Ways of effective development: The case of the Ukrainian tobacco industry
| DOI | https://doi.org/10.1108/20425961201000008 |
| Published date | 01 March 2011 |
| Date | 01 March 2011 |
| Pages | 89-102 |
| Author | Anatoliy G. Goncharuk |
| Subject Matter | Public policy & environmental management |
World Journal of Enterprenuership, Management and Sustainable Development, Vol. 6, Nos. 1/2, 2010
89
Copyright © 2010 WASD
Abstract: This paper demonstrates how ways and means of effective development
can be determined by analysis and benchmarking tools. It contains the results
of efficiency study of Ukrainian tobacco companies, defining their key factors
and growth potential to identify ways of improving the industry performance.
A few key factors are examined for their impact on efficiency. Using analysis and
international benchmarking the essential potential to reduce various inputs that
provide considerable gain to the companies and enhance industry efficiency is
determined. The recommendations that may be practicable for companies’
management, present and potential investors, proprietors and regulative public
authority are made.
Keywords: efficiency; improvements; international benchmarking; scale effect;
profitability; potential growth; inputs reduction; benchmarks; tobacco companies;
Ukraine.
Anatoliy G. Goncharuk*
Odessa National Polytechnic University, Ukraine
WAYS OF EFFECTIVE
DEVELOPMENT: THE CASE OF THE
UKRAINIAN TOBACCO INDUSTRY
INTRODUCTION
The manufacture of tobacco products
in Ukraine has a 240 years old history
which has led to the presence of the
developed industrial base, infrastructure
and also availability of the qualified staff
in the country. The last 15 years’ release of
tobacco products in Ukraine occurs mainly
on the basis of the volume of the imported
raw material and import, on the average
in ten times, exceeds tobacco export from
Ukraine.
During the period 2001–2006 in
Ukraine the constant growth of tobacco
products, the volumes manufactured have
practically doubled over six years. At the
same time, the rate of economic growth in
industry slowed down steadily, and in 2006
it was only 0.1%.
There are objective reasons for this:
• the domestic market comes closer to
saturation.
• reduction of the country’s population
and, accordingly, the internal market
volume.
• high rates of income growth of
the population and reduction of
unemployment rate, which have been
observed during last few years, have
* Department of Management, Institute of Business, Economics and Information Technology, Odessa National
Polytechnic University, 1, Shevchenko av., Odessa 65044, Ukraine, e-mail: agg@ua.fm
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