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Increasing the Flexibility of the Company as a Way to Overcome the Downward Phase in the Life Cycle Model (on example of Irkutsk Oil Company LLC)
The article is devoted to clarifying the life cycle model in relation to organizations that are at the stage of bureaucratization. It is assumed that each division of the company has its own cycle, which is different from the cycle of the main production. This approach allows us to classify the divisions of the company according to the degree of correlation of their cycles with the cycles of the main production.
The object of the research is the activity of Irkutsk Oil Company LLC, which is the leader in the segment of independent oil producing companies in Russia. Research interest is the story of its successful development, which fits well with the model of the life cycle. The current difficulties associated with the clear threat of degradation of its existing management system require new non-standard measures.
In the S-shaped curve of the life cycle of the organization can be distinguished downward and upward phase. The reason for the downward phase is the inconsistency of the firm’s internal dynamism with the requirements of the changing external environment. The lack of dynamism and flexibility, in turn, is caused by the domination of one of the functional divisions, which gained administrative advantage and redistributes the rights and resources of the company in its favor. As a result, all processes are bureaucratized and «solidified», the overspecialization of units gradually blocks internal mobilization opportunities.
The article proposes indirect indicators that may signal an approaching crisis, described by the downward phase in the organization’s life cycle model. Some of these indicators can be quantified, which opens up the possibility of a proactive policy for the founders and the board of directors.
Keywords: flexibility; adaptability; organization life cycle; stages; evolution; organizational structure; division of labor; specialization; universalization; oil company.
Impact of Consumption Values on Sustainable Behavior and Consumer Choice of Eco-Products
There is a growing interest of consumers in environmentally friendly products currently in different countries. On the one hand, the demand for such products and services are unique and therefore should be unique the method of its adequate satisfaction. On the other hand, the green consumer behaviour determines the present and the future of «green economy». Consumers can choose different types of behaviour to protect the environment, and buying organic products is one manifestation of this behaviour. Companies need to understand both the green consumers and what motivates them to green buying behavior, what consumption values they are guided by. It will let them create and promote products that meet green consumers needs.
This paper presents the study results of awareness, perception and consumer attitudes to eco-products, that allowed to make market segmentation and evaluate the impact of consumption values on the choice eco-products by different market segments. The method of data collection was a quantitative survey (362 people were interviewed). The results presented in the paper prove the influence of functional, social, conditional, emotional, economic, environmental, knowledge values on the behavior of the selected segments when choosing eco-products. The study of the consumption values impact within each segment allowed to develop models of eco-products, based on combination of the Five-Level Model and Sheth-Newman-Gross Model of Consumption Values. The proposed research methodology aims to establish the relationship between the levels of eco-goods on the core benefit and the potential product, as well as the consumption values. Targeted recommendations for the eco-products companies may allow taking a fresh look at the development and promotion of their own eco-products, primarily from the point of consumption values view and consumer attitudes that drive them in the decision-making process, as well as help to correctly position their eco-brand and win the consumer loyalty of different segments.
Keywords: consumption values; eco-products; green consumers; sustainable consumption; consumer behavior; factor analysis.
Competitiveness of the Basic Education Programs of Master’s Degree Course at University (Based on the Example of Plekhanov Russian University of Economics)
This article describes the implementation of the author’s method of evaluation of the competitiveness of the educational programs of a university master’s degree courses based on the example of the Plekhanov Russian University of Economics (PRUE) and other leading universities in Moscow which offer programs of courses in Management and Economics. At the stage of identifying and ranking of the key competitors the empirical data is used acquired from the public sources (ratings, articles in specialized publications, references and internet resources). The novelty of the author’s approach is in the development of a method of the comparative analysis of the competitiveness of the educational programs of the university master’s degree courses which has been tested in Plekhanov Russian University of Economics. The use of the proposed approach of competitive analysis of master’s educational programs will strengthen the competitive position of the University due to the ability to flexibly adjust the portfolio of master’s educational programs in accordance with trends in the education market.
Keywords: Basic Educational Programs; ranking of the key competitors; competitive advantage factor; competitiveness polygon; competitive advantage juxtaposition matrix.
Process Approach in Managing Business Processes of a Trading Company
Integrative forms of trade development led to the application of the process approach in the management of trading companies. The process approach focuses three groups of problems of a theoretical, methodical and applied nature. The author’s position is to justify the application of the process approach to the management of business processes of a trading company. As business process, the authors understand the complex of interrelated trade and technological operations aimed at the realization and achievement of the mission of a trading company. There are two types of business process analysis of a trading company: qualitative and quantitative. The author’s point of view is that the use of a specific methodology for assessing the effectiveness of process management is determined by the content of the implemented business processes.
Keywords: trade and technological process, business processes, process management, trading company, marketing, innovation.
Marketing price manipulations
The article is devoted to price marketing manipulations based on countering dumping by competitors, price pressure and a large number of implicit discounts from small customers. The article discusses the essence of building a value-value card. The author proposed to build a value-value chart and make a conclusion about how well the market is structured and whether it is ready for various price transactions. With the help of a value-value card, you can build a pricing strategy, the essence of which boils down to answering the question in which direction to move relative to the general price trend. The main task of the article is to justify the inefficient and erroneous price reduction following unfair or inadequate competitors. The author also proposed to use the scope diagram method to raise prices by identifying and localizing the causes or characteristics of customers who buy the company’s products very cheaply. The article also suggests that marketers pay attention to implicit discounts for small customers and build sales logistics with them through civilized negotiations.
Keywords: volume discount; value-value card; value index; price strategy; implicit discount study; scale diagram; perceived value; dumping; price objections.