Dnipropetrovsk Alfred Nobel University

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Dnipropetrovsk Alfred Nobel University

• Masters degree Diploma Project
• Topic Qualitative analysis and the enterprise
  development strategy formation
• 
  By the student of the 5 th year
  of study
• 
  
  O.V. Nesterenko
• 
  Scientific supervisor PhD in
• Economics,
  Professor
• O.M. Zborovska
• 
  

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• Purpose of investigation is to justify
  and improve the methods and tools of the
  enterprise development strategy assessment.
• Object of investigation is financial and
  business activities of Novofarm Limited Liability
  Company with foreign investments.
• Subject of investigation is theoretical,
  methodological and practical aspects of the
  enterprise development strategy assessment and
  formation in the market conditions.

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Picture 1. Dynamics of receivables and payables
in 2012-2013
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Picture 2. Structure of current assets in 2013
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Picture 3. Structure of operating expenses in
2013
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Analysis of Novofarm LLC with foreign investments
by financial ratios in 2011-2013
Table 1
? Financial ratios Index Index Index
1. Profitability (return on capital) 1. Profitability (return on capital) 2011?. 2012 ?. 2013 ?
1.1. ROCE (Return on capital Employed) 0,33 -14,98 -1,94
1.2. The gross margin 5,94 -11,30 2,53
1.3. Asset turnover 74,64 118,03 141,44
2. Long-term solvency 2. Long-term solvency
2.1. Debt ratio 87,99 101,77 102,93
2.2. Leverage 93,99 112,68 105,82
3. Short-term solvency and liquidity 3. Short-term solvency and liquidity
3.1. The coverage ratio 0,82 0,65 0,68
3.2. The ratio of quick liquidity 0,69 0,55 0,58
3.3. The coefficient of absolute liquidity 0,0023 0,0025 0,01
4. The coefficients of efficiency 4. The coefficients of efficiency
4.1. Maturity of receivables 88,59 45,29 62,54
4.2. Turnover of receivables 4,12 8,06 5,84
4.3. Maturity payable 33,16 47,91 74,07
4.4. Turnover payable 11,01 7,62 4,93
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?able 2

• PEST Analysis of Novofarm LLC with foreign
  investments

Political factors The change of government and legislation Government instability The influence of the state on the industry Delays in deliveries through a complex political situation. Economic factors The decline in the economy and high debt countries Unstable currency Imperfect tax system Rising energy prices, raw materials and transportation costs, The decline in purchasing power of consumers
The impact of political factors on the company The impact of economic factors on the company
Unstable political situation negatively impact on the enterprise as authorities and legislation is essential to future performance. All economic factors negatively affecting of the company, because they reduce its income and currency instability complicates forecasts of future sales.
Social factors Demographic changes. Reducing life population, lower levels of education. Technological factors The ability to use foreign technology quality equipment, quality products, the appearance of new technologies to improve equipment
The influence of social factors on the company The Influence of technological factors on the company
Reduced purchasing power products and services company. Reduced Demand for the company. There problems of the development of new technologies. All technological factors positive impact The company and contribute to its development
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Results of impact analysis of external factors on
Novofarm LLC with foreign investments
?able 3
? Factors weight estimate windowed estimate
1 Change of government and legislation 0,10 3 0,3
2 Decline in economy and reduction of consumers purchasing power 0,30 5 1,5
3 Competition in the domestic market 0,15 4 0,6
4 New Technology 0,15 2 0,3
5 Unstable currency 0,25 4 1
5 Demographic changes 0,05 2 0,1
7 Total estimate 1 3,8
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Main directions of development strategy of
Novofarm LLC with foreign investments

• Strengthening its position on the market
  segment due to a good reputation of Novofarm LLC
  with foreign investments among consumers and by
  improving the quality of services
• Retraining of workers and reducing costs by
  distributing promotional information about the
  company in order to consolidate its competitive
  advantage
• - Increasing the range of products and
  services, improve service delivery due to
  mobility of workers
• - Extension of the territorial boundaries of
  the market.

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Directions of the enterprise strategic management
improvement

• - Reduction of costs
• - Promotion of sales
• - Reduction of accounts receivables
• - Reduction of accounts payable.

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Expediency of retraining of the company and the
adoption of new employees

• Average costs on recruiting a new employee are
  calculated
• Average costs on recruiting S selection /
  N 2900/6 483,3UAH/year,
• where S - selection ? costs on staff
  selection N ? number of selected candidates.
• Average costs on retraining of one employee are
  calculated Average
  costs on retraining training costs / T
  11200/40 280 ???./???,
• where Training costs ? total training cost
  N ? number of training staff.

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Staff retraining program impact on product
quality and labor productivity increase is
calculated

• Training PNVK ? Ntraining costs
  14012000,75 - 40280
• 36000 ? 11200 24800
  UAH
• where ? ? period of retraining program aimed
  at improving labor productivity, 1 year
• N ? number of training staff, 40 people
  annually
• V ? value assessment of results, 1200
  UAH/year
• R ? ratio (productivity increase), 0,75
• Training costs ? costs on training of one
  employee, 280 UAH/year.

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Expert impact assessment of the proposed measures
on effectiveness improvement of staff development
at Novofarm LLC with foreign investments
??????? 4
Index significance coefficient 2013 ??? 2013 ??? 2014 ??? 2014 ???
Index significance coefficient Expert assessment Overall rate Expert assessment Overall rate
Improving the quality of products (services) 0,2 4 0,8 5 1
Professional development of employees 0,15 3 0,45 4 0,6
Rationalization of staff costs 0,3 3 0,9 5 1,5
Improving information provision the organization 0,1 3 0,3 4 0,4
Growth in labor productivity 0,25 4 1 5 1.25
Total 1 3,45 4,75
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• Thank you for attention!