Organisational and economic mechanism of fat-and-oil enterprises efficiency increase

Economic Annals-XXI: Volume 131, Issue 7-8(1), Pages: 50-53

Citation information:
Aptekar, S., & Ryazanova, Yu. (2013). Organisational and economic mechanism of fat-and-oil enterprises efficiency increase. Economic Annals-XXI, 7-8(1), 50-53. https://ea21journal.world/index.php/ea-v131-13/

Saavely Aptekar
D.Sc. (Economics),
Professor,
Chief of the Investment Management Department,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky, Ukraine
ssaptekar@mail.ru

Yulia Ryazanova
Post-Graduate Student,
Donetsk National University of Economics and Trade named after M. Tugan-Baranovsky, Ukraine
RyazanovaY@i.ua

Organisational and economic mechanism of fat-and-oil enterprises efficiency increase

Abstract. Introduction. Because of the significant complication of the business environment and multivariable influence on business efficiency, assessment and management of factors affecting economic efficiency of fat-and-oil complex companies is a key aspect in increasing industrial potential and improving profitability of aforesaid companies. The purpose of this article is in the reasoning of theoretical and practical recommendations on creation and improvement of organizational and economic mechanism of fat-and-oil companies efficiency increasing. In the study we used a set of scientific methods and approaches including abstract and logical method, system analysis to build a comprehensive evaluation system of the company and efficiency of tilling-based operations, we used special techniques of statistical and financial analysis, systematic structural and comparative analysis as well. Processing of economic information, making spreadsheets, diagrams and graphs required up-to-date computer technologies usage. Results. The realities of economics indicate a significant complication of the business environment and multivariable influence on business efficiency. Such features of a company (association) as adaptability, competitiveness, positive and negative externalities assume a special importance. The SWOT-analysis performed identified their strengths and weaknesses, detected certain threats and advantages. The main threat to Ukrainian enterprises engaged in processing oil-bearing raw materials is incomplete capacity utilization because of the market part loss. Factors determining management efficiency of fat-and-oil industry companies are grouped into three units: factors affecting the resource potential, factors that impact on export potential and factors affecting the production potential. Analysis defined the vast majority of sunflower seeds is being supplied to oil processing companies on the commission base. Moreover we detected the lack of regulatory compliance in economic relations between residents on the use of raw material. The main reason for the wide spread occurrence of business relations made on commission in Ukraine is the possibility to run business in a circulating assets deficit conditions. We used a number of indexes which allowed us to define the current business environment makes activity on commission much more efficient. Consequently we worked out the simple models allowing choosing the best option in the ratio between the share of own and feedstock raw material on the basis of the raw materials prices, interests on a loan and the cost of refining. Conclusions. Thus we proved the fat-and-oil complex companies running business on commission do not make full use of their industrial potential and lose the ability to improve profitability and position conjuncture strengthening. The most important task for the fat-and-oil complex companies is full production capacity utilization on base of their own raw materials. Subsequently this requires a substantial production efficiency increase on base of domestic and international integration processes improved. Moreover this task calls for both investment activity promotion to improve product quality on the innovation basis in compliance with international standards and the introduction of energy-saving systems.

Keywords: Efficiency; Fat-and-Oil Company; Customer-Supplied Raw Materials; Profitability

JEL Classification: M21

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Received 28.06.2013