Operational activity of the enterprise: essence and features
Enterprises operate on the market, as a rule,in a very tough competition. If the company was in the struggle loser, it leaves the market and becomes bankrupt. To maintain a position in the market, a firm needs to continuously monitor any changes occurring in the market environment, develop its own ways of counteracting negative impacts to maintain competitiveness.
Operations are activitiesfirm, which is the main and brings the organization a significant part of the income, as well as other activities, except for financial and investment. In other words, this is what the enterprise was directly created for.
The nature of operating activities, first of all,is determined by the specifics and characteristics of the industry to which the enterprise belongs. For most companies, it is based on trade, production and commercial activities, which can be supplemented by financial or investment.
Features of the concept
Operating activities are characterized by the following features:
- It is the main componenteconomic activity of the company. A significant part of the company's personnel, a significant share of all the assets being formed, is used to service this activity. Thus, under normal conditions, the profit from it has a significant specific weight.
- The operational activity of the enterprise ispriority for other species. For this reason, the development of any other directions should not be in contradiction with the operational activities.
- The intensity of development of the priority activity is the main parameter used to evaluate the stages of the life cycle of the firm.
- Operational activity is focused primarily on the commodity market, while investment or financial - on the financial market.
- All business transactions related to operating activities are of a regular nature. According to it, the frequency of operations is the highest.
- Implementation of priority activities is associated withby means that are already invested in it. The future investment of funds is subject to financial or investment activities. Capital invested in priority activities becomes the company's operating assets. From the composition, speed of circulation, balance and other characteristics of operating assets, the organization's ability to generate operating profit largely depends.
- Operating activity consumes a largevolume of living labor. In financial and investment activities, the costs of living labor are insignificant. Thus, the firm's ability to generate profits depends to a large extent on the qualifications and professional composition of the staff, the adequacy of the workforce.
- Priority activity is inherent in specific risks (operational risks). The level of operating profit should be correlated first of all with the level of operational risk.
In the process of implementing priority activities, three types of operating profit are generated:
Thus, the operating activities arethe main role in the process of forming the profit of the enterprise. It is on the implementation of this type of activity that a significant share of material and labor resources is spent. In the event that the priority activity is ineffective, the enterprise can become bankrupt and will have to withdraw from the market.