Competitiveness of the enterprise and analysis of production costs

Competitiveness as a concept arose in the process of competition of enterprises in commodity markets, as well as markets for manufacturing, intellectual and information resources. It should be borne in mind that in the analysis it should be considered as a parameter that takes into account the factor analysis of production costs. At the same time, the main goal of the commodity producer's participation in the market competition is to meet the needs of the buyer and obtain the maximum profit, as well as funds for expanded reproduction, stimulation of labor and improvement of the well-being of workers. In addition, it is determined by the competitive advantages of the organization and the company in relation to competitors in the domestic and foreign markets.

This understanding connects competitiveness, competition, profitability and cost analysis for production with the corresponding advantages of the enterprise in a single system of performance indicators and means an objective need to intensify its activities in the innovation and investment sphere and increase the rationality of using production, financial and information resources. In this regard, each business entity seeks to maximize profits, increase accumulation funds, increase the qualification level of its employees, attract foreign investment and demonstrate its competitive advantages in the capital markets for enhanced reproduction. As the analysis of production costs shows , the main factors of competitiveness represent a system that includes:

1) indicators of the rational use of material resources;

2) indicators of the effectiveness of the use of intangible resources;

3) the competitive environment and the level of competition in the country;

4) the company's competitive strategy;

5) the magnitude and dynamics of demand;

6) elasticity of demand;

7) the competitive advantages of the spheres of production, which provide the company with the necessary resources;

8) random events;

9) economic and organizational-administrative methods of correction of economic activity.

The competitiveness of a commodity is expressed through its competitive advantages in the domestic and foreign markets.

As a complex process, the analysis of production costs shows that the factors of competitiveness of goods are:

• the cost of consumption, determined by the sum of the selling price and consumer costs;

• quality level in comparison with the goods of a competing enterprise;

• the ratio of the purchase price of a good and its quality;

• comparison of goods of competing enterprises in terms of the ratio of technical characteristics and the level of sales prices of these goods;

• comparison of composite parametric indices of competitiveness of goods. All these factors also take into account the methodology for analyzing the costs of producing a particular product.

However, the methodology of formation of competitiveness of the enterprise and goods is expressed not only in interactions with competition and competitive advantages of the enterprise (in particular - costs), but also in interrelation with the country's competitiveness. All the factors of the enterprise and the country are generated by its economic system, as well as by the specifics of the process of socio-economic development, by the interrelationships that are manifested in the following main triads:

1) "man - society - nature";

2) "the competitiveness of the economy - the competitiveness of politics - the competitiveness of law";

3) "the competitiveness of macroeconomics - the competitiveness of microeconomics - the competitiveness of foreign economic activities of the country";

4) "the country's competitiveness - the competitiveness of industry enterprises - the competitiveness of goods".

As a principle, the analysis of production costs provides that there is a certain interaction between the factors of the competitiveness of a country's economy, enterprises and their goods (services, works), the costs of production. As a rule, internal factors of the country's economy are external factors for the competitiveness of enterprises. At the same time, internal factors of enterprise competitiveness are external, in relation to factors of competitiveness of works, services and goods of the same enterprise. There is also a feedback in which the competitiveness of goods determines the competitiveness of the enterprise, the competitiveness of enterprises determines the competitiveness of individual industries, and the competitiveness of all industries determines the competitiveness of the country's economy.