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By Anastasiya Pronina Group: МЕК-09-1 Scientific consultant: Ph.D. in Economics: G.Y.Hluha.

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Presentation on theme: "By Anastasiya Pronina Group: МЕК-09-1 Scientific consultant: Ph.D. in Economics: G.Y.Hluha."— Presentation transcript:

1 by Anastasiya Pronina Group: МЕК-09-1 Scientific consultant: Ph.D. in Economics: G.Y.Hluha

2 PECULIARITIES OF THE FORMATION AND IMPLEMENTATION OF ENTERPRISE’S INTERNATIONAL COMPETITION STRATEGY ANALYSIS OF COMPETITIVENESS OF CJSC “Novokramatorsk machine-building plant” WAYS OF INCREASING ENTERPRISE’S COMPETITIVENESS LABOR PROTECTION AT ENTERPRISE.

3 Main tasks: * to define the concept of competitiveness and factors affecting its level; * to study the methodology for assessing enterprise’s competitiveness; * to analyze factors affecting competitiveness’ increase; * to calculate the key financial indicators of the company and to assess them; * to analyze the activities’ results, including revenue and profitability; * to characterize the main competitors of CJSC “Novokramatorsk machine-building plant” at the foreign markets and to determine the position of the enterprise among them; * to make recommendations on improving the enterprise's competitiveness and to substantiate them in terms of Economics. Object of research: peculiarities of competitiveness increase, the basic elements and indicators of enterprise’s effective functioning on foreign markets on the example of CJSC “Novokramatorsk machine-building plant”.

4 The main task of studying the problems of enterprise’s competitiveness consists in determining the criteria, as well as in finding the sources and factors of competitiveness. Study of competitors and the conditions of competition in the industry are necessary for an enterprise, first of all, for determining its advantages and disadvantages as compared to competitors and making conclusions for developing their own successful competitive strategy and maintaining their competitive advantage. Determining the competitiveness is essential for any business entity.

5 Increasing enterprise’s competitiveness, strengthening competitive position on the global and domestic market, ensuring sustainable development Choosing competitive strategies of development System approach to production diversification and planning Reorganization of corporate accounting and analysis system Improving corporate financial management Achieving managerial synergy in the system of corporate management Reformation of the personnel management and labor motivation system A comprehensive approach to improving the quality and competitiveness of products Informational provision of corporate management system Factors of external environment Factors of internal environment Overall system of managing enterprise’s competitiveness

6 CJSC “Novokramatorsk machine-building plant” is the leader in the heavy industry of Ukraine and one of the largest enterprises of heavy industry on the European continent. Today the plant specializes in manufacturing a wide range of goods and providing services for both domestic and numerous foreign consumers.

7 Geography of mining equipment supplies

8 Products Range Percentage of turnover 1. Equipment for metalworking industry Equipment for mining and press forging 34,6 3. Rolls and power equipment 20,4 4. Metal production 3 TOTAL:100 The largest percentage of turnover belongs to equipment for metalworking industry (42%), the second highest – equipment for mining and press forging (34.6%), the third – rolls and power equipment (20.4%), the fourth – metal production (3%) Analyses of production ProducersSales, thousand UAH Market share, % 1. CJSCNKMBP ОМZ (Russia) BEML (India) P&H (USA) TOTAL: Analyses of market capacity The largest market share belongs to P&H (34%), the second biggest share – to CJSC “Novokramatorsk machine-building plant” (29%), the third – to BEML (India) with 26% market share and the smallest market share belong to OMZ (Russian Federation) (11%)

9 The main competitors 1 P&H 2 BEML 3 ОМZ Their strengths and weaknesses Strengths: 1.Financial resources 2.Innovation opportunities 3.Positive reputation Weaknesses: 1.High competition on European and Asian markets 2.Lack of obvious strategic directions 3.Old equipment Marketing strategies used by competitorsMergers and acquisitions, «peaceful interference», «soft influence» Actions according to strategies of competitors Improving production technologies and own strategies Potential competitors Chinese producers Stability of enterprises Market share of competitors Stable position of enterprises 71% market share Analysis of competitors

10 Innovative model of accelerated evolutionary development of CJSC NKMBP Period Trends in the evolution of new types of highly organized enterprises. Stages of organizational development High level of product, production and labor quality. Improvement of corporate culture. Improving labor efficiency and welfare of workers. TQM – Total quality management ISO 9000 Organizations acquiring experience WCO – world class organizations From the best production – to better service and distribution Accelerated evolutionary development of JSC NKMZ TQM MS ISO 9000:2000 Process-oriented organization Intellectual organizations practicing self-education World class elite enterprise High level of enterprise’s intellectual (scientific) potential. High level of personnel’s competence. High level of creativity, commitment, self- improvement, professional growth, creating new values, improving efficiency in all areas of enterprise’s activities, overall corporate culture, a high standard of workers’ living. High level of management and organization of production. High level of production and labor efficiency. High level of employees’ well-being High level of satisfaction of existing and future needs of consumers with a high level of quality and service. Mutually beneficial cooperation in the future. High economic benefit of the buyer and the manufacturer. Stage I Stage II Stage III Stage IV From the best highly organized production – to the best servicing

11 Within the framework of strategic management of business system of JSC NKMBP the following basic processes have been singled out: 1. creation of new kinds of products, management of investments, after-sale service. 2. Human resources management. 3. Technical preparation of production. 4. Products manufacturing. The use of all the above strategies predetermines the position of CJSC “Novokramatorsk machine-building plant” on the domestic and the world markets of machine-building products, allows them to acquire competitive advantages by increasing the efficiency of management and clearness of objectives and directions of activity, to allocate properly available resources between the spheres of business, to improve all subsystems of the enterprise and to harmonize its potential with the conditions of the environment.

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