Estimation of mining enterprises’ activity when forming their competiton positions and considering risks

Economic Annals-ХХI: Volume 149, Issue 3-4(1), Pages: 80-83

Citation information:
Temchenko, O. (2015). Estimation of mining enterprises’ activity when forming their competiton positions and considering risks. Economic Annals-XXI, 3-4(1), 80-83. https://ea21journal.world/index.php/ea-v149-19/

Oleksandr Temchenko
Doctor of Technical Science,
Professor,
Kryvyi Rih National University
11, XXII Partzizdu Str., Kryvyi Rih, 50027, Dnipropetrovsk region, Ukraine
temaa72@mail.ru

Estimation of mining enterprises’ activity when forming their competiton positions and considering risks

Abstract. Introduction. Facing the terms of hard competition on the markets of iron-ore raw material, there is reasonable necessity of estimating mining enterprises activity including their risks.

Purpose of the article is to ground the methodical approaches in relation with the complex of estimating the mining enterprises activity in the conditions of unstable demand of domestic commodity products that will allow strengthening their competition positions on the markets of iron-ore raw material in the nearest future.

Methods. During the research, it was used the methods of feasibility study for a comprehensive evaluation of mining enterprises, detail and synthesis – to identify factors that affect the energy consumption characteristics and their supplies in mining production and the system analysis – to summarize the theoretical and methodological principles of creating competitive position of domestic commodity risk-based enterprises.

Results. A hypothesis is pulled out about the existence on mining enterprises the system of forming competitiveness that consists of 4 subsystems – personal, equipment, raw materials and products. It let us to work out a structurally logical chart of successive complex estimation of mining enterprises activity from the position of competitiveness. The use of forming and monitoring mechanism of competitive edges will let the enterprise to provide a management in the mode of preventing undesirable rejections of performance indicators from the set, quicker to adapt itself to the changeable action of external and internal environment taking into account risks at the acceptance of reasonable administrative decisions. For prognostication of the origin of risk event (situations) and acceptance of preventive measures in relation to minimization or prevention of credible negative consequences, we offered a classification of risks and algorithm of their determination considering the specifics of ore mining and processing production. In order to justify the general influence of risks on the competitiveness of ore mining and processing production integral index, risk profitability was offered that allows stipulating probability of domestic enterprises’ indicators eventual performance receipt.

Conclusion. The studies showed that competitive position of mining enterprises creating depends on prognostication of risks that need to be managed using the proposed methodological approaches and risk profitability indicator to determine effectiveness of mining and processing production in conditions of uncertainty and instable demand for domestic iron-containing products.

Keywords: Competitive Position; Risks; Cost; Mining Enterprises; Structurally Logical Chart

JEL Classification: С13; О13; Q26

References

1. Makkonnel, K. R., & Bryu, S. L. (1992). Economics: principles, problems and policies (Trans. from Eng.). (Vols. 1). Moscow: Respublica (in Rus.).
2. Meskon, H., Albert, M., & Khedoury, F. (1997). Fundamentals of Management. (Trans. from Eng.). Moscow: Delo (in Rus.).
3. Barney, J. B. (Ed.). (2001). Gaining and Sustaining Competitive Advantage. Reading, Mass.: Addison-Wesley.
4. Porter, M. (2006). Strategy of competition. Methodology of analysis of industries and activity of competitors (A. Olіynik, & R. Skіlskiy, Trans.). Kyiv: Osnovy (in Ukr.).
5. Prakhalad, K., & Ramasvamy, V. M. (2006). Future of competition. Creation of unique value together with consumers (Trans. from Eng.). JSC «Olympus-business» (in Rus.).
6. Gloor, P. A. (2006). Swarm Creativity. Competitive advantage through Collaborative Innovation Networks. Oxford University Press.
7. Eyring, M. J., Johnson, M. W., & Nari, H. (2011, January-February). New Business Models in Emerging Markets. Harvard Business Review, 89-95.
8. McGrath, R. G. (2013, June 4). The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. Harvard Business Review Press.
9. Williamson, P., Ramamurti, R., Fleury A., & Fleury, M. (2013). The competitive Advantage of Emerging Market Multinationals. Cambridge University Press.
10. Contractor, F. J. (2013). Punching above their weight: The sources of competitive advantage for emerging market multinationals. International Journal of Emerging Markets, 4(8), 304-328.
11. Ivanov, Yu. B. (2007). Competitiveness of enterprises in conditions market relationsof formation. Kharkiv: KhHZU (in Ukr.).
12. Oberemchuk, V. F. (2011). Competition: concept, strategy. Stratehiia ekonomichnoho rozvytku Ukrainy (Economic Development Strategy of Ukraine), 5, 211-217 (in Ukr.).
13. Zlyden, I. M. (2014). Methodological approaches to assessing the competitiveness of an enterprise. Ekonomika: problemy teorii i praktyky (Economy: Problems of Theory and Practice), 213(1), 75-81 (in Ukr.).
14. Maksimov, I. (1996). Evaluation of industrial enterprise’ competitiveness. Marketynh (Мarketing), 3, 33-39 (in Rus.).
15. Reznichenko, S. S., Podolsky, M. P., & Ashihmin, A. A. (1991). Economic-mathematical methods and modeling in planning and management of mining production. Moscow: Nedra (in Rus.).
16. Evlanov, L. G., & Kutuzov, V. A. (1978). Expert assessments of management. Moscow: Economikа (in Rus.).
17. Evlanov, L. G. (1984). Theory and practice of decision-making. Moscow: Economikа (in Rus.).

Received 10.03.2015