Major financial and economic characteristics of Alpha llc for 2006-2008

Indicators	2006	2007	2008	Absolute deviation, (±)		Rate of growth,%
				2008-2007	2008-2006	2008-2007	2008-2006
А	1	2	3	4	5	6	7
1. Revenue from the sale of products (goods and services), thousand UAH.	272337,20	264529,70	464013,60	199483,90	191676,40	175,41	170,38
2. Cost of goods sold, thousand UAH.	177699,40	199590,20	366357,10	166766,90	188657,70	183,55	206,17
3. Gross cost, thousand UAH.	219742,70	222279,10	383659,20	161380,10	163916,50	172,60	174,59
4. Net profit, thousand UAH.	227034,40	220400,10	386577,40	166177,30	159543,00	175,40	170,27
5. Payroll, thousand UAH.	466,40	571,20	616,40	45,20	150,00	107,91	132,16
6. Profitability in%	83,36	83,32	83,31	-0,01	-0,05	99,98	99,94
7. Ownership equity, thousand UAH.	11701,80	10290,70	13403,70	3113,00	1701,90	130,25	114,54
8. Average number of personnel, persons	26,00	36,00	33,00	-3,00	7,00	91,67	126,92
9. Productivity, thousand UAH.	6834,59	5544,17	11101,73	5557,56	4267,14	200,24	162,43
10. Average wage, thousand UAH.	1,49	1,32	1,56	0,23	0,06	117,72	104,13

Comparing the absolute deviation of the 2007-2008 and 2006-2008, we obtained the following results: revenue from sales in 2008 compared to 2007 grew almost twice at 199,483.90 thousand, that made 75.41%. And in 2008 compared with 2006, revenues from sales grew by 191,676.40 thousand., which is 70.38%. The reasons for such changes could be improvement of product quality, the positive image of a company, significant territorial coverage, increased incomes and purchasing power of population.

Cost in 2008 compared to 2007 grew by 83.55% and in 2008 compared to 2006 cost increased more than twice - by 106,17%. The reason for its growth could be the increase in the cost of raw materials, a strong demand for the products, and lack of of own production, increase in the cost of human capital from the manufacturer.

Due to the increasing cost of production, turnover, lack of professional education of many workers gross expenses during these three years has also increased. In 2008 compared to 2007 by 72.60%, in 2008 compared to 2006 by 74.59%.

Due to the growth of income in the company net profit in 2008 compared to 2007 increased by 166,177.30 thousand, which is 75.40%. Comparing profits in 2006 and 2008, you will notice its growth in 2008 to 159,543.00 thousand, which is 70.27%.

Because the company has positive economic performance indicators the payroll is steadily rising.

The reason for reducing of profitability is a disbalanced growth of revenue from sales and profits over three years.

Equity capital in 2008 compared to 2007 increased by 30.25%, and in 2008 compared to 2006 by 14.54%.

The average number of employees in 2008 was 3 persons less than in 2007 and 7 more than in 2006. The reason could be an imperfect HR policy, poor quality work of HR department, lack of professional education of employees, poor quality automation of workplaces, inability to use the latest technology in the field of HR, not effective organizational structure. More detailed analysis and evaluation of personnel management in Alpha LLC will help us to identify the reasons clearly.

Another indicator of the economic activity of the enterprise is labor productivity. In 2008 compared to 2007 the absolute deviation was 5557.56 thousand UAH., It means that the rate increased by 100.24%. In 2008 compared to 2006 labor productivity increased by 62.43%. These results can be justified by an increase in wages fund, and by the fact that the management is trying to implement computerized personnel management systems.

The last economic performance indicator of enterprise is the average salary for the year. Average wages per employee in 2008 compared to 2007 increased by 17.72%, and in 2008 in compared to 2006 it increased by 4.13%. These changes can be explained by an increase in wages fund and increased worker productivity.

In 2008, the profitability, coefficient of correlation of the rate of growth of labor productivity and wages was lower than that of 2007, this indicates inefficient use of working time and staff turnover. Number of employees reduced, amount of work increased and automation of jobs is at inappropriate level. Because of these shortcomings working time is used inefficiently. Analyzing key financial and economic indicators of Alpha LLC, it can be concluded that some problems in economic activities of the enterprise partly related to insufficient use of personnel, because all other indicators show Alpha LLC as the company that is successfully developing in wholesale trade of glass.

Lets give a description of the organizational structure of the enterprise.

Assessing the organizational structure of Alpha LLC, it should be noted that the company did not clearly distributed responsibilities and decision-making process. Given that the company engaged in commercial activity, the relative number of sales managers is quite large, but the manager of supplies is only one, which indicates he is overloaded due to the large amount of work. The number of accountants in business is too large for the total number of staff, given the lack of Alpha LLC affiliates and need for control them. The company employs one consultant (marketing specialist) and due to the large amount of work and low automation of workplace he does not perform its tasks. Thus Alpha LLC uses almost no advertising or sales promotion in its activity, although department of management accounting, analysis and control has to do it.

There is also only one HR manager in the company and it negatively affects the organization because he does not fully cope with his duties, and luck of workstations complicates the work of the enterprise even further.

Disadvantages of divisional organizational structure proved to be more important for the enterprise than benefits. For example, duplication of management observed in administrative department, department of management accounting, analysis and control, accounting department, the deputy director on labor protection. a large number of managerial positions increases spending on maintenance of management.

So on Alpha LLC there are problems with work standardization, due to uneven load of personnel, employees have needs associated with the moral and material incentives, problems with inefficient use of time and lack of professional development. All this is due to the fact that there is only one person involved in the HR department who does not have time to cover all the workload.