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Saturday, August 27, 2016

Define competition


Welcome to my Define competition. Defining competitiveness potential method based on the theory of effective competition
According to this theory, the most competitive are those companies where the work is organized in the best way all departments and services, organizational capacity is characterized by high rates. The effectiveness of each service is influenced by many factors - appropriate resources company. Evaluating the effectiveness of each component (model) suggests potential assessment of the efficiency of these resources.

The method is based evaluation group of four indicators or criteria of competitiveness.

The first group includes indicators characterizing the effectiveness of production process management, cost of production costs, rational exploitation of fixed assets, the perfection of manufacturing technology products, an organization of the workplace. That first group formed on the basis of key indicators of production and to some extent economic potentials.

In the second group includes indicators of financial capacity, reflecting the efficiency of working capital management, enterprise independence from external sources of funding, solvency, the possibility of sustainable development in the future.

The third group includes indicators of the marketing potential of the company, describing the effectiveness of sales management and product promotion in the market through advertising and promotion.

The fourth group includes indicators of the competitiveness of the product and its price.
Based on this factor PCB company can be determined by the arithmetic average:

KKZP = 0.15 + 0.29 * EDA * EFP EMF + 0.23 * + 0.33 * CT

Where: KKZP - capacity factor of competitiveness of the company;

EDA, EFP, EMF - criterion according to value performance indicator productive capacity, financial capacity efficiency and effectiveness of marketing potential;

CT - value of competitive goods.

All these criteria respectively calculated as follows:

EDA = 0.31 + 0.19 * The F * 0.4 * 0.1 * RT PA

where: - a relative indicator of cost per unit

products; F - relative measure of capital; RT - the relative rate of return of goods; PT - the relative measure of productivity.

EFP = 0.29 * 0.2 * CA + CP + CL + 0.36 * 0.15 Cob,

Where: CA - the relative measure of autonomy; KP - a relative measure of the solvency of the company; KL - a relative measure of the liquidity of the company; Kobe - a relative measure of turnover of current assets.


EMF = RP + 0.37 * 0.29 * 0.21 * BB + KM + 0.14 * CD,

where: RP - relative return on sales; BB - relative measure zatovarenosti finished products; KM - a relative measure of capacity utilization;

CD - a relative measure of the effectiveness of advertising and sales promotion.

Algorithm for the calculation of the competitiveness of firms involves three successive stages.

Step 1. Calculation of individual indicators of competitiveness of the enterprise (see. Table. 3.) and conversion metrics 1.1 - 3.4 in relative values (points).

To convert these indicators in relative value comparisons made with their baselines. As a baseline may be: the average industry performance, performance of any competing firm or firms leading market indices last period.

In order to transfer indicators in relative values used a 15-point scale. This indicator is given 5 points, which is worse compared to baseline; 10 points - at baseline, 15 points - more than the base value of the index.

Step 2: Calculate the potential competitiveness of the criteria for the abovementioned formulas.

Step 3. Calculation of PCB firm. BCC <10 - low PCB = 10 - average, SPC> 10 - high.

The assessment of competitiveness covering all the most important evaluation of business enterprises, in addition to duplicating certain indicators to quickly and effectively get a picture of the sector on the market.

This method is suitable for use in the study of the potential competitiveness of the company. However, in its foundation laid expert evaluation of the weight of each factor, and this assessment can be considered quite likely.

The competitiveness of production

To assess the competitiveness of products used: differential, complex and mixed techniques.

The differential method is based on a single production parameter analyzed, database comparison and their comparison.

Calculation of individual indicators of competitiveness is as follows:

f = p * 100%

her "


where: q; - A single parametric standard competitiveness by  parameter (i = 1,2, .. .p);

Ri - the value of her second parameter for products analyzed;

Ri0 - the value of her second option, in which the need is met completely (eg analog);

n - the number of parameters.

In assessing the normative rates * single figure takes only two values - 1 or 0. If the products analyzed, meet mandatory regulations and standards, the rate is 1; if not - 0.

(* Regulatory parameters determine the conformity of products to established norms, standards and requirements resulting from the legislation and other regulations: Novelty parameters, environmental friendliness, safety, which set mandatory requirements of international and national standards and technical law, standards, laws).

In assessing the technical and economic parameters of a single figure could be greater than or equal to 1 if the basic values established normative and technical documentation, special conditions, orders, contracts.

If the technical parameters have no quantitative assessment, they use expert evaluation methods in points.

This method does not take into account the importance of each parameter in the overall index of competitiveness.

3. The complex method based on a complex (group, integral, generalized) or comparing the performance of specific beneficial effects of products analyzed.

Group performance.

The calculation of the group index for regulatory indicators produced by the formula:

n

IHP ~ ^ I not,

i = 1

Where: in - group index of competitiveness of the normative parameters;  a single rate and competitiveness of-regulatory option.

Calculation of the index group of technical parameters (except legal) is performed as follows:

n

Where: ITP - a group rate competitiveness technical parameters; and - the weight and the second parameter of the total set of n technical parameters. Factors weight parameters determined by an expert.

The resulting figure ITP group characterizes the degree of compliance of the product with existing requirements for the full range of technical parameters. What it is higher, the more satisfied the needs of the buyer.

The calculation of the group on economic indicators index is based on determining the full costs of the consumer purchase and use the product.

The full costs for consumers are defined:

t

With AP + X = C,

i = 1

where: C - the full costs for consumers to purchase and use of goods;

Armed Forces - one-time costs of purchase (price, transportation costs and tariffs, installation, trial start);

C - average total operating costs of production in i-

year of service; T - lifetime; and - the year of service. With:



j = 1

where: C j - operating costs of the article; n - the number of articles of operating costs. The calculation of the group on economic indicators index is the formula:

1 = ±

Where: 1EP - Group indicator for economic parameters;

With both s0 - full costs for consumers according to the estimated

production and analog. The overall indicator is calculated as follows:

K = 1SH *

1 EP

where K-integral index of competitiveness of these products in relation to product-analog. Index "K" describes the dissimilation between the products being compared for the effect on the consumer unit cost consumers to purchase and use products. If K> 1, the product to be tested, the best analog (basic), K = 1 - the same competitive products, K <1 - produce inferior base.

4. The mixed method combines differential and integrated methods. It uses part of the first and second methods.

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