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by Anastasiya Pronina
Group: МЕК-09-1
Scientific consultant: Ph.D. in
Economics: G.Y.Hluha
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.
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”.
• 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.
Overall system of managing enterprise’s competitiveness
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
Increasing enterprise’s
competitiveness,
strengthening
competitive position on
the global and domestic
market, ensuring
sustainable
development
System approach to
production diversification
and planning
Reorganization of corporate
accounting and analysis
system
Improving corporate financial
management
Informational provision of
corporate management
system
Factors of internal environment
Factors of external environment
Choosing competitive
strategies of development
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.
Geography of mining equipment supplies
Analyses of production
Products Range
1. Equipment for metalworking industry
2. Equipment for mining and press forging
3. Rolls and power equipment
4. Metal production
TOTAL:
Analyses of market capacity
Percentage of
turnover
42
34,6
20,4
3
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%)
Producers
1. CJSCNKMBP
2. ОМZ (Russia)
3. BEML (India)
4. P&H (USA)
TOTAL:
Sales,
thousand UAH
3181918
1216207
2836714
3679762
7732683
Market share, %
29
11
26
34
100
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%)
Analysis of competitors
The main competitors
Their strengths and weaknesses
1 P&H
2 BEML
3 ОМZ
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 competitors
Mergers and acquisitions, «peaceful interference», «soft influence»
Actions according to strategies of
competitors
Potential competitors
Improving production technologies and own strategies
Stability of enterprises
Market share of competitors
Stable position of enterprises
71% market share
Chinese producers
Trends in the evolution of new types of highly organized
enterprises. Stages of organizational development
Innovative model of accelerated evolutionary development of CJSC NKMBP
From the best highly organized production – to the best
servicing
Stage IV
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.
From the best production – to better
service and distribution
World class elite
enterprise
WCO – world class
organizations
Intellectual organizations
practicing self-education
Organizations acquiring
experience
TQM –
Total quality
management
ISO 9000
1985
1990
TQM
MS ISO 9000:2000
Stage III
Stage II
High level of enterprise’s intellectual
(scientific) potential. High level of
personnel’s competence. High level of
creativity, commitment, selfimprovement, professional growth,
creating new values, improving efficiency
in all areas of enterprise’s activities,
overall corporate culture, a high standard
of workers’ living.
Stage I
Process-oriented organization
1995
2000 2003 2005 2010
Period
High level of management and
organization of production. High level of
production and labor efficiency. High
level of employees’ well-being
2015
High level of product, production and
labor quality. Improvement of corporate
culture. Improving labor efficiency and
welfare of workers.
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.