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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>2.5. New solutions are sought <strong>and</strong> found for production <strong>of</strong> high quality <strong>and</strong> low-costoutput, however, in <strong>the</strong> majority <strong>of</strong> cases high quality in terms <strong>of</strong> materials, design,performance <strong>and</strong> service is related with high costs as a result <strong>of</strong> which <strong>the</strong> price <strong>of</strong> <strong>the</strong>goods turns out to be too high for <strong>the</strong> specific customer. By reducing <strong>the</strong> price <strong>the</strong> rate<strong>of</strong> pr<strong>of</strong>it falls <strong>and</strong> in order to be able to afford it <strong>the</strong> amount <strong>of</strong> goods sold has to beincreased.4.6. Marketing effectiveness is impeded by <strong>the</strong> lack <strong>of</strong> resources. It is necessary to investcash in raising <strong>the</strong> qualification, increasing <strong>the</strong> scope <strong>of</strong> goods promotion campaigns,intangible assets etc.3.6. Emerging <strong>of</strong> new competitors, <strong>the</strong>ir advertising etc. activities make <strong>the</strong> enterprise todevelop more effective measures <strong>of</strong> marketing for retaining <strong>of</strong> <strong>the</strong> existing share in <strong>the</strong>market <strong>and</strong> keeping <strong>of</strong> <strong>the</strong> pr<strong>of</strong>it on <strong>the</strong> same level (increasing).4.7. The enterprise lacks resources for extension <strong>and</strong> upgrading <strong>of</strong> <strong>the</strong> production facility.3.7. The new competitor <strong>Enterprise</strong> K has a larger <strong>and</strong> more up-to-date facility.4.8. Due to <strong>the</strong> shortage <strong>of</strong> resources delays in disbursement <strong>of</strong> salaries occur causingdissatisfaction among <strong>the</strong> employees.3.8. There have been occasions when <strong>the</strong> competitors entice <strong>the</strong> employees <strong>of</strong> <strong>Enterprise</strong> Ato work for <strong>the</strong>m by <strong>of</strong>fering more opportunities for growth, larger <strong>and</strong> permanentincome.Test your knowledge:1) In what areas <strong>the</strong> assessment <strong>of</strong> <strong>the</strong> external environment can be done?2) Name <strong>and</strong> shortly describe <strong>the</strong> phases <strong>of</strong> an industry life cycle.3) Describe <strong>the</strong> market strategy <strong>of</strong> a typical market leader.4) What is enterprise competitiveness?5) Name <strong>and</strong> shortly describe <strong>the</strong> basic strategies <strong>of</strong> competition <strong>and</strong> competitiveadvantages.6) Describe M. Porter’s Five Forces Model.7) Describe <strong>the</strong> competitiveness <strong>of</strong> your enterprise by answering <strong>the</strong> followingquestions:7.1.How strong is <strong>the</strong> competitiveness <strong>of</strong> your enterprise?7.2.Would your enterprise competitiveness be increasing or declining, if itcontinues to realise <strong>the</strong> current strategy?7.3.What is <strong>the</strong> position <strong>of</strong> your enterprise compared to its main competitorstaking into account <strong>the</strong> main factor <strong>of</strong> industry development?7.4.What is defining <strong>the</strong> competitive advantage <strong>of</strong> your enterprise?7.5.What are <strong>the</strong> capabilities <strong>of</strong> your enterprise to defend its position in <strong>the</strong>industry, <strong>the</strong> industry competition factors taken into account?8) Name at least five potential strengths <strong>of</strong> an enterprise.9) Name at least five potential weaknesses <strong>of</strong> an enterprise.10) Name at least five external opportunities that an enterprise may use.11) Name at least five external threats that may obstruct <strong>the</strong> activities <strong>of</strong> an enterprise.12) By using <strong>the</strong> samples, compose <strong>the</strong> SWOT matrix for your enterprise. Whatdecisions can be taken for improvement <strong>of</strong> <strong>the</strong> situation?25

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