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Agricultural Economics and Management Journal   ISSN 0205-3845
Array ( [session_started] => 1711694152 [LANGUAGE] => EN [LEPTON_SESSION] => 1 )
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Research of the Competitiveness Factors in Milk Processing Enterprises: Strategic Management of Financial Activities
Velichko Rodopski, Teodor Radev, Petar Borisov
Abstract: In recent years, the market for milk and dairy products has been determined by strong competition due to the accumulated surpluses resulting from the impact of agrarian policy in the sector. Enhancing competitiveness requires a variety of business activities, a process that is further absorbing finance and complicating financial management. Diversification may be the key to lowering market risk, but on the other hand, it is a prerequisite for increasing financial risk. Looking for a balance between the two factors in the competitiveness equation requires the use of a strategic approach to financial management. The purpose of this study is to determine the impact of the strategic financial activity that the dairy plant performs on its competitiveness. The choice of method of analysis is determined by the type of signs presenting the studied phenomena. In our study, all phenomena are represented by variables located on weak scales for measurement, i.e. they are quality signs. This calls for the choice of the χ2 (quadratic) method as a method of analyzing the links between the strategic financial activities and the indicators characterizing the individual business units. The results of the analysis indicate that the implementation of the strategic financial activities contributes to increasing the competitiveness of the dairy. A financial unit if it focuses its activities on improving the effectiveness of financial planning, on the consistency of the financial strategy with the vision for developing the business model of the enterprise, and ensuring that funding for the implementation of this strategy, will increase its competitiveness.
Keywords: competitive ability; market share; return on assets; return on investments; strategic financial activities
Date published: 2018-11-21
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