The Foreign Economic Activity Service as a form of divisional management. Organizational structure of foreign economic activity management: concepts and factors determining it. One of the management functions is the organization function, which, on the one hand, represents the management process and, on the other, the choice of organizational structure.
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The relevance of the program lies in the fact that the foreign economic activity of Russian regions in modern conditions contributes to their transfer to an innovative path of development. The need to regulate foreign economic activity is confirmed by business practice. Regulation of foreign trade activities is widely used all over the world, including in Russia. In a market economy, it represents a system of legislative, executive and regulatory measures designed to improve foreign economic activity in the interests of the national economy.
The purpose of regulation is to stabilize and adapt the country’s foreign economic complex to the changed conditions of the world market and forms of international cooperation, solving national strategic and tactical problems.
The current stage of development of the world market is characterized by ongoing globalization and high competitiveness. In these conditions, foreign economic relations are becoming an increasingly prominent part of the economic activity strategy of organizations; business is demonstrating a growing interest in cooperation with foreign partners. Managing the foreign economic activities of an organization related to international production and scientific-technical cooperation, export and import of products, and the enterprise’s entry into the foreign market allows for the successful implementation of competitive advantages and contributes to the economic growth of the country.
Features of the program
Internships in partner organizations of MGIMO Ministry of Foreign Affairs of Russia
Wide range of employment opportunities, including based on the results of practical training/internships
A block of international disciplines in accordance with the MGIMO’s own educational standard of the Russian Foreign Ministry
Fundamental theoretical training in economic, legal and general management disciplines
Training of highly qualified professionals in the field of foreign economic activity management, capable of solving problems in Russian and international organizations, capable of building business relationships with foreign partners
Diplomatic module of disciplines
Language training
Practicing teachers
Future work of graduates
Specialist in the foreign economic activity department, supervising all operations related to the organization’s foreign economic activities
Management of foreign economic activity of an enterprise is the influence on the processes of preparation and implementation of foreign economic operations, focused on making a profit, increasing profitability through participation in the international division of labor.
A prerequisite for the successful operation of each enterprise is a well-thought-out functional structure and a rational management system, and the effectiveness of management, in turn, depends on the choice of organizational structure.
The organizational structure represents relatively stable connections that exist between the elements of the organization, on the basis of which the process of managing the company is implemented.
Management (in a broad sense) is the influence on people, and through them - on the results of their activities.
The process of organizing management at an enterprise involves influencing the channels of power and communication between its various administrative services, as well as information flows within these channels.
The management activities of the enterprise cover the following areas: production; quality; staff; carrying out R&D; finance and investment activities; supply and sales activities; warehousing and transport facilities.
Ensuring the effectiveness of the management process is largely determined by the rational distribution of decision-making powers between different levels of management, i.e. the relationship between centralization and decentralization. Centralization is the concentration in decision making, the concentration of power at the highest level. Decentralization - delegation (transfer) of rights and responsibilities to lower levels of management. The optimal balance between centralization and decentralization ensures the efficiency and realism of management decisions.
An enterprise can manage its foreign economic activities using six main management functions:
1. Planning - drawing up short-term, medium-term and long-term plans for the development of foreign economic activity, as well as developing business plans for new foreign economic projects.
2. Organization - creation (formation) of organizational units of an enterprise for carrying out foreign economic operations, distributing employees to areas of work, endowing them with the appropriate functions, powers and responsibilities, determining the forms and methods of preparing and implementing foreign economic relations.
3. Coordination and coordination of tasks and functions of foreign economic activity with other departments and divisions of the enterprise in order to avoid contradictions in decisions and ensure coherence and optimization of all work.
4. Accounting for results and assessing the effectiveness of foreign economic activity by determining the profitability of foreign economic transactions separately for specific types of goods across the entire range of products, by region, by type of operation (export/import), etc.
5. Control of foreign economic operations (both in operational and strategic mode - ongoing monitoring of the progress of implementation and control over the implementation of annual, medium-term and long-term plans for foreign economic activity and organization of relevant audits to implement foreign economic and marketing strategies into practice.
6. Providing an information system for servicing the foreign economic activity of the enterprise through the introduction of information management systems, using the Internet, etc. to create a data bank of foreign economic information. Currently, a number of management information systems are successfully used for these purposes, such as MIS-Management Information System, DSS-Decision Support System, MDSS - Marketing Decision Support System, MSM - Market Selection Model, etc.
Along with the main management functions, we can highlight specific functions for managing the foreign economic activity of an enterprise:
1. Analytical, which involves studying the international market environment, the conditions of individual foreign markets, proposals/requests of consumers of foreign market segments.
2. Commodity production - improvement and adaptation of goods to the conditions of local markets.
3. Sales, which involves organizing a sales network abroad to promote goods for export.
4. Implementation of a certain pricing policy, carrying out advertising work in foreign markets, etc.
At a manufacturing enterprise, the choice of form of organization of the foreign economic activity service is determined by:
* type of economic activity of the enterprise (industrial, agricultural, trade, etc.);
* motives and needs that encourage participation in the international division of labor (export, import, attracting foreign investment, participation in international cooperation, etc.);
* the degree of internationalization of production activities (already involved or only intends to become involved in international operations, the number and nature of already developed foreign markets);
* methods of selling the company's products (independent export operations or through intermediaries);
* the scale of the enterprise and the volume of its actual and potential exports, which determines the quantitative parameters of the foreign trade management service;
* the nature of foreign economic operations (carrying them out on an ongoing basis or periodically, from time to time).
The form of organization of foreign economic activity management depends on these factors. If the enterprise plans to carry out single foreign trade operations with one-time or periodic deliveries, then it is enough to involve one specialist in the work. Form of organization - foreign trade specialist.
The Department of Foreign Economic Activity (OVED) is created in the enterprise management structure with the constant nature of export and other foreign economic operations, with a focus on their expansion.
It is advisable to create a department for foreign economic activity at large companies focused on foreign economic operations that are permanent, sustainable, usually on long-term terms.
Foreign trade firms (FTF) are part of large associations with large-scale foreign economic operations (usually with the rights of a legal entity, existing in the form of trading houses).
In addition, the organization of management of foreign economic activity of an enterprise is carried out with the help of national specialized and government intermediaries or the services of foreign intermediaries.
In general, the choice in favor of one or another organizational structure for managing foreign economic activity and its effectiveness are determined by the degree of its adaptation and adaptation to the changing conditions of the market environment.
Due to the diversity of specific goals, objectives and conditions, there cannot be a single standard structure of a foreign trade company (FTF) for all enterprises. At JSC Mogilevliftmash the structure looks like this:
Marketing Deputy;
Financial and economic block;
Marketing block;
Office;
Department of market conditions and prices;
Administrative and economic department;
Economic Planning Department;
Engineering and technical department;
Technological Services Department;
Human Resources Department;
Department of foreign business trips;
Legal department.
Specialized foreign trade companies can be created both at industry and large enterprises, and in the latter case, both as a division of the enterprise, and as an independent legal entity with its own balance sheet. All types of specialized foreign trade enterprises are characterized by the presence on their staff of highly qualified specialists with extensive practical experience in international economic cooperation and special foreign economic training.
It should be borne in mind that such foreign economic associations prefer to engage in large, highly effective export-import transactions, entering into contacts with fairly reputable partners.
At enterprises that are actively involved in foreign economic activity, but where it is only part of the business, the management structure of this area can be represented by a foreign economic department (department of foreign economic relations).
The functions of the foreign economic relations department of the enterprise are as follows:
* research of the external market, studying and taking into account market demand, the needs of product consumers in order to orient the scientific, production, technical and sales activities of the enterprise towards the production of competitive products;
* organizing work on selecting partners, concluding contracts, their renewal, compiling and maintaining a file cabinet of consumers and suppliers, dossiers on partner companies, working with exchanges, brokers, firms, customs;
*organization of protocol events related to foreign economic activity (reception and seeing off of delegations, negotiations, provision of translators, etc.);
* control, regulation and accounting of the results of foreign economic activity;
* participation in fairs, exhibitions, preparation and publication of prospectuses, advertising activities.
The department of foreign economic relations at enterprises not specialized in foreign economic activity is not an autonomous entity, but is part of the management apparatus. In this regard, OVES works closely with the relevant functional departments of the enterprise: economic planning, financial, production, technical, accounting, legal and other departments. They all form a single organizational management structure.
Along with the organization of foreign economic activity management at an enterprise, in which all work is headed by the foreign economic relations department, and the leading role in it belongs to the marketing service, there are often other structures in which the management of the foreign economic sphere is carried out by the marketing department, in other words, foreign economic relations can be transformed into a marketing department . This option is completely justified, since there are no fundamental, fundamental differences between marketing for the domestic market and marketing for the foreign market, although one cannot fail to take into account the higher requirements imposed by the foreign market, which is explained by more intense competition and a significant excess of demand over supply.
Department of Foreign Economic Activity (OVED) - this is part of the enterprise’s management apparatus, its task is to plan, organize and coordinate the enterprise’s foreign economic activity.
Main tasks foreign trade department:
Managing the export potential of the enterprise and creating competitive products;
Ensuring the fulfillment of obligations to foreign partners;
Development of new forms of production, scientific, technical and investment cooperation;
preparation of contract goods for the customs clearance procedure.
In this case, the volume of export-import transactions is constant, homogeneous, and its geography is limited.
The main function of the foreign trade department is to ensure stable and adequate foreign economic activity of the enterprise, deepening trade relations with foreign partners.
The main types of work performed by the department are the following:
Organization of export-import operations;
Monetary and financial transactions;
Declaration and customs clearance of goods;
Establishing partnerships with companies from other countries;
Scientific information work;
Finding ways for an enterprise to enter the foreign market;
Studying directions and trends in the development of the world market for a specific product.
Declaration And customs clearance are one of the main activities of the foreign economic activity department, since not only consumers of the enterprise’s products are located abroad, but also the main suppliers of raw materials are foreign partners. This leads to constant flows of raw materials and goods. Declaration of goods involves the preparation of the following documents:
Cargo customs declarations (CCD);
Electronic copies of the customs declaration;
Declarations of customs value;
Inventory of documents attached to the customs declaration.
The final result of the declarant’s activities is the receipt of a customs mark “Release permitted.”
In accordance with these general tasks and areas of activity of the foreign economic activity department, its employees have their own specific responsibilities.
Let's consider structure foreign trade department , the composition of whose employees is determined by the structure and features of the production of export products, the forms and scale of foreign trade activities at the enterprise: the head of the department, the deputy head, who is directly subordinate to the head of the department, and in turn subordinate to him: an expert on customs regulation, an economist, a protocol bureau.
Boss The foreign economic activity department carries out general coordination of the activities of department employees and coordinates the activities of the department with other departments and services of the enterprise, deals with issues of the movement of foreign currency funds, and resolves current operational issues. Some departments have a position as a specialist in foreign exchange operations (planning, control over foreign exchange and settlement operations, etc.).
Deputy Chief The foreign economic activity department monitors the timely implementation of instructions, corresponds with enterprises and firms of Ukraine and other countries on scientific, consulting, economic and other issues, and participates in the development of contract terms.
Economist The Foreign Economic Activity Department is responsible for calculating the prices of export products taking into account the supply basis and other conditions, drawing up commercial proposals for the sale of the enterprise's products, developing contract clauses, issuing a transaction passport for sales and purchase agreements, preparing an action plan for fulfilling the terms of the contract and its control. In some departments, instead of an economist, there is the position of a leading specialist in market conditions and prices.
Expert on customs regulation maintains all customs documentation: ensures customs clearance of products exported and imported by the enterprise, prepares cargo customs declarations, and maintains statistical reporting of the department.
Into competence protocol bureau includes drawing up programs for the stay of delegations, translating all documentation received by the enterprise from foreign languages, assistance in organizing negotiations, preparing the necessary documentation for specialists on business trips abroad.
As you can see, the department is small in number, but it can successfully cope with its functions thanks to interaction with other departments acceptance .
At the same time marketing department studies markets and consumer demand, sets requirements for quantity, frequency of deliveries and quality of products.
Planning and Economic Department carries out planning of the enterprise's work, makes the necessary calculations in this regard, transmits basic data on prices for products, raw materials and materials to the foreign economic activity department.
New technology department carries out technical development and control over the production of export products. The technical department is responsible for the quality of export products.
Finance department is responsible for the financial support of export-import operations, therefore the foreign trade department provides him with all official notes and invoices for paying current expenses (duties, customs duties, payments to certification bodies, etc.).
To the accounting department The foreign economic activity department transmits acts for the implementation of work on economic, scientific and technical cooperation with foreign organizations, cost estimates for foreign economic activity activities, data on allocated financial resources and documents on maintaining a foreign currency account.
Transport workshop carries out documentation of goods, transports goods and draws up a schedule for their shipment.
Thus, the foreign trade department in its activities interacts with the services and departments of the enterprise. The coordination of this interaction lies with the employees of the foreign trade department.
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