by Anastasiya ProninaGroup: МЕК-09-1Scientific 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.

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 in

ternal en

vironm

ent

Overall system of managing enterprise’s competitiveness

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

Products RangePercentage of turnover

1. Equipment for metalworking industry 422. Equipment for mining and press forging 34,63. Rolls and power equipment 20,44. Metal production 3TOTAL: 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 Producers Sales,

thousand UAHMarket share, %

1. CJSCNKMBP 3181918 292. ОМZ (Russia) 1216207 113. BEML (India) 2836714 264. P&H (USA) 3679762 34TOTAL: 7732683 100

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%)

The main competitors  

1 P&H2 BEML3 ОМZ

Their strengths and weaknesses 

Strengths:1.Financial resources2.Innovation opportunities3.Positive reputationWeaknesses:1.High competition on European and Asian markets2.Lack of obvious strategic directions3.Old equipment

Marketing strategies used by competitors Mergers and acquisitions, «peaceful interference», «soft influence»

Actions according to strategies of competitors

Improving production technologies and own strategies

Potential competitors 

Chinese producers

Stability of enterprisesMarket share of competitors

Stable position of enterprises71% market share

Analysis of competitors

Innovative model of accelerated evolutionary development of CJSC NKMBP

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1985 1990 1995 2000 2003 2005 2010 2015High level of product, production and labor quality. Improvement of corporate culture. Improving labor efficiency and welfare of workers.

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

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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 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 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.

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 IVFrom the best highly organized production – to the best servicing

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.