INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 76

April 19, 2017

ECONOMY
Development of production strategy is the road to success

INVESTMENTS: FERGHANA REGION
New projects in fish farming

INFRASTRUCTURE
Ring railway length in Tashkent to comprise more than 71 km

INTERNATIONAL RELATIONS
President of Uzbekistan expressed condolences

CULTURE
Alley of Writers to be opened at National Park

ECONOMY

Development of production strategy is the road to success
Today almost in all countries market form of economics is recognized as the prevailing one with which all benefits have the price – each article, each work or service is sold and bought at the certain price (cost). Even the labor has the cost in the form of the salary or the income. At the same time the market became the center, a peculiar ground where the manufacturer (seller) and the consumer (buyer), i.e. a demand and an offer or, on the contrary, an offer and a demand meet each other.
The elementary market is a trade from hand to hand, eye to eye, direct exchange under the principle "log rolling". Such market often was called a "bazar" and has preserved in this form till nowadays (the ware market, the market of vegetables and fruit, construction materials, etc.). In 18th-19th centuries the market was free. The enterprises made goods for the unknown and unregulated market, they competed among themselves generally by reducing prices of the production. By the beginning of the 20th century the market becomes more and more adjustable. Production and sale of bulk of goods is controlled by the monopolies which have divided the market into spheres of the influence. At the same time the monopolistic capital combats, mainly, by means of non- price competition, by means of dictatorship in relation to competitors. Today’s market is the state regulated market. It is characterized by an active role of the state in development of the market relations, observance by all producers of rules of the fair, civilized competition, and antimonopoly policy. The regulated market doesn’t exclude the competition which in present conditions isn’t a competition for prize-winning places in comparison with planned economy, and rather is struggle of enterprises for acquisition of own "niche" in the corresponding market, marketing channels, receiving maximum benefit from the activity. As practice shows, one can achieve all this on the basis of the thought-over and purposeful production strategy. The word "strategy" was originally applied in military science and meant none other than science, art of conducting military operations. The commander who won or sought to win battle without big losses of manpower and the equipment i.e. keeping fighting capacity of the army was considered as the good strategist.
Strategy is applied also in economic practice. Unlike military strategy, economy strategy means long-term principles and intentions of the government on rational use of the productive forces and natural resources which are available in the country, ensuring macroeconomic stability, a gain of the national income, creation of wellbeing in society, etc. Evidence of that is the Decree of the President Shavkat Mirziyoev "On the strategy of actions for further development of the Republic of Uzbekistan" of February 7 of this year in which the priority directions of development of economy, increase in efficiency of reforms and improvement of a social and state system for the next five years are defined. The adopted document of development of strategy of actions not only raises it on qualitatively new level, but makes it important and obligatory at all levels, in all branches and links of economy. Development of strategy of actions is especially important for the enterprises which are, firstly, the main production link of economy, and secondly, manufacturers of production required for society. It has to include target setting and development of policy on their achievement. It should answers the following questions:
What products, how many, and of what quality the enterprise needs to produce?
How and what markets are to be entered to and production should be represented in?
What actions, how and why should be to carry out first of all?
What price policy should be followed?
What approx. period the developed strategy has to be intended for?
Answering these questions, one can define the current and perspective mission of the enterprise, i.e. how it looks today, or will look, approximately, in 5-10 years. The most important here is an objective assessment of activity of the enterprise in the past (for example, one year, 2-3 years ago) and in the present, and definition of the "strong" and "weak" sides both of own production, and production of competitors. For this purpose, first of all, deep economic analysis of activity of the enterprise and the record of consumer demand for the production or the rendered services is required. The latter, in practice, is carried out, as a rule, by questioning dedicated to studying of consumer demand. Activity of competitors – from production and sale of products to the innovations realized or planned to be realized - should always be kept under review of the enterprise.
If advantages over the competitor (s) are at the level of 30%, it means, according to modern calculations, that goods and services of this (your) enterprise are in a weak competitive position; rate within 30-50% is rather steady position in the market; rate of 50-70% is the successful competitive position in the market, and over 70% means control over the market of this production (services). The strategy of ensuring competitiveness should be built using only one of types of competitive advantages: attracting consumers (buyers) with rather low price of production in comparison with competitors, or satisfying demand of the most exacting buyers who demands exclusively quality production. These two types of competitive advantages should not be combined. The business plan should specify or show what strategy of production and ensuring the production competitiveness is chosen by the enterprise.
Production strategy has to have the advancing character. Such components as commodity and price policy, decrease in costs of production, fight against reject and against all types of losses and unproductive expenses need to feed coherently into it. Strategy can be considered effective if it promotes growth of production capacity of the enterprise, ensuring its economic stability and competitiveness. These provisions are considered as the first step of the production strategy realized by the enterprise. The second step – strategy has to be aimed at ensuring financial independence of the enterprise, its solvency and growth of profitability level of production. At last, the third strategic step is an orientation of the enterprise to modern waste-free technologies and "know-how", use of all advanced experience accumulated in domestic and foreign practice. In total development and realization of production strategy has to promote maintenance of high image of the enterprise in the corresponding market, expansion of a consumer ( i.e clients) range, and acceleration of turnover of the resources involved in production and return to enterprise with obligatory "plus". To do that the enterprise has not to produce that production it capable or able to produce, but production which is in demand in the consumer world, i.e. doesn’t sit unsold in finished goods warehouses, which is fast selling goods. This requirement which is, in fact, the most important condition of survival of any enterprise in the conditions of today’s market system and the developing competition, unfortunately, isn’t fulfilled itself or automatically. To do that, as practice shows, the enterprise (s), firstly, has to work continuously to improve quality of manufactured products, which shouldn’t concede to the foreign analogues, but rather should even exceed them. Secondly, not only director, but also all staff of the enterprise has to feel concern about quality and progress of production. Thirdly, the thought-over and effective advertizing activity has to be carried out, they shouldn’t spare expenses, save funds for advertizing which has been main "engine" of trade. At last, fourthly, it is expedient to carry out flexible price policy, keeping in mind, at the same time, that the profit or the income of the enterprise (seller) in general, increases or can increase not only by advance of price of manufactured commodity products, but in many respects owing to growth of volume of sales.
Development and realization of production strategy by the enterprises are not an end in themselves, but order of the day and, at the same time, the requirement of the huge transformations occurring today in country life. Possessing the thought-over and purposeful strategy, the enterprises ensure, first of all, long life cycle and participation, both in internal, and in foreign market. It is the effective instrument of management, planning and forecasting of production, providing superiority over competitors and strengthening of the positions in market space. In other words, strategy is a program of achievement of goals of progressive development both by the enterprises and each enterprise separately. Managing such strategy is one of important tasks of the enterprises, irrespective of their branch affiliation, form of ownership, location and other signs.
(Source: «Business partner.uz» newspaper)

INVESTMENTS: FERGHANA REGION

New projects in fish farming
Ferghana region carried out 40 new projects in fish farming last year. Artificial ponds were organized on 170.4 hectares. The works were empowered by 1.3 billion soums (currency rates of CB RU from 19.04.2017, 1$= 3678.89 soums) of soft loans of commercial banks.
The region possesses ample opportunities for the development of fish farming. Channeling of loan funds of commercial banks to the industry, effective use of natural lakes, provision of farms with fish roach and fodder have ensured success.
The Shimoly Baghdod farm of Baghdad district built a ten hectare artificial pool and grew 50.9 tons of fish in 2016 through the 120 million soums concessional loan of Ipoteka Bank.
252 farms of the region grow marketable fish species like European carp, grass carp and silver carp. Baghdad and Furkat districts are currently piloting African catfish farming.
The scale of fish farming by the new hatchery technology has been expanding in the region year by year. To date, nearly a hundred of new cages have been installed in the Central Ferghana Reservoir in Yazyavan district, the Karkidon Reservoir of the Kuva district, the Kurgantepa Reservoir of the Oltiaryk district. The new technology helped to grow about 250 tons of fish in the region last year alone.
(Source: «Uzbekistan Today» newspaper)

INFRASTRUCTURE

Ring railway length in Tashkent to comprise more than 71 km
JSC Uzbekiston Temir Yullari continues to develop the railway transport infrastructure not only of the country as a whole, but of the capital. Traffic jam issues, unloading roads and improving public transport remain highly relevant today. The head of state on 8 April of this year reviewed and approved the latest development project - electrified railway ring designed for electric trains of enhanced comfort.
The double-track mainline will run along the Tashkent ring road with its outer side. The total path length in one end will be 71 km 200 meters. Its construction will be implemented within 3 years. The project cost is $265mn.
(Source: UzReport.uz)

INTERNATIONAL RELATIONS

President of Uzbekistan expressed condolences
The President of the Republic of Uzbekistan Shavkat Mirziyoyev sent a message to the President of the Islamic Republic of Iran Hassan Rouhani in connection with large-scale of floods in several regions of the country, as a result of which there are numerous human victims and missing persons.
The Head of Uzbekistan expressed condolences to the President and people of Iran, families and relatives of those died.
(Source: Press Service of the MFA of the Republic of Uzbekistan)

CULTURE

Alley of Writers to be opened at National Park
President of Uzbekistan Shavkat Mirziyoyev today signed a decree “On creation of the Alley of Writers in the National Park of Uzbekistan named after Alisher Navoi”.
According to the document, the Alley of Writers will be created in National Park of Uzbekistan named after Alisher Navoi in Tashkent.
Monuments of Hamid Alimdjan, Gafur Gulyam and Zulfiya will be moved to the Alley of Writers.
Uzbek leader ordered to announce contest for creation of memorial complexes of Ozod Sharafiddinov, Erkin Vohidov, Abdulla Oripov and Muhammad Yusuf.
New building of Uzbekistan Writers Union will be constructed in the park. The building of the Eastern hall of Culture and Art of Uzbekistan, located in the park, will be handed over to the Uzbekistan Writers Union.
The literature center will be organized in the building for holding exhibitions, presenting books and literature events.
It is worth to mention that the monument of Alisher Navoi was erected in National Park in Tashkent in 1991.
Memorial complex of Abdulla Qahhar (in 2007), Oybek (in 2010), Said Ahmad and Saida Zununova (in 2013) were created in the park.
(Source: UzDaily.com)

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