RESEARCH OF THE ENTERPRISE PROFITABILITY STRATEGY

• Main Authors: Gennady Shvachych, Elena Kholod
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2017-12-01
• Series: Baltic Journal of Economic Studies
• Subjects: profit; profitability; enterprise; economic efficiency; market; competitiveness
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/317/pdf
• ISSN: 2256-0742; 2256-0963

The article focuses on such indicators as profit and profitability, reflecting the economic efficiency of an enterprise, its financial condition, and the problems of its economic development. The subject of the research is to analyse the profitability of an enterprise and validate the strategy of the enterprise’s efficiency increasing. The methodology of the research is based on an analysis of the enterprise efficiency characteristics in general, the profitability of different areas of production. For this purpose, in the economic analysis, in particular, there were used profitability indicators. In this case, profitability is the most generalized, qualitative indicator of the economic efficiency of an entity’s activity, which allows comparing the amount of profit with the value of the means, by which it was obtained. The purpose of the research is to analyse the production activity of OJSC “NmTZ” and to develop proposals for improving its production efficiency; study ways of production development; research factors that delay the growth process of pipe products production; identify the profitability growth factors of the enterprise that allow increasing competitiveness indicators in the pipe market. Practical application. The enterprise’s priority directions of activity aimed at improving the technique and technology on the basis of modern scientific developments in order to reduce energy and material consumption, as well as to improve the quality of pipe products are shown. The key ways of increasing profit and profitability are indicated. Factors of the income increase, which allow the enterprise to carry out its activities more successfully, are revealed.