Improving competitive positions by optimizing internal activity indicators

Abstract

Despite the fact that competitiveness is a market function, competitive advantages are formed in accordance with the internal indicators of business activity. Since the metallurgical industry of Ukraine provides a sufficient share of the gross domestic product of the economy, the development of these enterprises, their position in the domestic and foreign markets have always been and will remain the subject of interest in economic science. To determine the competitive position of enterprises in the metallurgical industry, a comparative characteristic of individual enterprises and the industry leader of PJSC ArcelorMittal Kryvyi Rih is presented. It has been shown that with a decrease in unit costs, an increase in labor productivity in recent years, the profitability of enterprises needs to be optimized, since the economic situation in the country and the world is rapidly deteriorating. Personnel can provide opportunities to improve the competitive advantages of the enterprise by initiating measures to improve the use of available resources. The provision of the enterprise with necessary labor resources, their rational use, and high level of labor productivity contribute to an increase in production volumes, efficient use of production capacity, cost reduction and profit growth - that is, all the main indicators of the competitive advantages of an industrial enterprise. Based on the study, it was found that the level of wage growth is higher than the level of decrease in the number of employees of enterprises, while the increase in the level of wages fully corresponds to an increase in labor productivity. At the same time, an increase in the efficiency of personnel use is due to a greater extent to a decrease in its number mainly due to outsourcing and less to an increase in the cost of commercial products. This may indicate a decrease in the development indicators of the subject of activity, since in the future a similar trend may lead to the loss of highly qualified personnel and worsening activity indicators. Therefore, it is recommended that measures to increase profits from sales by improving the quality, assortment, market, use of existing facilities and cost optimization.