Factor analysis of production costs and the competitiveness of businesses

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effective and meaningful factor analysis of production costs enables us to investigate all the factors that influence the formation of the cost price.It includes the study of how permanent factors and variables, as well as the relationship between them.Modern trends in the development of market relations clearly demonstrate the growing influence of such an indicator as the competitiveness of the goods that the company is in the relevant market.

Studies show that if the competitiveness of goods tends to decrease, among the main causes of this process at the micro level may be mentioned are:

  • insufficient degree of market adaptation of the company;
  • decline in domestic competition;
  • passive strategy of the company, limiting its innovation and investment activity (restraining the introduction of measures to improve the quality of goods);
  • moral and physical deterioration of the equipment;
  • lack of professionalism in the management of the company;
  • low level of motivation of the personnel to work effectively;
  • high level of resource intensity of production in production costs;
  • expensive pricing strategy.

Modern factor analysis of production costs and the level of competitiveness enables us to formulate the following areas of its increase:

  • rational use of resources to ensure market advantage;
  • creating a competitive atmosphere;
  • development and implementation of enterprise competitive strategy;
  • marketing efforts to build demand for the product;
  • ensuring enterprise resources and information;
  • development of intellectual potential in intangible assets of the enterprise, the implementation of which ensures the production of high-tech products;
  • introduction of scientific discoveries, inventions, the use of technological breakthroughs that stimulate increased demand for new products;
  • create conditions for the formation of economic freedom and market pricing that allows businesses with limited resources to effectively solve three important problems of the economy: what, how and for whom to produce;
  • planning production costs;
  • improving the systems and strategies of government regulation.

Factor analysis of the cost of production shows that the management of competitiveness of the goods at the enterprises based on the planning, promotion and assessing its level, including the assessment of the overall efficiency (its economic and financial standing, technical and technological status, levels of production and management).All of this with government support allows you to create a system to ensure the competitiveness of the goods, which includes:

  1. package of measures to improve the social and technological level of the enterprise (strengthening the innovation base and improving the organization of innovative activity, the accelerated implementation of the investment policy, in accordance withpriorities for development of the enterprise; radical restructuring of the system of training, improvement of working conditions and the transition to modern methods of analysis of the cost of production, refining and improving the functions of quality control of goods and labor certification and standardization of products);
  2. development of economic, technical, organizational and social activities (which factor analysis of the cost of production includes as base) to reduce resource consumption and costs;
  3. improving service, the organization of advertising and market research markets of the goods;
  4. introduction of a new system of management of competitiveness, involving the organization of the performance of all employees in solving problems of product quality;the creation of creative groups and "Responsibility Centers";planning of production costs;measures to ensure the dynamic development of the enterprise.

in market conditions, cost analysis, taking into account the parameters of competitiveness accurately set the trends in this indicator will provide an objective and comprehensive assessment of the enterprise.