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2• to represent the products not only logo (MMZ), but also the unique characters, causing buyers pleasant associations and the desire to buy exactly this product;
• to produce a product in a memorable way (especially for children to form their aesthetic perception of the world);
• create memorable bright packaging (blister pack though and informs the buyer of the product color, but does not cause pleasant associations);
• carry out promotional activities (leaflets, banners, promotion) to enhance the company's image and enhancing communication with consumers.
The result of the application of such recommendations will be:
• Reduction of pressure on LLC "Mylovar" on the part of competing firms, and distancing from those who seek through the use of unfair competition to expand the market of their products;
• Increase customer loyalty and establishing long-term relationships with them;
• Increase of profitability of production;
• Create your own niche market with loyal customers.
REFERENCES
1. Chernov M.V., (2012), Economic law of product differentiation: the causes, the nature and manifestations. The effects of product differentiation / Chernov // RISK: resources, information, procurement, competition, № 02 (131-134).
2. Atom, Ya. Ya. & Rizatdinova A.R., (2014), Effect of product differentiation on the competitiveness of companies // Young scientist, №9 (251-252).
APPLICATION OF THE INTEGRATED METHOD TO ASSESS THE FINANCIAL CONDITION IMPROVING THE EFFICIENCY OF MANAGEMENT OF ORGANIZATIONS
Abstract
Using a complex method of assessment of the financial condition improving the efficiency of management of organizations which includes small enterprises is economically viable regardless of the form of incorporation. The methodology of holistic analysis has a multiple purpose, which is determined by the interests of various users of the analysis. It can help to update management decision to redistribute financial flows and resources and to create the complex of the strategic plans. Only a complex analysis allows to survey and to evaluate enterprises performance according the most complete list of activities describing all or many aspects of economic phenomena of the financing activities of the whole company.
Keywords
financial analysis, improving the efficiency of management, economic indicators,
methods of analysis
AUTHORS
Anastasia Aleksandrovna Yushchenko
Master student, Department of Accounting, Economics and Financial Control, Omsk State Agrarian University after P. A. Stolypin, Omsk, Russia. E-mail: uvnastja@mail.ru
Denis Nikolaevich Yushchenko
Master student, Department of Management, Omsk State Agrarian University after P. A. Stolypin,
Omsk, Russia. E-mail: andenisna@mail.ru
Effective management of the organizations depends on an ability to analyze their activities correctly. Choosing effective administrative decisions, it is necessary to carry out a review of economic activity of the enterprise. One of the most important parts of this process is the financial analysis. The financial analysis can be submitted as a process of an assessment of last and current financial position and as the actual results of functioning of the company.
The basic purpose of the financial analysis is to find out and get away weak points of the business entity, to find reserves for improving financial and nonfinancial figure, to increase its financial soundness, to work out managerial strategies which are directed to increasing of the effectiveness of corporate organization.
But it is necessary to emphasize that the main goal of the financial analysis is the forecast of the future state. With its help it is possible to define if the organization does the business correctly, because the main objective of financial experts is to increase the cost of the firm and its stocks as much as it possible. Targets for further work of enterprise performance are made using the methods of the financial analysis.
Relevance of the studied subject is that it is impossible to fatten the profits and profit margin without analyzing the financial condition of the company and finding factors which influence the activity of the company. It is necessary to carry out the financial analysis of the company because the competitive power of the economic entity and its place at the financial market depend on it. But it should be noted there is a shortage of information according this topic in the literature due to change of economic situation and deficiency of integrated practice for analysis of finance result of the economic entity.
Nowadays there isn't any integrated practice for carrying out the financial analysis in the modern economic literature. Economists use various methods and techniques applying various indicators and criteria. But the general characteristic of all implements used by economists which unites all set of indicators of the financial analysis is their basing on comparison and a ratio of results and the used resources which are necessary to achieve these results.
Scientists - economists such as: M. I. M. A. Vakhrushina, L.V. Dontsov, V. V. Kovalyov, N. P. Lyubushina, V. G. Dyakova, G.V. Savitskaya, A.D. Sheremet always pay careful attention for carrying out the methodologies of financial analysis.
However there is a difference between identification and separation of blocks and activities used for calculation of chosen activities and analysis of financial standing of the company. Besides, there are different approaches for carrying out the financial analysis.
One group of authors prefers and offers the scaled down case of carrying out the financial analysis in the company considering the structural analysis of active and passive operations, an assessment of liquidity, solvency, financial strength and profitability as separate approaches. Other authors consider change of cash flows and identification of reserves for operation of an enterprise.
Method of financial analysis offered by economist G. A. Savitskaya is interesting for observation. According to this methodology the article of analysis is cause-effect relationship of economical process and economic phenomena which observation and analyzing let find the reasons of transformation of the main term of economic work of a company.
Setting out the affecting factors it is possible to determine optimal parameters which are effective for the enterprise (the necessary profit at the available resources, the profitable volume of sale, a stock of financial stability, product cost at various scenarios of development of production situations).
The method offered by Lyubushin N. P. and Dyakovoy V. G. is directed to earlier identification and elimination of limitations of financial part of the enterprise performance allows to define reserves for improvement of financial activity of the company and to increase liquidity and its solvency.
Calculation of financial ratios ( Lyubushin, 2012) is taken as a basis of methodology.
Economists represent the ratio financial analysis as a research and an assessment of financial statements at application of some chosen financial performance. The main objective of the ratio analysis is to estimate the enterprise using the chosen basic ratios which allow judging the financial state of the enterprise. The essential ratios characterizing a financial condition of the company can be united in the groups:
1) Liquidity ratio;
2) Solvency ratio;
3) Efficiency ratio;
4) Profitability ratio.
Liquidity ratios display a possibility of the company to pay the short-term debt in time at the mobilization of liquid assets. The analysis of accounting liquidity is made with the help of two approaches - property and functional.
If the profit belongs to financial result it is interesting to consider the factors which affect
it.
So it is necessary to carry out the factorial analysis. Factorial analysis is an analysis of separate factors which influence over dynamics of productive ratios (for example - profit ratio).
The essence of the factorial analysis is replacement of each reporting indicator for basic one at the same time all other indicators are not changed. This replacement helps to define the influence of each factor on result.
Among methods carrying out analysis of financial standing of the enterprise it is possible to give accent to the methodology of A. D. Sheremet who suggests analyzing profit and profitability of production using the stages (Sheremet, 2013):
1. Stage. It is to construct indicators showing the financial result of an economic entity. It is possible to give accent to such indicators as: gross profit, earned revenue, profit from other activity, the general accounting profit, the profit from ordinary business, net profit (unallocated profit).
2. Stage. The preliminary analysis assumes carrying out an assessment of absolute measures of the profit and relative ratios (for example profit/ sales ratio).
3. Stage. It is necessary to carry out the insightful analysis of exogenous and internal factors using research of their influence on the amount of the profit and profitability of sales.
4. Stage. It is necessary to analyze the influence of inflation on sales revenue.
5. Stage. To carry out the quality analysis of earnings is the generalized characteristic of a structure of sources of profit.
6. Stage. It is to carry out the analysis of profitability of assets of an economic entity.
7. Stage. It is to carry out the marginal analysis of profit.
The method offered by N. N. Seleznyova includes the vertical and horizontal analysis of net profit, calculation of capitalization rate, investment rate, consumption factor of profit (Seleznyova, 2012).
All methods offered by famous authors have similar profile, because they were made for the same objective - to find and eradicate defects of the financial activity of the company.
The systems complex approach is more exact and updated for the financial position of the company. Appropriate comprehensive methodology of analysis is used in the systems complex approach which takes into account specific nature of all types of the company.
This method of the analysis can be added with mathematical models, calculation of probability of bankruptcy and also the accounting of informal indicators of the enterprise activity. Especially it is suitable for small enterprises where liquidity is lower than in the large companies because small enterprises invest less money in monetary holding and account receivable. Also there are high current obligations in small enterprises. Except the risk of liquidity there is a high enterprise risk and a financial risk in small business enterprises. That is why ratio analysis carried out at a small enterprise can show the large degree of unreliability and it is necessary to make additional computation of failure and to use predictive mathematical models. Consequently it is necessary to use all methodologies of assessment of financial condition of self-employed entrepreneur. Therewith it is important to use financial projections with the help of innovative models which can find the most suitable management decisions in order to decrease the risk of business failure.
But it should be noted that practical application of models of the verge of bankruptcy developed by the foreign economists are not suitable for the domestic enterprises. In models of the verge of bankruptcy developed by local economists there is information about book-keeping reports, but there is nothing about future state. That is why it is important to choose a suitable methodology for each company in order to have the most exact prediction.
In modern conditions of economic management having various organizational forms and
specialization of the enterprises it is necessary to use the system analysis which includes not only an assessment of a financial component of activity, but considers mathematical models, processes of external environment of business and qualitative indicators.
Complex methods of the analysis are more laborious, but they allow to increase reliability of the received results and to investigate the hidden causes and effects of the studied phenomena therefore to increase efficiency of anti-crisis management of the commercial organizations.
Using a complex method of evaluation of the financial condition improving the effectiveness of management of organizations which includes small enterprises is economically viable regardless of the form of incorporation. The method of holistic analysis has a multiple purpose, which is determined by the interests of various users of the analysis. It can help to update management decision to redistribute financial flows and resources and to create the complex of the strategic plans.
Only a complex analysis allows to survey and to evaluate enterprises performance according the most complete list of activities describing all or many aspects of economic phenomena of the financing activities of the whole company.
At the same time it is necessary to correct constantly the structure of indicators depending on the changes in external and internal operating conditions of the enterprise. Management based on the complex analysis is reduced not only to work out the indicators of activity: their system has to become the basis of daily management and control rated at continuous changes of the environment.
REFERENCES
1. Lyubushin N. P. (2012) Economic analysis: textbook. 3rd edition, updated and revised - M.: UNITY-DANA, 324 pages.
2. Seleznyova N. N. (2012) Financial analysis. M.: UNITY-DANA, 124 pages.
3. Sheremet A. D., & Negashev E.V. (2013) Methodology of the financial analysis of activity of the commercial organizations. 2nd edition, updated and revised. M.: Research Center Infra-M, 208 pages.
