Picture 4 – An example of a pricetag for discounted products

But the goods on discounts will be with the price tags of unpopular colors and shapes. For instance, the orange rectangle (see pictures 4).The last step is to select the color and font of the text that specifies information about the product. The font and color of text should be the same for both pricetags, so it is necessary to use such shades so that information on the tags werereadable

But there is another way to mislead purchasers. It requires marketing research, which includes the following:1) Make a list of major stores in a radius of 1-2 km, which rival with your one;2) Conduct a research in which turns out what store or shopping network is the most popular among

consumers;3) Find out the design of pricetags of the competitor with the highest demandHaving necessary data, we borrow the pricetag styles of the competitor, but change them to the contrary. I.e. the

price tag at a discount in our store will look as the price tag without a discount in the store of a competitor.In such situations, regular visitors of competitors store, when coming to your one, will focus on the same design

as before (as in competitor store), barely sensing the trick.Network of shops "Evroopt" took advantage of this method. Nearby stores had yellow pricetags for the goods on

discounts. "Evroopt" has placed these tags on the goods without discounts, thereby a number of buyers have purchased the product without the discount, subconsciously thinking that the markup on them is reduced.

Conslusion. Using these two methods, you can, though not significantly, but increase your income as the interest rate on the sold goods will be conventional, despite the fact that buyers will think that it is much more below.

REFERENCES1. Русланова, С. Существуют правила оформления ценников в организациях торговли/ С. Русланова //

Электронный журнал «Главный бухгалтер» [Электронный ресурс]. – 2017. – Режим доступа: https://www.gb.by/izdaniya/glavnyi-bukhgalter/sushchestvuyut-pravila-oformleniya-tsenn.– Дата доступа : 04.03.2017.

УДК 334.012

DOING BUSINESS IN THE MODERN WORLD ON THE EXAMPLE OF THE STRABUCKS

M.V. Sentsova, student of group 10504215FMME BNTU,Research supervisor: the candidate of pedagogical sciencesL.V.Solovyova

Today it is hard to imagine our world without business. It plays an important role in society, which is why we should learn more about it and to try to analyze the successful experience of different companies of the world to use its strategy in different fields of our national economy. After reading the article you can understand how Starbucks Company achieved such a great worldwide success.

На сегодняшний день трудно представить наш мир без коммерческой деятельности. Она играет важную роль в обществе, поэтому необходимо ее тщательно изучить и попытаться проанализировать успешный опыт различных компаний мира. Чтобы использовать их стратегию в различных отраслях национальной экономики. Прочитав статью можно понять, как компания Старбакс добилась такого всемирного успеха.

Introduction. Inthetoday’sbusinessworld, therearemanystrategiesbeingusedtorunbusinesses. But we'll talk about Starbucks. To start, the story of creation. Starbucks was established in 1971 by three local businessmen to sell high quality whole beans coffee. In 1981 when Howard Schultz visited the store he plan to build a strong company and expand high quality coffee business with the name of Starbucks. Starbucks air is to provide high quality of coffee to its consumer and aim to achieve product innovation, retail expansion and provide service quality for long term.

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Drawing 1 – Starbucks Drawing 2 – Starbucks (1971)

Starbucks open its first coffee store in Seattle, Washington. In 1990 Starbucks expand its headquarters in Seattle and also build a new roasting plant. In 1990s Starbucks opens 60 retails shops in United Kingdom. At the end of 2000s Starbucks total branches was 3500. Coffee is one of the rapidly growing industry in this world due to its business strategy. According to national coffee association, USA 49% of American age 18 and more drink coffee beverage every day. Coffee industry was in peak of its success at the end of 1990s.

Main part. Target market means to select one or more market segment and product position. Starbucks also focus on consumer habits and share its speciality of coffee with the buyers. In the end of 20th century there are many changes in market that helped Starbucks getting successful. The most important change of the last twenty, thirty years is the changes of economic policies over the world. Starbucks target market was 18 years to 24 years young professional because they are not yet been loyal with coffee industry. Starbucks strategy comprises to locate its stores at picky places such as the first floor of blocks of offices, underground main entrance and urban areas. Starbucks sales totally depends on company operate retail stores and certified retail operations, Starbucks sells coffee and tea products through many others channels like distribution targeting restaurants, hotels, colleges and universities and other work places. According to Fleisher & Bensoussan (2002) Starbucks target market was wealthy, upper class and educated who are agree to pay high prices of Starbucks due to its high quality and customer service.

Drawing 3 – Conference

Business and industry profileIn actuality, the coffee industry is facing the problem of the growing competition from the part of fast food

restaurants. In such a situation, Starbucks, being one of the leaders in the industry, attempts to improve its position to maintain the competition. At this point, it is worth mentioning the fact that the company has a long history and extensive experience. Therefore, the company can use its experience and customer loyalty to maintain its position in the market. In fact, many customers have the habit to attend Starbucks. Therefore, the company can count on its loyal customers. On the other hand, the company can develop its business successfully using the full potential of its customer loyalty.

Business strategyThe business strategy used by the company focuses on the improvement of the company-customer relationships.

In this regard, the company uses the customer-centered approach as its key business strategy. The customer-centered approach allows the company to maintain its current position of the company in the market. In actuality, the business strategy of Starbucks focuses on the improvement of its competitive position in the market. In fact, the company attempts to expand its market share and attract more customers through the development of new business strategy.

Company products and services

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The company keeps using the same products and services. In such a way, the company offers customers products and services of the high quality. As a result, the company keeps developing its business and offers customers traditional products and services. Customers appreciate products offered by Starbucks and enjoy consuming them. The maintenance of traditional products allows the company to maintain interest of customers and turn them from fast food restaurants.

Marketing strategyThe marketing strategy of Starbucks focuses on the expansion of its market share and attraction of new

customers. At the same time, through the development of the high quality of its products and services the company can develop the customer loyalty. In such a way, the company uses traditional marketing strategy along with the improvement of the quality of its products and services to increase the customer satisfaction and loyalty.

Location and layoutIn actuality, Starbucks operates in the US mainly but the company attempts to expand its market internationally.

In this regard, Starbucks opens new coffee restaurants in the US and attempts to enter new markets. However, today, the main market of the company is still the US and, in the nearest future, this market will be number one for Starbucks. On the other hand, the strengthening of the position of Starbucks in new markets will allow the company to secure its position in the market.

Competitor analysisToday, Starbucks holds the leading position in the market, although the competition grows stronger not only in

the coffee industry but also Starbucks faces the growing competition from the part of fast food restaurants because fast food restaurants become more and more popular, whereas Starbucks has to maintain its competitive position in the market. In such a way, the company uses the strategy of the customer satisfaction and customer-centered approach to increase their satisfaction and to improve its competitive position in the market.

Plan of operationIn actuality, the company has to develop its business plan of operations. In this regard, it is worth mentioning the

fact that the company focuses on the development of the total quality management. After that the company can improve the quality of internal business operations and the quality of products and services being delivered to customers. Furthermore, the company should monitor the customer satisfaction to assess whether the company’s business strategy is successful or not. On monitoring the development of the marketing performance of the company, Starbucks should introduce changes, if necessary.

Financial positionThe current financial position of the company is stable (See App. Table 1). In actuality, the company recovers

from the effects of the recent economic recession and attempts to change its marketing position for better. In this regard, the company develops its marketing strategy on the ground of the customer satisfaction and to improve its position in the market. At the same time, the financial performance of the company is stable and the company uses its full potential in order to improve its business strategy.

Loan or investment capitalThe company uses its financial resources to develop its business. However, today, the company attracts bank

loans and other investment to improve its marketing performance. In actuality, the company is still reliable and successful in its financial performance and business development.

Conclusion. Starbucks is a leading company around the globe. Starbucks used а very simple strategy, "connecting links between treating employees with dignity and respect and producing а good product and services." That was the major factors that differentiate Starbucks from others and bring the successful to Starbucks. Starbucks broad its business with the help of well established strategies of it positioned itself in the market. But every product has a life cycle, when it reaches its maturity it will tend to decline, position of Starbucks is also not different. It's time to relocate their market and coordinate their strategies.

REFERENCES:1. UKessays, Integrated marketing communication /Marketing essays [Electronic resource]. – Mode of

access : https://www.ukessays.com/essays/marketing/an-internal-analysis-of-starbucks-marketing-essay.php. – Date of access : 25.03.2017.

2. UKessays, Brand development strategy / Marketing essays [Electronic resource]. – Mode of access : https://www.ukessays.com/essays/marketing/the-marketing-strategy-of-starbucks-and-its-effectiveness-marketing-essay.php. – Date of access : 25.03.2017.

УДК 338.2

NEW WAYS OF DOING BUSINESS

D.V. Skorik, student of group 10503215 FMMEBNTU,Research supervisor the candidate of pedagogical sciences L.V.Solovyova

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Современный мир существенно отличается от того, который был 10-20 лет назад. Скорость, с которой новые технологии изменяют способы, которыми мы управляем нашими жизнями и упрощаем наши повседневные задачи, просто ошеломительная. Раньше нам нужно было ходить в банк, теперь мы можем сделать это онлайн с нашего мобильного телефона вместо компьютера и управлять всеми нашими финансами. В данной ситуации необходимо идентифицировать самые лучшие новые способы ведения бизнеса.

Данная статья описывает инновации в финансовой системе, наиболее популярные формы ведения бизнеса и методы развития бизнеса.

Theworldtodayismarkedlydifferentfromwhatitwasonly 10-20 years ago. The rate at which new technologies are changing the ways in which we manage our lives and simplify our daily tasks feels overwhelming. Where we once needed to “take a trip to the bank,” we can now go online – from our phone, instead of a computer – and manage all our finances. In current situation, there is a need to identify the best new ways of doing business.

This article describes the innovation in the financial system, the most popular form of doing business and methods for growing your business.

Introduction. The world of technologies and marketing are changing fast these days. Winning entrepreneurs have long since supplemented conventional print and video “push” marketing with digital online interactive “pull” marketing, and more recently added social-local-mobile to the mix. Mobile and global are driving all of these in innovative new ways to grow your business.

Today’s new environment calls for new ways of conducting the business of defense. In these times when the global economy, ecology, climate and aspirations of people everywhere are rapidly changing, many firms recognize the need to find new ways of doing business. Sustained and effectively implemented, these new approaches will help get the highest return on defense investments in the future.

Main body. The best example of changes in the system of doing business are technology and doing business on the Internet.

Technology is transforming financial services, principally by capturing and generating commercially valuable information, allowing greater and more detailed knowledge of consumer needs. The power and value of data is driving new networks of collaborations and alliances, which seek their share of the value chain. These players break down market barriers and disrupt traditional players, in turn generating new rounds of innovation and technological change. This technological revolution also gives rise to many public interest concerns, including the need to ensure the security of data, an increase in cyber security risks, privacy challenges and competition issues.

The economic analysis of the commercial activity in this sector generates whole new vocabularies and ways of thinking. Old truths about markets, competition and consumers have disappeared and new paradigms have taken their place. Even the nature of the contractual process involved in a digital age of networks is transforming as it responds to the new forms of commercial activity and the dangers of operating in the new environment.

The commercial opportunities that come with technology and innovation continue to create private (contractual) and public (regulatory) challenges (Picture 1). New payment system regulators, new regulatory regimes and industry groups are being established and payment system innovation and technology and their related issues are being explored by a number of public reviews in different countries. The legal regime, as much as the commercial, is transforming and clients need clear and measured local legal advice based on global knowledge and experience.

Picture 1 – Innovation in the financial system

Internet has created a new economy, which by its explosive growth and sheer size already changed our perception of traditional way of doing business. Companies like Amazon and EBay have successfully created domination on areas, where just few years ago traditional brick-and-mortar companies were kings. However, in

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order to be successful on the net, you don’t have to be a giant like them. Many small and mid-size companies managed to build online businesses quite profitably. In fact, studies show small and mid-size companies will be the main growth force of e-commerce in coming years.

Thanks to Internet you can instantly become a global player. In fact, you don’t have to invest large sums of money to do this. There are literally hundreds of vertical and horizontal e-marketplaces available on the net.

The right determinant of e-business success is the same like any off-line business. You have to have a great idea, you have to have a business plan, there should be a value proposition for prospective clients and you should have believed in it and your ability.

Getting online is becoming cheaper and easier thanks to emergence of new technologies but marketing on the Internet is becoming more expensive.

In order to make a sale you need visitors to come to your shop. On the Internet, your shop could be only a click away from your prospective customers. With proper marketing your Internet storefront can have more buyers than you ever can get in a brick and mortar shop.

Whether you sell products or services online or not, in today’s world you have to have a corporate presence on the Internet. Otherwise, as you must have noticed that people simply don’t take your business seriously if you tell them that your company does not have a website. A nice corporate site definitely increases the image of a company especially if it has great product or service related content to go with.

The biggest advantages of online shops are that they are open 24 hours a day year round. Thanks to Internet off time, when your shop is generally closed, sales in some cases can be more than your regular business hours.

Building a website does not require big investments. There are many low cost tools available today, which can help you create sites from very scratch. Many business portals allow you to build web sites from templates. For less than month you can have a full-fledged corporate e-business site with all e-commerce features.

Customer accusation and retention is one of the key factors of business value chain. Thanks to Internet technology, business can provide customer support more effectively. This means better customer satisfaction and increase of profitability.

Just a couple of years ago, companies used to require days to deliver products or services update information to their customers. Things have changed since then. Today you can add or make any changes to your company and product related content virtually in a matter of couple of hours, publish on your site and share with the whole world.

New technologies allow you to take virtually any part of your business online, that include supply chain management, billing, shipping, procurement etc. Streamlining these business processes through online systems will allow companies to cut costs significantly in almost every sphere of any business.

Pinpoint your Unique Value Proposition (UVP). These days it is often more about being unique than being valuable. A UVP sells a product or service because it differentiates it from other products or services that are available. Skip the better, faster, or stronger; you need to be the best, fastest, or strongest to truly stand out.

Reach your target audience intimately through interaction. Target marketing has moved to a completely new level both geographically and demographically. With social media, you can interact more precisely and create custom products and marketing to be almost all things to all people. The broad-brush push-marketing is no longer competitive.

While just one revolutionary idea can turn an industry on its head and brand a business as innovative, usually it is the combination of the little things that a business owner does (or stops doing) that brings about its ability to truly be innovative.

So how can you consistently be more innovative when it comes to your business? People often make a concerted effort to practice the habits listed below, they begin to see their role differently and discover with those “little things” that can help propel them and their businesses forward.

1. Build word-of-mouth into your product or service. The best marketing is word-of-mouth from your happy customers. You need to give them something to talk about and incentives to be brand ambassadors. These include an aura of exclusivity and cultivating an “under-the-radar” vibe that pushes people into one-up-style revelations.

2. Proactively seek out win-win alliances. Voluntary open-ended alliances are more important than ever, and easier than ever. Consider collaborating via shared marketing efforts, trade-show both space, co-branding promotional products, referral agreements, and cross-linking web sites. With informality, these must be win-win relationships.

3. Modernize the user website experience. The standards for user-friendly continue to move up. Make sure your users don’t have to think, and participating in your call to action is intuitive and organic. Modern web layouts flow smoothly and quickly for an easier to read, satisfying experience.

4. Incorporate live chat into every online service. Online shoppers like online chat, because it makes the experience more like in-store shopping. The same applies to other aspects of consumer experience: customer questions answered, problems fixed, and aggravations soothed, to close more sales.

5. Understand the power of online reviews to your advantage. Stop fearing bad reviews, and see any review as an opportunity and an asset. Respond to reviews to give a personable picture of you, your company, and your products. People want to go with tried-and-true choices, and many positive reviews will offset that occasional negative one.

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6. Optimize how you website looks on mobile devices. Mobile will soon be the number one way people do web browsing, as it already is for e-mail. Yet nearly half of all small businesses still lack any website, much less a mobile-friendly one. Modern websites adapt to the mobile environment, or you can provide a separate mobile site at low cost.

7. The newest generation has never lived life unplugged, and their blend of innocence, simplicity, and pure excitement appeals to every customer. Optimize for them, and you will be a winner today, as well as in the future. It starts with a willingness to engage, listen, and learn without fear.

8. Embrace giving back to the world community. Bring new awareness to your business by promoting a higher goal, which will garner additional respect and new business from your supporters. The first steps are effective communication to your clients, employee participation, and collaborating with other organizations that have similar initiatives.

Conclusion. With the speed at which today’s world moves, everyone knows that innovation equals success and longevity. Try following the suggestions here and see how you can run a more innovative business. If you are not happy with how fast your business is growing, pick one of these areas to focus on first, then a second and third. Do not try to do everything at once, and do not expect that you can do it once and forget about it. Your business is a living entity, just like you are. Treat it with ongoing respect and attention, or the growth you expect and deserve will fade as the world changes.

REFERENCES:1. Innovation in the financial system [Electronic resource]. – Mode of access :

https://www.herbertsmithfreehills.com, free. – Date of access : 15.03.2017.2. Reasons to start doing business online [Electronic resource]. – Mode of access : http://pspsolutions.net, free.

– Date of access :15.03.2017.3. Benefits of doing business online [Electronic resource]. – Mode of access : https://www.business.qld.gov.au,

free. – Date of access : 17.03.2017.4. Innovative ways to grow your business [Electronic resource]. – Mode of access

:http://blog.startupprofessionals.com, free. – Date of access : 19.03.2017.

УДК 347.771

INTELLECTUAL PROPERTY AS A KEY POSITION IN DOING BUSINESS TODAY

V. Skrynnik, student of group10502216 FMME BNTU,Research supervisor I.S. Lomonosova

Ведение бизнеса в современном мире связано не только со знанием экономического дела и менеджментом ресурсов. Всё большую роль в развитии предприятий занимают изобретения, инновации и революционные новшества, привносимые в нашу жизнь с разработкой различного рода проектов, создание которых невозможно без творчества и усердной интеллектуальной деятельности.

Doing business in the modern world is not all about the knowledge of economic affairs and the management of resources. The bigger role in the development of enterprises is occupied by invention, innovation and groundbreaking innovation brought into our lives with the development of various projects, the creation of which is impossible without the creativity and hard intellectual activity.

Introduction. This article is completely devoted to the intellectual property and everything that you can connect with this term. Whatever you are talking about it is better to know what it really is. There are lots of understandings and explanations given to people all around the world but it is always better to have the whole range of possible knowledge that should be received. That is why the development of intellectual property, its protection and its means of regulation of the relations arising from the registration of the results of its activity, is an essential part of doing business in the modern world. Still there are many different difficulties might be faced while working on developing and stimulating hard work on projects. These processes require high intellectual activity. Going through difficulties is the best way to gain new experience of developing something intangible and performing it into tangible form.

Main part. You can hardly imagine any company in a modern business which does not care about being innovative and does not try to put some of their creations in their routine work. All the creations of the intellect for which a monopoly is assigned to designated owners by law may be named as intellectual property. Just as any kind of property intellectual one must gain some protect from the very beginning of its existence. Therefore, we have to make it clear what we actually protect. Artistic works including literature and music, as well as inventions, words,

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discoveries, designs, symbols and phrases can all be protected as intellectual property. Intellectual property can be protected by patents, copyright and trademarks, which give people an ability to earn recognition or financial benefit from their inventions or creations. Receiving these kinds of benefits is one of the strongest incentives for the future inventions, discoveries and performances. That is why every head of every company first of all is interested in recognizing employees’ successful innovations in front of any other feelings coming along with these fees paid for them.

A patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. Usually it is granted for a limited period, generally 20 years from the date when the application was filled. Still many classifications are taking different criteria to classify patents due to their duration, protection type, document type, etc. There is no necessity to figure all them out because the majority is often protected with copyrights.

Copyright or author’s right is a legal term used to describe the rights that creators have over their literary and artistic works. By saying works, we mean paintings, sculptures, books, music, maps, computer programs, databases, advertisements, films, technical drawings, etc. Wide range of artistic works may be found easily and there is no doubt that it is not hard to recognize them. However, sometimes something that is not an invention may be presented by people as an invention.Therefore, there is a special list of excluding things that people are not allowed to register as a patent:

ideas and concepts; discoveries; methods; procedures; works or other subject matter that have not be made in a tangible form in a recording or writing.There are patent validity periods that differ (have different duration) for each section of patent creation. The

duration varies according to the type of copyright work concerned. It may be dedicated to author’s life, publishing date, performance date, etc. All the durations may be seen in the table 1 below.

Table 1 – Durations of copyright workLiterary, dramatic, musical and artistic works

70 years from the end of the year in which the author died. Specifically for photographs, or if the work is published after the death of the author, it lasts for 70 years, from the end of the year in which the work was first published.

Published editions of literary, dramatic, musical or artistic works (layout)

25 years from the end of the year in which the edition was first published.

Sound recordings and films 70 years from the end of the year in which the sound recording or film was first published.

Broadcasts and cable programmes 50 years from the end of the year of making the broadcast or cable programme.

Performances 70 years from the end of the year of the performance.

The interest of people in the creation of advanced technologies, innovative solutions and revolutionary ideas contributes to the economic growth of the enterprise or country due to the exclusion of a large amount of costs associated with servicing obsolete technology. Creating new ideas for improving the work of the enterprise is a long and time-consuming process, therefore, the state is interested in attracting a growing number of people who will develop new projects to improve work performance. Managers still should measure this performance because if it is uncontrolled then it can hardly be improved.

To improve the performance of a person, this method is often used as a promotion, while the incentives are divided into tangible and intangible. Promotions have a psychological impact on the consciousness of the employee, who creates the idea, showing him that his work is valued. After that, a person will start to create more innovations that are productive in order to get encouragement. Both tangible and intangible incentives may have the same positive result if managers know their staff well enough. Anyway incentives should be chosen to each person separately because this subject may be really embarrassing for the staff.

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Thanks to the availability of more modern technologies, rather than rivals, the enterprise becomes more competitive. What allows the company to profit from the provision of its inventions to other enterprises and have the right to choose partners due to the industry’s primary positions.

The use of the most modern technologies by the enterprise leads to a reduction in the value of the output, which leads to an increase in profits at the enterprise in turn (since part of the costs of providing obsolete equipment are excluded). Due to the efficient operation of production, the enterprise takes an increasing market share, which leads to the replacement of competitors. In this case, the company gets an opportunity to increase prices for sold products (because the goods can be considered unique) and increase the number of possible partners, which the company can choose independently based on possible advantages.

Conclusion. Basing on provided information, it can be established that the development of intellectual property has a beneficial effect on the enterprise (industry or market), because modernization allows to achieve a certain advantage over competitors.

All highly developed countries have realized the importance of developing intellectual property and introducing the results of intellectual activity to maintain competitiveness in the world community. The same applies to each region, each industry and each specific enterprise. Summarizing the development of intellectual property is one of the key positions of doing business in the modern world, and, therefore, a successful business must necessarily have a high intellectual potential of the staff.

REFERENCES1. What is copyright? [Electronic resource]. – Mode of access :

https://www.ipos.gov.sg/AboutIP/TypesofIPWhatisIntellectualProperty/ Whatiscopyright.aspx. – Date of access : 05.03.2017.

2. What is intellectual property? [Electronic resource]. – Mode of access : http://www.wipo.int/about-ip/en/. – Date of access : 05.03.2017.

3. Intellectual property [Electronic resource]. – Mode of access : https://en.wikipedia.org/wiki/Intellectual_property. – Date of access : 05.03.2017.

УДК 336.011

FINANCIAL LEVERAGE AS A WAY OF FORMING THE CAPITAL STRUCTURE OF THE ENTERPRISE

T. Stankus, student of group 10507113 FMME BNTU,Research supervisor I.V. Borovik

Understanding of the mechanism of action of leverage on the level of financial risk and the profitability of own capita purposefully allows to manage both cost and capital structure of a firm.

Понимание механизма действия финансового рычага на уровень финансового риска и прибыльность собственного капитала позволяет целенаправленно управлять как стоимостью, так и структурой капитала фирмы.

Introduction. Finance professionals often face the problem of formation of the company's capital from different sources, and in particular, determining the optimal ratio between own capital (hereafter OC) and borrowed capital (hereafter BC). One method of solving this problem is based on the concept of financial leverage.

Main body. Financial leverage is the ratio of borrowed capital to owner' capital equity, it characterizes the degree of risk and sustainability of the firm. The less the leverage is, the more stable is the situation. On the other hand, BC allows you to increase the profitability ratio of OC, i.e., to receive additional profit in OC.

The indicator reflecting the level of extra profit when using BC is called the effect of financial leverage (FLE). It can be calculated by the formula (1):

FLE = (1 – RoI) * (CoP- ARoIL) * BCOC

(1)

where:FLE — financial leverage effect, %.RoI — rate of income tax, in decimal expression.

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CoP — coefficient of profitability of assets (the ratio of gross profit to the average value of assets), %.ARoIL — the average rate of interest loans %. For a more accurate calculation it is possible to take the average

rate for the loan. BC — the average amount of borrowed capital used. OC — the average amount of own capital. (1-RoL) does not depend on the enterprise.(CoP - ARoIL) — the difference between return on assets and the interest rate for the loan is called the

differential (FID).

(BCOC

) is a lever of the financial leverage (PFR).

The formula for the leverage effect can be written as: FLE = FID * PFR (2)

Though, we can draw two conclusions: the effectiveness of the usage of BC depends on the ratio between return on assets and the interest rate for the loan. If the rate for the loan is above the return on assets, the usage of BC is unprofitable. Under other equal conditions the greater leverage brings the greater effect.

The formation of the profit involves the usage of appropriate organizational and methodological systems, the knowledge of the basic mechanisms of profit formation and modern methods of analysis and planning. It is worth considering that the increase in the share of BC in the capital structure increases the risk level of insolvency of the enterprise. This should be taken into account when selecting sources of financing. The rational combination between owner's equity and borrowed funds and the impact degree on the profits of the enterprise should be determined. One of the main mechanisms of realization of this goal is the financial leverage. The idea of financial leverage in the American concept is the analysis of the risk value in changes of net profit connected with the permanent costs of the company to service debt. Its effect is that any change in operating profit (profit before paying interests and taxes) causes a more tangible change in the net income.

The ratio of the force of financial leverage shows how many times profit before paying interests and taxes exceeds net profit. The bottom boundary of the ratio is a unit. The larger the relative volume of the attracted by a firm BC is, the larger is the amount of payable interests and the force of financial leverage, the more variable the net income is. Thus, increasing the share of borrowed financial resources in the total amount of long-term sources of funds, that is, by definition, equal to increasing the strength of the effect of financial leverage. It, other factors being equal, leads to greater financial instability, reflected in less predictability of net income. Because interest payments, unlike, for example, from dividend payments, are required at a relatively high level of financial leverage, even a slight decrease in profits may have adverse consequences compared to a situation where the level of financial leverage is low.

The higher the strength of the impact of financial leverage is, the more nonlinear becomes the relationship between net profit and profit before interest and taxes. A slight change in the profit before interest and taxes in conditions of high financial leverage may lead to a significant change in net profit.

The increase in financial leverage is accompanied by an increase in the degree of financial risk of an enterprise, associated with the possible lack of funds for interest payments on loans and borrowings. For two enterprises with the same output, but different levels of leverage, the variation of the net profit is defined by the change in output varies – it is more in the enterprise that has the higher value of leverage.

The European concept of leverage is characterized by the increased effect of financial leverage, reflecting the level of additional profits in the UK under different proportion of usage of BC. This method of calculation is often used in continental European countries (France, Germany, etc.).

The leverage determines the strength of the financial lever. This ratio multiplies positive or negative effect obtained by CoP-ARoIL. If the value of the differential is positive, any increase of the coefficient of financial leverage causes a greater increase in the effect and profitability of OC, and a negative value of CoP-ARoIL growth factor leverage leads to a further decrease in its effect and profitability of OC.

Thus, at a constant of CoP-ARoIL, the ratio of financial leverage is the main generator as the increase in the amount and level of profits in the OC, as the financial risk of losing the profits.

Conclusion. Understanding of the mechanism of action of leverage on the level of financial risk and the profitability of OC purposefully allows to manage both cost and capital structure of a firm.

REFERENCES1. Ткачук, М.Н. Основы финансового менеджмента: учеб. Пособие / М.Н. Ткачук. – Минск :

Интерпрессервис, Экоперспектива, 2002. – 416 с.2. Ковалева, А.М. Финансы фирмы: учебник / А.М. Ковалева, М.Г. Лапуста, Л.Г. Скамай;

Государственный Университет Управления. – 4-e изд., испр. и доп. – Москва : ИНФРА-М, 2005. – 522 с.3. Станкус Т.С., Квасюк С.А. Финансовый рычаг как способ формирования структуры капитала

предприятия". Новые материала и технологии их обработки. Сборник научных работ XVII Республиканской студенческой научно-технической конференции, 2016. – С. 240-242

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УДК 7.05

THE ROLE OF DESIGN IN LEADING BUSINESS

А.А.Tarashchuk, student of group 10508113 FММE BNTU,Research supervisor I.S. Lomonosova

«Design is not just what it looks like and feels like. Design is how it works»SteveJobs

В данной статье ставится задача рассмотреть важность дизайна при ведении бизнеса. Выявляется и обосновывается необходимость уделять большое внимание разработке дизайна, так как он является одним из ключевых факторов, определяющих имидж организации. Особое внимание обращается на узнаваемость дизайна, что способствует идентификации среди конкурентов, а это, в свою очередь, влечёт за собой достижение главной цели бизнеса – получение прибыли.

The main purpose of this article is to consider the importance of design in the conducting business. The necessity of paying great attention to design development is revealed and justified, as it is one of the key factors that have an impact on image of an organization. Particular attention is paid to the recognition of design, that promotes identification among competitors, and which, in turn, results in achieving the main goal of the business – making a profit.

Introduction. The role of design in business is huge. Logos, packaging, letterhead are things that a user sees and associates with a company, a product or service. The identity and the uniqueness of each company are formed through the consumer’s perception of graphics, colors, and shapes. But do companies use design as a key factor in competition and grow efficiently enough? How to turn design into a driver of business development?

It is said that design is a pure magic. The mystery of mysteries, the mysterious realm of the unknown where only the brave and very smart dare to go. If this is the case, it is impossible to imagine that there is a formal process for its exploration.

Main body. Design is commonly associated with aesthetics, visual trends and luxury. But design is much more than that. It is able to change lives, improve business, and inspire. It is important both for a company and for a brand, that tend to the future, to analyze and innovate global trends constantly.

Firstly, design is related to conduction of business as a whole, to customer service and creating value and only secondarily to “beautiful things”. It is more a verb than a noun! Thomas Watson of IBM once said: “Good design is a good business”. I think he also had an opinion that good design is 95% of common sense, and 5% of taste and talent.

Lots of choices create competition which, in turn, forces to make products better and more attractive. It is necessary to invest in design, not because it is impossible to compete differently now – neither in international markets nor domestic ones. But it requires a certain entrepreneurial maturity to include such expenses in fixed costs. For the majority it still seems a patronage.

It is said that you can brush off the problem of investment in design as it is over-indulgence and an expensive pleasure. In fact, to create the aesthetics and comfort around a business is not too expensive. You just need to think about it, stretch the imagination and intelligence, use existing and new knowledge. With careful consideration towards design it becomes a beneficial object of investment, as it brings income eventually [1, p. 196].

Advertising, image, creative approach, and certainly industrial design – all these are tools to create competitive advantage which brings an increase in sales volumes and gives reason to raise prices of goods and services provided with unique qualities through design.

Visual design of its products and advertising form people’s first impression of a company. Just offering a business card or presenting new packaging a businessman has a certain and important impact on the public. To a large extent the future of his startup will depend on the effect he can have. After all, whatever the content is, the shape is what sells the product!

The image of a company is formed on the basis of visual sensations that capture information about the interior and the exterior of the office, retail and showrooms, appearance of staff, brand symbols, elements of corporate identity. Design determines the visual image of the organization, lets alone the design of the product!

In the current context we face a wide range of products, but we are more likely to pay attention to the bright colorful packaging than featureless shell. This is the factor that mainly determines our choice. In fact, products of one manufacturer is often not much different from products of another one. But buying a particular product we, in fact, choose the beautiful design of the package [2, p. 124].

If your design is not unique, lacks of spice, it will be difficult for a consumer to identify you in all information fields and to build the associative array. You simply mix with the gray mass of other projects. You will have some orders, but your products or services will not become widespread.

Design is very important not only in technology as it represents technical feasibility, born by the original energy of the creator of a product. In most cases design is the main determinant of the consumer’s decision to purchase a particular product.

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What does this all mean? Without creative energy that a creator puts in a particular product, competitive products cannot be born. The creative process requires processing, rethinking of the existing heritage, including the heritage of competitors. It is known that people cannot even imagine what they do not know. And everything new is the development of what has been accumulated by mankind and is concentrated in the information files of special, technical, scientific, artistic, graphic and other literature, and also accumulated in the memory of every person, even at a gene level. In other words, the creative energy of predecessors is adopted by followers and converted to their own creative energy [3].

Most customers decide in favour of those products that are in one way or another stand out from other similar products. And as marketers say it is an original designer look of the package promotes brand awareness. In short, the buyer who has chosen visually the brightest and most attractive product in the variety of offers is more likely to buy it again. If the consumer has bought goods in a faceless package, in 90% of the cases he will forget about it within a few days, and there is practically zero per cent that he will remember the name of the manufacturer.

It should be emphasized that the label design must meet the requirements of the first encounter in order to make a great impression in the first few seconds. Psychologists assure that the time is required to intrigue and convince the buyer. And the most important is a content that must suit to shape, otherwise the product will not be bought next time.

Recognition has a direct impact on the level of credibility. “I know is I trust is I buy or vote” – one of the most important formulas in marketing and PR. This factor speeds up or slows down the formation of the database of regular customers and supporters.

One of the first vital steps in building a successful brand for a business is probably creating a company logo. Properly designed corporate logo can be the secret key to reach higher heights for your company. The manufacturers must make their logo memorable for their customers, so it is important to create a design that will match companies. A successfully created logo attracts new customers and increases their confidence in an organization. It will work for you around the clock. Your trademark will form the identity of your company.

Logo design should be of a high quality to create the right image of your company. The trademark must possess an attractive, long-term style, memorability and simplicity at the same time as the success or failure of your business will depend on it.

A logo will attract customers or push them off. Consumers subconsciously pay attention to its quality. It will undoubtedly help to create a brand. If the brand design keeps the target market, if it is well remembered and recognized by the consumers, it means that it meets the needs of a company and is formed successfully.

It is also necessary to say that a logo is a centerpiece of the corporate style. Even if the company has a great identity, and the logo just does not match it, people may wrongly perceive your image and do not cooperate with you. A company logo together with its name is the most important investment of a business, because a clear and recognizable image of the brand draws customers’ attention and increases sales.

Another example how design impacts on business is a website. Website design is one of the key points that affect impressions of a visitor who first gets in the website after search on the Internet. It often happens that the visitor closes the page, and then returns to the search, even without reading the content, because its design makes a negative impression. So he decided not to waste time on further viewing of the resource. In the XXI century, the site should have an attractive, if not chic design. Creating of design in some cases plays a role even more important than the functional component of the project. And in some cases, such as corporate sites, the quality of external design is particularly the main factor that affects the perception of the resource by a user [4].

Of course we need specialists to make the design informative. In addition, a person or even a team is needed to coordinate the work of these professionals to maximize results. In contrast to the technical or economic achievements that can be weighed, measured, quantified, it is not easy to measure design. It is also necessary to establish a connection between emotions, beauty and purely rational arguments. Merely emotional, non-quantifiable elements of design (intuition) should be given a chance, because in this case we sometimes manage to amaze a customer with what he does not expect. In this case, progress may not be evident, though it will be risky, and will be followed by the capture of a market segment or by the discovery of an entirely new market.

Visual impact on consumer behavior is not the one or main function of design. Design develops samples of rational construction of the object environment corresponding to the variety of functions in modern society. It solves serious social and technical problems of human existence in the object environment, designing things and space based on combination of convenience, efficiency and beauty [2, p.124].

Paying great attention to design you agree to show your potential clients and society that you have a lot of fresh ideas, you are different, you are professionals, and that you take pleasure in what you are doing. It also means that you understand a customer in the field of technologies, who often looks for modern and best solutions. It means that you have spent a considerable amount of time for research and development, and that you are focused on the market.

Conclusion. Design in today’s society is one of the factors for gaining profit, as satisfying customer demands leads to increase in demand for manufactured goods.

It is also one of the key factors of economic growth of a company. Along with the stability of the national currency, available credits and high purchasing power the need of modern companies in design is constantly growing. The development and expansion of a business result in the growth of competition in the field of design.

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The competition for attention develops in this particular field that is more convenient, more attractive and more reliable for consumers.

All businesses use design and do it in different ways. Some use it only for advertising, some – for improvement of new products or for psychological impact on consumers.

One thing is clear: design has become an integral part of the modern economy and major corporations want to control it, evaluate investments, calculate return on investments, forecast profitability and risks.

Great design can be enough for success, but even better when it is combined with good management.

REFERENCES1. Браун, Т. Дизайн-мышление в бизнесе / Т. Браун. – Москва : Манн, Иванов и Фербер, 2012. – 136 с.2. Кларк, П. Дизайн / П. Кларк, Д. Фриман. – Москва : АСТ, 2003. – 144 с.3. Дизайн как инструмент стратегии [Электронный ресурс]. – Режим доступа :

http://www.marketing.spb.ru. – Дата доступа : 10.03.2017.4. The Importance of Design in All Marketing Campaigns [Electronic resource]. – Mode of access :

www.quicksprout.com. – Date of access : 21.03.2017.

УДК 51-77

ANALYSIS OF QUEUING SYSTEM POTENTIAL AT AN ENTERPRISE

A.K. Temicheva, student of group 10507114 FMME BNTUResearch supervisor N.I. Shumskaya

В данной статье рассматриваются некоторые возможности использования экономических и математических моделей, в частности системы массового обслуживания, для анализаи оптимизации деятельности предприятия, а также для управления предприятием.

In this article some opportunities of using economics and mathematical models, namely queuing system for analysisand optimization of an enterprise performance and also for the management of an enterprise.

Introduction. Effective versions of performance of the enterprise emerge a lot of ways to achieve even under favourable conditions. Applying economics and mathematical models, queuing system in our caseare the keysto successful solving of the set tacks.

Main part. Business takes a certain place in the economics of countries including Belarus and has its own specifics.The small enterprises have advantage over large enterprises: easier in management, maneuverability, fast liquidity, possibility to change business, responsive to market demands, etc.

In the article, I want to study the mass-service enterprises of any type of organization and any number of personnel. So, different small and private enterprises within largercompanies and factories, self-finance divisions of in organizations, etc. are under consideration here.

Besides positive moments, these enterprises can suffer their own problems both external and internal.External factors of problems may include the following: fluctuations of a certain market segment; unstable customers flows; competitors diversification; strengthened advertising campaigns of competitors; development of a city infrastructure such as transportation, communication, construction, etc.; also some other factors are possible.Among internal factors the following ones can be listed: material base of company such as equipment or other tools and instruments; work force and the level of qualification of the staff; theoperating mode in the whole company. So, the work of the enterprise can be determined by flows of customers, the enterprise throughput, one customer

service time, the number of channels, waiting time, performance of separate employees and depertments.Having studied the peculiarities ofbusiness activity it is necessary to note that the mathematical model in

queuing system corresponds to work indexes in the enterprises.The main final calculation indexes of the queuing system are: the flow of customers [ƛ]; the enterprise throughput [q]; service time determined for one customer [t]; the number of channels [c]; waiting time [T] probability of default [Pdefault].

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Nowadays a lot of programs for calculating these indexes exist.The queuing system can be a closed one and an open one.The closed queuing system allowsidentifyingthe

performance, namely its capabilities, defaults, downtime, with certain demand flow (ƛ) for existing enterprises with the definite resource base, the number of employees and the operating mode.

The closed queuing system has limited sphere of application and doesnot take into account the changes in market. In this case it is necessary to consider the open queuing system which can include the solution of problems of a small enterprise that it has been mentioned above.

In this case when the flow is changing the direction it is necessary to carry out the economic research and, having analyzed the findings,to come to some conclusions and to decide how to manage the enterprise.

The problem-solving requires the following: To calculate economic efficiency for different demand flows (ƛ); To identify possible material base, meaning the number of channels (c); Unprofitability in different situations.A special calculation method for the different options of indexes, and first of all,for the quantity of channelsis

offered below.The presented calculation method operatesunder the following algorithm. If to consider how to apply the

queuing system to solve the problem for optimizing the production structure it issupposed that the enterprise is working with the specified number of requests annually and thedemand for the productisuneven.

Table 1. – Demand for product.

Customer distribution (by periods)

1 2 3 4 5 6 7 8 9 10 11 12 Total

45 50 57 55 44 42 38 35 30 32 43 50 521

The enterprise has got the information about the performance of each workplace, outlays for fulfilling of one request and a unit selling price. The data are presented in Table 2.

Table 2. – Benchmark data.The performance of one workplace (customers in a definite period of time). 2

The number of established channels. 15

The outlay for one customer ($). 16

The selling price of a service ($). 44

According to Table 1 and Table 2 the enterprise is unable to satisfy the demand due to the existing production capacity and it facesthe choice either to attract additional production capacity or to announce a part of the available requests default.

1 2 3 4 5 6 7 8 9 10 11 120

5

10

15

20

25

30

Image 1. – Demand and production capacity.

The key indexes of management decisions feasibilityare such data as profit and loss of profit. Using the queuing system it is possible to make a decision which can optimize the number of channels correspondingly to the established market.

Table 3. – The results of calculations.

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Profit 10080 $Loss of profit 4508 $

The implementation of the solutions found under the using of queuing system is presented in Table 4.

Table 4. – The solution

Number of unsecured requests1 2 3 4 5 6 7 8 9 10 11 12 Total

15 20 27 25 14 12 8 5 0 2 13 20 161

Additional expenses ($) 6

Optimal number of channels 22

Completing work ($)1 2 3 4 5 6 7 8 9 10 11 12 Total968

968

968

968

968

968

968 968 96

8968

968

968 11616

Profit ($) 11616

Lost profit ($) 1036

1 2 3 4 5 6 7 8 9 10 11 120

5

10

15

20

25

Image 2. – Optimal and established number of channels.The offered method provides the significant number of alternating values of activities; and for the convenience

of users a special modeis to be created.Taking into account the calculation results the manager considers different situations which require certain

solutions, and in the future some possible options for the organization and implementation of the project can arise.In addition to the general results presented in Table 1 the manager can vary other activitiesin Table 1 such

asprice, income, net cost or remuneration which will affect the lossof profit and the annual economic effect.At the same time, the results of the calculations can affect the decision-making on the expansion of the production capacity.

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