Kseniia Moisieieva fourth year student
National Technical University of Ukraine 'Kyiv
Polytechnic Institute'
Improvement
of foreign economic activity of industrial enterprises of Ukraine
To find
ways to improve foreign economic activity (FEA) is caused by entering a new
stage in the world economy, which requires significant efforts from both the
state as a whole and of individual enterprises, which will depend on further
economic and social development. In such situation it is necessary to form an
effective mechanism for managing foreign economic activities of all
participants, in the first place - industrial enterprises. A significant number
of domestic enterprises have already won some segments of foreign markets. They
have strong and mutually beneficial relations with foreign partners. However,
in terms of liberalization and integration into the world economy is becoming
increasingly important that would facilitate the conquest and retention of
strong competitive advantages in existing and new markets.
Essence
of FEA is the comprehensive analysis and modeling of the international
environment, coupled with the well interaction of all departments and officials
of organizations or businesses for a productive meeting agreed foreign
policies.
There
are two levels of principles of economic activity: general (scientific,
systematic, mutual utility) and national (Ukraine's sovereignty, freedom of
foreign trade business, not allowed discrimination, rule of law and protect the
interests of economic operators) [2].
The
state authorities of Ukraine, which refers to the management of FEA: The
Parliament, Cabinet of Ministers, The National Bank Ukraine, The Ministry of
Foreign Economic Relations and Trade of Ukraine, The State Customs Committee
and the Antimonopoly Committee of Ukraine. Managed system includes natural and
artificial persons [2].
There
are functional and subject approaches in FEA management. The subject approach
means that every kind of business has internal technology. The functional
approach means that realizing the goals of economic activity connected with
such management functions as: planning, organization, motivation, control and
regulation [3].
The
organization of economic activity connected both with internal factors (the
scale of economic activity, costs, the complexity of products, an experience, a
control), and with external factors (an economic freedom, the competition, the
presence in the country, risks) [1].
Also,
the organization depends on methods of entering foreign markets:
- A direct access to foreign markets through
its own Department of Foreign Trade or
- Go to foreign
markets through intermediaries.
Entering
foreign markets is closely related to marketing (the market research, the study
of supply and demand, the study of working conditions, etc.).
Planning
in marketing is a continuous cyclical process, which aims are to bring
enterprise capabilities in line with market conditions. Marketing plan is
usually consist of the following sections [1]:
- The description
of short and long term business objectives;
- The results of
prediction markets;
- The description
of the marketing strategies of companies in each market;
- The description
of the controls over the implementation of the marketing plan.
Marketing
plan is a plan of action which has several options. The wide plan allows
flexibility to respond to changing the external environment, minimizes the
mishandling of stuff provided emergency circumstances.
The
economic content of marketing is to accelerate the return on production assets,
an enhancement of mobility and a level of competitive products, the timely
creation of new products and to accelerate their progress in those foreign
markets, which can be achieved maximum commercial effect [1].
Application
of marketing forces to rethink the established practice of planning, material
incentives, pricing as in departments and in the upper echelons of production
management. It is necessary to rebuild the organizational structure,
establishing clear authority and responsibility. It is essential for the
implementation of marketing in practice because marketing as a management
function includes organizational structure.
The
main functions of FEA risks management of are: the analysis of situations and
identify possible risks, to evaluate the likely damage and decision-making
aimed at its reduction, the implementation of decisions and control their
execution. The
principal methods of reducing potential damages are: insurance, hedging and the
use of various forms of cash and credit relations, analysis and market
forecasting.
In a
scientific and technological progress taking place significant changes in
science and technology. A speed of
enterprise adaptation to these changes, the transition to production, and a
consumption of the most effective new products is essential for its “survival”.
The question of studying the market is to get special significance to each
enterprise, their goal is to find “niche” market, where, first, the position of
a competitor strong enough or, secondly, the needs of the consumers are not
satisfied by some competitors.
All
management functions are aimed at solving the main task - the competitive
products with minimal cost creation and production to obtain pre-determined
share of profits. In modern terms the exceptional value of the output on
foreign markets get quality products, and control exercised by her, and
implementation measures of sales, service after sales, services, advertising
campaigns. In a result achieving of these measures goals to obtain the maximum
and steady profits and entry into new markets or consolidate the existing
market are the main criterion for the improvement of foreign economic activity.
Literature
1.
O.A. Kirichenko. International Management: Teach. Manual. - 3 rd ed.,
revised. and add. - K.: Knowledge-Press, 2002. - 384 p.
2.
V. Machuskyy. Commercial law / V. Machuskyy, V Postulha / Teach. Manual.
- K.: MBK, 2004. - 275 p.
3.
A. Fatenok-Tkachuk. Analysis of factors influencing on the activities of
foreign engineering firms. Proceedings KNTU. Economic Sciences, 2010, n. 17.