Factor analysis of the profitability of sales in a competitive environment

Traditionally, factor analysis of profitabilitysales is considered as an indicator that in more detailed form characterizes production results, than it is done with the help of such indicator as profit. The reason for this is that factor parameters more closely correlate the effect of production, and not only with available or used resources. Factor analysis of the profitability of the organization is used to characterize the entire enterprise and as a pricing tool.

In its most general form, the profitability parameters can be reduced to the following classification groups:

1) indicators of recoupment of production costs;

2) return on investment projects;

3) parameters characterizing the actual profitability of sales;

4) characteristics of the return on capital.

As a rule, these characteristics are calculated by the aggregate profit indicators.

However, factor analysis of return on equityin modern conditions shows that competition becomes an increasingly important factor of profitability. The result of competition is the need to intensify the implementation of innovation policy, expand investment activities of enterprises. A factor analysis of the profitability of sales proves that at the same time the efficiency of all material and intangible assets is increased, and the ergonomic and aesthetic qualities of the goods, their environmental friendliness, and operational safety are ensured. Effective tools of competition are the reliability and reputation of the manufacturer, its prestige, images and brands. Thus, competition, both "price" and "non-price", optimizes the adequacy of the price, the quality of the goods produced, which meets the requirements of its competitiveness and consumer needs.

Factor analysis of the profitability of salesshows that all this manifests itself when the mechanism of competition is built on the market laws of the relationship between supply and demand. In this case, the establishment of the price of supply or demand for goods forms balanced prices in the market.

However, the processes of concentration of production andThe globalization of the economy contributes to the development of imperfect types of competition. It should be noted that in the modern market structure, the predominant model of competition is the oligopoly, which is characterized by a small number of sellers (usually large firms). Thus the goods can be differentiated. Factor analysis of the profitability of sales in such conditions shows the peculiarity that penetration of new sellers into this market is difficult, since oligopolistic firms apply a policy of leadership in prices and mutual collusion in order to maintain price level and maximize profits. Full control over prices in the market is exercised by the monopoly.

Therefore, at present the market can not docompetition is effective. In this regard, the state, as the main economic regulator, must take measures that could provide civilized conditions for the functioning of the commodity producer and his "protection" from monopolies, the strengthening of which leads to deformations in the development of a market economy.

Government policy in the field of regulationThe influence of monopolies is manifested in the implementation and improvement of antimonopoly regulation. The antimonopoly policy includes control over monopolized markets, organizational mechanisms for supporting small businesses, antimonopoly legislation, procedures related to simplifying licensing, accounting, etc.