basics of the theory of the competitive strategy of an enterprise, as well as the factors affecting its competitiveness;
analyze the main indicators of the competitiveness of the enterprise;
explore the methodology for developing competitive strategies and the process of forming strategies for a trading enterprise;
to characterize the current state of activity of Baltterm LLC, revealing negative and positive tendencies;
to study the competitive environment of Baltterm LLC as a basic element for developing a competitive strategy for a trading enterprise;
develop a competitive strategy for Baltterm LLC.
The theoretical basis of the study was the ideas and provisions in the field of strategic management of G.A. Azoeva, A.L. Chelenkova, I.A. Ketova, M.I. Knysh, R.A. Fatkhutdinova, M. Porter, A. Yu. Yudanov and others.
The balance sheet for 2010-2012, the organizational structure of the enterprise, the staffing table of the enterprise, statistical data on the development of the heating equipment market in Kaliningrad for 2010-2012 served as the sources of information for the study of the competitiveness of the Baltterm LLC enterprise.
The thesis project consists of an introduction, three chapters, a conclusion, annexes, a list of used sources and literature.
Development of a competitive strategy
The development of a competitive strategy implies a set of areas in which the development of the enterprise will be carried out. The development of the strategy was preceded by an analysis of the internal and external environment of the company. Analysis of the internal environment showed that the company has certain opportunities for development, the potential for increasing production and sales. Analysis of the external environment showed that the market is unsaturated, while it is still in the growth stage, but the growth rate is already declining, and the sales volume is approaching its peak.
Optimization of strategic management... One of the ways to improve the strategic management of IKEA DOM LLC is to integrate the balanced scorecard with strategic planning and the budgeting process. Most businesses use the budget as their primary management system for setting goals, allocating resources, monitoring and summing up. However, most companies argue that budgeting and analysis of results occurs in isolation from the strategic planning process. In organizations where the budget is the primary control, the focus of managers is still shifted to short-term financial goals.
Budgeting is more suited to solving operational tactical issues, and is not intended for strategic management. The development strategy of the enterprise cannot be controlled in the short term. At the same time, the organization's budgeting process is not linked to strategic goals. As a result, a gap is formed between strategic and operational management, which hinders the implementation of the company's strategic goals and slows it down. long term development... There is a need to create a link between strategic planning and budgeting and to combine these two concepts in unified system... The best-developed balanced scorecard concept should be used as this link.
Today, when strategy is the most important guarantee of a company's success, the balanced scorecard has become an innovative strategy management system. However, it must be tied to the old budget in order to manage the tactics. This is 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 can do without a programmatic approach to determining their composition, regardless of its size, specialization, type, form of ownership. These tasks include the following:
1. Improving the company's performance. To accomplish this task, it is necessary to carry out the following activities:
Increase in sales volumes, which will lead to an increase in the efficiency of the company and an increase in financial indicators;
Organization of market promotion to increase demand and increase sales volumes;
Construction of new production units, which will lead to an increase in the share of the occupied sales market and an increase in profits.
Increase in cash Money in the organization to accelerate
asset turnover;
Rationing the level of raw materials in accordance with the turnover, which will lead to the financial stability of the organization;
An increase in the turnover of working capital, which will lead to an increase in turnover, thereby ensuring an increase in profits;
Optimization of administrative expenses.
2. Increase in sales of products and their promotion in the market.
To accomplish this task, it is necessary to carry out the following activities:
Formation of a marketing department at the enterprise for conducting marketing research on the market and tracking its development trends;
Study of demand, construction of new production units in accordance with demand;
Search for the most profitable suppliers of products to reduce distribution costs and ensure security of supply.
When analyzing the management system of IKEA DOM LLC, the optimal strategy for the further development of the company was determined. It consists in gaining a larger market share by optimizing and expanding the range. This strategy is a strategy concentrated growth companies. The main goal for the company in achieving 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 by divisions and by the company as a whole;
3) the possibility of transforming strategic goals into specific action plans with quantified budget and non-financial indicators;
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 the performance and the degree of achievement of the set goals.
It is worth starting with the fact that in the process of developing a balanced scorecard, organizations often see their own planning process as follows:
Strategy -> Initiatives -> Indicators
In this process, businesses often forget that initiatives are a means, not an end. The entire planning process should be reversed. Strategy is not a tool for managing initiatives. Strategic planning based on a balanced scorecard should be carried out in the following order:
Strategy -> Objectives -> Indicators -> Objectives -> Initiatives
The final stage of this process will be the budgeting process, which involves the cascading of the strategy and the parameters of its initiatives to the level of the enterprise budget. In its general scope, this strategic planning scheme is clearly an innovative model of strategy and budget consolidation, where a balanced scorecard acts as a connecting link.
The implementation of the above scheme should, first of all, begin with the process of formalizing the strategy, which will allow defining a set of goals within the five perspectives of the balanced scorecard. In this case, the author singles out an additional, separate block of the balanced scorecard - the "innovation" block. To set goals, you need to answer a series of questions that each perspective contains:
1) Finance: what goals should be set based on the financial expectations of investors and shareholders?
2) Customers: What are the goals that will increase customer satisfaction and achieve financial goals?
3) Business processes: what goals need to be set in order to improve the internal business process of the enterprise and ensure the achievement of goals in the client and financial perspective of the BSC?
4) Innovation: what goals should be set in order to increase customer value, bypass competitors or even create a "blue ocean" - ideas and markets that avoid competition, market creation in the market, innovation strategy?
5) Learning and development: what goals will contribute to the creation of infrastructure and increase the level of education in the organization in accordance with the chosen strategy?
Allocation of strategic goals based on 5 perspectives of a balanced scorecard is not enough. By following this selection, a huge list of goals can be drawn up to focus on. 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) on the basis of the basic strategic orientation of the company, developed during the creation of the strategy, the possible areas of the company's activity in 5 perspectives are determined;
2) for each area of activity, options for actions are established that will contribute to the implementation of the strategy;
3) streamlining and structuring options for action, differentiating them directly into goals and possible strategic measures, and further dividing them into operational and strategic goals.
Ideally, each strategic goal should be described by only one indicator. If this cannot be achieved, then in order to reduce the complexity of the system being developed and focus on key aspects, it is recommended to limit ourselves to a maximum of three indicators for each strategic goal.
The result of this stage should be the documentation of the target values of the 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 define the tasks and activities that ensure the achievement of the specified values of the indicators. These tasks must fully correspond to the chosen strategy, must be clearly formulated and feasible. The criterion of the "feasibility" of the task plays an important role, since the setting of difficult or completely impossible tasks in advance will lead to a waste of financial and human resources.
Tasks should be set that are not interconnected with each other, otherwise the implementation of one task will affect the other, which will lead to a distortion of the actual results achieved.
After setting the tasks, the question arises of defining strategic initiatives, which are a set of specific programs, plans, projects that must be carried out to implement the set strategic goals. At the beginning of the process of defining 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, it is far from always enough current projects carried out at the enterprise. Additional work is needed to develop proposals for additional activities necessary to achieve the strategic goals of the company.
This is followed by the 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 highlighting those projects among them that require priority implementation.
After identifying and approving the initiatives, it is necessary to create project groups and form budgets. An organization can fail in putting strategy into practice precisely because the necessary human and financial resources not only are not reflected in the budget, but the very formation of the budget takes place in isolation from the planning process. As a result, the implementation of these initiatives spends the time of the enterprise personnel engaged in completely different tasks, and resources are spent from operating budget, which is not designed for this at all. If an organization is strategy-oriented, it should separately include in its plans and budgets the human and financial resources dedicated to strategic initiatives and manage them as a separate area.
Returning to strategic initiatives, the issue of assessing their significance and feasibility remains acute. When assessing the importance 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. Such an approach will allow discarding unnecessary initiatives and, thereby, freeing up human and financial resources.
A balanced scorecard as a means of selecting initiatives has the following advantages:
It provides an opportunity to prioritize and identify those initiatives that contribute to the achievement of strategic goals, taking into account changes in the market;
Correctly allocates and saves human and financial resources to achieve the assigned tasks;
Among other things, projects, the goal of which is defined as improving existing processes and capabilities, according to the author, should be rejected. It is necessary to consider only those of them that contribute to the achievement of the company's goals and the creation of new opportunities, i.e. have a strategic focus.
As a result, the definition of balanced key performance indicators, an action plan with the planned values of target indicators allows you to go to the creation of enterprise budgets and link 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 should 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 of the financial parameters can be established through a system of indicators, on the basis of which strategic measures were developed.
You can project the balanced scorecard to the budget level as follows:
· financial indicators are directly projected from the BSP into the budgets;
· Indicators that measure the characteristics of the functioning of business processes are transferred to the budgetary contour, as they identify the factors influencing the formation of budgets (leading indicators);
· Indicators reflecting the implementation of strategic initiatives are transferred to the 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 strategic initiatives in the company. This system will allow not only to analyze strategic measures 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 conduct scenario analysis, in addition, the process of agreeing budgets will be more grounded.
In order to expand the consumer audience, use new distribution channels and reduce the cost of selling furniture, LLC IKEA DOM, it is advisable to use e-commerce tools, the main of which is the online store.
Depending on the functions performed, electronic stores are subdivided:
Electronic showcase. It is a specialized site that hosts an electronic catalog of goods. Communication between buyer and seller can be carried out through Email, telephone conversations. The peculiarities of this type of stores include the uncharacteristic nature of automatic checkout and mechanisms for accepting electronic payments. The advantages of an electronic storefront include:
1. The trade structure does not change;
2. Low cost discoveries;
3. New buyers.
The disadvantages include:
1. Inconvenience for buyers (requires additional steps);
2. Possibility of the absence of a positive effect on the activities of the organization.
Automated store. Contains an electronic catalog, a shopping cart for buyer's orders, additional attributes.
The online 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, commodity flow). One example is the online store Enter, which combines elements of both online and offline sales, including furniture. The peculiarities of creating a furniture online store should include, firstly, the desire of the consumer to "touch" the furniture, to see it. Replacement of defective goods is becoming an important problem.
The creation of an online store is associated with the costs of the enterprise, which can be divided into pre-launch, start-up and operational costs. Pre-launch costs include:
The cost of drawing up a business plan. These are the costs of researching the target market, its segmentation, definition of the consumer and his needs. In a large enterprise that has marketing databases in offline retail, as a result, the cost of drawing up a business plan can be reduced.
Start-up costs include:
The cost of opening an online store.
This cost item is formed by the requests of the customer's organization. Development can be carried out at the expense of your own resources and by a specialist, using templates and installations of Joomla, Magento, WordPress - from $ 10 for installing the store and templates. Registration of a site address (domain) from 8… 15 $. Purchase of a package of services for site maintenance (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 site should become a new sales channel, therefore, a special role in the development should be given to design and to provide corporate services in the most understandable form. Based on the above listed costs, the budget for creating an online store can vary from $ 1,000 to $ 50,000. Operating costs include:
Employee salaries.
Other costs.
When talking about efficiency, online stores use conversion concepts. 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.
The creation of an online store is advisable only with a stable coverage of pre-launch, start-up and operating costs with income from the sale of goods. In this regard, it is advisable to calculate not only the ways of generating income, but also the required volumes, identifying the factors that determine the latter. It was found that the most significant factors that determine the effectiveness of online stores are:
The popularity of the online store, which is determined by the number of visits to the website (conversion).
Average check (average price of one order).
Channel profitability.
Knowing these factors, you can determine the comparability of the online sales channel with the traditional sales channel.
Introduction 3
Chapter 1. Theoretical foundations for developing an enterprise competition strategy 5
1.1. The essence and types of competition strategies 5
1.2. Rationale for the choice of a competition strategy 11
Chapter 2. Analysis of enterprise competition (on the example of ZAO "PPRZ") 15
2.1. a brief description of CJSC "PPRZ" 15
2.2. Analysis of the competitive position and competition strategies of CJSC "PPRZ" 21
Chapter 3. Improving the competition strategy of CJSC "PPRZ" 28
Chapter 4. Economic efficiency proposed activities 32
Conclusion 36
References 38
Introduction
In the context of development market economy Of particular importance for the successful functioning of an enterprise are the issues of forming a new competitor, identifying, developing and creating prerequisites for the sustainability of competitive advantages, and choosing the right form of competitive behavior. The very concept of competitive advantage has now become especially relevant, as the growth of companies around the world has slowed down, and the behavior of competitors is becoming more and more aggressive.
The main thing was not just to achieve and identify a competitive advantage, but to make it sustainable. Competitive advantage is those characteristics, properties of a product that create a certain superiority for an enterprise over its competitors, and for a consumer - an optimal combination of consumer characteristics of a product. Excellence is assessed by comparison, therefore it is a relative characteristic and is due to various factors.
For successful activity, an enterprise needs to develop a correct strategy of competition based on its competitive advantages, which makes the study of forms of competition in modern conditions actual.
The importance of strategic behavior that allows a firm to compete in the long term has grown dramatically in recent decades. All companies in a highly competitive, rapidly changing situation must not only focus on the internal state of affairs in the company, but also develop a long-term survival strategy that would allow them to keep pace with the changes taking place in their environment. Now, although the task of rational use of potential in current activities is not removed, it becomes 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 uniform for all companies, just as there is no single universal strategic management. Each firm is unique in its own way, and the process of developing a competitive strategy for each firm is unique, since it depends on the firm'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 study and application of methods of competition in the management of the company is increasing. This is what determined the choice of the topic of the term paper.
The object of the study was CJSC "Perm spring-spring plant".
Target course work consists in the analysis of the competitive properties of ZAO "PPRZ" and the development of a competition strategy for it. This goal determined the formulation of the following research tasks:
1. Consider the theoretical foundations of the development of an enterprise competition strategy; describe the main types of competition strategies and justify the choice of a competition strategy;
2. Analyze the competitive position and competition strategies of CJSC “PPRZ”;
3. Propose directions for improving the competition strategy of CJSC “PPRZ”;
The structure of the work corresponds to the tasks set.
Chapter 1. Theoretical foundations of developing an enterprise competition strategy
1.1. The essence and types of competition strategies
Competition - (from Lat. Concurrere - to collide) - the struggle of independent economic entities for limited economic resources. it economic process interactions, interconnections and struggles between companies entering the market in order to provide better marketing opportunities for their products, meeting the diverse needs of customers.
In the marketing system, a company operating in the market is considered not by itself, but taking into account the entire set of relations and information flows connecting it with other market participants. Conditions environment, in which the firm operates, it is customary to call the marketing environment of the firm. F. Kotler defined the marketing environment of a firm as follows: The marketing environment of a firm is a set of active actors and forces acting outside the firm and affecting the ability of the marketing management to establish and maintain relationships of successful cooperation with target customers.
A strategy is a long-term action aimed at achieving the set objectives. Implementation of a strategy is a set of actions that contribute to increasing business activity in the organizational and financial spheres, developing a company's policy, creating a corporate culture and motivating personnel, managing everything that is aimed at achieving the intended results.
Competition strategy is a set of specific steps and approaches that a firm takes or is about to take in order to successfully compete in a given industry.
For the first time, business faced the problem of strategic planning in the context of the 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 during such periods, as never before, it becomes obvious where huge resources were wasted, which will never give the expected effect. Then the competition intensifies to the limit, the winner from which is the one who will be able to achieve great competitive advantages - advantages not over competitors, but advantages in relation to the consumer.
Competitive advantage - the assets and other merits of a firm that give it an edge over its competitors. Competitive advantages must ensure brand uniqueness and meet 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.
The conquest and preservation of competitive advantages is, as you know, the key function of the strategic management of an enterprise. It is especially important to achieve advantages in saturated markets, where demand is met by many suppliers.
According to the researcher of competition F. Kotler, a firm can play one of four roles in a competitive struggle. Marketing strategy is determined by the position of the company in the market, whether it is a leader, contender, follower, or occupies a certain niche:
1. The leader (market share of about 40%) feels confident.
2. Contender for leadership (about 30% market share). Such a company aggressively attacks the leader and other competitors. As part of special strategies, an applicant can use the following attack options:
· "Frontal attack" - carried out in many directions (new products and prices, advertising and sales - competitive advantages), this attack requires significant resources.
· "Encirclement" - an attempt to attack the entire or significant market territory of the market.
· "Bypass" - a transition to the production of fundamentally new goods, the development of new markets.
· "Gorilla attack" - small impetuous attacks not entirely correct methods.
3. Follower - (20% share) a company that strives to maintain its market share and get around all the breaks. However, even followers must adhere to strategies aimed at maintaining and increasing market share. The follower can play the role of a copycat or a doppelganger.
4. Entrenched in a market niche - (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 particular competitive advantages, except that large firms do not see them as competitors and do not "pressurize" them.
The task of 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 analysis of competition is an important part of strategy formulation.
M. Porter identified five forces of competition that determine the level of profit in the industry. It:
Penetration of new competitors;
The threat of appearance on the market of substitute goods produced using a different technology;
Buyers' opportunities;
Supplier capabilities;
Competition between companies that have already established themselves in the market.
Competitive strategies (business strategies) derive from an understanding of the rules of competition that operate in the industry and determine its attractiveness. The goal of a competitive strategy is to change these rules in favor of your company. Competition rules can be represented as the five forces of competition shown in the figure
Rivalry, according to Porter, arises when one or more competitors are experiencing difficulties or see opportunities to improve their position. The intensity of competition can range from polite gentlemanly uniforms to the most violent throat-cutting techniques.
Porter notes a number of the following factors that determine the intensity of competition:
a large number of competitors or the approximate equality of their forces;
slow growth of the industry;
high level fixed costs in the form of overheads or the cost of inventories;
no differentiation (no conversion costs);
quantitative leap in capacity;
various kinds of competitors;
high strategic importance;
high exit barriers.
By general strategies, Porter means strategies that have universal applicability or are derived from some basic postulates. In his book "Competition Strategy" M. Porter presents three types of general strategies aimed at increasing the competitive advantage of the company. A company that wants to create a competitive advantage for itself must make a strategic choice so as not to “lose its face”.
There are three basic strategies for this:
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To develop competitive strategy for the enterprise "SladKo". Chapter 1. Theoretical Foundations development strategy firms Development of strategy Strategy- ... be the most important parameters for developing competitive strategy), as well as opportunities and ...
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