Analysis of the Operation and Financial Condition of the Enterprise
Analysis of the Operation and Financial Condition of the Enterprise
Analysis of the Operation and Financial Condition of the Enterprise
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<strong>Analysis</strong> <strong>of</strong> <strong>the</strong> <strong>Operation</strong> <strong>and</strong> <strong>Financial</strong> <strong>Condition</strong> <strong>of</strong> <strong>the</strong> <strong>Enterprise</strong>1. Theoretical aspects <strong>of</strong> <strong>the</strong> enterprise external environment <strong>and</strong>competitiveness analysis1.1. Portfolio analysis1.2. Role <strong>of</strong> competitiveness <strong>and</strong> methods <strong>of</strong> measurement1.3. Corporate SWOT analysis1.1. Portfolio analysisNowadays when <strong>the</strong>re is a strong impact <strong>of</strong> <strong>the</strong> external environment on operations<strong>of</strong> enterprises <strong>and</strong> with <strong>the</strong> economic, social <strong>and</strong> political changes affecting <strong>the</strong>ir activitiesboth in a positive <strong>and</strong> negative way, enterprise performance analysis, effective action <strong>and</strong>decision-taking is necessary for an enterprise to avoid insolvency.<strong>Analysis</strong> <strong>of</strong> <strong>the</strong> external environment is carried out in <strong>the</strong> following areas: Survey <strong>of</strong> <strong>the</strong> price dynamics for goods <strong>and</strong> services Tax rates <strong>and</strong> rates <strong>of</strong> interest on bank loan <strong>and</strong> deposits, <strong>the</strong> rate <strong>of</strong> stock issued Competition in <strong>the</strong> goods <strong>and</strong> financial markets.<strong>Enterprise</strong> performance analysis plays an important role in enterprise management.The objective <strong>of</strong> analysis, on <strong>the</strong> one h<strong>and</strong>, is to determine <strong>the</strong> efficiency <strong>of</strong> performance <strong>of</strong>an enterprise for <strong>the</strong> reporting period <strong>and</strong> against set goals, <strong>and</strong>, on <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>, toestablish <strong>the</strong> potential areas for <strong>the</strong> activities <strong>of</strong> an enterprise for <strong>the</strong> current period <strong>and</strong> in<strong>the</strong> perspective by considering <strong>the</strong> necessary material, financial <strong>and</strong> labour resources.Therefore targeted analysis has to be carried out in order to find out such opportunities <strong>and</strong>reserves <strong>of</strong> an enterprise that would ensure optimal use <strong>of</strong> <strong>the</strong> existing resources.<strong>Analysis</strong> <strong>of</strong> enterprise performance is not solely one <strong>of</strong> <strong>the</strong> management functions,but also a way <strong>of</strong> thinking for which a certain database is required. Fur<strong>the</strong>rmore <strong>the</strong> quality<strong>of</strong> analysis depends on <strong>the</strong> overall enterprise level <strong>of</strong> financial accounting <strong>and</strong> <strong>the</strong> quality<strong>of</strong> reporting, <strong>and</strong> <strong>the</strong> extent to which <strong>the</strong> figures included <strong>the</strong>rein are true <strong>and</strong> fair.The actual position <strong>of</strong> an enterprise in relation to <strong>the</strong> environment in which itoperates is reflected in <strong>the</strong> portfolio analysis <strong>and</strong> <strong>the</strong> basic strategy <strong>the</strong> enterprise haschosen for its concept.Portfolio analysis shows <strong>the</strong> competitiveness <strong>of</strong> an enterprise (<strong>the</strong> position <strong>of</strong> itsproduction) in comparison with <strong>the</strong> situation in <strong>the</strong> market.High (with relativelyattractive industry <strong>of</strong>operation)Table 1.1 Portfolio <strong>Analysis</strong> (Portfolio Matrix)High(with relative competitive advantages)Medium Low1 3 6Medium 2 5 8Low 4 7 9The numbers in <strong>the</strong> individual squares have <strong>the</strong> following meaning:11
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