by Anastasiya Pronina Group 09 1 Scientific consultant

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 Stability of enterprises Market share of competitors Improving production technologies and own strategies Chinese producers Stable position of enterprises 71% market share

NK MZ From the best highly organized production – to the best servicing 1985 1990 of J ent ry dev elo Stage III vol Stage I ler Process-oriented organization 1995 2000 2003 2005 2010 Period 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 management and organization of production. High level of production and labor efficiency. High level of employees’ well-being 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. ate de TQM MS ISO 9000: 2000 Stage IV Stage II uti Organizations acquiring experience ona Intellectual organizations practicing self-education pm World class elite enterprise WCO – world class organizations TQM – Total quality management ISO 9000 SC From the best production – to better service and distribution Ac ce Trends in the evolution of new types of highly organized enterprises. Stages of organizational development Innovative model of accelerated evolutionary development of CJSC NKMBP 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.