International experience of e-commerce application in the Ukrainian economy Performed by: Barannyk Vladyslav, year of study___2____group_MEB-17м-а Specialty: International Economic Relations Supervised by: Prof. Glukha Ganna, DoS

Content PART 1. GENERAL-THEORETICAL ASPECTS OF ELECTRONIC COMMERCE IN ELECTRONIC TRADING PART 2. THE ANALYSIS OF IMPLEMENTATION OF ELECTRONIC COMMERCE IN BIOSPHERE CORPORATION PART 3. IMPROVEMENT OF THE ORGANIZATION OF ELECTRONIC COMMERCE IN BIOSPHERE CORPORATION ON THE BASIS OF INTERNATIONAL EXPERIENCE

Object of research is electronic commerce in the Ukraine and at the enterprise of Biosphere Corporation. Subject of research is theoretical , methodical and practical aspects of process of the organization of electronic commerce at the enterprise. Research objective is the complex theoretical and practical analysis for improvement electronic commerce at the enterprise on the basis of international experience. According to the purpose of work we defined and solved the following methodical and practical tasks. To give a concept and features of electronic commerce and business; To give a general characteristic of Biosphere corporation; To carry out the analysis of economic activity of corporation; To analyze the organization of electronic commerce in Biosphere corporation; To develop the system of increasing the efficiency of electronic commerce in Biosphere corporation on the basis of the international experience; To prove the need of introduction the department of merchandising in Online store in structure of Biosphere corporation and to carry out the analysis of efficiency of this actions.

PART 1. GENERAL-THEORETICAL ASPECTS OF ELECTRONIC COMMERCE IN ELECTRONIC TRADING

Shares of Ukrainian e-commerce

PART 2. THE ANALYSIS OF IMPLEMENTATION THE ELECTRONIC COMMERCE IN BIOSPHERE CORPORATION Biosphere corporation - the largest producer and the distributor of goods for caring for house and personal hygiene. The company with a multimillion turn holds a leading position in Ukraine and is among the largest in the CIS

Key financial and economic indicators characterizing economic activity of Biosphere corporation(thousand UAH) Indicators 2014 2015 2016 Deviation 2016/2014 Net income from product sales (goods, services) 209469 218782 290282 80813 Prime cost of the products sold for export 150005 161976 224009 74004 Gross profit 59464 56806 66273 6809 Having analyzed financial and economic activity of the enterprise, it is possible to draw the following conclusion, on what Biosphere Corporations for the analyzed period has improved the indicators. 2014 for the enterprise was rather difficult . This situation in the enterprise has been caused by a number of factors, not the last place occupies consequences of financial crisis in the country, an unstable political condition of the country.

The main problems with which heads of Biosphere Corporation face in their activity during management of marketing communications with using the Internet is the problem of the wrong formation of the goals for marketing communications and underestimation of ideas of e-commerce like an instrument for entering international markets.

PART 3. IMPROVEMENT OF THE ORGANIZATION OF ELECTRONIC COMMERCE IN THE BIOSPHERE CORPORATION Biosphere Corporation showed efforts directed to increase the level of awareness about the trademarks because the level of awareness is rather high, and further actions for its increasing demand significant increase in expenses. Instead we suggest to change communication strategy, having concentrated communication efforts on achievement the economic effects such as creation of online store on the basis of biosphere-corp.com site that would allow to increase the sizes of audience and profit. First of all , reorganization of merchandising(adding 3 persons) which will control all operations concerning implementing e-commerce on the site. Such as filling the site and testing the mechanism of providing information.

There are many methods of promoting of Online stores There are many methods of promoting of Online stores. First of all, it is traditional: outdoor advertizing – business cards, billboards, avenues, a flyer; internal advertizing – television, newspapers, magazines. Methods of nonconventional advance of shop of Biosphere Corporation on the Internet are very important, but still new and need detailed studying and improvement. 1. Contextual advertising.(100-500 UAH per day , great feedback in Ukraine) 2. Banner advertising.(hard to count , from 500 to 5000 UAH) 3. Optimization of site. 4. Placement in the catalog of goods in online store of Biosphere Corporation on other websites. 5.Social Media Marketing (Facebook , Instagram , YouTube)

Expenses in a year on reorganization of merchandising department and investments for marketing promotion in the internet: 1. Salary: Salary of the IT specialist................................................. 15000 UAH. The additional salary of 2 people from the state................. 5000 UAH. 2. Charges on the salary (22%)........................................ 5500 UAH. 3. General production expenses (cost on marketing in the Internet ,electric ,banking services ).............................................. 21000 UAH. In total in a month............................................................51550 of UAH. In total in a year....................................618600 of UAH or 618,6 thousand UAH.

Economic effect of the offered actions Indicators Measurement unit. Design year,2017 2016 Net income from product sales (goods, works, services) thousand UAH. 296087,6 290282 Prime cost of the products sold for export 228489,2 224009 Expenses on the project 618,6   Gross profit 66979,8 66273 By results of calculations it is possible to draw a conclusion that offered actions are economically effective. The enterprise will get the gross profit of 66979,8 thousand UAH (that for 706,8 thousand UAH more, than in 2016 - 66273 thousand UAH)

Discounting coefficient NPV Year Cash Flow Expenses Net Cash flow Discounting coefficient (15%) DCF 2017 706,80 618,60 88,20 1,15 76,70 2018 1060,20 637,10 423,10 1,32 319,92 2019 1855,35 656,20 1199,15 1,52 788,46 2020 3246,86 675,90 2570,96 1,75 1469,12 2021 6493,73 696,20 5797,53 2,01 2884,34 total 13362,94 3284,00 10078,94   5538,54 The Net present value is equal to 5538,54 thousand UAH. Thus from the investment project profit will be got.

Thank you for attention!