Increasing business profitability in the system of activating foreign economic activity Done by: Alina Hornostaleva Scientific Supervisor: Vorobyova E. O., PhD in Economics

PLAN PART 1. THEORETICAL AND METHODOLOGICAL FOUNDATIONS OF INCREASE IN PROFITABILITY OF ENTERPRISE. PART 2. ANALYSIS AND PROSPECTS OF FOREIGN ECONOMIC ACTIVITY OF ISIC “WESTA“. PART 3. WAYS OF INCREASZING PROFITABILITY OF ISIC “WESTA" THROUGH ACTIVATION OF FOREIGN ACTIVITIES

THE PURPOSE OF THE DEGREE RESEARCH providing recommendations on the ways of improving profitability due to the development of foreign economic activity THE SUBJECT OF THE INVESTIGATION income formation and ways of its increase THE OBJECT OF THE INVESTIGATION International Scientific Industrial Corporation «WESTA»

The topicality of the problem The topicality of the problem is that a significant role in the development and strengthening of the economy is played by enterprises and their income which is received from their business and financial activities. The use of a profit as the main assessment indicator contributes to increase in production, sales of goods and increase in quality as well as improves the use of existing production resources.

The investigated corporation is ISIC “WESTA" which was founded in 2002 by Dzenzerskiy V.A. The corporation is engaged in manufacturing and selling of starter batteries.

The Corporation’s total product sales in 2014

To improve the profitability of the corporation it will be appropriate to increase its export activities. Having analyzed the demand for motorcycles it can be concluded that the most profitable and efficient is exporting of motorcycle batteries in countries such as Iran and India. The plan of exporting additional starter batteries to the markets of Iran and India in Starter BatteriesIndicatorЕxport 6СТ-40А Amount (units)30000 Price (UAH) Net cost (UAH) СТ-45А3 Amount (units)30000 Price (UAH)499.9 Net cost (UAH)424.9

Projections of ISIC “WESTA” from export for 2015 Indicators Difference Revenue from export activities, ths. UAH Profits from exports, ths. UAH Profitability of exports,% Based on the data from the table you can see that the amount of the profits from the activities associated with exports in relative terms has increased by 62.3%, or UAH. Summarizing it should be noted that the basic profitability of goods for export increases from 2.5% to 3%. The total amount of batteries that are manufactured for export increases by 60 thousand batteries which exceeds the amount of goods that were sold in the previous year.

ISIC "WESTA" has a very good opportunity to sell its products abroad to such countries as Iran and India, which makes it possible to increase the scale of production. Therefore, we can say that the strategy which was introduced to this corporation is effective, and if ISIC "WESTA" shows the desire to implement it, the profits of the Corporation will increase along with production and foreign partners. These measures are quite appropriate and their implementation will increase the profitability of the enterprise by foreign trade.