Economic Assessment of the Performance of Metal Trading Enterprises

Aim. The presented study aims to improve the theoretical and methodological approach to assessment and to develop practical recommendations for improving the performance of metal trading enterprises.
Tasks. Based on a study of the essence of the concept of “performance” and assessment models, the authors develop methodological provisions for assessing the performance of enterprises; investigate industry-specific features and factors affecting the performance level of metal trading enterprises; develop a comprehensive methodology for assessing the performance level of enterprises in the metal trading industry; test the developed methodology on metal trading enterprises in the Republic of Crimea; identify potential directions for improving the performance of the analyzed group of enterprises.
Methods. This study uses a wide range of general scientific methods: induction and deduction, abstraction, analysis and synthesis, modeling, systematization of theoretical and practical material. Analytical, graphical, and statistical methods and the method of comparative economic analysis are applied. The research methodology is based on the key provisions of the theory and practice of financial and economic analysis of enterprise activity.
Results. The problem of ensuring the performance of an enterprise essentially comes down to increasing economic results per cost unit. At the same time, among the existing assessment models, the management model provides the most comprehensive accounting of various aspects of operation. The main aspects for assessing the performance of enterprises include the application of a dialectical approach, compliance with certain principles, and the sequence of implemented actions. The conducted analysis of factors affecting the performance level of metal trading enterprises reveals the most negative factors: decreasing purchasing power, increasing tax burden, non-market competition, and underdeveloped industrial infrastructure. This study presents a comprehensive methodology for assessing the performance level of metal trading enterprises, the idea of which goes back to the “performance pyramid” model for analyzing and evaluating operating results developed by K. McNair and is supplemented with a system of key indicators. The proposed methodology is tested on actual enterprises in the Republic of Crimea, and recommendations for increasing the achieved level of performance are formulated.
Conclusions. The developed assessment methodology is based on the idea of performance as a pyramid, the volume of which reflects the level of performance; the sides of the base are key indicators showing the state of various aspects of the enterprise’s operation; the base area is the current potential of the enterprise formed by its activities; the pyramid’s height is the position of the enterprise in the market. The integrated index calculated based on the methodology makes it possible to assess the current performance level of the enterprise in accordance with the conventional assessment scale and to develop a list of the most significant measures for improving it.

1. Kravchenko L.N., Khodorenko E.O. On the issue of increasing the efficiency of economic activities of the organization. Belgorodskii ekonomicheskii vestnik. 2017;(1):2020-209. (In Russ.).

2. Tikhonov A.I., Novikov S.V., Tikhonova S.V. Economic evaluation of the efficiency of the activities of the aircraft industry enterprises. Moskovskii ekonomicheskii zhurnal = Moscow Economic Journal. 2019;(12):784-793. (In Russ.). DOI: 10.24411/2413-046X-2019-10248

3. Fedotov Yu.V. Measuring the effectiveness of the organization: Features of the DEA method (data envelopment analysis). Rossiiskii zhurnal menedzhmenta = Russian Management Journal. 2012;10(2):51-62. (In Russ.).

4. Davydyants D.E., Zubova L.V. Theoretical substantiation and methodical provision of the assessment and analysis of efficiency of activity based on the relationship of the “resource” and “cost plus” approach and their practical testing on the example of entrepreneurial activity. Fundamental’nye issledovaniya = Fundamental Research. 2014;(5-6):1294-1297. (In Russ.).

5. Isayenko N.N., Miklashova E.V. Methodical bases of estimation of efficiency of enterprise activity. Innovatsionnaya ekonomika i obshchestvo. 2017;(3):2-6. (In Russ.).

6. Panko Yu.V. Methodology for evaluating the effectiveness of a commercial organization. Modern Economy Success. 2020;(2):222-227. (In Russ.).

7. Koznov A.B., Makeeva V.G. Analysis of existing models for assessment of enterprise’s effectiveness. Ekonomika i biznes: teoriya i praktika = Economy and Business: Theory and Practice. 2018;(10-1):127-131. (In Russ.). DOI: 10.24411/2411-0450-2018-10072

8. Elkin S.E., Elkina O.S. Features of application of the cost approach to assessing economic efficiency. Teoreticheskaya ekonomika = The Theoretical Economy. 2018;(1):107-114. (In Russ.).

9. Kaplan R.S., Norton D.P. The balanced scorecard: Translating strategy into action. Boston, MA: Harvard Business School Press; 1996. 336 p. (Russ. ed.: Kaplan R.S., Norton D.P. Sbalansirovannaya sistema pokazatelei: Ot strategii k deystviyu. Moscow: Olymp-Business; 2017. 320 p.).

10. Troshkova S.A., Ziablitckaia N.V. The issue of effectiveness evaluation of enterprise management. Nauka i obrazovanie: novoe vremya = Science and Education: New Time. 2018;(4):17-23. (In Russ.).

11. Tulina Yu.G., Shevtsova N.V. Efficiency of economic activity of the enterprise: Essence, factors, principles of assessment. Menedzhment sotsial’nykh i ekonomicheskikh system = Social and Economic Systems Management. 2019;(4):5-10. (In Russ.).

12. Yachmeneva V.M., Yachmenev E.F. Methodology for assessing the level of adaptation of enterprise activities to changing environmental conditions. Nauchnyi vestnik: finansy, banki, investitsii = Scientific Bulletin: Finance, Banking, Investment. 2019;(4):90-100. (In Russ.).

13. Govorova V.N., Dubova Yu.I. Research of Russian experience and prospects for the development of the metal products sales market. In: Actual problems of economic development of regions. Proc. 7th All-Russ. correspond. sci.-pract. conf. Volgograd: Volgograd State Technical University; 2018:6-9. (In Russ.).

14. Crude steel production. World Steel Association official website. June 2021. URL: https://www.worldsteel.org/steel-by-topic/statistics/steel-data-viewer/C_asu_cse/-CHN/RUS/USA (accessed on 20.06.2021).