ECONOMICS AND MANAGEMENT OF PRODUCTION | |
ArticleName | Usage of the synergy possibilities for sustainable development of vertically integrated structures |
ArticleAuthor | Altushkin I. A. |
ArticleAuthorData | “Russian Copper Company” JSC, Ekaterinburg, Russia I. A. Altushkin, Head of the Board of Directors, e-mail: sysoeva_anna@rcc-group.ru |
Abstract | On the example of development of the group of companies “Russian Copper Company”, this article considers the synergy effects, which arize as a result of interaction of the enterprises in the vertically integrated structure. There is shown the possibility of the emergence of synergy effect both because of acquisition, and in terms of organization of production and division of labour in holding structures. Accordingly, the fact of association, merger and acquisition does not guarantee the synergic effect from these actions, as well as the division of labor does not always lead to the positive results. It was usual to the post-Soviet mining industry to transfer some production services (repair and maintenance), or business processes to outsourcing in chase of the formal growth of labor productivity. It was assumed that the presence of order processing possibility of repair organizations to other companies will reduce the costs on the main enterprise, which highlighted the foregoing structures. In practice, such kind of result is not always guaranteed, because the new structure formed its own administrative apparatus, and it was not always able to get the third-party orders to compensate the additional costs. The authors showed that the synergic effect occurs with interaction of business effects, when the purpose of the units` activity is the increasing of competitiveness and efficiency of company, which ensure its sustainable development. Top management of the company is able to specify and maximally use the possibilities of optimization of the division and cooperation of production for the sustainable functioning of the company in long- term prospect. |
keywords | Synergy, synergic effect, innovations, investments, sustainable development, vertically integrated structure |
References | 1. Altushkin I. A., Levin V. V., Korol Yu. A., Sitnikova T. I. Tsvetnye Metally — Non-ferrous metals. 2012. No. 11. pp. 37–41. |
Language of full-text | russian |
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