The concept of the methodology of commercial activities of an organization
Carrying out commercial activities is an indispensable condition for the effective operation of a trading enterprise. The basis of trade is the purchase and sale of goods, but purchase and sale is only part of commercial processes, since commercial activities in the sphere of commodity circulation cover the sale, purchase and distribution of goods.
Trade and commerce are interrelated because changes in trade technology are accompanied by changes in business. This relationship is as follows:
- ? the commercial strategy is aimed at bringing goods to consumers;
- ? commercial activities in practice are aimed at developing trade;
- ? Satisfying customer requests, organizing trade services and making a profit are essential in commercial activities and trade;
- ? commercial processes should be considered in interaction with the commercial services of trading enterprises.
All this indicates the importance of commercial activity and its components for effective activities in the trade sector. To master commercial business as an area of practical activity, it is necessary to study its methodology in detail.
It is necessary to distinguish between the methodology of the discipline “Commercial Activity” and the methodology of practical activities in trade. Commercial activity as an academic discipline is a system of principles, provisions and methods. From a practical point of view, methodology is the study of structure, organization, methods and means of activity. In short, it is the doctrine of organizing activities.
Organizing commercial activities in an enterprise means organizing them into a coherent system with clearly defined characteristics, concepts, logical structure and the process of its implementation. Commercial activity has its own system of concepts, with the help of which the studied commercial processes are most fully reflected.
In commerce, economic categories such as property, market, need, resources, etc. are used.
To summarize the basic properties of commercial processes, concepts such as system, organization, enterprise structure, mission, purpose of activity, subjects and objects are used.
Commercial and technological processes in the sphere of commodity circulation are revealed using concepts such as purchase, sale, resale, product distribution and service.
In carrying out commercial activities, the concept of organization is important. Organization (from the Latin “I give a slender appearance, I arrange”) is considered in three aspects.
Aspect 1. Internal orderliness, consistency in the interaction of parts of the whole, for example, a trading enterprise or the activities of a commercial specialist.
Aspect 2. A set of processes or actions leading to the formation and improvement of relationships between parts of the whole, for example, between divisions of an enterprise, between employees of an enterprise.
Aspect 3. An association of people who jointly implement a program and act on the basis of certain procedures and rules.
In general, the complex of three components of the organization gives an idea of the activities of a trading enterprise.
Appropriate methods are used to organize the commercial activities of a trading enterprise. The leading general scientific method is the systematic method, which allows us to consider the commercial activities of an enterprise as a system with its inherent characteristics. The use of mathematical methods makes it possible to study performance indicators related to the purchase, promotion and sale of goods.
In modern conditions, it is widespread to study the commercial activities of enterprises by constructing models that reflect the creation of inventory, the formation of an assortment, and the forecast of market development. For a commercial specialist, the skills of using software to record and analyze the results of trading operations are of particular importance.
Thus, for successful practical activities in the field of commodity circulation, both theoretical knowledge and practical skills are required.
1.2 Basic forms and methods of commercial activity
The commercial activities of retail trade enterprises are divided into:
Procurement activities (material and technical support);
Logistics;
Sales activities.
In connection with the transition to market principles of activity, the content of the material and technical support of enterprises has changed significantly: instead of the so-called “sale of allocated funds,” which is an integral part of the centralized distribution of material resources, enterprises freely purchase them from suppliers and other subjects of the commodity market. In these conditions, when purchasing material resources, enterprises must be guided by freedom of pricing, maximum initiative and entrepreneurship, equality of partners in commercial relationships, take into account economic responsibility when purchasing raw materials, take into account competition among suppliers and be able to choose an economically advantageous supplier. When purchasing material resources, an enterprise must study the market for raw materials and supplies, know the dynamics of prices in this market, delivery costs, and the possibility of effectively replacing some materials with others. Therefore, purchasing commercial activities at enterprises consist of the following stages:
Market research for raw materials and materials and organization of commercial relations with suppliers;
Drawing up a plan for the procurement of material resources;
Organization of procurement of material resources;
Conducting settlements with suppliers for purchased products;
Cost analysis of the procurement sector.
The widespread use of logistics in business practice is explained by the need to reduce the time intervals between the acquisition of raw materials and the delivery of goods to the final consumer. Logistics makes it possible to minimize inventories, and in some cases refuse to use them altogether, significantly reduces the delivery time of goods, speeds up the process of obtaining information, and increases the level of service. Activities in the field of logistics are multifaceted. It includes management of transport, warehousing, inventories, personnel, organization of information systems, commercial activities and much more.
Commercial sales work is the most important aspect of the commercial activity of an enterprise. Sales is the process of selling manufactured products in order to convert goods into money and satisfy consumer demands. Only by selling the goods and making a profit does the enterprise achieve its final goal: the expended capital takes on a monetary form in which it can begin its circulation.
Sales commercial activities at the enterprise are multifaceted and include such areas as market research, planning assortment and sales of products, establishing commercial relationships with buyers and end consumers. The commercial sales activities of an enterprise are a component of the entire system of its functional activities, a complex function of the enterprise.
Commercial activity is represented by the totality of all functional activities carried out after the completion of the production stage (at the end of production of the product) up to the direct sale of the product to the buyer, its delivery to the consumer and after-sales service. The logistics approach to organizing the functional activities of an enterprise determines the following definitions of the purpose, subject, subjects and objects, nature and content of commercial activity.
The goal of commercial activity is to bring to specific consumers of a specific product the required consumer properties in the required quantity, at an exact time, in a certain place, at acceptable costs.
The subject of commercial activity is the products and services of a trading enterprise.
Business entities are trading enterprises and intermediary sales organizations.
Objects of commercial activity are buyers of goods.
It should be noted that the definition of objects of commercial activity in this case is given based on the final direction of commercial activity. Subjects and objects of commercial activity should not be identified with the subjects of the transaction (in particular, purchase and sale, lease).
The role and significance of commercial activities are as follows:
1) commercial activity, being in a certain sense a continuation of production activity, does not simply preserve the created consumer value and value of the product, but creates additional one, thereby increasing its overall value;
2) commercial activity not only implements the corporate mission, but also to a certain extent determines it;
3) commercial activity is effective, because to a certain extent it determines and ultimately manifests and realizes all the economic and financial results of the enterprise’s activities;
4) commercial activity as a type of functional activity of an enterprise in the entire chain and system of product creation is one of the sources of its competitive advantage, both direct (within its own organization) and indirect (in the system of organizing its economic relations and business relations with partners) effects.
The main function of commercial activity is the direct sale of products.
Commercial support functions include marketing and legal functions. Marketing functions of a commercial nature are to determine, study and form consumer reactions to the economic content of the item being sold and include the following two main groups: studying and generating demand and communication promotion. The first group of functions involves studying needs and demand; search and identification of buyers (consumers); study of market conditions; demand formation, etc. The second group of functions involves advertising activities; public relations; personal promotion; sales promotion.
Legal functions are determined by the processes of legal justification and determination of the legal status of the economic content of commercial activity, legal support and protection. The main functions of a technological nature are also two groups of relatively independent functions: storage - warehousing and distribution - delivery.
The functions of the first group can be carried out by the enterprise itself.
Distribution directly as a functional activity, as a function of commercial activity, of an enterprise is to carry out targeted distribution of goods and deliver goods to specific consumers.
Auxiliary functions of a technological nature are the functions of pre-sales preparation and after-sales service. These functions are determined by the processes of formation of the material embodiment of the subject of commercial activity, resulting in its economic content (cost and use value).
The own system of commercial activity involves the implementation of all sales functions by entities (warehouse, transport, trading, etc.), in organizational and legal, as well as economic and administrative relations, dependent on the enterprise - its direct divisions, branches, etc. The enterprise as their actual the owner manages their activities.
An independent sales system involves the implementation of sales functions by intermediaries that are legally and economically independent.
The presence or absence of intermediaries determines the following sales methods:
1) direct, or immediate, sales (based on direct contacts with customers);
2) indirect, or indirect, sales (based on indirect connections - services of various types of intermediaries);
3) Combined or mixed marketing involves the use of both direct and indirect connections with customers.
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With the transition to the market, the commercial activities of a trading enterprise are becoming increasingly important. It is an indispensable condition for its effective work and development. The commercial activities of a trading enterprise should be considered in connection with the external environment, covering a wide range of economic and social issues. It should be based on the Russian model of market formation, economic factors and emerging market relations. In other words, commercial activity is predetermined by the realities of the economy in transition.
The fundamental principles of commercial activity and the mechanism for its practical application are still in their infancy. In these conditions, trading enterprises are faced with many issues that have to be solved intuitively, through trial and error.
The basis of trade is the purchase and sale of goods, determined by changes in the forms of value. The purchase and sale of goods from suppliers, built on a commercial basis, does not exhaust the entire variety of commercial activity processes. We should be talking about the complexity of commercial activities, covering production, promotion, distribution and sales of products.
Trade and commerce are closely related: changes in trade technology are accompanied by changes in commerce. The commerce strategy should be aimed at bringing goods to consumers, accompanied by commercial activities and operations, the tactic of which is to reduce operating costs.
The role of commerce in practical activities is especially increasing, since it is aimed at developing trade in a market economy. More complete satisfaction of customer requests, organization of trade services and making a profit are essential.
When carrying out commercial activities taking into account market requirements, it is necessary to keep in mind that the structure of existing product markets is heterogeneous. During the transition period, various forms and spheres of activity of commodity markets were formed, which have unequal commodity and material and labor resources, material and technical base, etc.
Foreign practice shows that commerce is a driving factor in the consumer market, since it is characterized by high dynamism. Commercial processes should be considered in interaction with commercial services that constitute commercial business in the broadest sense of the word. As an object of study, the key provisions of commerce in trade are tested by life, generalized and translated into the practice of firms and companies. American researchers M. Porter and D. Stock believe that commerce has gone beyond its traditional narrow influence and acquired strategic importance.
Issues that expand the category of commercial activity include: theoretical foundations, fundamental provisions and the concept of development. Recently, there has been a need to clarify the essence and content of the commercial activities of a trading enterprise. Therefore, it is necessary to consider the methodological foundations of commercial activity, which have important applied significance for trade.
Methodology is the study of structure, organization, methods and means of activity. The discipline “Commercial Activity” has its own system of basic concepts, with the help of which the studied commercial processes are most adequately and fully reflected. It is the concepts that make up the structure of commercial activity. In commerce, such economic categories as property, market, need, resources, etc. are used. To summarize the basic properties of commercial processes and commercial activities in general, the following concepts are used: system, organization, organizational structure, mission, goal, subjects and objects, etc. The nology and processes of organizing the management of purchase and sale and promotion of goods are revealed by such definitions as purchase, sale, resale, goods supply, service, etc. When studying commercial problems and solving commercial problems, these concepts are applied comprehensively, in interaction with each other.
Organization plays an important role in carrying out commercial activities. Organization (from the Latin ogtsap "ao) means “I give a harmonious appearance, arrange.” Organization is understood primarily as internal order, consistency, interaction of more or less differentiated and autonomous parts of the whole, determined by its structure. According to another definition, organization is a set of processes and actions leading to the formation and improvement of relationships between parts of the whole.Based on the above definitions, we can conclude that the organization of commercial activities of a trading enterprise is characterized by certain patterns of functioning and interaction of its elements (parts).
Organization also relates to the concept of management. In this case, it is considered as an association of people who jointly implement the program and act on the basis of certain rules and procedures. Organization is the main management function, the essence of which is the coordination and coordination of the activities of the personnel of a trading enterprise to solve a common problem and achieve specific goals.
Thus, the concept of organization applies to both objects and subjects of commerce. In commercial activity, the way to solve any problem is to build a system of elements, connections and relationships. From a methodological point of view, the main thing is knowledge of the patterns of functioning of organizational systems, the mechanism of their manifestation and use by various management subjects. Basic organizational laws are the subject of the science of organization theory. The most significant of them are also used in commercial activities - these are the laws of organization: proportionality and composition, awareness and orderliness, differentiation and universalization of functions, etc., which are revealed in specialized literature.
General scientific methods are used to study the commercial activities of an enterprise. The leading one is the systems method, which allows us to consider commercial activity as a system with its inherent characteristics: elements, connections, integrity, functions. The use of mathematical methods makes it possible to study indicators of commercial activity related to the procurement, promotion and sale of goods. In modern conditions, the study of commerce is widespread by constructing and studying models that reflect the situation in commodity markets, consumer demand, consumer behavior, optimization of the use of resources, creation of inventory, formation of an assortment, and forecasting the development of the consumer market.
The construction and development of the commercial activities of a trading enterprise depends on the provision of its various resources: monetary and commodity-material resources, material and technical base, investments, information systems and labor force in the form of labor activities of employees.
The commercial activity of a trading enterprise is the main component of the doctrine of trade and is based on a whole complex of sciences. It is closely related to the economics of a commercial enterprise, which contributes to the analysis, planning and evaluation of commercial activities in general and its individual processes. Commercial business has related areas with commercial law in the formation of economic and commercial relations in the field of commodity circulation, the conclusion and execution of commercial contracts.
Of particular note is the interaction of commercial activities with marketing, the results of which are used to conduct commercial operations. There is a direct connection between marketing and commercial activities due to the homogeneity of their goals: making a profit and satisfying the consumer needs of customers. However, there are also fundamental differences between them. Marketing acts as a management process, creates demand, encourages the purchase and sale of necessary goods, i.e., it is, first of all, a certain marketing management aimed at buying and selling goods at minimal costs. But carrying out separate marketing activities does not allow achieving the effect that is inherent in its complex with commercial activities.
The organization of management of commercial activities and personnel of a trading enterprise is directly related to management. The application of management provisions in commerce should be considered in two directions. The first direction concerns the disclosure of the potential capabilities of a trading enterprise with a focus on the workforce to achieve set goals in commercial activities, the second concerns the satisfaction of the needs and demands of consumers, which determines the purpose of management to serve their interests.
In modern conditions, a merchant’s knowledge of computer science and information systems for accounting and processing commodity flows using computers, as well as special disciplines of commercial commodity science and examination - quality, assortment, classification, product coding, information support - acquires special importance.
A businessman, armed with knowledge of related sciences and disciplines, can solve complex commercial problems related to studying market conditions, demand and the implementation of commercial processes and operations.
Concept of method
Definition 1
Method (from ancient Greek Μέθοδος - the path of research or knowledge, from μετά- + ὁδός “path”) is understood as a systematized set of stages, elements, steps, actions, which is aimed at solving a specific problem or achieving a specific goal.
There are the following general scientific methods that find their application in efficiency: analytical method; deductive method; dialectical method; inductive method; intuitive method; scientific method; generalized method; experimental method.
Efficiency in a competitive economy is based on market laws, and this determines the list of special methods used.
Commercial Entrepreneurship Methods (CPMs)
Let's consider the main methods (i.e. elements) that reflect the features of efficiency.
1 element – organization of information support for KPI
To implement this element, you should obtain the necessary commercial information, the basis of which is a comprehensive market study.
In this element, it is necessary to study consumer demand and product supply; study the conditions and state of the market; collect and analyze data about products, their consumer properties, quality level, and their purpose. To do this, it is necessary to organize a detailed study of the buyer (the number of the population served by the business entity, its gender, age and demographic structure, social composition, the amount of purchasing power - the amount of purchasing funds of the population served) and the characteristics of competitors (strengths and weaknesses, potential opportunities and intentions, that is conduct a SWOT analysis).
Element 2 – determining the amount of need for goods
This stage of efficiency requires, on the basis of the information received at stage 1, to calculate indicators of the capacity of the market and its individual segments, to determine the optimal assortment structure of goods, the volumes and timing of their deliveries, and the sizes of delivered batches of goods.
Element 3 – selection of partners for establishing business relations and distribution channels
In this element of the KPI, at the first stage, possible sources of supply of goods are studied, the geography of location of supplying enterprises, selling enterprises, the volumes and structure of goods that they can supply, terms of delivery of goods, preferred forms of payment, shipping methods, etc. After analyzing the information received, based on special ranking methods, the circle of partners and participants in the product distribution system is determined, the functions are distributed among the partners, and the necessary economic calculations are carried out to justify the most effective option.
Element 4 – Efficiency for establishing economic ties between partners
As a result of the selection of partners for economic relations, a set of commercial operations is carried out to establish economic relations. The efficiency in this element requires determining the specific form of economic relations with each partner, developing a draft agreement and all appendices to it, organizing and conducting the negotiation process to agree on the terms of the agreement, and signing the agreement.
Element 5 – organization of wholesale purchases of goods
This element considers all options for choosing organizational forms of purchasing necessary goods, participation in procurement, using the most effective of them (wholesale fairs, exchange and tenders). Here, it is very important for the buyer to stipulate in the contract the most favorable conditions for himself; he should correctly formalize wholesale purchases and organize ensuring the fulfillment of the obligations defined in the contracts.
Element 6 – Efficiency for wholesale sales of goods
This element assumes:
- choosing a form of wholesale sales;
- justification of the feasibility of its use;
- determining the types of operations that ensure the most effective sale of goods when choosing a warehouse and transit form;
- correct sales execution;
- monitoring compliance with the terms of the contract.
Element 7 – efficiency in organizing retail sales of goods
Note 1
This element of efficiency is one of the most important, since it is in retail that the process of bringing the products of labor (goods, services, works) from sellers to buyers is completed.
At this stage, there is also a change in forms of value, from commodity to monetary, and it is determined whether the previous commercial work was successful and expedient.
Basic operations:
- organization of management of the assortment of goods in retail facilities;
- the frequency and size of supply lots is justified;
- the most effective forms and methods of selling goods are determined;
- measures are taken to stimulate sales and build an image;
- merchandising is carried out.
Element 8 – commodity resource management
This element involves the following activities: systematic monitoring of the condition of inventory in a retail facility; formation of inventory in accordance with consumer demand; organizing a rhythmic, uninterrupted supply of goods in the required quantities; systematic control over the movement of goods; control of timing of goods sales.
Element 9 – efficiency in promoting goods to the market, ensuring the formation of demand, stimulating the sale of goods
At this stage of the CPD, it is necessary to organize measures for effective advertising and information support of labor products (goods, services, works) on the market; forming a positive attitude towards the product among the buyer; inducing the buyer to take certain actions - purchasing a product.
Element 10 – provision of services, service support of goods.
Due to the development of the production sector, the market is becoming saturated with labor products (goods, services, works), and the level of competition is increasing. In these conditions, additional services and their quality become one of the factors that attract additional buyers and help strengthen the position of a business entity in the market.
Element 11 – development of a commercial strategy for a trading organization.
This item includes:
- organization of analytical work using the obtained commercial information;
- defining the mission, goals and objectives of the KPI;
- development of alternative strategies for the development of the organization;
- choice of action strategy;
- development of tactics for implementing the chosen strategy, taking into account the existing potential of the organization and the state of the market.
- assessing the effectiveness of the chosen strategy;
- organizing monitoring of strategy implementation;
- implementation of measures for timely adjustment when market conditions change.
When characterizing commercial activities, economic concepts are used: market, needs, property, resources, price, utility, etc. Technological and organizational processes of sales management are associated with the concepts: purchase, sale, goods supply, service, etc. To summarize the main commercial processes, in commercial activities use the concepts: system, organization, structure of the organization, goal, subjects, objects, etc.
It is these basic concepts that make up the structure of commercial activity.
When studying the problems of commerce, these concepts are considered comprehensively.
Carrying out commercial activities is associated with organization (Latin - inform an orderly row, arrange). There are many definitions of organization, from which the concept of organization as a rational system aimed at achieving a goal usually stands out.
On the one hand, organization is understood as internal order, consistency, interaction between parts of the whole, determined by its structure. On the other hand, it is a set of processes and actions that lead to the formation and improvement of the relationship between the parts of the whole.
The organization of commercial activities of a trading enterprise includes certain patterns of functioning and interaction of its elements (parts).
The main elements of the organization are:
People, members of this organization;
goals, for the achievement of which this organization exists;
control, driving the organization's potential to achieve its goals.
Therefore, the concept of organization is closely related to the concept of management.
Organization - it is a systematized, conscious association of the actions of people pursuing certain goals and acting on the basis of certain rules and procedures.
Thus, the concept of organization is applicable to both objects and subjects of commercial activity.
When analyzing commercial activities, all phenomena are considered in movement, development and change, positive and negative aspects are examined, internal contradictions are studied, cause-and-effect relationships are identified and analyzed.
The set of research techniques used in the study of this discipline is a methodology that includes both general scientific and special methods of cognition (research).
To study commercial activities the following are used:
general scientific methods - method of dialectical materialism, system analysis, mathematical methods, methods of modeling, observation, experiment, analogy, grouping, comparison, etc. These methods are based on the historical development of phenomena and processes, on the study of concepts and the transition from simple to more complex ones, highlighting the tendency of their continuous improvement and development;
special methods- customer surveys, expert assessments, panel surveys, economic and mathematical calculations when determining the effectiveness of commercial activities, etc.
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