STATE EDUCATIONAL INSTITUTION

"SCHOOL OF BUSINESS OF THE BELARUSIAN STATE UNIVERSITY"

DEPARTMENT OF FINANCE AND MANAGEMENT

Coursework

ASSESSMENT OF THE LEVEL OF COMPETITIVENESS OF THE

ORGANIZATION AND JUSTIFICATION OF WAYS TO IMPROVE IT ON
THE EXAMPLE OF JSC "SPARTAK"

Zaznobin Akim Aleksandrovich

2nd course student, group 154
Speciality "Information resource
management"

Supervisor:
master's degree in management and
economics
S.V. Yeremushkina

Minsk, 2022
 STATE EDUCATIONAL INSTITUTION
"SCHOOL OF BUSINESS OF THE BELARUSIAN STATE UNIVERSITY"

Department of finance and management

COURSEWORK ASSIGNMENT

Student Zaznobin Akim Aleksandrovich

1.Topic "Assessment of the level of competitiveness of the organization and
justification of ways to improve it on the example of JSC "Spartak""

2.Deadline for submission of coursework for defense 30.11.2022

3.Source data for scientific research: Monographs, scientific publications, current
archives of the organization under study

4 Coursework content
4.1 Theoretical foundations of competitiveness of organization
4.2 Analysis of the competitiveness of JSC "Spartak"
4.3 Development of recommendations to improve the competitiveness of JSC
"Spartak"

Coursework supervisor _______________________

signature, date initials, surname

Assignment accepted for execution ________________________

signature, date

2
 CONTENTS

INTRODUCTION.........................................................................................................4
CHAPTER 1 THEORETICAL FOUNDATIONS OF COMPETITIVENESS OF
ORGANIZATIONS
1.1 Definition and essence of the concept of "Enterprise competitiveness".................6
1.2 Methods for accessing the competitiveness of an enterprise...................................8
CHAPTER 2 ANALYSIS OF THE COMPETITIVENESS OF JSC "SPARTAK"
2.1 General characteristics of the company.................................................................13
2.2 Positioning and analysis of the external environment of JSC "Spartak"...............15
2.3 Assessment of the competitiveness of JSC "Spartak"...........................................18
CHAPTER 3 DEVELOPMENT OF RECOMMENDATIONS TO IMPROVE THE
COMPETITIVENESS OF JSC "SPARTAK"
CONCLUSION...........................................................................................................25
LIST OF REFERENCES............................................................................................27

3
 INTRODUCTION

The problem of product quality and usefulness is universal. Much in the

economic and social life of any country, practically any user, depends on how
successfully it is solved. Competitiveness is a complex and versatile concept that
includes such components of an enterprise's activity as a product (service) and its
main characteristics: quality, relevance, production technology, accessibility for end
users.
The competitive factor is coercive, forcing the manufacturer, under the threat
of being forced out of the market, to constantly engage in the quality system and, in
general, the competitiveness of their products, and the market objectively and strictly
evaluates the results of their activities.
Competitiveness in a market economy is a major factor in the commercial
success of an enterprise. The competitiveness of an enterprise, in turn, depends on the
quality of management and the competitiveness of its products, that is, on how much
it is better than analogues – products manufactured by competing enterprises. Market
competition has already become a mechanism for rejecting all non-vital forms of
production and trade, and all inefficient forms and methods of management are
doomed.
An enterprise successfully functions in a competitive environment only if it has
clearly defined development directions that are oriented to the existing competitive
status. In this regard, the assessment of the current competitive position allows the
enterprise to reasonably plan its development and only then form competitive
advantages. At the same time, it should be noted that the policy of many enterprises
in the field of ensuring their competitiveness often turns out to be insufficiently
qualified and well thought out. These factors explain the relevance of the chosen
topic.
The purpose of the course work is to study the theoretical and methodological
foundations for assessing the competitiveness of an enterprise and the development of
practical recommendations for the formation of a mechanism for increasing the
competitiveness of an enterprise.
To achieve this goal, the following tasks were set:
1. Define the concept of enterprise competitiveness.
2. Find out the need to assess the competitiveness of an enterprise in the
economy, the role of this factor in the market.
3. Consider existing methods for assessing the competitiveness of an
enterprise.
4. Analyze the competitiveness of a particular enterprise "Spartak" and
suggest ways to improve it.
4
 The subject of the research carried out in the work is the methods for assessing
the competitiveness of an enterprise.
The object of the study is the competitiveness of the specified enterprise.
The theoretical and methodological basis of the study was the work of
domestic and foreign scientists in the field of economic theory and microeconomics.
The work consists of three chapters. First chapter contains theoretical
information about the concept of "competitiveness of an enterprise", it describes the
role of this factor in the modern economy, and this chapter also presents the main
methods for assessing the competitiveness of an enterprise. In the second chapter, the
organizational and economic characteristics of JSC "Spartak" are given. Given an
assessment of the competitiveness of the enterprise. Third chapter analyzes the
competitiveness of a particular enterprise and presents possible ways to improve it.

5
 CHAPTER 1
THEORETICAL FOUNDATIONS OF COMPETITIVENESS OF
ORGANIZATION

1.1 Definition and essence of the concept of "enterprise

competitiveness"

Today, in the context of globalization and internationalization of production,

competitiveness is the only criterion for the effectiveness of an enterprise and the
demand for its products. It is very difficult to give an exact definition of the concept
of "competitiveness", this is a relative concept, because a product that successfully
competes in some markets will be completely uncompetitive in others. In general,
competitiveness is the ability of a certain object to outperform competitors in given
conditions. This definition is equally suitable for both the characteristics of the
product and the characteristics of the enterprise. However, these concepts cannot be
combined: the competitiveness of a product is one of the criteria for the
competitiveness of an enterprise.
The competitiveness of the subject of market relations can only be assessed
with similar subjects. For example, it is impossible to assess the competitiveness of
furniture and milk, building materials and passenger cars, shoes and hairdressing
services.
Competitiveness in a market economy is a major factor in the commercial
success of an enterprise. The competitiveness of an enterprise, in turn, depends on the
quality of management and the competitiveness of its products, that is, on how much
it is better than analogues – products manufactured by competing enterprises. Market
competition has already become a mechanism for rejecting all non-viable forms of
production and trade, and all inefficient forms and methods of management are
doomed under it.
An enterprise successfully functions in a competitive environment only if it has
clearly defined development directions that are oriented to the existing competitive
status. In this regard, the assessment of the current competitive position allows the
enterprise to reasonably plan its development and only then form competitive
advantages. At the same time, it should be noted that the policy of many enterprises
in the field of ensuring their competitiveness often turns out to be insufficiently
qualified and well thought out. These factors explain the relevance of the chosen
topic. [1, p. 62]

6
 The reforms of the 1990s led to the restructuring of the entire economic system
of the former USSR and affected the economic situation in the Republic of Belarus.
The current situation is characterized by the participation in economic relations of
subjects of various forms of ownership: state, municipal, private.
The interests of the majority of market participants are grouped around
companies – economic units that independently attract factors of production, use
them and distribute the resulting products. The shift of economic phenomena control
centers from the macro to the micro level requires the development of certain
mechanisms for making intra-company decisions. The key stage in the process of
making a decision is the analysis of alternative options and the choice of one that best
meets the goals set.
At the same time, as market relations are created within the country and its
involvement in world economic relations, interest in competitiveness issues moves
directly to the enterprise and the sector of material production. In a market economy,
a manufacturing company that supplies its goods to both the foreign and domestic
markets cannot take a stable position for a long time, relying in its strategy only on
the indicators of the competitiveness of the goods, not taking into account world
quality levels and the costs of creating and selling goods.
When entering a new market, making a decision to expand or reduce
production, making investments in order to modernize technological equipment or
upgrade products, an assessment of the competitiveness of a manufacturer or
enterprise is indispensable. That is why increasing the competitiveness of the national
industry should be the main priority for the development of the Belarusian economy.
[2]
Researchers distinguish various factors affecting competitiveness of an
enterprise. As Arthur A. Thompson Jr. and A. J. Strickland propose to develop the
strategy of an organization (company). Strickland suggests that in developing the
strategy of the organization (company) on the Based on the analysis of the industry
and competition to identify the key factors of its success, including such factors as:
1. product quality and characteristics;
2. reputation (image);
3. production capacity;
4. use of technology;
5. dealer network and distribution capabilities;
6. innovation capabilities;
7. financial resources;
8. costs compared to competitors;
9. customer service. [3, p. 11]

7
 A comparison of different literary sources shows, that the competitiveness of
the organization is determined by a set of factors, characterizing the performance of
its activities in the market, quality attributes products and the effectiveness of
marketing activities.
Factors of competitiveness of the organization can be divided into external, the
manifestation of which depends to a small extent on the organization, and internal,
almost entirely determined by the management of the organization.
The process of enterprise competitiveness management should begin first of all
with assessment of existing indicators of enterprise competitiveness and subsequently
be accompanied by systematic monitoring of the progress of decisions made and
assessment of their impact on changes in competitive factors. [4, p. 90]
Thus, the competitiveness of an enterprise is the ability of the enterprise to
successfully compete in the market and receive in relation to competitor economic
benefits.

1.2 Methods for assessing the competitiveness of an enterprise

Economists do not stop searching for ways to improve the competitiveness of

the enterprise. It is impossible to derive a formula for calculating this indicator, which
would be applicable to all enterprises. Speaking about competitiveness of the
enterprise, it is necessary to understand that it is not only an objective assessment, for
example, of the cost of products or services, but also a subjective assessment of the
enterprise by consumers, from their tastes, preferences, fashion. Nevertheless, today
in many sources it is possible to meet words that unquantified competitiveness of the
enterprise remains only the general description of work of this or that organization
and has low value for the management. Below are considered the four main methods
most common today in the field of assessing the competitiveness of an enterprise.
The methodology is based on the analysis of competitiveness, taking into
account the life cycle of the enterprise's products. The essence of the assessment
consists in the analysis of a matrix built on the principle of a coordinate system:
horizontally – growth (reduction) of sales volume; vertically – the relative market
share of the enterprise. This method is shown in the figure 1.1 [25]:

8
 Figure 1.1 – Matrix method general view

Advantages of the method: if there is information about sales volumes and

relative market shares of competitors, the method allows for a high adequacy of
assessment.
Disadvantages of the method: it excludes the analysis of the causes of what is
happening and complicates the development of management decisions, and also
requires the availability of reliable marketing information, which entails the need for
appropriate research.
This group of methods is based on the judgment that the competitiveness of an
enterprise is the higher the competitiveness of its products. Various marketing and
qualimetric methods are used to determine the competitiveness of products, most of
which are based on finding the price-quality ratio.
The calculation of the competitiveness index for each type of product is carried
out using economic and parametric competitiveness indices. In turn, these indices are
determined by summing private indices for each evaluated parameter, taking into
account weight coefficients.
Each of the private indices by the corresponding parameter is taken as a ratio of
the actual value of the evaluated parameter to the value of the corresponding
parameter of the competing product (or another product, chosen as a basis for
comparison). In this case the parametric index is determined on the basis of the
assessment of technical (quality) parameters of the products, the economic index is
determined on the basis of the assessment of cost parameters. The list of cost and
technical parameters, as well as the weight of each of the parameters is established by
expert judgment. In particular, in a number of methods as one of the cost parameters
the value of costs for after-sales service of products is considered.
Parametric and economic indices of competitiveness allow to calculate an
integral index of competitiveness of considered production in relation to competing
production. It is defined as the ratio of the parametric index to the economic index.
The indices of competitiveness are calculated for each kind of product of the
enterprise. Then the coefficient of competitiveness of the enterprise itself is
determined: the weighted average value among the indicators for each type of
products, where the sales volume of the corresponding type of products acts as
weights.

9
 The undoubted advantages of the approach under consideration include the fact
that it takes into account one of the most important components of the
competitiveness of the enterprise – the competitiveness of its products. The
disadvantages are that it provides a very limited view of the advantages and
disadvantages in the work of the enterprise, since the competitiveness of the
enterprise takes the form of product competitiveness and does not affect other aspects
of its activities.
According to this theory, the most competitive enterprises are those where the
best organization of all departments and services. The effectiveness of each of the
services is influenced by many factors – the resources of the enterprise. Assessing the
effectiveness of each of the units involves assessing the effectiveness of their use of
these resources. The approach is based on the assessment of group indicators or
criteria of competitiveness.
The essence of the approach is to assess the ability of the enterprise to ensure
competitiveness. Each of the abilities of the enterprise to achieve competitive
advantages, formulated during the preliminary analysis, is evaluated by experts in
terms of available resources. In this case, the composition and structure of the
evaluated abilities vary significantly in different methods: from the indicators of cost
price and financial stability to the ability of the enterprise to adapt to innovations.
Subsequently, depending on the method, in order to assess the competitiveness
of the enterprise, the obtained expert assessments are subjected to various
mathematical processing. Most often, the indicator of competitiveness of the
enterprise is found by calculating the weighted average value of the obtained expert
assessments, taking into account the specific weight assigned to each of the assessed
abilities in achieving the competitive advantages of the enterprise.
The advantages of this approach include the consideration of very diverse
aspects of the enterprise's activity. At the same time, the underlying assumption that
the competitiveness of an enterprise can be determined by the elementary summation
of the ability of the enterprise to achieve competitive advantages is unproven, since
the sum of individual elements of a complex system usually does not give the same
result as the whole system.
The methods referred to this approach are defined as comprehensive due to the
fact that the assessment of enterprise competitiveness within each of the methods is
conducted on the basis of allocation of not only current, but also potential
competitiveness of the enterprise.
Current and potential competitiveness and their ratios within the framework of
an integral indicator of competitiveness of the enterprise depending on the method
can vary. So, in a number of cases current (real) competitiveness is determined on the
basis of an assessment of competitiveness of enterprise products, potential – by
analogy with the methods based on the theory of effective competition.
10
 Competitive potential the potential opportunity (current prerequisites) to
maintain or increase competitiveness in the long term – is seen by the author as the
ratio of the current potential of the enterprise to the optimal potential (norm of
opportunities), given the level of future instability of the environment.
The weighting coefficients show the share of total strategic capital investments
that go respectively to investments in strategy and capacity (costs of strategic
planning, market research, new product development, etc.); investments in the
potential of the enterprise (hiring and training of personnel, acquisition of technology,
costs for the creation of functional services, etc.).
The definition of each of the indicators considered above within the framework
of this method is carried out by expert way on the basis of various estimation tables
and matrices.
The advantages of this approach include the fact that it takes into account not
only the achieved level of competitiveness of the enterprise, but also its possible
dynamics in the future.
As a disadvantage of this group of methods, it should be noted that the specific
methods and techniques used in determining current and potential competitiveness
ultimately reproduce the methods used in the approaches considered earlier, which
entails the disadvantages of the respective approaches.
It should be noted that none of the existing approaches to assessing the
competitiveness of enterprises has found wide application in the practice of economic
analysis. This allows us to conclude that there is currently no universal methodology
for a comprehensive assessment of the competitiveness of an enterprise. This is
probably due to the fact that the proposed approaches have a number of drawbacks.
The vast majority of methodologies are based on identifying the factors that
determine the competitiveness of business entities, with an emphasis on identifying
the maximum number of these factors, creating their exhaustive list. Further, the
identified factors are processed by means of various mathematical methods. [23]
However, as shown earlier, the system of enterprise competitiveness factors is
open, and the set of elements of this system is fuzzy. Indeed, when evaluating the
labor resources of an enterprise, one can conclude that labor efficiency depends on
the psycho-physiological well-being of workers, and thus, including the level of
divorce in a particular area.
Most methodologies assume a comparison of virtually identical enterprises
producing similar goods and services and operating under similar economic
conditions. At the same time, the development of commodity-money relations leads
to increasing diversification of enterprises, more and more differentiation of goods
and services, more and more aggravating differences in the economic conditions of
enterprises.

11
 It is becoming increasingly difficult to define clear geographical boundaries of
this or that market, to establish a list of competing goods and enterprises, which
entails the inapplicability of such methods for assessing the competitiveness of
enterprises. [5]

CHAPTER 2
ANALYSIS OF THE COMPETITIVENESS OF JSC "SPARTAK"

2.1 General characteristics of the company

On June 4, 1924 a confectionery enterprise "Prosvet" was opened in Gomel on

the basis of a brewery. From that day the history of the confectionery factory
"Spartak" began. On January 24, 1994 the state confectionary factory "Spartak" was
reorganized into an open joint-stock company.
The mission of the company is to produce competitive confectionery products
for maximum satisfaction of existing and proposed needs of consumers and to ensure
satisfaction of needs of the state, the Company, shareholders and employees.
The development strategy of the company is as follows: creation of an optimal
model of production and economic activities aimed at obtaining the maximum
economic effect. [6]
The main tasks and functions of JV JSC "Spartak" may include:
1. producing competitive, safe and high-quality products in order to maximize
satisfaction of consumers' needs and expectations, while minimizing the existing
environmental impacts;
2. meeting legislative, regulatory and other mandatory requirements, which
are associated with risks in the field of quality and safety, labor protection and
environmental protection;
3. maintaining and expanding internal and external sales markets;
4. continuous training and motivation of the personnel;
5. ensuring consumer confidence in compliance with product requirements;
6. openness and availability of information.
The main goal of the company is to maximize profits from the sale of
confectionery products in the interests of investors, shareholders, staff, as well as
consumers of services. In order to achieve the set goals, it is necessary to take the
leading position in Minsk region, to increase market share in the territory of the
Republic of Belarus and to increase export volumes by using new technological base
and improving the assortment.

12
 In connection with the goal set, the level of taxes in the country, customs fees
and duties, as well as the level of unemployment are of great importance for JV JSC
"Spartak", which is explained by the fact that these factors influence of the population
through changes in purchasing power of the population. [7, p. 23]
Let's reflect the dynamics of the main economic indicators of JV "Spartak" in
the period from 2018 to 2020 in Table 2.1.

Table 2.1 – Dynamics of the main economic indicators of SPARTAK JV activities

for 2018-2020.
Indicators Years Rates of growths, %
2018 2019 2020 2019/2018 2020/2019

Proceeds from sales of

products, goods, 130964 131 745 139 852 100,60% 106,15%
works and services
Cost of sold products,
works, services, 116773 121 034 130 802 103,65% 108,07%
thousand rubles.
Profit (loss) thousand
rubles before tax, total 11269 9 016 7 098 80,01% 78,73%
Including: profit (loss),
thousand rubles from
sales of products, goods, 14191 10 711 9 050 75,48% 84,49%
works, services

Including: other
income and expenses -5153 -4 882 -5 451 94,74% 111,66%
on current activities,
thousand rubles.
Including: profit (loss)
from investment,
financial and other 2231 3 187 3 499 142,85% 109,79%
activities, thousand
rubles.
Profit tax; other taxes
and levies calculated 2365 1 896 1 498 80,17% 79,01%
from profit (income),
thousand rubles.
Net profit (loss), 8904 7 120 5 600 79,96% 78,65%
thousand rubles.

13
 Undistributed profit
(uncovered loss), 58136 63 209 67 215 108,73% 106,34%
thousand rubles.

Continuation of table 2.1

Long-term accounts
receivable, thousand 1780 41 36 2,30% 87,80%
rubles.
Long-term liabilities, 9614 8 328 7 772 86,62% 93,32%
thousand rubles.
Average number of 1807 1 749 1 661 96,79% 94,97%
employees.
Note – Source: own development

The main products of the factory are: caramel, candy, chocolate and chocolate
products, cookies, waffles, cakes and pastries. Today the factory has four main
workshops: biscuit, caramel, waffle, candy and chocolate, where a wide range of the
above-mentioned types of products are produced.
The main production has a high level of technical development. Chocolate,
cookie, caramel and waffle production lines are almost fully automated. The
development strategy of the factory also provides for a significant change in the range
of products and improvement of their quality through a network of shopfloor and
central laboratories with modern equipment, where strict incoming inspection of raw
materials, semi-finished and finished products is performed.
The company pays special attention to renewal of the assortment, since this not
only supports the customers' interest in the company products, but also allows to take
into account constantly changing tendencies of the confectionery market, in this
connection the company pays special attention to introduction of modern and
effective technologies in the area of technical re-equipment. JV JSC "Spartak"
develops, as well as efficiently analyzes and satisfies consumers' needs by means of
the constant search for new ideas for creation of new confectionery products, and also
by improving production technology. [8]
Thus, we can conclude that JV JSC "Spartak" is one of the largest
manufacturers of confectionery products in the Republic of Belarus and, despite the
great competition in the presented market, it occupies a leading position in the
presented market.

14
 2.2 Positioning and analysis of the external environment of JSC
"Spartak"

The enterprise operates in constantly changing conditions, due to the variety of

relationships that develop between it and various economic subjects. The totality of
these relations constitutes the concept of marketing environment, which largely
determines the nature of the firm's activities and should be studied in the process of
market research.
A study of the external marketing environment is necessary to identify the
strengths and weaknesses of the firm. Strengths serve as a base on which the firm
relies to compete and which it must expand and strengthen. Weaknesses need to be
identified in order to get rid of them as soon as possible. The external environment
determines the firm's ability to function effectively. [24]
PEST analysis techniques are often used during the study of the external
environment. PEST analysis is a tool designed to identify political, economic, social
and technological aspects of the external environment that can affect campaign
strategy. [9, p. 22]
Timely analysis of macro environment factors helps a firm to analyze the
environment in which firms operate. The results of the PEST analysis are presented
in table 2.2.

Table 2.2 – Results of PEST-analysis of JV JSC "Spartak" market position.

15
 (S) Social factors (T) Technological factors
low level of labor discipline; low qualification of service personnel;
low interest in the results of their work; incompleteness of the production
insufficient responsibility of process in comparison with the design
performers and managers for the results one in terms of automation and control;
of their work; low technological discipline of
low wages; production;
not a high enough standard of living; moral and physical wear and tear of
difficulties in recruitment; machinery and equipment;
the negative impact of family relations potential possibilities of technologies
on discipline; existing in production;
lack of effective incentives for high probability of accidents in
employees; technological processes;
rising prices for goods and services the presence of labor-intensive manual
unfavorable working conditions; operations.
age composition of employees (many
young people);
the poor quality of public health care;
relatively stable environment in
society;
lack of elements of industrial aesthetics
in the shops.
(E) Economic factors (P) Political factors
change in the exchange rate; unification of Russia and Belarus;
general decline in production; protection of national producers;
unreasonable and unpredictable low rates of economic reforms in the
government policy towards the national Republic of Belarus;
currency; the absence of any production policy;
difficulty in forecasting energy prices; there is no system of regulation and
greater reliance on government policy management of macroeconomics;
on energy debts; entry to the European market.
lack of economic policy in the state;
non-payments between business
entities.
Note – Source: own development

From the above-mentioned factors we can determine that several types of

factors, which can be conditionally divided into 4 main groups, have an impact on JV
JSC "Spartak". In the first group – social factors socio-economic aspects of the work
of the labor collective and their influence on production activity were revealed.
16
 In particular, the low level of labor discipline, low interest in the results of their
work, insufficient responsibility of executors and managers for the results of their
work and absence of effective system of employee's motivation were specified in the
organization. There is also a problem with the timeliness of payment of wages. All
these factors indicate low efficiency of management at the enterprise, which
ultimately affects productivity and output. [10, p.80]
Technological factors revealed a number of problems associated with the
organization of production. Thus, it was revealed that in this organization there is an
insufficient level of automation and mechanization at the moment, low qualification
of service personnel, low level of organization of production. Nevertheless, high
potential capabilities of existing production technologies were identified.
Economic and political factors revealed the degree of influence of the state in
the economy of the enterprise, its protection and independence. The efficiency of the
production of JSC "Spartak" is influenced by the change in the USD exchange rate,
the general decline in industrial production, the great dependence on the
government's policy with regard to energy debts. [11, p. 35]
External factors can both positively and negatively affect the efficiency of
activity. Thus, the analysis of the use of reserves and conditions to improve the
efficiency of production and economic activity in JV JSC "Spartak" allows to
determine the following. JV JSC "Spartak" in modern conditions works effectively
enough due to a number of factors of objective and subjective nature. State regulation
of activities cannot be assessed unambiguously. On the one hand restraining the level
of prices for products, which leads to unprofitability of production, and on the other
hand a number of benefits and privileges provided by state authorities (exemption
from mandatory sale of currency). Based on the above, it should be noted that the JV
JSC "Spartak" developed a tendency to improve most of the qualitative indicators of
production and sales activities in the analyzed period for the last year.

2.3 Assessment of the competitiveness of JSC "Spartak"

The competitive position of the enterprise is evaluated in comparison with the

competitive positions of other enterprises. Competitive position is a quantitative
expression of competitiveness of the organization, characterizing the level of use of
its competitive advantages. The competitive position reflects the totality of all
characteristics of the enterprise.
Characteristics of an enterprise, when assessing competitiveness, are
considered as evaluation parameters. There are three main approaches to the
assessment of the competitive position. Depending on the chosen approach, the
parameters for assessing competitiveness will be distinguished. [12, p. 50]
17
 The first approach – competitiveness as a result of production and sale of
competitive goods. It assumes an estimation of competitiveness of firm through
competitiveness of goods, accordingly the parameters of an estimation will be the
same as for an estimation of competitiveness of goods.
The second approach – competitiveness as a result of effective interaction with
external environmental factors. The level of competitiveness depends on the
competitive strategy of the enterprise and its speed of adaptation to changing factors
of external environment.
The third approach, competitiveness as a process of value creation, is based on
the position that competitiveness is formed as a result of the creation of added value.
The category of efficiency – financial, production, marketing, and innovation
activities comes to the fore here. [13, p. 74]
The objectives of the analysis of the competitive position of the enterprise may
be the following: the need to develop measures to improve the competitiveness of
products; attraction of funds of the investor for the organization of competitive
production; drawing up marketing programs to enter new markets; increase in
production capacity; increase in the main indicators of economic activity; increase in
profitability of services. [14, p. 80]
The confectionery factory "Spartak" was chosen as the object of competitive
position assessment. Currently "Spartak" is the largest producer of chocolate in
Belarus. The company's products are known far beyond the borders of Belarus. The
factory cooperates with over with 20 foreign partners from Russia, the US, EU and
Asia.
In order to make sure that "Spartak" really takes the leading position in the
market of confectionery products of the Republic of Belarus, we will assess the
competitive position of the enterprise. The assessment will be made by building a
two-factor perception map, and compare with competing enterprises.
The main competitors of JV JSC "Spartak" are Belarusian and Ukrainian
producers of confectionery products. Belarusian competitors can be divided into 4
groups:
1. Large specialized enterprises of the concern "Belpischeprom":
 "Kommunarka" (Minsk);
 "Krasny Mozyryanin" (Narovlya);
 "Krasny Pishevik" (Bobruisk);
 "Konfa" (Molodechno);
 "Ivkon" (Ivyanets);
 "Slodych" (Minsk).
These enterprises account for 71% of the nationwide production of
confectionery products.

18
 2. Large confectionery shops of enterprises of the Committee on Bread
Products under the Ministry of Agriculture. The share of these enterprises is 18% in
the republican production of confectionery products.
3. Public catering enterprises and confectionary shops, which account for 6%
of republican production.
4. Private companies ("Ideal"), which account for 5% of total production. [15]
The table below shows the coincidence of assortment groups of the largest
manufacturers of confectionery products with the assortment of JV JSC "Spartak".

Organizations

Marmalade
Chocolate
Caramel

Cookies

Waffles
Candy

Drage
"Kommunarka" + - + - + - -
"Krasny Pishevik" - - - - - + +
"Slodych" - + - - - - -
"Krasny - - - - - + -
Mozyryanin"
"Konfa", "Ivkon" + - + - - - -
"Vitba" - - - + - - -
Table 2.3 – Competitors and assortment groups of manufacturers of confectionery
products.
Note – Source: own development

Based on the table, the main competitor of JV JSC "Spartak" in the Belarusian
market is a confectionery factory "Kommunarka", which produces identical products
and at lower prices.
The width of the assortment and brand recognition were chosen as comparison
attributes for the construction of the positioning map. Recognizability was assessed
with the help of a study the number of inquiries about a particular confectionery
factory in a search engine. To determine the breadth and depth of assortment were
used coefficients of breadth and depth of assortment, then they were compared and
the final score was set.
In order to estimate the width and depth of the assortment we use the
coefficients of width and depth, in order to calculate the coefficient of breadth the
number of product groups that are available divided by the total number of product
groups. In our case, the number of product groups that are in will be evaluated in the
company store and compared with the groups presented on the official sites. As an
example of calculation, let's take Spartacus, there are 13 groups of products, while in
19
the brand store in the store in the shopping center "Stolitsa" in stock only 10. So thus,
we get, Cw = 0,77. Similarly, the calculation of the depth of the assortment is carried
out, using the example of the range of JV JSC "Spartak" take a group of products
chocolates, the site group includes 42 items, while in the store in the availability of
only 36, we get that Cd = 0,86. Let's find the arithmetic mean in order to get an
average estimate of the breadth and depth of the assortment: C w, d = 0,82. Similarly,
we make calculations for each and give a score based on the largest indicator. For
example, when assessing the recognizability of the highest index was the
confectionery factory "Kommunarka" – 31. After doing all the calculations, we get
the following point estimate.

Factory Recognizability Width and depth of

assortment
"Spartak" 4,8 3,8
"Slodych" 4,7 3,3
"Konfa" 2,3 2,6
"Krasny Mozyryanin" 3,7 3,9
"Krasny Pishevik" 4,6 4,1
"Kommunarka" 4,8 4,4
"Ivkon" 3,1 2,9
Table 2.4 – Scoring of confectionery factories.
Note – Source: own development

Based on the point estimates, it is possible to build a perception map of the

confectionery factories of the Republic of Belarus. With the help of the perception
map we can clearly see that "Spartak" takes the 2nd position among the confectionary
factories of the concern (figure 2.1).
The position of "Spartak" shows that this enterprise is one of the first that
comes to consumer's mind when choosing confectionery products. In addition, the
consumer associates the confectionery factory "Spartak" as a factory with extensive
production, which offers a wide and deep assortment of confectionery products.
Thus, we can say that the competitive position held by the company is an aggregate
indicator that reflects the success of the company in all areas.

20
 Figure 2.1 – Map of perception of the confectionery factories of the Republic of Belarus

One example of the assessment of the competitive position can be a graphical

method – the map positioning map. It is a visual technique designed to show how the
average target market consumer understands the positioning of competing products in
the market. [16] Positioning map, showing the perception of confectionery factories
of the concern "Belgospischeprom", showed that JSC "Spartak" takes a stable
position in the minds of consumers on the parameters of "recognizability" and "width
of depth" of the range.

21
 CHAPTER 3
DEVELOPMENT OF RECOMMENDATIONS TO IMPROVE THE
COMPETITIVENESS OF JSC "SPARTAK"

At present JV JSC "Spartak" is a modern enterprise producing 375 items of

confectionery products, including therapeutic and prophylactic products.
In order to satisfy consumers' demands the company has expanded the network
of branded stores and sections. New products are tasted in brand stores; information
days are held for dealers and traders on new products, advertising posters and leaflets
on the company's awards, products, brands are distributed. Currently, the company
has six company stores, two direct sales departments in Minsk and Mogilev, a dealer
network in the Republic of Belarus.
JV JSC "Spartak" takes a leading position in its industry, and its products are
well recognized in the markets of the Republic of Belarus, Russia, Latvia, England,
Germany, USA and Israel.
The company is constantly working on the development of new products,
improving the quality and competitiveness of products, the development of original
design and development of new types of modern packaging materials. [17]
JV JSC "Spartak", being guided in its activity by the principle of ensuring
maximum efficiency in satisfying customers' requirements, uses all necessary
resources and many years of experience to produce safe, environmentally friendly
and competitive products with the best consumer properties.
The main objectives of the enterprise are:
 leadership in the production of confectionery products in the domestic
market;
 consolidation in the markets of far and near abroad;
 guaranteeing consumers safe, environmentally friendly, high-quality
products;
 carrying out technical re-equipment by purchasing modern equipment;
 continuous training of employees;
 rational use of natural resources in the production process and
environmental protection;
 effective functioning and continuous improvement of the quality
management system;
 continuous improvement of the economic position of the enterprise. [18]
The record of JV JSC "Spartak" includes prizes, diplomas awarded at
specialized exhibitions-competitions, prizes, medals of international exhibitions
presented in Table 3.1. [19]

22
Table 3.1 – Awards received by JV JSC "Spartak" for participation in competitions in
2021
Name of the contest Name of the product Award
(service, brand, etc.)
awarded
"Best Goods of the Milk chocolate filled Laureate Diploma
Republic of Belarus – with "Alenka";
2021" White chocolate with
almonds and coconut;
Sweets filled with
"Alenka".
"Best Product 2022." Candy "Za Spartak"; Laureate Diploma and
"Delux" candy set Gold Medal
Fruit bar "Za Spartak";
Waffles "Za Spartak";
Cookies "Za Spartak"
with pieces of chocolate.
"Consumer Market JV JSC "Spartak" Laureate Diploma
Leader – 2021"
International contest The product line "Za First place in the
"SmakArt" – 2021 Spartak!" category "Packaging
(label) of confectionery
products"
"WorldFood" Moscow "Za Spartak" spongy Three gold medals and
2021 milk chocolate 55%; diplomas
"Milx" waffle bar;
Chocolate "Spartak"
bitter elite.
"Best Product 2021." "Spartak" milk chocolate Laureate Diploma and
with whole hazelnuts; Gold Medal
"Impresso" milk and
white chocolate;
Gift set of chocolates
"Assorted milk".

23
 The solution of these tasks is achieved by:
1. conducting an in-depth economic analysis of the company's activities and
marketing research of sales markets, suppliers and competitors;
2. increasing the volume and expanding the range of products;
3. management of hazardous factors significantly affecting product safety;
4. continuous improvement of technology, implementation of new equipment;
5. implementation of automation, mechanization of technological processes,
reduction of manual labor in manufacturing;
6. development of original design and mastering of new types of modern
packaging materials;
7. purposeful professional training of employees;
8. equipping of the enterprise with environmental protection, resource-saving
equipment and communications;
9. care of health improvement, recreation of workers, provision of safe
working conditions.
To increase competitiveness, we offer expanding the range of products and
implementing new technologies by: development and introduction into production of
new varieties, reduction of caloric content of products, introduction of new types of
raw materials, testing and creation of new normative documentation for products in
order to increase the shelf life. [20]
Improvement of quality and design of goods by: improving cocoa processing,
mastering the technology of using food additives, stabilizing the quality of the
finished product, development of a corporate style for product design, using modern
methods of quality management due to certification of the quality system in
accordance with the requirements of ISO 9002, use of new types of packaging, due to
modern packaging materials. [21, p. 128]
To maintain the level of exports and reduce the negative balance of foreign
trade it is necessary to carry out:
 constant renewal and expansion of the product range;
 expansion of geography of shipments to Europe, USA, Germany, Israel,
Azerbaijan, Georgia, Greece, Turkmenistan;
 participation in prestigious exhibitions in the Russian Federation and abroad
in order to gain business contacts and increase export sales;
 mastering the technology of using food additives that stabilize the quality of
the finished products;
 using new types of packaging materials, types of packaging and containers.
[22]

24
 CONCLUSION

In this coursework, the concept of enterprise competitiveness in the theoretical

and practical aspects, methods of its evaluation, ways to improve it were described.
In accordance with the objectives, the following conclusions can be made:
At the present time in the conditions of the free global market competitiveness
is the only criterion of enterprise efficiency and demand for its products.
Competitiveness of an enterprise includes the presence of such indicators as:
1. high quality of the goods or services offered to the consumer;
2. the price of goods or services is lower than that of competitors;
3. orientation of production to a certain group of consumers, which allows the
enterprise's products to meet their requirements to a greater extent;
4. distinction of the enterprise's products from the goods or services of
competitors;
5. presence of a positive reputation at the enterprise, consumer confidence in
their products;
6. high qualification of the enterprise's personnel;
7. equipment of the enterprise with modern equipment.
If an enterprise meets these requirements, one can speak of a high level of
competitiveness. If any of these points are not met, the ways to increase
competitiveness should be sought in this very area of the enterprise's activity.
These discrepancies are established during the assessment of the
competitiveness of the enterprise. Currently, there is no universal and generally
accepted methodology for assessing the competitiveness of enterprises. Among the
methodologies for assessing the competitiveness of an enterprise there are the
following:
1. matrix methods (the essence of the assessment consists in the analysis of a
matrix built on the principle of a coordinate system: horizontally – the growth
(reduction) of sales; vertically – the relative share of the enterprise in the market);

25
 2. methods based on the evaluation of the competitiveness of the enterprise's
products (based on the judgment that the competitiveness of the enterprise is higher,
the higher the competitiveness of its products);
3. methods based on the theory of effective competition (consisting in the
evaluation of the ability of an enterprise to ensure competitiveness)
4. complex methods (competitiveness of an enterprise is an integral value in
relation to current competitiveness and competitive potential).
Joint Venture Open Joint Stock Company "Spartak" is the oldest and largest
producer of confectionery products in Belarus, one of the leaders in its industry. It's a
diversified enterprise with a closed production cycle, able to respond flexibly to
market demands and specializes in the production of caramel, cookies, wafers, candy,
glazed chocolate, chocolate products.
In the practical part of the work were used methods based on the theory of
effective competition. With its help the competitiveness of a particular enterprise
"Spartak" was evaluated, strengths and weaknesses of it and competitors were
identified, the calculation of the integral indicator of competitiveness was made.
According to this information we can say that JV JSC "Spartak" occupies a
leading position among its competitors. The company competes effectively both in
terms of product variability and quality, and in terms of production volume. This
situation tells us that the company is looking for potential consumers and seeks to
enter new markets. The strengths of the enterprise can be called: high production
growth rates, available labor potential, own production, high quality products.
Weaknesses include: vulnerability to competitive pressures; the technical process
depends on the equipment. Opportunities: industrial development. the possibility of
entering new markets, expanding production. Threats: a serious competitor in the
market, a trend towards aging of fixed assets, pressure from competitors.
As a result, the conclusion about the position of this enterprise among
competitors was obtained, and the ways to further improve this indicator were
proposed.

26
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