Factors shaping the security of the mining and metallurgical enterprise in market conditions

Abstract

In the conditions of development of regional market relations the experience of entering the market is different for each economic entity, but there are common features in the improvement of economic and financial condition of the enterprise. Each of the enterprises, transitioning to functioning under market conditions, has a number of common difficulties. The nature of these difficulties can be explained on the basis of the principle of three constraints. The first kind of constraints are resource constraints (an enterprise cannot produce more goods than it has resources at its disposal). The second type is demand constraints (an enterprise cannot sell more products than can be bought at a given price level). The third type of restriction is a restriction in the sources of investment (the enterprise cannot spend more than its own or borrowed resources). Differences in the degree of severity of these constraints depend on many factors, including industry specifics. For mining companies, the most important constraint is the availability of raw material resources. The degree of rigidity of the other two constraints is determined by the existing situation at the enterprise: for enterprises with an established raw material base, the primary constraint is the sales constraint; for enterprises with a resource-constrained economic system, on the contrary, it is a constraint on investments. Depending on the existing constraints, the reasons for their emergence and consequences, as well as on the possibility to reduce the constraints, the enterprises can be characterized in terms of the intensity of their development and sustainability.