At the meeting with the chairman of the regional executive committee: In search of new management mechanisms

In response to the challenges of the time, consumer cooperation in the Vitebsk region has begun a systematic restructuring. What mechanisms for increasing turnover and achieving break-even operations in enterprises have been introduced in the industry, was told at a meeting with the Chairman of the Vitebsk Regional Executive Committee by the Chairman of the Board of the Regional Union of Consumer Societies Alexander Shinkorenko.

—               The results of the consumer cooperation's work for 2015, against the backdrop of falling retail turnover, did not satisfy us. To stabilize the situation, intensify work with suppliers, and reach a new level of development, we have applied the schemes that are currently being tested throughout the region, - noted Alexander Shinkorenko. – We decided to create structural divisions - eight food retail enterprises. We have allocated and transferred the fixed assets to them within the same owner. This will allow us to promptly pay off awarded amounts, obtain new loans, restore relationships with suppliers, and improve the assortment of socially significant goods.

The well-known scheme of subordinating small enterprises to larger ones,

the creation of new enterprises based on them is characterized as one of the options for effective business management. The regional consumer union clearly understands the importance of avoiding staffing miscalculations, maintaining attractiveness, and saturating the market with in-demand products. Following the food retail, similar schemes will be implemented for the industrial group of goods.

The Chairman of the Regional Executive Committee, Nikolai Sherstnev, is convinced that expanding the range of goods in consumer union stores will contribute to sales volumes, and consequently, will lead to a reduction in enterprise costs and alleviate the burden of debt obligations.

—               You are working within the framework of current legislation. Your task is to balance revenue and expenditure, reduce costs, and lower the prime cost, - emphasized Nikolai Nikolaevich. - Similar schemes should be implemented at the enterprises of the meat and dairy association.

At the planning meeting, Nikolai Sherstnev inquired about the progress of his instructions at the light industry and woodworking enterprises. According to the chairman of the regional executive committee's economy committee, Sviatoslav Zarovsky, the situation is under the control of working groups. Positive changes have emerged at the Orsha Flax Mill, OJSC "Znamya"industrialization", food industry enterprises.

—               It is impossible to reduce the prime cost of products by 25% without increasing production volumes, the head of the region is convinced. - Enterprise managers must clearly understand this and move towards the goal step by step. There is no room for confusion or waste among managers. The plan for increasing production volumes is an important condition for the implementation of Decree No. 78 "On Measures to Increase the Efficiency of the Socio-Economic Complex of the Republic of Belarus". Marketing and sales services must adapt to increasing production volumes, search for new sales markets, and work in conditions of export diversification.

Serious management miscalculations were made at the Glubokoye Meat Processing Plant, Orsha Meat Canning Plant, the agricultural enterprise "Zadneprovsky" in the Orsha district, and the Vitebsk Broiler Poultry Farm. But time does not forgive mistakes, and one must be responsible for each.

This week, foreign investors from China, Norway, and Israel are working in the region. We are talking about representatives of a large corporation who visited the region to select a site for the construction of dairy complexes. Recently, there has indeed been a surge in investment activity, and the leadership of the regional executive committee is betting on this. The more investment, the more efficient the economy.  In

A major investment forum will be held in Vitebsk in May, which is planned to invite governors of Pskov and Smolensk regions, and foreign business circles.

—               We must take the reins of management, especially regarding the creation of new jobs, - says Nikolai Sherstnev, addressing his deputies.

The Committee for Agriculture and Food is instructed to pay close attention to personal subsidiary plots and prepare a package of proposals for the development of small and medium-sized businesses in rural areas. Where strong farmers breed rabbits, are engaged in sheep and poultry farming, they should be supported, unused premises should be transferred to them, contributing to the creation of new private enterprises.  Banks are ready to finance such initiatives.

Svetlana Dedinkina,

Chief specialist of the main department 
of ideology, culture 
and youth affairs of the regional executive committee.