The role and function of commercial activities in the private business enterprise "Olymp"

                                      CONTENTS 

Introduction  
1. The role and function of commercial activities in the private  business enterprise        "Olymp"  
2. Organization of procurement processes for PP "Olymp"  
3. Organization of the sales process for PP "Olymp"  
4. Ways of improving commercial activities in PP "Olymp "  
Conclusions 
List of references  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                        INTRODUCTION 
 
          Today, trade is one of the main sectors of the economy of Ukraine. She first felt in a process of denationalization and privatization, which is an integral element of     a   problem of goods and services due to changes in the structure of market demand, its opportunistic fluctuations and the increasing intensification of competition. 
           The transition period, which is Ukraine's economy, characterized by a number of negative phenomena, such as recession, high inflation, shortage of domestic products, the ability to purchase low population. Under these conditions it is important to develop methods that affect the organization of markets, consumption of goods and services, and new approaches to management. 
In the years of independence Ukraine has entered a new period of development associated with the transition to market relations, improvement of legislation of Ukraine, empowerment economic activity of enterprises trading services.[3]  Legal economic enterprises, their freedom ECONOMIC as subjects of the market, providing a wide space ENTERPRISES. Commercial, self-dependence in decisions on commercial relations with, the use of financial-credit mechanism. 
The preconditions for the formation of regulation of this process is the transition from distribution of commodity resources to free their sale. Before the goods passes to the final consumer, is a commercial and manufacturing process: the supply of goods, organization and product range, sales promotion, sales service. These operations are interrelated and major in commercial paper trading company.Therefore, in my opinion, the above research issues are most important for commercial enterprises, and pay for my term paper topic is relevant. 
The aim of the course work is to deepen knowledge on the formation of variety of goods in the course of commercial activity, the development of promising ways of product business enterprises. The object of study is the business of the analyzed company. The object of study is selected PP "Olymp", Zhitomir.[1] 

     1.Role and functions of commercial activities in the PRIVATE business enterprise“Olymp”   
 
          To successfully orient production to market requirements, you must first of all, good to know. Information tools business - is, in fact, his primer, which must be mastered by every one who took up the matter. Market research - an important feature of commercial activity, as a result of which, selected potential buyers. The first step in this process - market segmentation, split it, which allows you to modify the qualitative characteristics of the goods in accordance with the needs of specific groups of potential users, provides a basis for strategy selection and allows more or less accurately determine the total market volume. Segmentation gives specific reasons for advertising and sales of the range defined by consumer characteristics. 
West German marketing GM-developed set of H.Lettau criteria for market segmentation, which is presented in Figure1.Among the criteria of the "A" example of geographic segmentation can be export to tropical countries, the Scandinavian market in EEC countries. Clearly, it is important to consider not only national traditions and preferences, but also features of the economic situation (financial status, taxes, forms of export controls, etc.), climate and other features. Among the wit-demographic characteristics of the special place occupied by industrial and economic characteristics of the enterprise, consumer, specificity of his belonging to a particular sector of the economy used form of management, tradition and image of the company. Industry segmentation market manufacturing enterprises expressed. [20 pg.416] 
 
 
 
 

Theoretical, methodological and practical basis of periodic publications served as the leading domestic and foreign economists and practitioners of commercial affairs, legislative and regulatory materials businesses, contracts, specifications, laws and decrees of the Government  Ukraine, statistically Reports Company "Olymp". "Olymp", aimed at fundamental changes in organization and management of  Market segments are targeted for sale to individual consumers (Group "B"), the most diverse. Among socio-demographic characteristics in accordance with, for example, the market for shaving supplies - information about the number of men and women who at 16, to determine the circulation of high school textbook - information about the number of student. 
        Social and economic segments of the market related to socio-demographic, but related to quality of life of specific social groups that own expensive durable items. 
        Segments that are targeted at consumer features, consider gourmet frozen food, radio fan who mostly buy individual parts for further assembly, housewives who buy products a week, etc. Segments that are focused on mass communication, actively used when planning advertising campaigns that take into account the target group of people who are watching certain TV shows or listen to radio, the usual time to read some newspapers, or discharged industry magazines and more. 
Segments that account for "life style", are formed on the basis of detection of differences in value orientations visionary people and their living habits. Psychology and "lifestyle" consumers are closely intertwined, but the ideological structure, beliefs of different groups of people. The limits of ideological segments often income prehensile, but require special sensitivity in an address to them. Here's an example of "setting" for a certain segment of ideological, among others, is very wide: "During the Olympic Games in Seoul, the technique of " Samsung "helped set people on the planet for a moment of peace, harmony”[17pg.144] 
             The criteria for market segmentation, pertaining to the group "B", that is derived from market strategy, taking into account its own production capability, technology. 
              Companies may be focused on selling goods to farmers, low-income consumers with cheap products, pursuant to orders by mail, etc. 
Market segments, isolated from a variety of reasons, inevitably. A classic example of this gives the company "Benetton": "We produce knitting products (separate segment of the product and its manufacturing technology) for the very young (socio-demographic segment) and trying to fashion (psychological segment) audiences and sells through retail (segment strategy and marketing)." 
Once done segmentation, capacity is defined potential market. It is defined as in-kind and in value terms. Accounting subject to annual sales of the product, possible changes, changes in market potential. To find out more specifically the share on the market, you must be familiar with their competitors, their strategy of behavior. 
Marketers should consider the status and trends in entrepreneurship and consumption in a particular country (region), the solvency of the population, inflation, the composition of consumption basket and its cost, income per capita (including by strata and groups), development of lending to industrial enterprises and etc. The value of the legal environment allows to have information about the level of legal, government and social regulation of business, competition, protection.[8pg.177-179] 
            Special place in the media must take data on population characteristics and trends. For effective business critical absolute size of the population, its geographic distribution, density, mobility, age and sex distribution, fertility and mortality, the number of marriages and divorces, racial, religious, ethnic structure. 
Among the trends identified demographic environment - increasing the proportion. 
The important place occupied estimates and trends in the geographical nature of development and population dynamics: the axes: "West-East", "North-South", a local movement from rural to urban, from city to suburban, moving for reasons of religious, ethnic, race, which in recent times increasingly facing our society and economy.

     Finally, very important information about the position of the buyer, the ability to enter into the marketing situation of the buyer, to evaluate his situation. 
          Trade - one of the first economic sectors from which began the process of monopolization of economy with gradual change of the administrative vertical management of horizontal links between market structure. A series of legislation was the impetus for the establishment of commercial enterprises of different ownership.[13pg.76] 
         Trading activity - this initiative, independent activity of legal entities and citizens for the purchase and sale of consumer goods for profit. In Ukraine, it is governed by the laws of Ukraine "On Entrepreneurship", "On Enterprises in Ukraine", "On consumer cooperatives", "Consumer Protection", "On Foreign Economic Activity", "On sanitary and epidemiological welfare of population" and other acts of legislation and the Cabinet of Ministers of Ukraine "Procedure class trading activities and the rules of commercial services," which defines the general conditions of employment in trading activities, the basic requirements to retail and commercial services to individuals who purchase goods for their own household needs in enterprises (their object associations), institutions and organizations regardless of ownership, citizens, entrepreneurs and foreign legal entities that carry out business activities in Ukraine in the sphere of trade. 
            Private Enterprise "Olymp" by nature of its activities are trading now, while the environment of its activities - the market of industrial goods.                             Operating in Ukraine since 1999 as a wholesale reseller. According to legal form and legal status analyzed enterprise is private enterprise - legal entity, pays income tax of 30% and a VAT payer. Consider the organizational structure of enterprises, "Olymp."Total number of employees is 35 persons, because PP  "Olymp" may be attributed to the category structures of small and medium businesses. 
    Overall company controlled by the Director General. In addition to its direct powers include: - To represent the interests of companies 
          -He is legally responsible for the activities of the enterprise     
Accordingly, the Director subject to all departments and managers of the analyzed company.[21.pg176] 
      Directly organizational structure of emergency "Olympic" is shown in Fig. 1.1.

                             Fig. 1.1 Organizational structure of the PP "Olymp" 

If we analyze the existing organizational structure of the enterprise, it becomes apparent lack of marketing services. Consequently, its function in part within its competence performs the sales department and supply. So to talk about the effective formation of the marketing mix for specific products such as capital goods is possible only after detailed analysis of the need for companies marketing "Olymp." 
The financial and economic condition of the enterprise "Olymp" for the period 2001 - three quarters of 2003 is characterized by the parameters listed in Table 1.1. The dynamics illustrated in Fig. 1.2. 
 

Indicators of the performance of PP "Olymp" for the      period 2008 – 3 quarters of 2010 

Fig. 1.2  Dynamics of sales and net profit private "Olymp" in 2008                           3  quarters of 2010

        The above dynamics of the financial and economic state of emergency "Olymp" shows that despite the relatively stable market development of products for these company observed a negative trend results.

       The reason for this may show a detailed analysis of the following factors: 
- Become a production 
- Become a wholesale 
- Become a distribution policy and promotion 
- Pricing policy 
           Draw a general analysis of economic activity PE "course."Balance sheet for the first half of 2003 is given in Appendix B. 
Calculate the basic indicators of financial and economic state. 
Will assess changes in the balance sheet for the analyzed period. Calculate the rate of growth of the balance sheet. It is defined as follows:

     In this case the growth rate of the balance sheet KB is 27.8%that positively characterizes the activities of the company during the reporting period and prior evidence of its solvency and increase production capabilities. 
In table 1.2 is presented a comparative analytical balance PP "Olymp" as of the first half of 2008.                                                                             Table 1.2

Comparative analytical balance PE "Olymp" as of the first half of  2008

     Data in Table 1.2, concerning the structure of the asset balance, indicate that the share of working capital was withdrawn from the production program. Increase the share of fixed assets suggests an increase in production scale. Analysis of the structure of liabilities balance shows a positive state of the financial sustainability of the enterprise, because the share of equity in the reporting period is 43.69%.  To work with suppliers and intermediaries PP "Olymp" uses e-business model of "business to business", major orders for Internet.   
   The advantages of the Internet for business is its versatility and interactivity. The user is interested in advertising, can at least click a mouse on the banner and go to a site that advertised. And if the site keeps on-line trading, and then immediately buy a product or service. Thus, Internet advertising through interactivity reduces the time between the receipt of consumer advertising and familiarity with the goods.[12pg.187] 
           Next advantage of the Internet in terms of its application for business - the possibility to study consumer reaction to advertising. It is easy software enables you to track the frequency of the taking into account the advertising time on site, the route to our site, that is, to study the interests of potential consumers. 
These three characteristics of the Internet indicate that using the Internet for economic activity can obtain significant benefits. 
But e-business has drawbacks. The first of them - the limited contingent of consumers who have access to the Internet.      However, the analyzed enterprise is not principally due to the specifics of the offered goods. 
The disadvantage is low speed and access to most Internet users.  
You can find other flaws. However, it is clear that they are associated with certain technological constraints that eventually removed very quickly. So, we have for the marketing department is one area of ​​work - use the Internet in economic activity. 
 

     2. ORGANIZATION OF PROCUREMENT IN PP "Olymp" 
 
         To work with suppliers and intermediaries PP "Olymp" uses e-business models such as "Business", major orders for products sent to suppliers via the Internet. Consider first the advantages and disadvantages of using the Internet in business.[14pg.182-190] 
          The advantages of the Internet for business is its versatility and interactivity. The user is interested in advertising, can at least click a mouse on the banner and go to a site that advertised. And if the site keeps on-line trading, and then immediately buy a product or service. Thus, Internet advertising through interactivity reduces the time between the receipt of consumer advertising and familiarity with the goods or services, as well as buying. 
Next advantage of the Internet in terms of its application for business - the possibility to study consumer reaction to advertising. It is easy software enables you to track the frequency of the taking into account the advertising time on site, the route to our site, that is, to study the interests of potential consumers. 
These three characteristics of the Internet indicate that using the Internet. 
You can find other flaws. However, it is clear that they are associated with certain technological constraints that eventually removed very quickly. So, we have for the marketing department is one area of ​​work - use the Internet in economic activity. 
But business has drawbacks. The first of them - the limited contingent of consumers who have access to the Internet. However, the analyzed enterprise is not principally due to the specifics of the offered goods. 
The disadvantage is low speed and access to most Internet users, which does not  
 
 

     3. Organization of  the sales process for  PP "Olymp" 
 
Activities PP "Olymp" in light of the proposed range given in Table 3.1. 
                                                                                                                     Table 3.1