The economic theory; the subject, the method. Problems and tendencies of development of the economic theory

2) The contents of enterprise activity is search of such combinations available of the businessman of resources (money, material benefits, work, etc.) which provide to it achievement of the specified purpose.

    It is possible to draw the following conclusions from the told: subjects of enterprise activity (businessmen) can be only citizens and their associations.

    Essence of enterprise activity opens through functions carried out by it:

- the businessman incurs the initiative of connection of factors of manufacture in uniform process of manufacture of the goods and services with the purpose of reception of the profit;

- The businessman is the organizer of manufacture who is adjusting and setting the fashion to activity of firm, determining strategy and tactics of behavior of firm and taking up burden of the responsibility for their success

- The businessman is the innovator introducing on a commercial basis new products, the new technologies, new forms of the organization of an affair;

- The businessman is the person who is not afraid of risk and meaningly going it for the sake of achievement of the purpose of business.

     Successfully to carry out the named functions, the person should possess the certain abilities among which necessarily should be present initiative, ability of independent thinking and decision-making, persistence on achievement of the purpose, skill to organize and stories behind itself collective.

      Individual business. Individual business is based on the individual or family property of the businessman. Feature of individual business is that here is not carried out distinctions between actually capital (the property bringing the income) and the property used by the businessman for personal needs. The property responsibility is distributed to all property of the businessman irrespective of it inclusion in the capital.

      Companies — the form of enterprise activity based at association (share) property of different proprietors.

       Companies include be relative a small number of the members personally participating in their work. Companies act in different forms.

      The full company (company with the unlimited responsibility) is formed on the basis of the contract between its participants about the joint enterprise activity, providing their mutual obligations and distribution of incomes under condition of full and a joint liability.

    Mixed (commanding company unites a part of the participants on a principle of the full (unlimited) responsibility (full members) and a part on a principle of limited liability (members - investors).

     The limited liability company. In such company the property responsibility is limited only to the capital of company.

Joint-stock companies. Joint-stock companies also are formed by association; on a share basis of means of the participants (shareholders) and concern to the companies with limited liability as answer under the obligations only own capital.

 

 Firm – a basis of national economy. Small business in modern conditions.

      In the modern economic theory the firm is, on the one hand, the organization, transforming initial resources in an end-product, and with another — legally independent form of existence of the business, in appropriate way registered enterprise unit possessing commercial independence. It can be both large corporation, and the small company.

      The modern firm can include one or several enterprises functioning in any spheres of a national economy. All problems of micro-economics are reflected as a result of economic activities of firms.

The firm, transforming initial resources in an end-product, constantly carries out exchanges of six kinds which characterize its interrelations in a market economy:

- an exchange of money for work of hired workers; - an exchange of money for the goods and services of suppliers; - an exchange of the goods and services of consumers for money ; - an exchange of the money paid later, for the money received now from investors and landlord;

- an exchange of the money paid now, for money which will be received later from debtors;

- an exchange of money for the goods and services (for example, on water, cleaning of dust, protection) and the state establishments of the government.

       The economic science characterizes small business as set of the fine enterprises which are letting out homogeneous production.   

It means that the firm has no control over market prices and aspires to maximization of the profit.

       The enterprise choice is a preference of not guaranteed profit; choosing the salary becomes the hired worker precisely knowing, how much he will earn.

       The major factor of enterprise is activity time. The businessman should possess ability to transform spent time in the activity increasing result. The special attention is deserved with intraindustrial advantages of the organization of small business.

       The elementary example of organizational advantages of a small firm – it’s homogeneously group structure: members of collective have identical qualification, pursue the uniform purposes. It gives advantages in the competitive market.

       Experience of the countries which have reached socially focused market economy, testifies, that its economic basis are the specific goods and information technologies.

      Therefore the governments of these countries variously support businessmen of sphere of the small business.

       It is known, that the world still has been more recently divided two parts, one of which («social camp») was guided only by one state ownership and, accordingly,  monopoly manufacture.

Absence of small business complicated scientifically technically progress as in economic structure of a society there were no basic and effective suppliers of the modern goods of new information technologies, but it appeared as though specially created for mass duplicating all other goods on the basis of these technologies.

 

      The economic maintenance of the income and the profit.

     The profit — acts as excess of incomes of sale of the goods (services) over the made expenses (capital).

The profit is one of generalizing estimated parameters of activity of the enterprises (the organizations, establishment).

The profit carries out two major functions: 1) characterizes final financial results of activity of the enterprise, the size of its monetary accumulation; 2) is the main source of financing of expenses for industrial and social development of the enterprise (the profit tax - the major element of incomes of the state budget).

The main principle of activity of the enterprise (firm) will consist in aspiration to maximization of the profit. For this reason the profit acts as the basic parameter of production efficiency, development of market attitudes (relations) occurs expansion of traditional understanding of the profit reduced to a difference between incomes and costs. In accounting calculations the profit represents:

                                                   Å = Д - And, where

Å - profit,

a - incomes,

ê - production costs,

According to kinds of costs of firm incomes are subdivided also;

The aggregate profit - TR (total revenue) is the sum of money received from the sell of certain quantity of the goods (proceeds). It is equal to the price of the goods increased on this quantity of the goods:

TR = Q • Р

The average income - AR (average revenue) - is equal to the aggregate profit divided into quantity of units of production;

AR = ^ TR / ^ Q

The limiting income - MR (marginal revenue) is an increment of the aggregate profit due to infinite small increase in quantity of made and sold production (an increment of the aggregate profit at increase in sales at a unit of production):

MR = ^TR / ^ Q

When the firm receives «zero economic profit ", it covers the costs. There is also a concept «normal profit ", is a profit which owners of firm refuse, using own resources in the firm but which they could receive, having enclosed the resources in other business. » The normal profit «represents alternative cost of use delivered by proprietors of firm of resources.

The maximal profit is reached in interaction of internal and external factors of activity of firm. The basic requirement of maximization of the profit - profitableness of each unit of release. The firm aspires to maximize a difference between the aggregate profit and the common costs.

Thus, the firm, making a decision about growth of production, can be guided by a simple rule: it should increase manufacture up to a level on which the limiting income becomes to equal limiting costs.

Kinds arrived

At a level of the managing subject there is a whole system of profits: total (balance) profit, profit on realization of a fixed capital and other property of the enterprise, profit on in unrealized to operations, net profit. Besides distinguish the profit taxable, and the profit which is not taxable.

The total (balance) profit represents the sum:

                                      Пв = Прп + Прф + Пвн, where

Пв - total profit;

Прп - profit on realization of production;

Прф - profit on realization of a fixed capital, other property of the enterprise,

Пвн - profit from in unrwalized operations. Incomes - the major economic parameter of work of the enterprises (firms), reflecting their financial receipts from all kinds of activity, as which end result made and realized production (rendered the service, the executed works), paid by the customer acts.

    The income received by physical persons, shares on three parts - on payment of taxes, charges on the current consumption and on personal savings.

      Among set of taxes with which the personal income is assessed, the basic is " the federal surtax " To it join taxes to "super incomes", to the inheritance, the real estate, local, etc. .

      The income which has stayed after payment of taxes refers to as «the pure personal income ". In relation to it every income recipient solves the same problem: how to distribute it between "consumption" (charges on the current demand) and "savings"?

      The problem arises that the decision is accepted in market economy in which all conditions programs aspiration to the most favorable use of the received income. The aspiration to the maximal benefit can decline income recipient to increase in consumer charges (in conditions of "galloping" inflation), and can - under condition of high percent - to force to refuse a part of consumer charges, having declined to increase saved parts of the income.

     The parity between "savings" and "consumption" of the pure personal income depends first of all on its size and a level of percent.

     Full consumer application of the income would mean its equality with charges. However in a reality the increase in the size of the income is accompanied by outstripping its increase "saved" parts.

      Profitability – a parameter of efficiency of lump sum and current expenses. Distinguish « profitability of manufacture » and « profitability of production ».

Profitability of manufacture shows, as far as the property of the enterprise is productively used; it is defined as percentage of the annual profit (balance) to mid-annual cost of a fixed capital and the sum of turnaround means.

Profitability of production shows productivity of the current expenses; it is defined by the relation of the profit from realization of a commodity output.

  

Management: its basic functions and methods.

                                              

      Management is a process of development and realization of managing influences. Management covers two practical aspects of management: 1) maintenance of the enterprise of decisions in spheres of the business, supposing the complex analysis of factors influencing its efficiency, and 2) the organization of effective work of employees, purposeful influence of the manager on the personnel in interests of the decision of tasks facing to him and profitable work of firm. Management is the practical tool, special a control system in business. It includes methods of creation and functioning of the organization, takes into account specificity of management of people and collectives.

       Management has some levels depending on character and complexities of solved tasks of management. The highest level of management (top) defines (determines) the purposes, strategy and plans of work of all enterprise. Managers of a highest level should possess conceptual thinking; know specificity of work of firm, feature of the market. The average level of managers (middle management) operates separate functions of the enterprise; hence, they are heads of functional services of the enterprise. They should have a wide outlook, high professionalism, know human relations and be able to organize collectives of people for effective work. The bottom level (first level) managements are heads of primary groups who directly organize work of employees and provide performance of operating plans, schedules of output and rendering of services.

       Allocate "general" and "functional" management. The general management is focused on operation of business as a whole for reception of the maximal profit. Functional management is connected to management of separate subsystems of the enterprise: the finance, manufacture, the personnel, the market, innovations, and the information. Each function of management is a set of actions of management personnel, rather homogeneous to some attribute and directed on achievement of the private purpose subordinated to an overall aim of management. These private purposes of management can be presented as a set of "focuses" at which - in management separate divisions of management personnel are aimed.

        Management as the table shows A assumes precise orientation of administrative workers to definite purposes and criteria of their achievement. Activity of each manager is aimed at one of components of an overall performance of all firms. For achievement of these purposes managers «receive the corresponding salary, and for reception of qualitatively new results raising an overall performance of all firm - the additional premium.

 

Table A. The Functional purpose of management personnel

 

divisions of structure	the administrative purpose	Criteria of an estimation
the general management	profit	performance of strategy
accounts of the enterprise	costs, the cost price	decrease in costs
finance	feedback of investments	expansion of a share of the market
marketing	sales volume	expansion of a share of the market
the personnel	organizational construction of management	productive use of resources
manufacture	efficiency of operations	productive use of resources
researches and development	updating of production	perfection of products

 

                    For achievement of these purposes management has developed sequence of 4 functions which essence can be presented as «a lattice of management ".      

             

                                            Functions of management

 

Functions	Firm in whole	The personnel	Manufacture
1 Planning Definition of the purposes and policies Choice of strategy Definition of need for resources Development of plans, systems and procedures	Long-term installations and policy of firm on strengthening positions in the market, development a choice of new products	Definition of strategy of development of the personnel of personnel selection calculations of plans	Definition of the purposes of manufacture of products, calculation of required resources, plans of manufacture
2 Organization a choice of structure Distribution ответствен The rules ости managements The formal organization	Definition of type of structure degrees of centralization of management, quantity of levels, lattices of the responsibility	Definition of structure of personnel service, distribution of tasks	Choice of industrial structure of firm, technological structure
3 Management Motivation Leadership Style of a management Supervision Work of people	Definition of system of the salary, premiums, management of career, system of estimations and the responsibility	System of motivation style of a management of work	System of the salary, coordination of stages of technical process, performance
4. the control Quantities Qualities Deviations The decision on elimination of deviations	The constant analysis of a trajectory of movement to the purpose, acceptance of the major decisions.	The control of realization strategists in time, performance of plans	The control of quantity of  released production, quality, elimination of defects

 

 

 

         Managerial process begins with development of a policy of firm and definition of its purposes. Any firm depends on the market, a condition and a level of demand and the prices for products. The enterprise on the basis of the analysis of a condition of an environment and the internal organization defines the long-term purposes on strengthening of a position in the market, to essentially new directions of activity and concretizes these purposes as systems and procedures. "System" in management is understood as set of actions, means and the methods directed on achievement of objects in view. "Procedures" are concrete actions of firm of function of management.

        For realization of system and procedures it is necessary certain for the organization. The organization is a kind of activity in managerial process and, simultaneously, - group of the persons carrying out joint activity by the common rules and requirements and cooperating on the basis of conscious distribution of functions. The organization unites people in "structures". At this stage the type of structure of manufacture and operation of business gets out.

       To make the organization work and reach objects   the "firm" motivation of behavior of employees, their orientation for effective work, coordination and interaction, correct style of a management, presence of leaders is necessary. Function of a management is directed on concrete management of collectives of people, full use of resources.

          And, at last, movement of firm to an object in view should be supervised continuously as deviations of quality of production from requirements of the market are possible, failures of output. For example, if the volume of production of firm is reduced, incomes the firm should arrange on adaptation to changes in the market fall. Therefore the system of management includes marketing - scheduling of all firm on the consumer, on revealing and satisfaction of real demand.

       

Marketing: functions, kinds, the primary goals.

      The production program of the enterprise represents the certain volume and assortment of production of the corresponding quality, reflecting demand for given production and real opportunities of manufacture on satisfaction of this demand.

       Through the production program the primary goal of functioning of any enterprise which will consist in production, performance of works and rendering of services with a view of satisfaction of public requirements and reception of the profit is realized.

        The production program of the enterprise is formed today on the basis of marketing researches.

      Marketing is a prediction, management and satisfaction of demand for the goods by an exchange. Marketing includes the analysis of an environment and the market, characteristics of consumers, planning of the goods and its promotion on the market, planning of the price and management of all process of interaction of firm and the market.

         Marketing is a system of various kinds of activity of the enterprise, connected among themselves and covering planning, pricing, sale, delivery of the goods and rendering of services in which there is a requirement at real and potential buyers. From told follows, that marketing concerns to the competence of the manager - the businessman of special type which activity is focused on the consumer; marketing can "be spread out" on some components, and it begins with the consumer and comes to an end the consumer (see the circuit below).

 

                      The circuit of basic model of marketing

       

  

 

 

 

       Marketing penetrates all activity of the enterprise. Process of marketing is many-sided: it begins with an embodiment of desires of the consumer in concrete production and the organization of its manufacture, after which end it is necessary so "to enter" production on the market to draw steady attention to it of the consumer for what the guarantee of good service and послепродажного service is necessary.