MANAGEMENT OF FORMATION OF PROFIT IN THE SYSTEM STRATEGIC MANAGEMENT BY ENTERPRISE

Main Article Content

Olena Kryvda
Andrey Bratchenko

Abstract

Introduction. The profit management is conditioned by the tendency of its decrease in enterprises of Ukraine and the need to increase the efficiency of business entities in conditions of increased competition and limited resources. Low value of enterprise profits make it difficult to expand the reproduction of fixed assets, which in turn reduces the role of profit in the processes of reconstruction, technical and technological upgrading of production, and ultimately constrains the growth of product competitiveness and revenue, and, on the other hand, "stimulates" costly economy, reduces the economic efficiency of the activities of domestic organizations. In practical solutions to this problem, all measures to increase profits, as a rule, are reduced to cost savings.

Purpose. Determination of the value of profit, the study of theoretical ways to increase profits at the enterprise.

Results. Research of the practice of increasing profit on the basis of cost reduction showed that in recent years in Ukrainian enterprises there is a negative tendency to outstrip the growth of the cost of production and sales in relation to the growth rate of revenue, which led to a sharp decrease in profits. All this points to the need not only to reduce costs, but also to increase revenue, first of all, through the effective management and intensification of innovation activities of enterprises, increasing the competitiveness of products and enterprises.

Originality. Innovative activity of the company provides the relationship between management at the strategic and tactical levels. At the strategic level, in order to provide innovative activity, it is necessary:

1) availability of competitive innovative strategy of the enterprise and its aggressiveness in competition;

2) mobilization of innovative potential for solving practical problems;

3) optimization of the volume of attraction of investments into innovative activity;

4) high quality of strategic changes, aimed at forming the real competitive advantages of the enterprise.

The tactics of innovative activity provides the dynamics of innovation activity of the enterprise on the basis of achievement:

1) the conformity of tactics of innovative activity of the character of the competitive strategy of enterprise development;

2) optimal speed (in time) implementation of measures for strategic innovation in the field of product innovation, technology and process equipment, personnel knowledge and organizational structure

Conclusion. Thus, profit growth is an important indicator of innovation development of the enterprise and increase its competitiveness. Long-term growth of sales (sales) and sales profits ensures strategic advantages of the enterprise, corresponds to its economic interests and interests of other participants in economic activity. The prospect of further research, in our opinion, is seen in the study of such issues: the characteristics of the model of strategic management of distribution and the use of profitability of enterprises from the standpoint of economic equilibrium, as well as the construction of a multi-factor model of the efficiency of profit utilization and its impact on the main quantitative and qualitative indicators of its activities.

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References

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