ANALYSIS OF ECONOMIC

ACTIVITY – AEA
 TOPIC 1. BUSINESS ANALYSIS IN THE
ENTERPRISE MANAGEMENT SYSTEM

1. The necessity of evolution of business analysis (or AEA)

2. The essence of the business analysis
3. Functions and tasks of business analysis
 1. THE NECESSITY OF EVOLUTION
OF BUSINESS ANALYSIS
Formation and development of business analysis are conditioned by practical human
activity and the need for qualified and effective management of the enterprise.
Successful solution of the management problem depends half on the correct
formulation of the problem, the second half falls on business analysis!
 IMPORTANCE OF BUSINESS ANALYSIS IN
MANAGEMENT SYSTEM
Management system

Accounting

Business analysis

Making management decisions

Planning and Organization Control Motivation

forecasting process

Resource Products and services

Managed system
 THE MAIN REASONS FOR THE NEED FOR THE
DEVELOPMENT OF ANALYSIS IN MODERN
BUSINESS CONDITIONS:
• - expansion of economic independence and economic responsibility;
• - dynamism of internal and external environments;
• - expansion of economic ties;
• - growing uncertainty and risk;
• - lack of information;
• - lack of system both in assessing the results of the enterprise and in forecasting them;
• - inadequacy of the methodology of analysis of economic activity to modern requirements for the
development of social relations, which does not take into account the specifics of the activities of new
agricultural formations and market infrastructure entities;
• - imperfection of methods of application of electronic computers for the analysis and use of its results in
administrative activity;
• - unsuccessful reform of accounting and statistics
 2. THE ESSENCE OF THE BUSINESS
ANALYSIS
In the narrow sense of the word "analysis" means the division of
phenomena or objects into constituent parts (elements) to study them as
parts of a whole. This allows you to understand the inner essence, the
components of what is being studied.
In the broadest sense of the word, analysis is understood as a way
of knowing objects and phenomena of the environment, based on the
division of the whole into constituent parts and studying them in a variety
of connections and dependencies.
 PRACTICAL INTERPRETATION OF THE
ESSENCE OF BUSINESS ANALYSIS

The essence of the analysis of economic activity is

 study of the state and development of the enterprise,
 establishing the reasons for changes in business results,
 development of measures aimed at improving the activities of the enterprise.

Economic analysis of the production process or individual divisions of the enterprise makes it
possible to identify specific opportunities to improve the efficiency of the existing system,
their work using certain techniques and methods.
 BUSINESS ANALYSIS AS A SCIENCE

it is a logically organized system of special knowledge for the study

of economic phenomena and processes in their relationship and
interdependence,
which is formed under the influence of objective economic laws.
 AS SCIENCE BUSINESS ANALYSIS
PROVIDES
•study of economic processes in the relationships that are formed under the influence of objective
economic laws and principles of a subjective nature;
•scientific substantiation of business plans, objective assessment of their implementation;
•identification of positive and negative factors and quantitative measurement of their influences;
•disclosure of trends and proportions of economic development,
•identification of unused domestic reserves;
•generalization of the best experience, acceptance of optimum administrative decisions.
 BUSINESS ANALYSIS FEATURES

Repeatability in each
Continuity
subsequent cycle

Acts as a method and

methodology for studying Applied, functional nature
economic phenomena
 BASIC PRINCIPLES OF BUSINESS
ANALYSIS
• Objectivity
• Determinism
• The principle of development
• Complexity
• Promptness
• Effectiveness
• The principle of democracy
• Socio-ecological approach
 PHASE OF BUSINESS ANALYSIS
• 1. Recognition (preliminary assessment of the situation): recognize and describe the
economic situation, draw conclusions about the feasibility and possibility of changing
certain parameters of the analyzed object, phenomenon, process; determine the limits of
these changes and draw conclusions about the need for in-depth study, which is carried out
at the stage of diagnosis.
• 2. Diagnosis helps to identify the causes of changes in the analyzed objects, indicators
(parameters) and is the initial condition for predicting a possible change in the phenomenon
under study.
• 3. Forecasting - is formalized by drawing up plans, programs, budgets, etc.
 3. FUNCTIONS AND TASKS OF
BUSINESS ANALYSIS

Internally systemic
System-wide functions
functions
• Assessment of new social • Preparation of analytical
phenomena and socio- information for
economic processes management decision
 GENERAL FUNCTIONS ARE IMPLEMENTED
THROUGH THE PERFORMANCE OF GENERAL
AND SPECIFIC TASKS
General tasks Specific tasks
• Formation of consolidated analytical data • Assessment of enterprise development and
• Formation of a strategic zone of management identification of problem situations
and image • Defining the goals of enterprise development
• Competitive status • Forecast of the influence of factors and
• Balancing the parameters of the organization assessment of own economic opportunities
with its potential • Substantiation of management decisions
• Sustainability of functioning • Evaluation of expected results taking into
account opportunities
THANK YOU FOR ATTENTION!