Postgraduate Student at the Management Department of Kyiv National University of Technologies and Design
Doctor of Technical Sciences, Professor of Kyiv National University of Technologies and Design
ECONOMIC CAPACITY AS A FACTOR OF COMPETITIVE STATUS OF AN ENTERPRISE
Background. Enterprises to assess their activities continue to use only standard techniques of financial analysis based on the calculation of various ratios of financial stability, solvency, etc. Many businesses have gained valuable information about their industrial and economic activities, but leaders and managers usually do not know how to use this information in the preparation of strategic management decisions.
The aim of the article. Development of tools for assessment of the economic capacity of the company that will quickly identify the internal capabilities and weaknesses of the subordinate entity and identify hidden reserves in order to improve its efficiency.
Materials and methods. The information base of the article are regulations, decrees of the President of Ukraine and the Cabinet of Ministers of Ukraine , ministries and other central executive authorities on the chosen topic, proceedings of the conferences and roundtables, methodological publications, electronic network of Internet resources and work with scientists on chosen sphere.
During the research the following methods were used: dialectic, deduction, induction, structural and logical analysis - to study and summarize the theoretical foundations of the development of the strategy of increasing competition status, specification of the conceptual apparatus, the formation of scientific and methodological approaches to the task; complex, systematic and process approaches; economic and mathematical, economic and statistics – in solving optimization problems in management and others.
Results. The economic capacity of the enterprise is an indicator that shows the ability of the company to use economic potential to achieve its goals and gain advanced status in the market. Each manufacturing process begins with product planning, which includes the calculation of the cost of raw materials and production – all these are components of the potential of the company. The price of the materials and the production of goods or services has a significant impact on the company’s ability to produce a particular product, so the lower the cost, the more opportunities the company has to implement its potential. Since the potential of the company is determined directly by the component of economic capacity, cost reduction will significantly influence its level.
Conclusion. Competitive status of the company largely depends on the economic capacity, which, in turn, consists of two factors: economic potential and competitive capacity of enterprises. The paper proposed to increase the economic capacity of the enterprise, and as a result, its competitive status, by reducing costs and by Kaiser and target costing. It also gives guidelines for achieving economic capacity – this will further determine the level of competitive status of the company.
Keywords: competitive status, economic ability, cost, potential enterprise competitive potential of the company.
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