Research and improvement of the foreign economic activity category management at Ahroprovaider-M, LLC
Students Name: Stelmakh Iryna Vasylivna
Qualification Level: magister
Speciality: Management of Foreign Economic Activity
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2021-2022 н.р.
Language of Defence: англійська
Abstract: In modern conditions, category management is an integral part of ensuring the efficiency of enterprises, increasing their profitability and competitiveness not only in the domestic market, but also in the international or global. Category management is especially important for companies with a wide diversification of the product range, because it is this non-traditional form of product range management allows you to optimally form, structure and select effective strategies and management methods for each product group. This allows you to sell on the market in the right place and at the right time the products needed by consumers, which, in turn, increases the company’s turnover, margin, average check and more [1]. The main objectives of the implementation of category management are: minimization of commercial, market and economic risks, optimization of inventories, cost savings, increase the speed of orders and turnover of the company and more. Around 95% of the world’s retail organizations have implemented, or plan to implement categorical management in the near future, and this indicates positive changes [2]. Categorical management is used by world-famous companies such as Walmart, Jonson & Jonson and more. Most companies that have switched to category management claim a positive effect. In Ukraine, the concepts of category management are only becoming more widespread, although in business circles, the principles of category management are still being discussed more and more rapidly. An important stage of categorical management of the enterprise is a comprehensive analysis of its range, which distinguishes product groups. In the future, the necessary management and promotion strategy for a functioning market is selected for each product category [3]. A special responsibility for the implementation of categorical management at the enterprise rests with a qualified categorical manager. He is responsible for: the formation of the optimal range and its promotion, pricing, selection of effective strategies, and so on. When using the principles of category management, it is important to remember that product groups must correspond to the assortment profile of the company. Therefore, when forming the range of the enterprise, it is necessary to take into account its type and features of consumer demand [4]. It is also necessary that the company is prepared to implement categorical management on such criteria as: mastery of employees in the methodology of categorical management, optimization of organizational structure and more [5]. Categorical management must constantly adapt to the overall corporate strategy of the company, but, at the same time, requires its restructuring, ie restructuring of the structure, optimization of resources and more. That is why the introduction of category management is not as simple as it may seem at first glance. To maintain the effectiveness of category management, it is essential to transparently communicate all the categories of product range involved in the life cycle: from producer to end consumer in a separate functioning market. In the master’s qualification work the categorical management of foreign economic activity of Ahroprovaider-M, LLC was investigated, and also problems according to results of research were revealed and the ways of their decision were offered. The main problems of categorical management of foreign economic activity of Ahroprovaider-M, LLC are: reducing the efficiency of management of imported product categories of Ahroprovaider-M, LLC, inefficient distribution of components of the range of imported machinery and gardening equipment Ahroprovaider-M, LLC. To solve the identified problems it was proposed: cross-categorical analysis of the import product range of Ahroprovaider-M, LLC and introduction of the Boston Consulting Group method for the analysis of the constituent categories of the range of imported machines and the association of horticulture of Agroprovider-M, LLC. Object of research: Ahroprovaider-M, LLC, which operates in the agro-industrial sector of the wholesale trade of agricultural machinery and equipment. Subject of research: problems of improving the categorical management of foreign economic activity of Ahroprovaider-M, LLC and recommended measures to eliminate them. The purpose of the study: a study of categorical management of foreign economic activity of Ahroprovaider-M, LLC, identification of problems based on the results of the study and recommendation of optimal measures to eliminate the identified problems. As a result of the completed master’s qualification work, the problems of improving the categorical management of foreign economic activity of Ahroprovaider-M, LLC were identified and recommended measures for their solution were proposed, which was the main task of the master’s work. Key words - categorical management, assortment, commodity assortment category, categorical manager, diversification. References: 1. Taranyshyna, А. (2020). What is categorical management? LED by vestum test. Retrieved from: https://ledtest.vestum.ua/uk/study/shcho-take-kategoriinii-menedjment/ 2. Stepanenko, D. P. (2017). Practical significance of category management tools. National Technical University of Ukraine, Kyiv Polytechnic Institute named after Igor Sikorsky. Retrieved from: https://ela.kpi.ua/bitstream/123456789/19996/1/MNTS2017_27_Stepanenko.pdf 3. Kindiy, М. V., Мalysh, Ya. V. & Priima, L. P. (2015). Management of supply chains of retail chains on the basis of category management. Lviv Polytechnic National University. Retrieved from: file:///D:/%D0%97%D0%B0%D0%B2%D0%B0%D0%BD%D1%82%D0%B0%D0%B6%D0%B5%D0%BD%D0%BD%D1%8F/VNULPL_2015_833_23.pdf 4. Mohylova, А. Yu. & Shybun, М. О. (2020). Management of the range of the trading company. Electronic scientific professional publication «Effective Economics». O. Honchar Dnipro National University. Retrieved from: http://www.economy.nayka.com.ua/pdf/6_2020/5.pdf 5. Mykytiuk, N. Ye. (2019). Introduction of category management by FMCG-market enterprises: essence of the concept and practical recommendations. Ivano-Frankivsk Technical University of Oil and Gas. Economics and business management, 27, 139-145. Retrieved from: http://bses.in.ua/journals/2019/40_2019/27.pdf