CC BY
129ECONOMIC SCIENCES
MANAGEMENT ORGANIZATION OF FOREIGN ECONOMIC ACTIVITY OF THE ENTERPRISE
IN MODERN CONDITIONS
Broyaka A.
PhD in Economics, Associate Professor of Economics Department,
Vinnytsia National Agrarian University
Abstract
The article is devoted to the study of trends in the development of foreign economic activity of Ukrainian enterprises. The essence of the concept of "foreign economic activity", the principles of its planning and development of the strategy of the enterprise's entry into foreign markets are specified. The main indicators of Ukraine's foreign trade in recent years, the degree of openness and competitiveness of the national economy in the world market are considered. Particular attention is paid to the study of the general structure of foreign trade and a detailed analysis of the structure of imports and exports of goods and services, including the agricultural sector. The commodity and geographical structure of exports and imports are analyzed; the issue of raw material exports in the total volume of exports is studied. The list of the main problems and the general recommendations on their overcoming and creation of favorable conditions for realization of national interests in the field of foreign trade are defined and on this basis directions and prospects of further improvement of ways of development of foreign economic activity of the enterprises of Ukraine are outlined.
Keywords: foreign economic activity, foreign trade, export, import, agrarian products, international trade strategy.
Introduction. Modern world foreign economic relations play a key role in the development of the state and its subjects, as they are directly related to the intensification of European integration and globalization, which directly affect the organization, management and forms and directions of foreign economic activity. When entering the international market, it is necessary to take into account the trends and specifics of the international environment to ensure the continued competitiveness of the company. For an enterprise in international activity, it is crucial to study and solve problems that arise in connection with activities in the existing foreign market and to find opportunities to expand its sphere of influence. In recent years, the problem of declining business activity has become especially relevant in most countries, which previously imported a significant amount of products; this is especially acute for the agro-industrial complex.
The study of the conditions of functioning and competitiveness of the company in the world market forms a decisive role for its further effective activity and maintenance of a stable level of profits from year to year, even in the presence of factors that destabilize. The complex characteristic of potential, the analysis and an estimation of the available competitive advantages, concerning realization of foreign economic activity gives the chance to consider expansion and the further formation of strategy of activity in the global market.
Analysis of recent research and publications. Ukrainian scientists such as: Babiy I.V., Babets I.G., Bilovodska O.A., Didkovsky M.I., Diuk A.A., Grush-chynska N.M., Kravchenko S.I., Khaietska O.P., Li-sogor L.S., Legostaeva O.O., Makhovikov G.A., Marcin V.S., Maslak O.I., Pazhueva T.O., Petrina N.V., Salkova I.Yu. and others dealt with the issues of organization of management of foreign economic activity of the enterprise, their methodical and organiza-
tional aspects. Nevertheless, the analysis and research of publications on this issue shows that today it requires further investigations and searches for directions and prospects for improving the development of foreign economic activity of Ukrainian enterprises. This study is relevant for most enterprises, especially the agro-industrial complex, as there is a need to change the existing strategic directions of operation due to the decline in business activity and reduced imports of Ukrainian products by others countries.
Goals setting. The purpose of this article is to study the main organizational and economic aspects of the management organization of foreign economic activity of the enterprise and to develop practical recommendations for the implementation of the proposed strategic directions at the enterprise.
Research results. The most important condition for the formation of market relations in Ukraine is its integration into the world economic space and participation in various types of international entrepreneur-ship, through which countries implement international economic cooperation. The component of such cooperation is the foreign economic activity of economic entities of different countries, ie enterprises that are the central component of the economy of any state. Successful implementation of foreign economic activity strengthens the country's integration into the international market, which in turn leads to improved living standards and development of society and the expansion of the sphere of influence of the economy as a whole. This necessitates a deeper study of the essence of foreign economic activity, which is based on the relationship between economic entities of Ukraine and foreign countries, and is carried out both in our country and abroad.
Foreign economic activity of the enterprise, which is carried out through the implementation of foreign economic relations, is considered an integral
area of economic activity, which can positively affect the efficiency of production, its technical level, quality of products. Basically, foreign economic activity is considered as:
- the object of purposeful organizational and economic influence of the state in order to stimulate entrepreneurial activity and establish stable self-regulated market relations and mechanisms;
- the process of progressive transformations in the structure of social reproduction;
- the sources of advanced technological and organizational ideas in the field of management of social and production systems [8].
The synthesis of approaches allows us to conclude that foreign economic activity is conducted mainly at the enterprise level. Thus, we can define the foreign economic activity of the enterprise as a process that leads the company in the foreign market through the implementation of foreign economic relations, i.e. trade, cooperation, services, joint ventures, participation in integration and globalization processes of organizations and others to achieve effective use of the benefits of the international division of labor.
The effectiveness of foreign economic activity of
domestic enterprises is due to the solution of national problems, namely: in Ukraine the main directions and mechanism of structural adjustment of the economy are not fully defined, taking into account the peculiarities of the world economic system and real directions of Ukraine's integration into it; expensive security issues in the field of foreign economic relations, which must be addressed from the standpoint of active competition in the world market [5, p. 39]; insufficient stability of the existing financial and banking system; creating optimal conditions for competition between domestic and foreign producers; increase in national production. Thus, the foreign economic activity of the enterprise is a complex system that should be analyzed, taking into account the forms of foreign economic relations such as trade, financial, production, investment services, which describe foreign economic activity using the relevant indicators.
Foreign economic activity requires clear planning in enterprises. To do this, it is necessary to have a clear idea of the purpose of its implementation and the means that the company has for this. Therefore, it is appropriate to cite the principles of planning foreign economic activity (Fig. 1.)
Figure 1. The principles of planning foreign economic activity Source: compiled by authors
The use of these principles of foreign economic activity provides an opportunity to create goals and objectives, helps to monitor the implementation of plans and reduce the duration and cost of foreign economic activity. The analysis in foreign economic relations is aimed at studying the results of production, commercial and financial activities (and financial position) of enterprises. The analysis of economic activity of the enterprises, associations, firms is carried out by means of various receptions: logical (detailing, comparison, elimination, generalization); statistical (summary, grouping of digital material, averages, indices, and time series); mathematical (mathematical modeling, mathematical analysis); integral (mathemat-
ical statistics and probability theory, economic cybernetics), heuristic, etc. [11].
The main tasks of the analysis of foreign economic activity are:
1) Assessment of the level and quality of fulfillment by the enterprise of obligations under contracts with foreign partners;
2) Characteristics of the dynamics (development) of foreign economic activity of the enterprise (usually for the current and previous years);
3) Assessment of the rational use of funds involved in the fulfillment of obligations under contracts - it is the central, most difficult task of analysis. Execution of the specified task provides consecutive or
parallel studying of a turnover of the working capital of the enterprise (generally, in a field of foreign economic activity), research of overhead costs on export and import of the goods, studying of efficiency of foreign economic operations;
4) Generalization of the preliminary results of the analysis with the help of the return on working capital, which will answer the question: how rationally, i.e. economically, working capital was used in the course of foreign economic activity of the enterprise;
5) Assessment of financial results of foreign economic activity of the enterprise;
6) Characteristics of the financial position, solvency and profitability of the enterprise [7].
In order to effectively conduct foreign trade, it is necessary to introduce certain organizational and economic mechanisms to reduce the instability that is features for Ukraine today. To reveal the organizational and economic aspect of the study, various forms, methods and tools are used to regulate the processes in the enterprise, and the use of which has a direct impact on the organizational and economic components of management. Characterizing the economic component should emphasize such concepts as economic potential, which is essentially crucial for the successful organization of foreign economic activity. The organizational part, in turn, means an organizational mechanism that manifests itself and has an impact on both external and internal environment. The external is presented in access to information, data, facilitates the choice of partners and creates a competitive environment. Internal are a set of technolo-
gies, resources, calculations, distribution system, management and marketing, as well as the formation of the export potential of the enterprise [14].
The concept of economic potential is understood as a set of existing and those that can be mobilized, the main sources, funds of the country, elements of the potential of an integral economic system, are used and can be used for economic growth and socio-economic progress [10]. To reveal the essence of the economic potential of foreign economic activity, it is necessary to focus on export and import opportunities, as well as international cooperation of Ukrainian enterprises. The problems of realizing export potential arise at different stages of economic development in many countries of the world. This was especially true for countries with a transformational economy, where the implementation of their own foreign economic policy has become the most important condition for the economic and political self-determination of the state and its part in the world economic system and the rights to equal partnerships. In addition to the above, the development of the export potential of Ukraine is associated with the peculiarities of the transition period, when during prolonged economic activity and the reduction in demand in the domestic export market prevents the transition of events into a crisis.
The current state of Ukraine's export potential was studied by us using an analysis of the dynamics of total exports of Ukraine compared to imports from 2016 to 2018, as well as an explanation of the trends that were identified (Table 1).
Table 1.
Commodity structure of exports and imports of Ukraine
Industry Exports, thousand US dollars Imports, thousand US dollars
2018 2017 2016 2018 2017 2016
Groceries and semi-finished products 1760868 17756854 15281803 2005009 4301208,9 3891067
Mineral products 4339989 3947722 2728765 14169280 12504732,4 8495024
Chemically industry and related industries 2967773 2585683 2265919 11368768 9791665,6 9092207
Textile industry 1220261 1091917 963229,3 2660928 2257046 2023981
Woodworking industry 2043624 1723943 1668500 1388836 1205434,9 1112035
Mechanical engineering and instrument making 4805482 4428399 3783637 12892087 10685575,2 8469551
Metallurgy 11695525 10228253 8390812 3646416 3067349,1 2373791
Transport 669620,1 625886 555659,8 4553229 4182087,1 2959495
Other 827138,1 874063,4 721370,8 870556,1 1612074,7 832647,2
Total 47339935 43264736 36361711 57141042 49607173,9 39249797
Source: compiled by authors according to the data of State Fiscal Service of Ukraine [3]
Trends in foreign trade in goods of Ukraine in 2000-2019 showed: first, the presence of a negative balance, which in recent years has a tendency to increase (-10723.4 million US dollars in 2019); secondly, the volume of exports in 2019, although increased by 105.8% compared to 2018, does not even reach the level of 2010 (51405.2 million US dollars). From 2016 to the present, there is an increase in trade, but at the same time the trade balance tends to increase, which is a negative factor for the economy as a whole, as the balance is growing due to outpacing growth of
imports over exports. Comparing the volumes of exports and imports, it is obvious that during the whole period of the study there was a deficit of foreign trade in national products, which indicates inefficient management of the export potential of foreign economic activity of Ukrainian enterprises. This is partly due to the ineffectiveness of Ukraine's foreign policy. Analyzing the data in Table 1, we can say that in recent years there has been an increase in imports in such industries as mineral products, chemical, woodworking, textile industries, and metallurgy. In these indus-
tries there is an increase in exports, but at a slower pace, except for metallurgy.
The ratio of exports to imports is one of the mac-roeconomic proportions that characterizes the state and development of the economy, as well as changes in foreign economic activity. Consideration of it outside the set of other macroeconomic indicators and ratios does not allow drawing full conclusions. When analyzing the indicators of foreign trade, it is necessary to pay attention to the branch and sectoral structures of the economy of the countries under study, which has an impact on the dynamics and specifics of their development. In addition, a very significant aspect when considering the ratio of exports to imports is the ability to cover the existing deficit. Participation in export-import operations of separate countries for any domestic enterprise is expedient and if it is economically justified. As the more foreign partners, as the lower is the risk of curtailing foreign economic activity for political reasons or due to poor manage-
2019 2018 2017 2016 2015 2014 2013
The main trade partners of Ukraine in the export of goods in 2019 are presented in Table 2. The share of these 15 trading partners, to whom Ukrainian goods and services were supplied most of all in 2019, in the structure of exports of goods and services in 2018 amounted to 82.7%. The share of TOP-15 countries in total exports from Ukraine in 2019 is 84.3%. The EU countries are the largest trade counterparties of Ukraine. The share of these countries in the foreign trade turnover of goods and services of Ukraine at the end of 2018 amounted to 37.7%. In the total volume of imports of goods to Ukraine since March 2016, the largest share belongs to the import of investment-oriented products (with the exception of January-February 2017, when the import of mineral products
ment of foreign economic activity.
If the share in the total export volume of an enterprise of a particular country rises, this indicates the strengthening of foreign economic relations, their stabilization and a guarantee of the enterprise's participation in the international market. In 2019, Ukraine carried out foreign trade operations with goods with partners of 232 countries of the world: export of both goods and services to 192 countries, only export of goods to 9 countries, only export of services to 31 countries. The number of enterprises engaged in foreign trade in goods amounted to 16.5 thousand units in exports, and 27.1 thousand units in imports. Since 2016, the share of imports of goods in the total volume of export-import operations prevails over the volume of exports. The largest share of exports in the total volume is observed in 2015 - 50.40%. The largest share of imports was observed in 2019. - 54.84% of the total (Table 2).
□ export
□ import
F
increased seasonally, namely, energy during the heating season). In turn, the growth in imports of investment goods lays the foundation for economic development in the future. In the structure of trade, import operations in Ukraine are mainly represented by consumer goods, which make up more than a third of it. Among other items of import, the main ones are machinery and equipment (20%), mineral products and products of the chemical and related industries (38.4%). The share of European Union countries in the structure of imports of goods is gradually increasing. Among the goods, Ukraine imports from Europe, dominated by engineering products, equipment, fuel, chemical and pharmaceutical products.
—1——' ,. I... I.. 1... 1...
5.16 I ■ ■ 54.84
47.37 54.63
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4 6.62 i ' ■ 5 3.3 8
48.09 \ 51.91
50.4 49.6
49.76 50.24
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
igure 2. Structural changes in merchandise exports and for 2013-2019, % Source: compiled by authors according to the data of the State Statistics Service of Ukraine [12]
Table 2
The main trade partners of Ukraine in the export of goods in 2019. _
The name of the country Exports of goods, million $US The share of the country in total exports of goods from Ukraine, %
EU countries 23994,7 37,7
Russian Federation 9422,9 14,8
China 3756,0 5,9
Turkey 2 812,4 4,4
Egypt 2329,5 3,7
USA 2195,4 3,4
India 2 145,0 3,4
Belarus 1 689,9 2,7
United Arab Emirates 870,1 1,4
Israel 856,0 1,3
Republic of Moldova 776,0 1,2
Switzerland 752,1 1,2
Saudi Arabia 748,6 1,2
Indonesia 737,4 1,2
Iraq 614,5 1
Source: compiled by authors according to the data of The Ministry of Economic Development, Trade and Agriculture of Ukraine [13]
The analysis showed that the structure of Ukrainian exports is characterized by a large share of raw material orientation and low added value, which exhausts the domestic resource base and makes the economy extremely vulnerable to external shocks. Taking into account the changes in the international division of labor due to the global financial crisis,
there is a need to concentrate activities in the strategy of foreign economic activity, to determine the strategic directions of functioning of domestic enterprises in world markets.
The index of favorable development of foreign trade of Ukraine is given in Table 3 for further analysis.
Table 3.
The Ukraine's Global Enabling Trade Index
Index components Rank out of 136 countries
Subindex A: Market access 80
- Domestic market access 24
- Foreign market access 110
Subindex B: Border administration 95
Subindex C: Infrastructure 69
- Availability and quality of transport infrastructure 72
- Availability and quality of transport services 69
- Availability and use of ICTs1 73
Subindex D: Operating environment 125
Total Enabling Trade Index 95
Source: compiled by authors according to the data of The Global Enabling Trade Index report [16]
The analysis of The Ukraine's Global Enabling Trade Index given in Table 3 provides an opportunity to explain why the trade balance has negative indicators, which is directly related to market availability. In this case, special attention should be paid to the external, border management, infrastructure in general and the operating environment. As can be seen from the ratings, Ukraine occupies not the best position among other countries in the world 95th place in terms of overall foreign trade favorable, so it makes sense to
describe how competitive our country as a whole. To do this, it is necessary to compare Ukraine and other countries in terms of different indicators that affect the level of competitiveness [9]. To characterize such indicators in general, the data for several years are given, as the dynamics will show exactly how the country's economy is changing. Here are the dynamics of Ukraine's competitiveness among other countries (Table 4).
Table 4.
The name of the country 2016 2017 2018
Rank Index Rank Index Rank Index
Switzerland 1 5,76 1 5,81 1 5,86
USA 3 5,61 3 5,7 2 5,85
Singapore 2 5,68 2 5,72 3 5,71
Netherlands 5 5,5 4 5,57 6 5,66
Germany 4 5,53 5 5,57 5 5,65
Tajikistan 80 4,03 77 4,12 79 4,14
Brazil 75 4,08 81 4,06 80 4,14
Ukraine 79 4,03 85 4,00 81 4,11
Butane 105 3,8 97 3,87 82 4,10
Source: compiled by authors according to the data of Global Competitiveness Reports [15].
Based on the above data, it is clear that Ukraine does not occupy the best competitive position among other countries in the world, which directly affects foreign trade, confidence in the country as a whole, its perception in the international market. In 2019, Ukraine lost two positions in the Global Competitiveness Index (GCI) of the World Economic Forum (WEF) and dropped to 85th place out of 141 countries.
According to the WEF annual report, the main regress was recorded in the field of financial systems, in which Ukraine's rating dropped by 19 positions to 136th place, and in the field of health care - by 9 positions to 101st place. ICT implementation also deteriorated slightly, from 77th to 78th place, macroeconom-ic stability from 131st to 133rd place, and innovation opportunities from 58th to 60th place.
Table 5.
Components of the Global Competitiveness Index of Ukraine in 2019
Strengths Rank Weaknesses Rank
Electricity access 2 Non-performing loans 139
Cost of starting a business 14 Terrorism incidence 132
Attitudes towards entrepreneurial risk 18 Inflation 131
Railroad density 25 Soundness of banks 131
Critical thinking in teaching 31 Insolvency recovery rate 129
Trade openness 32 Property rights 128
Pupil-to-teacher ratio in primary education 33 Labour tax rate 124
Hiring and firing practices 34 Strength of auditing and accounting standards 118
Research institutions prominence 44 Government ensuring policy stability 115
Fibre internet subscriptionsper 46 Quality of road infrastructure 114
Source: compiled by authors according to the data of Global Competitiveness Reports [15].
Indicators of foreign economic activity of Ukraine in recent years indicate the gradual formation of a new dynamics of export-import operations, in connection with which there are certain problems associated with maintaining positions in foreign markets. Since the gross domestic product of Ukraine significantly depends on the volume of exports of goods and services, the effectiveness of foreign trade does not lose its relevance. Moreover, the impact of crisis factors on participants in international markets, increased competition, despite Ukraine's membership in the WTO, new agreements on a free trade zone increase the need to increase the activity of national agents with foreign partners. Analysis of the main trends in Ukraine's foreign economic activity showed the presence of predominantly negative trends. Therefore, there is an urgent need to introduce effective mechanisms of state regulation of the processes of enhancing foreign economic activity.
The modern value of foreign economic relations is manifested in the fact that they allow balancing the economic and social development of both the country and individual enterprises and economic entities. Thus, it is very important to balance the export and
import of goods. However, it should be borne in mind that even balanced exports and imports may not always indicate the effectiveness of foreign trade operations, at least for one of the parties. The balance of exports and imports for currency between partners does not exclude that one of them is more useful, and the other is less. Therefore, a special role here should be played by the instruments of economic diplomacy, which allow and support cooperation between countries and their economic entities on the basis of mutual interest and maximum consideration of the interests of countries.
Taking into account the decisive place of the agro-industrial complex in the Ukrainian economy and the formation of its food security and taking into account the export potential of this sphere in the context of modern economic policy, the issues of enhancing the foreign economic activity of enterprises engaged in the production and processing of agricultural products are gaining special attention. The implementation of effective foreign economic activity by domestic agricultural enterprises will help to increase their competitiveness in world markets, the formation of a rational structure of exports and imports, as well as
attracting foreign investment in the country's agricultural sector on mutually beneficial terms.
In order to comprehensively assess the company's share in the agricultural market and in foreign trade operations, it is necessary to characterize the export and import operations in recent years in the industry, which is the profile of the enterprise. Agricultural production is the leading budget-generating sector of Ukraine's economy and an important source of foreign exchange earnings in the country. The country's agri
cultural exports in 2019 amounted to 22.1 billion $ US, while the share of exported agricultural products in the structure of Ukraine's GDP was 16.4%, which is 2.3 times more than in 2010. In recent years, agriculture itself has consistently shown the largest positive balance in foreign trade in goods. Moreover, it is growing steadily, exports of agricultural products in 2019 exceeded its imports by 16.4 billion $ US (in 2018 by 13.5 billion $ US)
-Foreign trade balance of agricultural products
Figure 3. Dynamics of agricultural export-import of Ukraine, million $ US Source: compiled by authors according to the data of the State Statistics Service of Ukraine [12]
Considering Figure 3 we can observe an increase in exports over the past 7 years. In the period of 20142015 there was a certain decline, but then there is a positive trend. This situation is due to the unstable situation in the country at that time, in particular the ban on supplies to Russia, which was at that time one of the largest exporters of Ukrainian products. Insignificant rates and volumes of development of exportimport operations in agrarian and industrial complex testify to imperfection of the decision of problems of adaptation of foreign economic activity to conditions of the world market. Thus, stimulating the development and ensuring the efficiency of foreign trade activities of agricultural enterprises is a strategic task of the state.
Ukraine supplies mainly crop products abroad. It occupies leading positions in the world arena in the export of grain crops, the share of exports of which in 2019 amounted to 19.2% of total exports of Ukraine and brought revenue of 9.6 billion dollars. USA. The leading position and a significant share in the structure
of exports of the agricultural sector is occupied by sunflower oil, the volume of sales of which amounted to 4.1 billion $US in 2018. The remaining items are products related to cereals, oilseeds and oilseeds. These positions account for about 81% of all exports of the agri-food industry from Ukraine.
In general, the share of exports of plant products in 2019 amounted to 25.8% of total exports of Ukraine, which is almost 5% more than in the previous year; fats and oils of animal or vegetable origin -9.5%, live animals and products of animal origin -2.6%. Thus, exports of raw materials of the agricultural sector account for 38% of total exports of Ukraine, while the share of exports of finished food products -only 6.4%, which is dominated by residues and waste from the food industry (3% of total exports of Ukraine). This indicates the raw material orientation of Ukraine's agricultural production and the predominance of exports of domestic products with low added value, which reduces the possibility of additional revenues to the state budget and inhibits GDP growth.
The raw material orientation of Ukrainian exports, among other reasons, is related to the limited capacity of domestic agricultural producers to purchase modern equipment and facilities due to low solvency and technological backwardness. Moreover, there is a further increase in exports of raw materials. Again, in the first place corn, in third place wheat, and in general, among the goods, exports of which increased, dominated by agricultural products, and with low added value.
One of the factors in the expansion of foreign economic activity of enterprises is the geographical diversification of exports. Today, EU countries remain Ukraine's largest trading partners. The share of these countries in the foreign trade turnover of goods and services of Ukraine in 2019 was 54%, and the value of exports of Ukrainian goods to Europe increased by 30.8%. Most Ukrainian products in Europe are bought in the Netherlands, Spain, Poland, Italy, and Germany. The Asian market is also a significant market for agricultural products, due in part to less product standardization and a larger population in the regions. Although this market has slightly reduced its position in the overall structure from 45% in 2017 to 44.6% in 2018. The main exporting countries in 2018 in Asian markets were India, China and Turkey. African countries close the top three by region and occupy 12.3% of the structure; the main partners are Egypt, Tunisia and Morocco. This distribution in the structure can be explained by the saturation of European markets with products from abroad and the large number of foreign competitors. As for Asian markets, as population grows in these countries, demand begins to grow, and many of these countries have poultry farms that use exported products to meet consumer needs for other products, as do African markets.
The situation with the import of agricultural products is somewhat similar to the export, in the period 2014-2015 there was a decline, then a gradual increase. This can be explained by the rather unstable situation in the country both in politics and in the economy. From 2015 to 2019, there is a gradual increase in imports in different areas, this can also be described as a positive factor, since trade turnover increases and imports have indicators almost 3 times
less, which leaves the trade balance positive, and as negative, since we import we are predominantly end products that reduce Ukraine's GDP. The leading position among imports is made up of finished products, and a significant share is occupied by products of plant origin, the fats and oils are imported less. This distribution can be explained by the fact that Ukraine exports a lot of raw materials and then buys finished products abroad.
In 2018, according to the State Statistics of Ukraine, 41.7 million tons of domestic grain crops were exported to foreign markets, which is 0.4% less than in 2017. However, looking at the financial indicators, a record of 7.2 billion $US was set. This discrepancy between the quantitative and monetary expression of exports arises due to the increase in export prices. The largest buyers of grain, as before, are countries in Asia, Europe and Africa. Egypt has held the leading position since 2011, although last year it bought 20% less grain than last year - 666 million $US. In addition to cereals, oilseeds account for a significant share of Ukrainian enterprises' exports. According to the State Statistics Service of Ukraine, sales decreased by 6% in 2018 compared to 2017, and the total value of exports amounted to 1.9 billion $US. The volume of deliveries to foreign markets decreased by 7.5% to 4.8 million tons. For oilseeds, sunflower oil remains decisive for foreign markets. In 2018, its exports from Ukraine amounted to 5.6 million tons, which is 3% less than in 2017, the revenue from its sales amounted to 4.1 billion $US, which is 4% less than in the previous year. Over the last year, the greatest demand for this product was observed in Asian markets, including India (39.8%), China (9.5%), and Iraq (5.8%). For a comprehensive assessment of exports from Ukraine of major cereals and oilseeds, the statistics in Table 6, which shows what changes have occurred in exports of these goods over the past 2 years, although as noted earlier throughout Ukraine in 2017 there was a decline in agricultural production due to adverse weather conditions. The table shows data on exports from Ukrainian ports by water transport, i.e. the main type for transportation of agricultural products.
Table 6.
Structure of grain and oilseeds exports from Ukrainian ports in 2017-2018, million tons
Product 2018 2017 +/-
Corn 19,141 16,543 +16%
Wheat 14,255 15,173 -6%
Barley 3,130 3,973 -21%
Sunflower oil 4,423 5,037 -12%
Products of sunflower oil processing 1,752 2,615 -33%
Source: compiled by authors according to the data of APK Inform [4]
The analysis of the given data showed that for the last year on almost all types of agricultural products there is a decrease in the volume of exports from seaports, except for corn. In this case, there is a certain discrepancy between the monetary value of exports and real volumes, as noted earlier in 2018, there was an increase in export prices, which later led to such a
differentiation in indicators.
The development of the foreign market of agricultural products of Ukraine is limited by the following reasons: insufficiently developed system of food distribution, imperfect marketing of foreign economic activity of enterprises, lack of adequate to modern business conditions infrastructure of the commodity
market. That is, these reasons do not allow agribusiness entities to be sufficiently competitive in the international market. Another shortcoming that arises in the international market is that most developed countries set quotas and restrictions on the production and import of agricultural products. In order to sell agricultural products and products of their processing in foreign markets, it is necessary to conduct marketing research on the situation in a particular market, to find the best option for their foreign economic activity.
Products of domestic producers are more expensive than foreign or lower quality, and therefore un-competitive. Foreign economic activity in agribusiness should be directed not to the import of any products, but to the creation of national industries through joint investment in Ukraine, with the production of competitive products that meet international quality requirements and can be exported. Therefore, building first of all the internal competitive environment of agrarian business is a necessary measure in the preparation of national economic entities to enter the international market and meet its requirements.
At present, the process of formation of foreign economic activity in Ukraine is not completed, it is being restructured on a market basis, so many approaches to the organization of foreign trade management, developed during the transition to market relations, need to be adjusted to changes in our economy. Access to foreign markets is not only a guarantee of stable operation of the enterprise and expansion of markets, but also ensuring a sufficient level of management efficiency, which is achieved only in the presence of an appropriate level of open system of foreign economic activity.
In recent years, national enterprises mainly use two ways of organizing foreign trade:
1. Entry into foreign markets is carried out through their own foreign trade companies or the department of foreign economic activity.
2. Access to foreign markets through intermediaries [1].
The creation of its own foreign economic departments at the enterprise can be effectively justified if: the share of exports is significant in total turnover; foreign trade operations are regular; production of products with a high level of competitiveness or, possibly, the production of unique products in their properties; low competition in the relevant segment of the world market; products do not require changes for foreign conditions of use; the company has the required number of specialists in foreign economic activity.
Otherwise, it is advisable to use intermediaries: national, foreign or international. Which can help increase the efficiency of foreign trade operations through: better market knowledge, the presence of regular customers; reduction of costs for transportation of products and their storage, including costs for operations with significant quantities belonging to different manufacturers; reduction of terms of deliver-
ies and registration of documents; provision of services before sale and after sales service; manufacturers provide prompt and detailed information about changes in product competitiveness and the market situation in general, information about real and potential competitors. Today, many Ukrainian companies are actively involved in foreign trade. However, the efficiency of foreign economic activity of our national enterprises remains low [2].
A feature of the modern development of economic relations is the dominance of the process of international economic integration. The consequence of integration processes is the strengthening of interdependence between countries, the emergence of large economic spaces, the acceleration of scientific and technological progress. All these factors contribute to the emergence of the uncertainty component. Therefore, business requires constant adaptation to changing economic conditions and strategic planning as a way to effective companies in the future.
Strategic planning is the basis for effective foreign trade, as the company can check the optimality of the basic parameters of planning activities in the world market, which has a significant impact on its activities. The development of an international strategy allows:
- focusing on the more important issues of foreign economic activity;
- determination and coordination of the mission implementation and the main goals of the enterprise in the field of foreign economic activity;
- determination of the ways of transforming the enterprise into a new state and the optimal ways of using the necessary resources.
The formation of the strategy of international economic activity should take into account internal and external factors, which, in turn, shape the potential of enterprises and underlie the strategy. Among the internal factors are determined: organizational management, information support of foreign economic activity, export planning of production, accounting and analysis of export deliveries, personnel management. External factors in the formation of the strategy of foreign economic activity include: economic (inflation and price levels, rising demand and declining production, taxation, fluctuations in national and foreign currencies, creditworthiness of counterparties, etc.); political and legal; scientific and technical (level of science and technology in the country, the level of implementation of scientific and technical achievements in production, the availability of new technologies, etc.); demographic (population, age, gender, marital status, etc.); socio-cultural (differences in people's attitudes towards themselves and others, attitudes towards government agencies, nature, basic cultural values, differences in needs, etc.); natural (especially climatic conditions, the potential of natural emergencies, etc.). The combination of all these factors forms the foreign economic potential of the enterprise.
Figure 4. Stages offormation of the company's strategy to enter the foreign market
European integration is a strategic task for Ukraine. Ukraine has significant potential for the development of export services as one of the promising areas of European integration intentions. One of the advantages of strategic potential is the historical experience of mutual relations and cooperation with countries with common borders. Ukraine is on a dynamic path of integration change. Due to its advantageous geopolitical position and geographical location, Ukraine is a valuable strategic partner for both its western countries and eastern neighbors. Being in the center of Europe, Ukraine has a number of strategic advantages, among them: developed transit potential, and thus increasing the levels of international trade contacts and the competitiveness of the domestic economy in the world market; migration of commodity, financial, investment and other markets. This determines the importance and peculiarity of foreign economic activity, which is a key factor in the European integration process, creates a foundation for the development of socio-economic components of the state and individual enterprises.
The prerequisites for European integration (regarding the problems of domestic enterprises) include: outdated technical equipment and facilities; inefficient methods of enterprise management; non-compliance with international and European standards; uncertainty of entrepreneurs regarding the modernization of enter-
prises; lack of incentives and effective tools to improve product quality. The advantages that Ukraine will receive from the free trade zone and integration with the EU include: entry into the EU's single foreign market; constant growth of exports of goods and services, gaining the status of a major trading partner for many EU industries, one of the leaders in food supplies to the EU; there is a tendency to increase European exports, which indicates the dependence of exports on the processes of global integration; additional trade preferences from the EU for Ukraine (duty-free export quotas); stability of the political system, harmonization of national legislation with EU legislation, reorganization of ineffective judicial legislation; development of medium and small business; increasing the competitiveness of domestic products, implementation of EU standards at domestic enterprises; obtaining by enterprises, while participating in the world market, knowledge and experience that help increase the efficiency of their activities, which leads to a reduction in dependence on conditions in the domestic market [1].
There are various methods that can be used to prioritize the strategic goals of the enterprise in modern conditions. Varieties of the method of scenarios in establishing the priority of strategic goals of the enterprise in the direction of development of WTO markets are given in Table 7.
Table 7
Types of scenario method in establishing the priority of strategic goals of the enterprise to enter the globalized
WTO markets
Type of scripting method Characteristics The essence of determining the priority of strategic goals
Link method A system of prerequisites for the development of the future activities of the enterprise is used, based on the available indicators of its activities Formation of assumptions about the priority of strategic external goals in accordance with the dominant indicators of foreign economic activity of the enterprise or indicators with positive dynamics
Method of constructing a system of diagrams A system of diagrams is used, which are built on the performance indicators of the enterprise and allow you to describe the main strategic development goals Formation of assumptions about the priority of the strategic goals of foreign economic activity of the enterprise, depending on the dynamics of indicators of diagrams, trends, dependencies
Critical field method Used to study the critical points of the business process of an enterprise, especially when it comes to the end of the reporting period Formation of assumptions about the priority of the strategic goals of foreign economic activity of the enterprise, depending on the achievement of planned performance indicators in the context of critical points of production and stages of control
Method of "newspaper headlines" Used to analyze and find the reasons for obtaining a potential and impossible production result Formation of assumptions about the priority of the strategic goals of foreign economic activity of the enterprise, depending on the degree of importance of the reasons for the achievement of a particular potential production result
Method of "logic of possible developments" Used to generate alternative and important ideas based on key factors in the development of production processes Formation of assumptions about the priority of the strategic goals of foreign economic activity of the enterprise based on the alternative choice of production
It is possible to identify and group the factors that negatively affect the development of foreign economic activity of enterprises. Consider three levels of factors: external (macro-environmental factors), direct (factors influencing the environment of foreign economic activity of enterprises); internal (microenvironmental factors).
The main factors of the external (macro) environment that affect the improvement of foreign economic activity of enterprises are the factors of the global environment, financial, economic, and political. The formation of economic interaction and its environment at the international level is determined by the combined influence of various factors [6].
The main factors that negatively affect the immediate environment of foreign economic activity of enterprises are legislative, regulatory, geopolitical, financial and economic. Despite the use of many unified international norms, the legislative and regulatory framework of Ukraine in the field of foreign economic activity needs to be improved. This is especially true not only for the collection of documents, but also for the registration of foreign economic entities. A significant shortcoming can be considered the imperfection of foreign economic policy. It is necessary to point out unreasonable and transparently formulated administrative measures of non-tariff regulation of foreign economic activity.
The geopolitical factor serves as an opportunity to overcome the geographical boundaries of markets economically, as a geographical barrier to entering foreign markets, the difficulty of moving goods, significant additional costs for crossing borders.
There are also problems of irrational structure of exports of domestic enterprises by geographical area and not quite a successful model of international specialization of Ukraine. The share of Ukraine's exports is determined by the needs of the international market and the specialization of its economy, due to the sectoral and commodity structure of the country's economy.
A negative factor is the effect of import substitution, which indicates the insecurity and imperfection of Ukraine's domestic markets. This is evidence of the wrong foreign economic policy of the state. Scientific and technological lagging of Ukrainian enterprises behind developed countries, lack of sufficient resource provision, low level of supplied goods quality lead to a negative export structure.
There are quite significant shortcomings in relation to the infrastructural support of foreign economic activity: customs services, customs procedures, financial calculations, transportation and communication problems; services for the provision of information and other business services and the like.
Internal factors can be considered financial, managerial, technical and technological. Equipment and technologies that do not correspond to the current level of development negatively affect costs, quality indicators and products and, as a result, inconsistency with world standards, hinder competition with foreign counterparts. Due to financial instability, enterprises cannot quickly respond to changes in the external environment, update equipment, technologies, and improve the range of products.
Оne of the problems of foreign economic activity
of enterprises is the problem of inefficient management system, lack of strategic and marketing approaches to enterprise management. More often use the technique of short-term adaptation.
Thus, these problems make it possible to systematize and identify ways to overcome them to ensure effective foreign economic activity of enterprises. It is important to review the foreign economic policy of the state in relation to the support of domestic producers, increasing export potential, optimizing the geographical and commodity structures of exports and imports. It is necessary to increase the share in exports of finished products, and in imports - to reduce the share of fuel, environmentally harmful products.
Conclusions. The main problems of the development of foreign economic activity of domestic enterprises in the context of European integration and world globalization include: obsolete technical equipment and equipment; ineffective methods of enterprise management; inconsistency with international and European standards; the uncertainty of entrepreneurs regarding the modernization of enterprises; lack of incentives and effective tools to improve product quality. An urgent challenge of our time for the development of foreign economic activity for Ukraine, as well as for all countries of the world without exception, is the suspension of foreign economic activity and the closure of borders as a result of the spread of the COVID-19 pandemic. In modern conditions, it is difficult to determine the prospects and make forecasts for the future regarding the foreign economic activity of Ukraine, because it is also complicated by financial, economic, geopolitical, legislative, regulatory, technical and technological factors. Overcoming the existing problems in the foreign trade sphere should be ensured by creating favorable conditions for the realization of national interests in the sphere of foreign trade.
The main means of increasing the potential of foreign economic activity of enterprises is the formation of such economic conditions that would allow, through the modernization of production, to increase the output of domestic products and services, introduce innovative technologies, a special system of lending to manufacturers, improve the level of automation of production, and attract highly qualified specialists to the enterprise. For Ukraine to reach the modern level of production and technological base, it is necessary to introduce mechanisms to encourage innovation. There is an urgent need to update technological processes at Ukrainian enterprises in order to gradually transform the Ukrainian economy into a more innovative and science-intensive one.
Therefore, to improve the foreign economic activity of Ukrainian enterprises it is necessary to implement a policy aimed at increasing the volume of merchandise exports by introducing innovative developments to improve the quality of domestic products, which must meet international norms and standards necessary to create a sufficient level of competitiveness in domestic markets. Also, the goal should be to reduce the volume of imported products in the domestic market, at least that which has domestic counterparts.
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ПРОЕКТНАЯ МОДЕЛЬ ФУНКЦИОНИРОВАНИЯ ОРГАНИЗАЦИЙ
Глущенко В.В.
доктор технических наук, доцент, Московский политехнический университет, Профессор, Центр проектной деятельности
PROJECT MODEL OF FUNCTIONING OF THE ORGANIZATIONS
Glushchenko V.
doctor of technical Sciences, associate Professor, Moscow Polytechnic University, Professor center for project activities
Аннотация
Предметом статьи является проектная модель функционирования организаций, объектом статьи выступают коммерческие и некоммерческие организации, целью статьи является рост эффективности функционирования организаций в коммерческой и некоммерческой сферах, для достижения поставленной цели решаются следующие задачи: изучается сущность проектного способа функционирования организаций; разрабатывается модель проектного представления организации; развиваются положения общей теории функционирования организаций в рамках проектной модели (проектного дела, проектоло-гии); формируется общий алгоритм реализации проекта в организации; исследуются варианты повышения эффективности деятельности организаций в рамках проектной модели их деятельности, развития проектного дела; научными методами в статье являются: теория моделирования; методология и философия науки, сравнительный, системный и логический анализ; системный метод, теория прогнозирования; научная новизна статьи определяется синтезом проектной модели деятельности организации, разработкой основных методологических аспектов проектного дела (проектологии), формированием типового алгоритма осуществления реального или образовательного проекта
Abstract
The paper discusses the design model of the functioning of organizations, the object of study are the commercial and noncommercial organizations, the aim of the article is the increase of efficiency of functioning of organizations in commercial and non-profit sectors to achieve the set goal the following tasks: study the essence of project method of functioning of the organizations; the development batiwala model design to represent the organization; develop provisions for-soup theory of the functioning of the organizations within the design model (design de La, of proktologii); the General algorithm of project implementation in the organization is formed; options for improving the efficiency of organizations in the framework of the project model of their activities, the development of project business are studied; scientific methods in the article are: modeling theory; methodology and philosophy of science, comparative, system and logical analysis; system method, forecasting theory; scientific but-curvature of the article is a synthesis of design models of the organization, the development of key methodological aspects of design business (proctology), a generic algorithm implementing a real or educational project
Ключевые слова: модель, организация, функционирование, процесс, проект, агрегирование, эффективность, экономика, образование, инновации, декомпозиция, алгоритм.
Keywords: model, organization, functioning, process, project, aggregation, efficiency, economy, education, innovation, decomposition, algorithm.
Актуальность данной статьи связана с необходимостью роста эффективности проектной деятельности организаций. В частности, важно увеличить эффективность проектов по разработке и внедрению в практику работы организаций новых технологий, составляющих технологический базис организаций в шестом технологическом укладе. Речь идет о таких видах технологий: информационные, нанотехнологии, технологии цифровизации, «зеле-
ные» (ресурсосберегающие и экологически чистые) технологии, нейротехнологии.
Гипотезой статьи является предположение о том, что развитие теоретических положений проектной модели деятельности организаций (проектного дела, проектологии) может позволить повысить эффективности практического использования проектного подхода (модели) в работе организации
