The role and function of commercial activities in the private business enterprise "Olymp"

Activities PP "Olymp" and the structure of the assortment of goods offered

              Visually this ratio is illustrated in Fig. 3.1  

                    Fig. 3.1 Structure of the range of private sale "Olymp" 

    Production of industrial purposes, which works PP "Olymp" has the following main features and specifications. 
Steel pipe is the foundation of all pipelines in residential construction, and only for     flexible to devices used polyethylene and copper alloys. Modern steel pipe manu-factured with a longitudinal suture that welded high frequency currents. 
Scope of products PP "Olymp": 
• hot and cold water; 
• heating system; 
• gas supply system. 
The advantages of steel pipes of the new generation: 
• low price; 
• application versatility. 
Disadvantages: 
• susceptibility to corrosion; 
• corrosion products degrade water quality and clog up the internal cavity tubes, reducing their capacity and worsening working valves and automatic control devices; 
• insufficient lifetime: 10-15 years; 
• complicated assembly technology that requires welding work; 
• appearance. 
Pre-insulated polyurethane foam pipe systems for district heating (DH), is a construction of "sandwich" consisting of the working tube made of low carbon steel, insulation layer - from polyurethane foam and the outer casing - with high-density polyethylene.[13 pg.76] 
Main technical characteristics of PP product range "Olympia" are given in Production of steel pipes in Ukraine and trade them in 2008 kept the overall positive trend.  The main producers of steel pipes (according to "Metallurhprom") produced in December 2008 about 176 thousand tons of products, and the whole production for twelve months of 2008 amounted to approximately 147% level of the corresponding period last year. 
Following 2008, all major Ukrainian manufacturer of steel pipes had positive dynamics of the average production compared to 2002 in five of the most dynamic companies included Mariupol MK them. Lenin and "Kominmet." Thus the largest contribution to the production of steel pipes made Nizhnedneprovskiy TPZ (37%), Khartsyzsk vehicle (16%), Nikopol YUTZ (15%), Dnepropetrovsk vehicle (11%) and Novomoskovsk vehicle (9%). 
       Although in 2008 the supply of Ukrainian steel pipes exports had a strong positive trend was observed in the IV quarter of the winter decline: from October to December delivery fell by about 50 tons on operational this, exports of steel pipes in 2008 was slightly more than 1.2 million tones worth about 517 million USD, and comparison with 2000 physical growth of exports was approximately 55% and foreign exchange earnings grew by 67%.[4pg.158-210] 
       Consider the pricing policies for products PP "Olymp." The main objective of marketing is the calculation of prices take into account the constraints, factors that reduce or extend the range of possible variations in prices for a given product. 
The value of factor prices - one of the main problems of business. This is due to several factors: price - the most important indicator for the company, since its main function is to provide income from selling goods, all firms except those that sell standard products on the market pure competition, forced to make decisions .Pricing often depends on the difficulties experienced by the firming the previous period and do not reflect changes that occurred during this time, in some areas (dominated by monopolies or there are such tendencies) pricing plays a crucial role in the overall marketing program and, in addition is the focus, and often direct influence legislation and public services. 
General factors are divided into internal and external. The main ones are listed in Table 3.2 
 

                                                                                                    Table 3.2

                                    Main factors of pricing.

     The main pricing factors are the magnitude and dynamics of supply and demand of products. Although the maximum price determines the demand for goods, and the minimum - costs a guide for setting the price of  compe-titive products in a given period is price competition. Therefore, the firm should be well aware of the prices and quality products of competitors. You can study their catalogs,lists, interview customers performcomparative procurement to obtain for themselves goods among. If the goods  firms like product main competitor, it will be forced to charge prices close to the price of this commodity. If the quality of its products are lower than the competition then the price should be lower and vice versa. Strategic decisions on the price level is very important in the process of pricing. There are two fundamentally different types of strategies on the price level: 
1) a strategy of high prices; 
2) a strategy of low prices. 
In determining the prices of goods produced PE "course" takes costly method of taking into account the prices of competitors, the essence of which is expressed by the formula 2.1. 
                                            S=V+ ; (3.1) 
Where 

V = variable costs per unit of output; 
F - fixed costs over a certain period of time; 
N - the volume of production. 
Algorithm based pricing method presented in spending table.2.3, is based  on financial and accounting department.[16.pg320] 
                                                                                                               Table 3.3

                  Initial data for calculating the "Pricing"

PP "Olymp" in determining prices for the products of other manufacturers, for whom it is only the sell erases the method of pricing the prices of competitors. For this purpose, to make timely decisions in pricing, you must have reliable information .[19pg.208] 
Knowledge about products and prices competitive  firm can use   as a starting point for personal need sprucing. If its product is similar to products main competitor, it will have to set the price close to the price of the goods of the competitor, otherwise it may lose sales. If the goods are lower in quality, the firm will not be able to invite him for the same price as a competitor. Invite more than a competitor, the firm is capable of when it is higher quality product. In fact, the firm uses the price to show their position relative to competitors' offers suggestions.[77pg.240-250]                                                                                                                       Here are  the key indicators needed to control prices of competitors: 
-sales growth in natural and cost indicators (Table3.4):

        Dynamics of total sales in the pipes in natural and cost meter

Analysis of the data show a steady development of the product market dynamics and stability of earnings. 
-Changes in prices of competitors in different product groups. 
Not carried out on PP "Olymp" competitive analysis positions in the following areas: 
- Sales at reduced prices: 
§ defined as a percentage of total sales 
§ defined as a percentage of sales for the full price. 
-Segment of consumers that receive the greatest benefit from lower prices.

-The dynamics of the cost of marketing research. 
- Position of potential buyers about the selling of goods. 
- Dissatisfaction with the proposed price: 
§ from consumers 
§ by sales staff. 
-Changes in the position of consumers on the enterprise and its competitor prices. 
- The number of lost customers from the previous period. 
          The main result of analysis of the pricing information received from various sources, should be reducing the number of contingencies in the pricing policies of competitors. 
             Along with the above, the company analyzed using the method  of pricing  

with regard to the conditions of competition, which is used for comparison of prices of goods to the firm commodity prices, which produce and offer the market the major competitors. Average prices of competitors within the product range PE "course" is characterized by the data presented in Table 3.6. It is these data operates  financial and economic department of the enterprise, identifying their own vacation price products. [15 pg.584]

                               Table 3.6

Average prices of competitors within the trade  range of PP "Olymp"

PP "Olymp" uses two main ways of wholesale sales: working order and operating in a free market. Work to order. With this method, the company is working on pre-known market. Output is subject to existing portfolio of orders, contracts, construction contracts and preliminary agreement on supplies made ​​products and services. Pre-negotiated terms, specifications of goods, the volume of deliveries of products The main customers are private goods "Olymp" and the structure of their orders in the range presented in Table 3.7 
 
 
 
 
 

Major Customers Production Company "Olymp" and the structure 

                                                           (in% of total) orders them to range

               Work on the free market. With this method, the company manufactures products in the free market without pre-established limits on the quantitative and qualitative characteristics of products. Objectives include the sale of goods find potential markets (because of their geographic location), the choice of specific forms of implementation, the definition of allowable prices. 
Mainly PE "course" focuses on trade in order .Who lesale binds virtually all sectors of the economy, all enterprises and organizations engaged in material production and commodity circulation. It includes the stage of moving goods from manufacturers to retailers. The following forms of wholesale trade: direct communication between manufacturers and buyers through intermediary organizations and enterprises, commercial contacts of market.[11 pg.176] 
Direct connections to commercial relations between the PP "Olymp" and buyers of goods practiced by supplying a large consignment of goods. 
Business contacts for the supply of products to be short, and long. Rapid change in product mix, high rates of recovery of its range, one-time consumption require short-term economic relations, but in most cases economically better long-term relationships. 
Organization of direct long-term economic ties allows you to: 
        •   dismiss the parties from compiling annual supply contract (the contract is made     years); 
        •periodically adjust the range and quarterly delivery time; 
        •work out the technology of production and thereby improve its quality; 
        •coordinate production schedules with interested companies; 
        •reduce the time representation of specifications; 
        •to reduce paperwork in the appeal. 
Wholesale trade through intermediary organizations and enterprises (shops and wholesale base, small wholesale and designer shops, etc..) Sense for buyers who acquire products in a single procedure or in amounts less than the transit rules. 
Operation of direct wholesale sales of goods PE "course" provides without  intermediaries. Direct sale of goods at present is very widespread. Direct form the sale of goods has several advantages. Firstly, in such form The manufacturer can better explore the market of their products, maintain close cooperation with key customers.  Second, conducting scientific research aimed at improving the quality of products. Thirdly, direct wholesale sales of products accelerates the implementation cycle and, therefore, capital turnover, thereby increasing the total amount of profit. [7 pg.140-144] 
           However, the direct form of goods increases expenses because it has to create expensive inventory, to ensure their preservation and sale of specific consumers. Therefore, only large enterprises competitive in strength to realize their own products. 
In the analyzed enterprise "Olymp" direct wholesale sales of products is conducted through the sales department and supply. 
      When the sale of goods expressly PP "Olymp" uses direct marketing (direct marketing) and telephone marketing. Direct Marketing - direct work with clients, regular contact companies manufacturers with their clientele. Telephone Marketing - Work with clients by phone. And on the phone can receive not only inquiries about products and services company, but the following services. 
           The enterprise "course" is used as a commercial form of wholesale sale of goods, which includes two ways of implementation: through independent wholesale organizations, through agents and brokers. 
Indirect form of wholesale products for PE "course" - selective (selective) distribution, which includes limiting the number of intermediaries, depending on the capabilities of maintenance, spare parts and a repair shop. Most often used for such sales of expensive, prestigious products. 
Major areas of PP "Course" in Ukraine: 
- Eastern Region (Donetsk, Kharkov, Dnepropetrovsk) 
- Kyiv 
- Kiev region 
Table 2.8 presents information on the private sales "Olymp" by regions and     structure of their orders on the range.