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FORMATION OF AN EFFECTIVE PROFIT MANAGEMENT SYSTEM

 
25.07.2021 23:02
Автор: Herasymenko Iryna, Ph.D. of Economics, Bila Tserkva National Agrarian University; Smychok Svitlana, master, Bila Tserkva National Agrarian University
[Економічне спрямування]

The purpose of financial and commercial activities of any enterprise is to obtain the maximum possible level of profit. Achieving this goal is the main task of the manager, who must make rational decisions in the field of enterprise profit management. To effectively perform this task, it is necessary to pay attention to the principles of forming a profit management system. It is impossible to underestimate the importance of taking into account the principles of profit management of the enterprise, as its proper use ensures the growth of production efficiency; introduction of the newest technologies; increase productivity at the enterprise and reduce costs; improving the level of product quality; formation of competitive advantages of the enterprise in the market.

The main principles of forming an effective profit management system are:

The principle of integration with the overall enterprise management system. Provides for the coordination of tactical goals that have been developed in the enterprise to the overall system of profit management and strategic goals of enterprise development, as the process of profit management concentrates aspects of the governing bodies of the enterprise.

The principle of continuity, due to the cyclical nature and the need for continuous operation of the enterprise, which in turn obliges the enterprise to develop a permanent system of profit management. Since the economic activity of the enterprise is continuous, so the management of profits should be carried out on an ongoing basis.

The principle of systematization is that the main purpose of developing management decisions on profit management of the enterprise is the rational use of limited resources to achieve the best economic effect. This principle requires business leaders to analyze the state of the company's own resources and its possible changes, comprehensive consideration of possible management actions and consideration of their results. Consistent implementation of combined measures at the enterprise, focused on functioning in the conditions of transformational economic processes.

The principle of complexity must ensure the effective work of the governing bodies of the enterprise on the formation, distribution and rational use of enterprise profits to achieve the goals of the enterprise.

The principle of dynamic management involves constant analysis of the internal and external environment, which requires the company to quickly adapt the profit management system to their changes.

The principle of variability is that business leaders must invent and calculate many possible scenarios both inside and outside the enterprise and choose the most favorable development scenario, developing management decisions that will help implement this scenario. The disadvantage of this principle is the inability to predict and calculate all possible scenarios in a changing market environment, but the results of work within the enterprise are quite easy to predict. Therefore, business leaders should not focus on all possible options, but to highlight the most important and focus their activities on them.

The principle of focusing on the strategic goals of enterprise development consists of well-thought-out, purposeful actions of the company's management, aimed at developing the goals of the enterprise and measures to achieve them. Managers must be able to analyze the external and internal situation and identify the need for certain changes, have the courage to take responsibility and make the necessary adjustments to the enterprise, which can accelerate the implementation of the strategy in the context of limited resources and uncertainty in the future.

Therefore, to form a system of effective profit management of the enterprise it is necessary to take into account its basic principles, the combination of which will increase the efficiency of the enterprise and allow the enterprise to prepare for possible challenges of the market environment.



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