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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>building up. By increasing <strong>the</strong> sales amount <strong>of</strong> <strong>the</strong>se goods it is possible to raise <strong>the</strong>enterprise pr<strong>of</strong>it level.5.2. Post-sales servicing is analogous for all groups <strong>of</strong> goods (dependent on <strong>the</strong>specification <strong>of</strong> <strong>the</strong> goods or orders).7.3. <strong>Enterprise</strong> has hired experienced managers who know <strong>the</strong> specifics <strong>of</strong> <strong>the</strong> industry, <strong>the</strong>technologies involved <strong>and</strong> <strong>the</strong> qualities <strong>of</strong> <strong>the</strong> products, respond to <strong>the</strong> new needsemerging - <strong>the</strong> dem<strong>and</strong> for quality, effectiveness <strong>and</strong> low prices. The drawbacks <strong>of</strong>competitors are quickly detected <strong>and</strong> used to <strong>the</strong>ir benefit.5.3. Unit managers perform <strong>the</strong> necessary arrangements for post-sales servicing; <strong>the</strong>re is acapacity for improvement.7.4. <strong>Enterprise</strong> possesses a range <strong>of</strong> loyal customers – end users, enterprises, architects <strong>and</strong>designers who are willing to give any assessments. After <strong>the</strong> spring exhibition <strong>the</strong>lounge has been visited by potential customers who had arrived upon recommendation<strong>of</strong> designers. Cooperation with <strong>the</strong> industry specialists is necessary.6.4. Loyal buyers are <strong>the</strong> foundation <strong>of</strong> <strong>the</strong> economic stability <strong>of</strong> <strong>the</strong> enterprise. Activities<strong>of</strong> <strong>the</strong> firm are based on <strong>the</strong> following principle: each job that is well done will bringin five extra orders, while each unsatisfied customer will take away ten potentialcustomers.5.4. The loyal buyers, basically <strong>the</strong> regular customers <strong>and</strong> those who have placedparticularly large orders, receive invitations for <strong>the</strong> festivities or <strong>the</strong> events organisedor supported by <strong>Enterprise</strong> A (e.g., festivities with fireworks), <strong>the</strong>y receive greetings(it is planned to send also birthday greetings), on some occasions gifts are beingpresented.Strengths <strong>and</strong> threats4.1. The goods are highly competitive, but a shortage <strong>of</strong> cash assets can be seen in <strong>the</strong>enterprise which, on its turn, slows down <strong>the</strong> sales stimulation activities, productiontechnology upgrading <strong>and</strong> fur<strong>the</strong>r employee incentives etc.3.1. Irrespective <strong>of</strong> <strong>the</strong> wide range <strong>of</strong> products, <strong>the</strong>ir high quality, competitive pricing etc.advantages guaranteed by <strong>the</strong> enterprise for its customers, <strong>the</strong> initially attractive state<strong>of</strong> <strong>the</strong> market has enabled <strong>the</strong> development <strong>of</strong> competition which makes <strong>the</strong> amount <strong>of</strong>sales for each individual enterprise to decline. The high competition level is <strong>the</strong> mainobstructive factor <strong>of</strong> <strong>the</strong> external environment, as <strong>the</strong> <strong>of</strong>fer has grown much faster than<strong>the</strong> dem<strong>and</strong>.1.1. Unfavourable legislation in <strong>the</strong> country, particularly <strong>the</strong> taxation system, minimises<strong>the</strong> enterprise pr<strong>of</strong>it, enables <strong>the</strong> development <strong>of</strong> <strong>the</strong> underground economy in <strong>the</strong>industry. Competition law has been enforced formally <strong>and</strong> <strong>the</strong>re is a high corruptionlevel in <strong>the</strong> industry.4.2. Due to <strong>the</strong> lack <strong>of</strong> resources upgrading <strong>of</strong> technologies is slow.3.2. In <strong>the</strong> situation <strong>of</strong> sharp rivalry enterprises particularly follow <strong>the</strong> actions <strong>of</strong> <strong>and</strong> try totake over good practice from each o<strong>the</strong>r.4.3. For <strong>the</strong> purpose <strong>of</strong> raising qualification <strong>the</strong> enterprise executives must periodicallyattend <strong>the</strong>ory courses to learn new information on general business administration,specifics <strong>of</strong> <strong>the</strong> industry etc. No resources are being allocated for such objectives. At23

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