Dnipropetrovsk Alfred Nobel University Master’s degree Diploma Project Topic: “Qualitative analysis and the enterprise development strategy formation” By the student of the 5 th year of study: O.V. Nesterenko Scientific supervisor: PhD in Economics, Professor O.M. Zborovska

Purpose of investigation is to justify and improve the methods and tools of the enterprise development strategy assessment. Object of investigation is financial and business activities of Novofarm Limited Liability Company with foreign investments. Subject of investigation is theoretical, methodological and practical aspects of the enterprise development strategy assessment and formation in the market conditions.

Picture 1. Dynamics of receivables and payables in

Picture 2. Structure of current assets in 2013

Picture 3. Structure of operating expenses in 2013

Analysis of Novofarm LLC with foreign investments by financial ratios in № Financial ratiosIndex 1. Profitability (return on capital) 2011р.2012 р.2013 р 1.1.ROCE (Return on capital Employed) 0,33-14,98-1, The gross margin5,94-11,302, Asset turnover74,64118,03141,44 2. Long-term solvency 2.1. Debt ratio87,99101,77102, Leverage93,99112,68105,82 3. Short-term solvency and liquidity 3.1. The coverage ratio0,820,650, The ratio of quick liquidity0,690,550, The coefficient of absolute liquidity0,00230,00250,01 4. The coefficients of efficiency 4.1. Maturity of receivables88,5945,2962, Turnover of receivables4,128,065, Maturity payable33,1647,9174, Turnover payable11,017,624,93 Table 1

PEST – Analysis of Novofarm LLC with foreign investments Political factors: The change of government and legislation Government instability The influence of the state on the industry Delays in deliveries through a complex political situation. Economic factors: The decline in the economy and high debt countries Unstable currency Imperfect tax system Rising energy prices, raw materials and transportation costs, The decline in purchasing power of consumers The impact of political factors on the company: The impact of economic factors on the company: Unstable political situation negatively impact on the enterprise as authorities and legislation is essential to future performance. All economic factors negatively affecting of the company, because they reduce its income and currency instability complicates forecasts of future sales. Social factors: Demographic changes. Reducing life population, lower levels of education. Technological factors: The ability to use foreign technology quality equipment, quality products, the appearance of new technologies to improve equipment The influence of social factors on the company: The Influence of technological factors on the company: Reduced purchasing power products and services company. Reduced Demand for the company. There problems of the development of new technologies. All technological factors positive impact The company and contribute to its development Тable 2

Results of impact analysis of external factors on Novofarm LLC with foreign investments №Factorsweightestimatewindowed estimate 1Change of government and legislation0,1030,3 2Decline in economy and reduction of consumers’ purchasing power 0,3051,5 3Competition in the domestic market0,1540,6 4 New Technology 0,1520,3 5 Unstable currency 0, Demographic changes 0,0520,1 7Total estimate 1 3,8 Тable 3

Main directions of development strategy of Novofarm LLC with foreign investments - Strengthening its position on the market segment due to a good reputation of Novofarm LLC with foreign investments among consumers and by improving the quality of services; - Retraining of workers and reducing costs by distributing promotional information about the company in order to consolidate its competitive advantage; - Increasing the range of products and services, improve service delivery due to mobility of workers; - Extension of the territorial boundaries of the market.

Directions of the enterprise strategic management improvement - Reduction of costs - Promotion of sales - Reduction of accounts receivables - Reduction of accounts payable.

Expediency of retraining of the company and the adoption of new employees Average costs on recruiting a new employee are calculated: Average costs on recruiting = S selection / N = 2900/6 = 483,3UAH/year, where S - selection  costs on staff selection; N  number of selected candidates. Average costs on retraining of one employee are calculated: Average costs on retraining = training costs / T= 11200/40 = 280 грн./рік, where Training costs  total training cost; N  number of training staff.

Staff retraining program impact on product quality and labor productivity increase is calculated: Training= P×N×V×K  N×training costs = 1×40×1200×0, ×280 = =  = UAH where Р  period of retraining program aimed at improving labor productivity, 1 year; N  number of training staff, 40 people annually; V  value assessment of results, 1200 UAH/year; R  ratio (productivity increase), 0,75; Training costs  costs on training of one employee, 280 UAH/year.

Expert impact assessment of the proposed measures on effectiveness improvement of staff development at Novofarm LLC with foreign investments Index significance coefficient 2013 рік2014 рік Expert assessment Overall rateExpert assessment Overall rate Improving the quality of products (services) 0,240,851 Professional development of employees 0,1530,4540,6 Rationalization of staff costs 0,330,951,5 Improving information provision the organization 0,130,340,4 Growth in labor productivity 0, Total: 13,454,75 Таблиця 4

Thank you for attention!