Urgent directions of development for publishing and printing complex enterprises

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Publishing and Printing Industry

National Technical University of Ukraine

“Igor Sikorsky Kyiv Polytechnic Institute ”

UDC 338.2:655.1

Urgent directions of development for publishing and printing complex enterprises

Shenderivska L.P., Candidate of Economic Sciences,

Senior Lecturer at Department of Management

Introduction

Problem statement. Modern economic conditions require from enterprises to create a flexible potential capable of ensuring the earning capacity of enterprises' development in a turbulent environment. The high pace of development of modern information technologies actualizes the integration of enterprises into the global information space on the basis of systematic modernization and timely response to current and predictable changes. Enterprises need to use all development opportunities, taking into account increased access to resources.

Recent researches and publications analysis. The questions of enterprises development are investigated by domestic and foreign scientists such as A. V Cherep, Yu. M. Krasnokutska [1], K. Poliaskovska [2], L. F. Popova [3], O. O. Selezneva [4], O. A. Shevchuk [5], etc. The attention to the development of publishing and printing enterprises is given in publications of V. B. Basiluk [6], S. M. Bondarenko, N. S. Griban [7], I. G. Larionova [8], R. Yaroshenko [9], etc. Despite significant scientific results obtained in this field of study, the task of increasing the effective development of enterprises of publishing and printing complex on the basis of integration needs to be solved.

Objectives' statement. The article's goal is to substantiate directions of development for publishing and printing complex enterprises.

Main results' presentation

The working-out of directions of development for enterprises depends on the state of the enterprises, the possibilities of their development, determined by the potential of the enterprises, the state and trends of the external environment.

According to the results of the analysis, the negative tendencies of the enterprises of publishing and printing complex development for the 2015-2016 years, namely, the decrease of the number of enterprises in the publishing industry from 2921 to 2376, in the printing industry - from 1751 to 1547, were established.

The financial results of enterprises also worsened, during the period of 20152016, the share of profitable enterprises decreased in the publishing industry from 72.2% to 70.9%, in the printing industry - from 79.4% to 76.2% [10]. The volume indices of the commodity structure of retail trade turnover of books, newspapers, magazines in 2015 are 81.4%, in 2016 - 99.3%, so physical quantity is decreasing [11].

The revealed unfavourable tendencies of publishing and printing complex enterprises' development update the need to work-out the perspective directions of development for enterprises in order to ensure economic stability (Fig. 1).

We have grounded the following directions in the development for enterprises, such as diversification of production, corporatization of enterprises, investment development. At the macro level of enterprises, diversification will be promoted by promotional tax rates, implementation of state support programs of the industry, application of mechanisms for ensuring the objectivity of placing state orders. At the micro level, diversification is associated with investment pattern in innovation activities, resource-saving technologies, quality standards' timely implementation, harmonized with European ones, incentives for workers to improve product quality level, etc.

Fig. 1. Scheme of the substantiation process of directions of development for the enterprise

Source: Self-developed

It is important to motivate employees to ensure effective diversification. In view of the average wage in the printing industry is less than in the Ukrainian industry by about 20%, material incentives for workers are of paramount importance. A particular attention should be paid to stimulating innovation activities to initiate the most profitable areas of diversification and ensure the progressive enterprise development.

Stimulation of innovation activity is due to several features, namely, the substantial innovation process time, the need for evaluation of intellectual work and the contribution of each participant in the collective result, the individual approach application to identifying the employees' needs involved in the creative innovation process.

The necessary factor of effective enterprise activity is constant workers' development. The management can organize and finance employee training, encourage the staff's initiative to study with online courses through the promotion at work, involvement in the collegial decisions' adoption, and the material remuneration's payment.

The program-target structures' relevance in the conditions of diversification is primarily due to the need to assess all possible risks associated with entering to new markets, the release of innovative products, diagnostics of resource capabilities of enterprise, which requires the competent professional staff members in various fields' involvement to select the most effective diversification areas.

The next direction of enterprise development - corporatization in the printing industry - is expedient based on involving in those enterprises' association that will promote markets expansion and flexibility to innovations. According to the analysis, the printing market showed a tendency to increase demand for products printed on fabrics. To ensure the quality of this product, it is advisable to use a screen printing method with a wide range of applications. The partnership contributes to the expansion of enterprise access to resources and the distribution of risks among participants [8, p. 44].

The effective present-day direction of corporations' development, which will include printing enterprises and publishers, is the virtual publishing houses' creation based on recruit specialists for publishing projects and their distance work. We have substantiated the main motives for the virtual publishing houses creation based on printing companies, such as:

- the activities' expansion to increase income and profits;

- higher utilization of capacities;

- a new direction of activity development without the employees' involvement permanently;

- the possibility of producing a wide assortment of publications through the relevant literary editors involvement at the time of the projects implementation;

- reducing the lead time of publications based on recruitment more staff;

- the fixed costs' reduction for production, namely, maintenance of equipment and premises, for labour remuneration;

- ensuring a competitive price since it will only include the profit of the printing enterprise, and not at the same time the profit of the publishing house and the printing enterprise.

The peculiarity of virtual publishing housework is that all editorial and publishing processes, cooperation with the author are mediated through the project manager, which avoids duplication of work, contributes to a single publication concept's implementation, and customer-oriented approach, since preparing the publication, the author cooperates only with one person.

The publishing project manager performs the following tasks: builds a publishing portfolio based on collaboration with the authors; develops pre-publishing instructions; determines the optimal number of personnel taking into account the urgency of the publications release; performs personnel selection for working groups creation; determines the actual products circulation; cooperates with authors and working groups on the pre-publishing, executes mediation function in production communications between them; provides the working group with computer programs for the pre-publishing as circumstances may require.

For each publication selected to prepare, the project manager makes an instruction that has the terms of pre-publishing and the coordination of spelling rules, which may include discrepancy among the experts involved in the project implementation. The manuscript and the instruction are transmitted to one or more literary editors who review the author's work and put forward some suggestions to the project manager on the author's revision. To ensure the quality pre-publishing, it is necessary to perform the proposed works verification several times to minimize errors, and with involving several editors, to organize a cross-check. Ensuring the quality pre-publishing is also due to the right choice of project manager or provides a team for each new publishing project, which determines the earning capacity of the activity.

Printing activity is closely linked to publishing activity. In order to stimulate demand for printed publishing products, it is expedient to improve the pricing policy. Thus, the experience of Poland, which involves the retail prices' establishment for book products by publishers, is important in case of booksellers' businesses profit maximization by adjusting the volume of book products purchases to obtain price discounts or improve activities to reduce current costs. It is possible to develop a single pricing policy based on the German experience adaptation, which simultaneously ensures the approval of assortment policy. To balance the partners' interests, it is expedient to stimulate the production and distribution of publications on paper, with this purpose, printed publications are usually sold a month earlier than electronic ones, and the price difference does not exceed 15%. If the publisher offers electronic and print formats for the market, they should be kept when it enters the association, although printing production is more relevant for the printing enterprise for the purpose of utilization of capacity.

The corporation activity needs to improve the payment policy, as at the current development stage, the collaboration with payment terms upon completion of publications sale to end users, which causes funding shortage for current activities, is widespread among book publishers and bookselling establishment. Acceptance of the uniform economic rules will stimulate cost savings, introducing advanced technologies of production and business process management.

The urgent corporation task is also the high communication quality between the participants. First, the exchange of information on the state of ultimate customer of publishing products demand is an actual timely awareness of publishers allowing to take into account the actual knowledge in the build of the publishing portfolio, to reach flexible distribution circulation of publications between sales channels, between individual bookselling establishments, taking into account the stock turn rate. Publishers can influence the increase of the current calendar planning level and the rhythmical production, informing printing enterprises in advance about the planned orders' placement for printing products. It is important to disseminate the progressive experience gained by individual enterprises, provide a prompt mutual advisory support to the participants of the corporation, which will promote to achieve a synergistic effect in the corporate management. print bookseller publisher range

It is necessary to intensify the advanced communication tools use, first, the Internet to improve interaction with customers. Information technologies allow building the qualitatively new relations with buyers and suppliers, continuous interaction with which allows the development of products, marketing, optimizing supplies, and the production chain. A result of improved operations and the development of innovation are entry barriers for other enterprises [3, p. 75].

The order acceptance organization through the Internet contributes to the customer geography's expansion, ensures the speed of production preparation and directly the production process. Improving the marketing activities' organization based on receiving orders using the Internet in present-day conditions requires the automated systems CRM (Customer Relationship Management) introduction accounting and analysis of relations with consumers.

The enterprises' development depends on the amount of funding. Possibilities for attracting state budget funds depend on priority areas of state financing, and as the printing industry is not attractive for investment, public funds do not belong to strategic sources of enterprises development in the industry.

It is important to increase the number of own funds of enterprises as the main source of their development, which directly depends on the products quality, competitiveness and on the strategy implemented by the enterprise. Another source of financing can be an external foreign investment. Recruitment of foreign investors is possible only by innovative enterprises as innovations contribute to high margins and enterprises whose development scale provides sufficient profits for investors in local or international markets. Investments are real due to financial leasing.

The author states that innovation should be the priority form of investment. To achieve the earning capacity of innovation activities, enterprises need to fulfil a complex of tasks, namely, economic, the commercially successful innovations development, that can give increased profitability, competitiveness; the public allowing for better satisfaction of consumers' needs in terms of volume, assortment, time, place, conditions for the orders for printing products execution, the high level of corporate culture formation and service based on engage specialists for the creation, promotion, and distribution of products; life safety is an increase in the environmental protection level, working conditions improvement. Progressive experience shows that before investments in the new printing equipment of the enterprise it's necessary to form a portfolio of orders for 50-70% loading of production capacity [8, p. 44].

Earning capacity of management for the development primarily requires objective market forecasting to identify promising areas for expanding activities, a rational combination of funding sources, quality, and innovation priorities as a condition for improving the enterprise's financial results and competitiveness.

Conclusions

Enterprises can implement different diversification strategies that will vary in terms of volume, terms of investment, duration. Here, it is advisable to prefer those projects that increase the economic result per unit time. The implementing diversification strategy advantage is advisable to provide program-oriented organizational management structures. The decision to change the enterprises' organizational structure should be made taking into account the economic feasibility of the transformation. In the conditions of the shortage of own sources of financing, the diversification of investment sources, ensuring their effectiveness by focusing on innovative development becomes topical. One more direction of development - corporatization of enterprises - will increase access to resources, promote their rational use, increase the competitiveness of enterprises.

The effect of introducing directions for the enterprise development is to increase profits, reduce costs, which creates conditions for increasing its own sources of enterprise development. A more active position of enterprises in the market regarding the constant search for topical directions of development will contribute to the better satisfaction of consumers' needs.

References

1. Cherep A.V., Krasnokutska Yu.M. Development of strategies of industry. enterprises on the basis of innovate. direction: monogr. Zapor.: LIPS, 2014. 259 p.

2. Poliaskovska K. Innovative development of enterprises: the essence and features in the sphere of trade. Econ. of Development. 2014. vol. 71(3). P.93-99.

3. Popova L. F. The impact of information technologies on the formation of the sustainable development of the enterprise. Reporter of Saratov Socio-Economic Institute. 2014. № 1. P.73-77.

4. Selezneva O. O. Development of marketing activity management of construction enterprises in Ukraine: monograph. Odessa: ODABA, 2017. 355 p.

5. Shevchuk O. A. Development of machine-building enterprises on the basis of business leadership: monograph. Kyiv: Sprint Service, 2016. 279 p..

6. Basiluk V. B. Publishing and printing activity in the regions of Ukraine: theoretical and institutional and economic foundations of development: monograph. Lviv: Ukr. Acad. of Printing, 2017. 350 p.

7. Bondarenko S. M., Griban N. S. Innovations as a factor of competitiveness of printing establishment. Scientific Bulletin of Mukachevo State University. Series “Economics”. 2017. № 13. Р.376-380.

8. Larionova I. G. Development of printing business based on inter-firm partnership. All-Rus. Journal of Scientific Publications. 2013. № 4-19. P. 44-45.

9. Yaroshenko R. Formation of development of a modern publishing organization: basic strategies. Bulletin of the Book Chamber. 2017. № 4. P. 17-20.

10. Activity of business entities: Statistical Publication for 2016 / edited by M. Kuznetsova. Kyiv, 2017. 630 p.

11. Retail trade of Ukraine in 2016: Statistical Publication / responsible for edition A. Frizorenko. Kyiv, 2017. 120 p.

Annotation

UDC 338.2:655.1

Urgent directions of development for publishing and printing complex enterprises. Shenderivska L.P., Candidate of Economic Sciences, Senior Lecturer at Department of Management in Publishing and Printing Industry, National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute ”

The scheme of the substantiation process of directions of development for enterprises is worked out. Directions of development for enterprises are proposed. The urgency of stimulation of innovation activity in the implementation of the strategy of diversification is determined.

The main principles of online publishing companies are covered. Directions of maintenance of high-quality communications between the participants of corporations are defined. The significance of innovations as the priority form of investments is substantiated. A set of tasks that need to be solved to achieve the earning capacity of innovation activity is established.

Key words: corporatization, development, diversification, innovations, investment, online publishing companies.

Анотація

Актуальні напрями розвитку підприємств видавничо-поліграфічного комплексу. Шендерівська Л.П.

Представлено схему процесу обґрунтування напрямів розвитку підприємства. Запропоновано напрями розвитку підприємств. Визначено актуальність стимулювання інноваційної діяльності при реалізації стратегії диверсифікації.

Обґрунтовано основні засади роботи онлайн видавництв. Визначено напрями забезпечення якісних комунікацій між учасниками корпорацій. Ідентифіковано значення інновацій як пріоритетної форми інвестицій. Встановлено комплекс завдань, які потрібно вирішити для досягнення ефективності інноваційної діяльності.

Ключові слова: корпоратизація, розвиток, диверсифікація, інновації, інвестиції, онлайн видавництва.

Аннотация

Актуальные направления развития предприятий издательско-полиграфического комплекса. Шендеровская Л.П.

Представлена схема процесса обоснования направлений развития предприятия. Предложены направления развития предприятий. Определена актуальность стимулирования инновационной деятельности при реализации стратегии диверсификации.

Сформулированы основы работы онлайн издательств. Определены направления обеспечения качественных коммуникаций между участниками корпораций. Обосновано значение инноваций как приоритетной формы инвестиций. Определен комплекс заданий, требующих решения для достижения эффективности инновационной деятельности.

Ключевые слова: корпоратизация, развитие, диверсификация, инновации, инвестиции, онлайн издательства.

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