1.5. The role of assessing the competitiveness of goods and services in entrepreneurial activities
As you know, entrepreneurship is the organization of production, works or services that have value and provide profit to the subject of such activity.
Typical processes of entrepreneurial activity in a competitive market environment include :
1) making a new one, i.e. unknown to consumers, good or creating a new quality of an existing good;
2) the introduction of a new production method;
3) development of a new sales market;
4) use of a new source of raw materials or semi-finished products.
The considered business processes, but in essence, reflect factors of competitiveness of goods (services). The main purpose of entrepreneurial activity is profit. The main instrument for achieving this goal is the production and supply to the market of a competitive product.
The amount of profit depends on the amount of income. As you know, the revenue ( F ) from the sale of a consignment of (D ) at a specific sales price (C pr ) is: F = DC pr .
The volume of sales is determined by the competitiveness of the goods, in particular the integral quality index. According to , a rather real estimate of the volume can be obtained from the formula
The coefficient d in formula (4) is determined from the analysis of market sales of analog goods that are in demand by the consumer.
Taking into account formula (4), the amount of income can be defined as:
The amount of profit ( L ) from the realization of a batch of goods is defined as the difference in income (L) and costs (B): L = F-B .
From the formula (5) it follows that the profit is in a quadratic dependence on the integral quality index - the measure of competitiveness.
The way in which the enterprise makes a profit is a kind of "demarcation" The line dividing the enterprise-burgers and the enterprises with high reputation. The former achieve profit by reducing costs to the detriment of quality (using inferior cheap substitutes, reducing the technological cycle of manufacturing, etc.), and the latter - at the expense of both improving quality and reducing costs, but not at the expense of the latter.
In a civilized market, profit is always a means, not a goal.
The author shares the opinion that when the entrepreneur's profit becomes the only goal, then his strategy is a priori embedded in theft. The goal should be satisfaction of consumers, personnel with work in the organization, etc. (see Figure 31, criteria 6 and 7).
Here it is appropriate to quote the statement of one of the entrepreneurs, which became an aphorism: "For business, money is more important - the source of money. This source is the consumer .
Continuing to consider the role of competitiveness in entrepreneurial activities, we note that the entrepreneurial project is implemented in the form of a business plan . It includes six main sections:
1) business concept;
2) advertising sketch;
3) business timetable;
4) set of goals;
5) marketing research;
6) financial summary.
Section 1 gives a concentrated description of the idea of future activity and the form of its implementation. Here are the characteristics of the product, distinguishing it from the products already produced by competitors, i.e. Competitive advantages are indicated.
Section 2 formulates the main idea underlying the advertising campaign - information about competitive advantages.
Section 3 usually lists all (mostly organizational) activities that an entrepreneur needs to implement to realize his idea.
Section 4 specifies short- and long-term goals. For example, a short-term objective of a firm may be to capture a certain part of the market, and long-term - the concentration of profits received from the sale of the produced goods, for investing in the organization of the release of new product modifications.
Section 5 focuses on the analysis of problems associated with competition: the identification of actual and potentially possible competitors; the definition of the categories of consumers that the entrepreneur is oriented towards when implementing the idea. In this section, we calculate the income and costs as the basis for possible profits, consider the sources of financing.
Section 6 gives the final conclusion about the financial status of the proposed project - a financial summary.
As can be seen from the brief overview, sections 1, 2, 5 are devoted to assessing the competitiveness of goods.
Thus, the activity of assessing and forming the competitiveness of goods (services) is the basis of business planning of the business entity.
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