Economic sciences

Masur O. A. student of the specialty 5B050700 Management

Research supervisor Mishulina O. V., Doctor of Economics, professor

A. Baytursynov Kostanay State University,

Republic of Kazakhstan

USING THE TECHNIQUE OF SWOT ANALYSIS ON THE EXAMPLE OF THE FOOD INDUSTRY ENTERPRISE

THE “ALTYN OMIR” LLP

The assessment strong and weaknesses of the enterprise in relation to opportunities and threats of environment defines existence at firm of strategic prospects and possibility of their realization. It is clear that there will be thus obstacles (threat) which need to be overcome. From here reorientation of methods of management by enterprise development from a support on already reached results, the mastered goods and used technologies (internal factors) on studying of the restrictions imposed by the external market environment (external factors) [1].

The defining role is played by the complex analysis of opportunities of firm and threats from the outside, strong and weaknesses of the enterprise. The most widespread technique of implementation of this assessment is SWOT analysis. We will consider strong, weaknesses of the “Altyn Omir” LLP, and also available opportunities and threats (see. Table 1).

As experts 5 managers of the “Altyn Omir” LLP of an average and the top management were involved: head of quality control Sidorova M. N., foreman on production of alcohol, beer, alcoholic and soft drinks Barsukova L.G. chief of OMTS Serebrinsky V. I., personnel manager Slesareva O. V., deputy director on marketing Demisenov A.B.

Quantitative indices both negative, and positive sides for the company were calculated. The favorable for the company include groups of factors: strengths and opportunities; making the list from 8 and 7 factors respectively which quantitative parameters are presented by the sums: 56 points – strengths, and 40 points – opportunities. As, values of groups of negatively influencing factors are counted: weaknesses (7 parameters with cumulative influence in 49 points) and threats (6 parameters, a total score 34 points).

Table 1

SWOT analysis of activity of Altyn Omir LLP

Strengths	Opportunities
The wide list of offered goods and services	Involvement of the personnel of high qualification owing to growth of the market of labor
Existence of own distribution network	Weakening of regulation of excisable production
Convenient delivery terms of production to the client	Increase in outputs due to effective use of not loaded equipment.
Experience in the production sphere	Decrease in the customs duties
Continuous development of production	Wide choice of suppliers
Positive reputation	Increase in market capacity
Competitive prices	Possibility of release of new types of goods due to expansion of the available production line
Other kinds of activity which provide profit as a whole on the enterprise are developed
Weaknesses	Threats
Lack of market researches	Adverse demographic changes
	Growth of number of competitors
There isn't enough knowledge of competitors	Increase of requirements to quality of offered production
High turnover of staff	Rise in prices for energy carriers
Existence of losses from primary activity	Instability of the prices of suppliers
Deterioration of a financial situation (decrease in profitability of activity owing to the advancing growth of expenses)	Rise in prices for transport transportations
Lack of the qualified labor

With most weighed assessment of influence in 9 points strengths and opportunities are marked out:

• the wide list of offered production;

• continuous development of production;

• other kinds of activity which provide profit as a whole on the enterprise are developed;

• possibility of release of new types of goods due to expansion of the available production line;

Weaknesses and threats are posed by the following factors having especially strong impact:

• existence of losses from primary activity;

• deterioration of a financial situation. Decrease in profitability of activity owing to the advancing growth of expenses;

• low efficiency of the organization of working processes;

• growth of number of competitors.

Taking into account all factors, existence of losses from primary activity and deterioration of a financial condition of the enterprise are the most apparent defects in the “Altyn Omir” LLP activity.

Thus, the carried-out quantitative SWOT analysis allows drawing a conclusion that strengths of the “Altyn Omir” LLP and possibility of the environment will allow the company to overcome its weaknesses, and also to eliminate available threats.

After the concrete list weak is made and strengths of the company, and also threats and opportunities, we pass to a stage of establishment of communications between them.

Table 3

Strategic and tactical opportunities of the “Altyn Omir” LLP

Name of combinations of quadrants of a SWOT matrix	Numbers of positions in quadrants of combinations	Strategic and tactical opportunities
SO	S1+S2+SЗ+S4+S5+S7+O6+O7	Growth of output and rendered services Increase in a share of the market
	S3+S5+ O1+ O3	Growth of outputs More effective use of capacities
WO	W4+W5+O6+O7	Stabilization of a financial position of the enterprise Increase in gross profit More effective use of capacities
	W1+W2+W3+W7+O1+ O3+ O 7	Development of department of the marketing capable adequately to react to changes of the external and internal environment Reduction of level of turnover of staff and involvement of the qualified experts.
ST	S1+S2+SЗ+S4+S5+S6 +S7+T1+T2+ TЗ+T4+T5+T6+T7	Preservation of taken positions and competitiveness level
WT	W2+W3+W5+ T1+T2+T3	Intensification of marketing efforts
	W4+W5+W6+W7 +T2+T3+T6	Increase of efficiency of a production activity

Concerning those couples which were chosen in the field S and O, it is necessary to develop strategy on use of strengths of the organization to receive return from opportunities which appeared in environment. For those couples which appeared in the field of W and O, strategy has to be constructed so that at the expense of the appeared opportunities to try to overcome weaknesses available in the organization. If couple is in a field S and T, strategy has to assume use of force of the organization for threat elimination. As for couples in the field of W and T, the organization has to develop such strategy which would allow it both to get rid of weakness, and to try to prevent the threat which has hung over it. For each field of the described table we will reveal the most significant combinations and we will define those strategic and tactical opportunities which they give [2, 3].

The company can use the combinations given in the 3rd table when developing strategy of further development of the company. Among the specified trajectories of development it is necessary to pay special attention to a combination of weaknesses and opportunities which reflect the main problems in functioning of the “Altyn Omir” LLP and a way of their overcoming. On stabilization of financial performance, increase of level of the organization of working processes, and also formation of highly effective group of workers it is possible to realize the offered directions a way:

Ø rationalization of the organization of work at all levels;

Ø flexible use of working hours and labor productivity growth;

Ø controlling of profitable development of the enterprise;

Ø constructions and uses of system of the balanced indicators as basis of functioning of the enterprise.

Literature

1 Plaskova N. S. Strategic and current economic analysis. – M.:Eksmo, 2007.– 321 p.

2 Ilyin A.I. planning at the enterprise: textbook. – 3rd prod. stereotype. – Minsk: New knowledge, 2002. – 635 p.

3 Eagles A.I. management: textbook. – M.: Emerald, 2003. - 298 p.