Analysis of the Operation and Financial Condition of the Enterprise

More documents

Recommendations

Info

Analysis of the Operation and Financial Condition of the EnterpriseCompetitiveness of an enterprise reflecting its differences with the competingenterprises is applicable in a long-term.Basic competitive strategiesLoweringcostsDifferentiatinggoods /servicesMarketsegmentationNew productsand innovationImmediatereaction tomarket needsLow cost andconsequentlypriceUniqueness ofthe good, itshigh qualityand specificdesignCovering aparticularmarketsegmentWorking inthe newmarket niche,where there isno competitorsGetting ahead ofcompetitors thanksto flexiblemanagementsystemsCompetitive AdvantagesFigure 1.1 Basic competitive strategies and competitive advantagesCompetition theory and practice shows that an enterprise should not necessarily be betterthan the others in absolutely everything and in all markets - it should though strive to be aleader at least in one aspect and in one market. For small enterprises acquisition of suchleadership role may be related to a small market. The most important thing is to acquire acompetitive advantage which can be achieved with the help of innovation.Any enterprise wishing to acquire continuous competitive success must possessinnovative philosophy and activities. This comprises the development strategy and actionpolicy for innovative activities, specifies the vision and the mission of innovations,provides with the description of the main goals, assessment of the potential impactingfactors as well as the resources and measures required for implementation of theprogramme.Competitiveness of a product or a service is one of the main components of successof an enterprise while the competitiveness of the enterprise itself, however, is the mostsignificant factor from the point of view of both marketing and financial aspects.Methods of marketing analysisThe process of globalisation cannot be stopped; the necessity for globalisation isdictated by the need of survival. Based on this there is an increased competition in theworld market, consolidation of competition, i.e., mergers of enterprises operating in thesame industry, takes place. Under such competition conditions it is not sufficient to merely16
Analysis of the Operation and Financial Condition of the Enterpriserespond to the changes. Enterprises must actively impact the environment and with thehelp of marketing tools attempt to change the specifications by themselves by creating newneeds and respectively by offering the goods (services) that would meet those needs. Inorder to successfully resolve the problems and to operate in a strategically correct mannerthe industry in which an enterprise operates must be taken into account due to the fact thateach industry can be characterised by its own specific features, with its own response to thechanges in economic activities.It is always possible to analyse products and services as it is possible to compete bothby improved quality products and lower prices and by a more effective customer service.M. Porter’s Five Forces ModelThe developer of the contemporary theory on competition Michael Porter underlines in hisbooks that competitiveness may be increased by two means:1. Lower costs – in the meaning of cheaper labour organisation and shorterwork performance terms than those of competitors starting with thedevelopment of goods through to sales to end consumers2. Specialisation.Analysis of competitiveness of an enterprise should be started by researching thestructure of the industry by using the Five Forces Model designed by M. Porter for thispurpose (see the figure below).The threat of new competitorsThe ability ofsuppliers todictate theirtermsThe CompanyThe ability ofbuyers to dictatetheir termsThe threat of potentialsubstitutes to goods andservices appearingCompetition in theindustryFigure 1.2 Five forces that influence competition in an industryHaving analysed competition M. Poter highlighted five factors influencing theinner attractiveness of market from the point of view of long-term profit-making by17
Page 1 and 2: Analysis of the Operation and Finan
Page 15: Analysis of the Operation and Finan
Page 67 and 68:
Analysis of the Operation and Finan
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Dec.,2XX7Analysis of the Operation
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Terms of ReferenceAnalysis of the O
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
show all

Analysis of the Operation and Financial Condition of the Enterprise

Create successful ePaper yourself

Delete template?

Save as template?