Management of business activity of LLC "Lvivpodshipnyk"
Students Name: Dubyk Mariana Ihorivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Business activity should be considered from four positions - as a characteristic of the company’s competitive advantages, as a criterion for its ability to develop, as a stimulus for employment and profitability, as an indicator of improving economic relations. In the context of financial analysis, first of all, reserves are determined for increasing and efficient use of the company’s resources. Since the results of the analysis of business activity are the basis and an important component of the development of measures related to ensuring the activity of the enterprise, it is worth assessing the level of business activity and the production and economic situations inherent in it, which determine certain results of the financial and economic activity of the enterprise. A normal situation corresponds to a high level of business activity. This level is characterized by a stable increase in evaluation indicators, a high level of efficiency in the use of resources, a stable financial condition and an active innovation policy. The problematic situation is typical for an enterprise whose level of business activity corresponds to the average. At the same time, the company has an unstable financial condition, a noticeable decrease in the efficiency of resource use, a passive innovation policy, and a significant decrease in evaluation indicators. A low level of business activity describes a crisis situation in which there is a steady decline in valuation indicators, a crisis financial state, inefficient, irrational use of resources, and a lack of innovative policy. Timely detection of a problematic and crisis situation at the enterprise with the help of business activity management helps to avoid bankruptcy due to the adoption of operational management decisions. Study object – the process of managing the business activity of the enterprise. Scope of research – theoretical and applied aspects of the process of managing business activity. Goal of research: to study the theoretical background of the development of the process of managing the business activity of the enterprise and the processes of its practical application for increasing the profitability of LLC "Lvivpodshipnyk". The first section of the thesis presents the main approaches to the interpretation of the concept of "business activity" [1, 2]. A study of the interpretations of the term "business activity" of scientists [3, 4, 5]. The horizontal, vertical and coefficient analysis of the financial statements of Lvivpodshipnyk LLC was carried out, a factor analysis of the turnover ratios of assets and equity was also carried out using parallel and logarithmic methods, and the management of business activity was evaluated based on the calculation of the relevant ratios. In the second section, a SWOT analysis was carried out and the main directions of the financial and economic development of the enterprise were highlighted. Economic-mathematical modeling was also carried out using the method of approximation of the non-linear dependence of receivables on the credit period and forecasting of the net income from the sale of the company’s products was carried out using the method of least squares. In the third section, the selection and formation of the strategy for managing the business activity of the enterprise was investigated and the measures for managing the receivables of the enterprise were applied, as well as the results of project decisions were analyzed. The results of the study indicate a satisfactory property condition, normal financial stability, normal liquidity, satisfactory business activity and average profitability of Lvivpodshipnyk LLC. The business activity of the enterprise is improving. Factor analysis shows that the factor of positive influence on the turnover ratio of assets is the amount of net income from the sale of products, and the amount of assets is negative; the factor of positive influence on the equity turnover ratio is also the amount of net income from the sale of products, and the amount of equity is negative. The SWOT analysis revealed such areas of financial and economic development of LLC "Lvivpodshipnyk" as the growth of the company’s profitability, sales promotion and increase in the supply of goods. The results of the application of the method of approximation of the non-linear dependence of receivables on the credit period showed that the optimal level of receivables of the enterprise is somewhat lower than the actual one. Forecasting of net income from product sales revealed its growing trend. The application of accounts receivable management measures had a positive impact on the relative indicators associated with it and the financial results of the enterprise in general, which is reflected in the results of project decisions implemented on the basis of research. Additional recommendations for improving the financial condition of LLC "Lvivpodshipnyk" were also proposed. Keywords: business activity, business activity management, least squares method, parallel method, logarithmic method, approximation method. References. 1. Anisimova, O. (2018). Analiz dilovoyi aktyvnosti pidpryyemstva yak systemna otsinka efektyvnosti vykorystannya vlasnykh resursiv [Analysis of the enterprise’s business activity as a systematic assessment of the effectiveness of the use of own resources]. Problems and prospects of entrepreneurship development, (2), 19-24. 2. Harasyuk, О. (2022). Problemy shchodo sutnosti ponyattya «dilova aktyvnist?» [Problems regarding the essence of the concept of "business activity"]. Bulletin of KTU, (22), 63-67. 3. Kurylenko, Т. (2022). Teoretychni aspekty vyznachennya dilovoyi aktyvnosti [Theoretical aspects of definition of business activity]. Herald of Agrarian Science of the Black Sea Region, 4(47), 87. 4. Tkachuk, Г. (2022). Otsinka dilovoyi aktyvnosti pidpryyemstva [Assessment of business activity of the enterprise]. Scientific Bulletin of Kherson State University. Series: Economic Sciences, 13(4), 88-90. 5. Tsal-Tsalko, Ю. (2018). Finansovyy analiz : [pidruchnyk] [Financial analysis: [textbook]]. Kyiv: Center for Educational Literature [in Ukrainian].