Distribution policy improvement at the enterprise

Abstract

In modern world all types of companies, even small ones, are involved in complex and global distribution networks, which fall under multi-factor influence. Research of such systems structure and finding company place in them are important for company business activity improvement and general system of distribution development. Distribution channels decision-making play significant role in company distribution policy improvement, while lots of enterprises organize this process not in effective way due to lack of information about market conditions. The relevance of research topic is significant due to the fact that distribution process should be analyzed not only based on internal conditions but taking into account such influence factor as market. Only complex view on distribution can help companies to find out disadvantages of established policies and develop set of steps for their improvement. The purpose of this thesis is to study the theoretical and methodological foundations of distribution process, analyzing market influence on it, as well as to develop practical recommendations for distribution channels structure improvement. Special attention should be given to work of such researches as Rosumey S., Rossokha V. and Panukhnyk O., who studied the question of distribution policy improvement considering specifics and disadvantages of Ukrainian agricultural market. Theoretical section of given research generalizes analysis of classic and modern definitions of distribution process, main principles of policies formulation, specifies the place of distribution channels in the overall system of distribution, while analyzing main influence factors. As base of the company is agricultural enterprise, market conjuncture is analyzed. Main market players, interrelation between them, influence factors are analyzed and described. Methodological approaches to decision-making and channel analysis are studied, compared and described. Analytical part of given work consists of comprehensive analysis of ALLC “Mriia” activity, including financial and economic indicators calculation, finding of interrelation between them. Distribution activity of ALLC “Mriia” was analyzed as well, with accent made on channel profitability calculation. In addition to it business processes of distribution policy formation and distribution channel chose were analyzed and described. The third section of the work generalizes main findings of two previous sections, contains the analysis of problem map constructed. Short-term and long-term recommendations for revealed problems solving are suggested, with economic effect of measures implementation calculated. Recommendations suggest business process adjustment and distribution channel change. Mathematical methods, particularly AHP, are applied to define optimal channel for analyzed company. Calculated economic effect of short-term recommendations show that their implementation will significantly decrease selling costs, while increase channel profitability and overall company profit.