Management of productive capital of cognac industry enterprises of Ukraine

Substantiated that the structure of capital involved is the determining factor for predicting capitalization Odessa Cognac Factory. For this reason, to ensure capitalization of the enterprise of cognac industry in Ukraine should focus on the management of development and utilization of productive ca...

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Published in:Економіка промисловості
Date:2014
Main Author: Mohylova, A.Y.
Format: Article
Language:English
Published: Інститут економіки промисловості НАН України 2014
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Online Access:https://nasplib.isofts.kiev.ua/handle/123456789/64031
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Cite this:Management of productive capital of cognac industry enterprises of Ukraine / A.Y. Mohylova // Економіка промисловості. — 2014. — № 1 (65). — С. 127-135. — Бібліогр.: 25 назв. — англ.

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Digital Library of Periodicals of National Academy of Sciences of Ukraine
id nasplib_isofts_kiev_ua-123456789-64031
record_format dspace
spelling Mohylova, A.Y.
2014-06-09T17:26:01Z
2014-06-09T17:26:01Z
2014
Management of productive capital of cognac industry enterprises of Ukraine / A.Y. Mohylova // Економіка промисловості. — 2014. — № 1 (65). — С. 127-135. — Бібліогр.: 25 назв. — англ.
1562-109Х
https://nasplib.isofts.kiev.ua/handle/123456789/64031
658.14:663.241(477)
Substantiated that the structure of capital involved is the determining factor for predicting capitalization Odessa Cognac Factory. For this reason, to ensure capitalization of the enterprise of cognac industry in Ukraine should focus on the management of development and utilization of productive capital, which is based on planting grapes. In the article the new approach to assessing capitalization of enterprise complete cycle of cognac through organizational and economic transformation of the production capital as a resource base for future capitalization. Focusing on the importance of the sugar content of grapes figure for the volume of alcohol, all calculations are carried out for reasons of ensuring the most collected large amounts of sugar. On this basis concluded that the possible optimization potential distribution area of land under vine particular brand. Given the optimal allocation structure planting grapes for the production of cognac alcohol at Odessa Cognac Factory «Shustov» medium duty sugar harvest grapes can be increased by 3,7%. However, EBITDA increased by 27,8%. Growth of EBITDA ratio can be interpreted as increased capitalization of the test plant. Thus, the redistribution of land area between the grape varieties are output by improving operational performance through better use of the available productive capacity.
Доведено, що для забезпечення капіталізації підприємства коньячної галузі України варто зосередити увагу на управлінні процесом формування та використання виробничого капіталу. Обґрунтовано новий підхід до оцінки капіталізації підприємства повного циклу виробництва коньяку через організаційно-економічні трансформації виробничого капіталу як ресурсної основи майбутньої капіталізації.
Доказано, что для обеспечения капитализации предприятия коньячной отрасли Украины следует сосредоточить внимание на управлении процессом формирования и использования производственного капитала. Обоснован новый подход к оценке капитализации предприятия полного цикла производства коньяка через организационно-экономические трансформации производственного капитала как ресурсной основы будущей капитализации.
en
Інститут економіки промисловості НАН України
Економіка промисловості
Problems of industrial enterprises’ and production complexes’ economics
Management of productive capital of cognac industry enterprises of Ukraine
Управління виробничим капіталом підприємств коньячної галузі України
Управление производственным капиталом предприятий коньячной отрасли Украины
Article
published earlier
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
collection DSpace DC
title Management of productive capital of cognac industry enterprises of Ukraine
spellingShingle Management of productive capital of cognac industry enterprises of Ukraine
Mohylova, A.Y.
Problems of industrial enterprises’ and production complexes’ economics
title_short Management of productive capital of cognac industry enterprises of Ukraine
title_full Management of productive capital of cognac industry enterprises of Ukraine
title_fullStr Management of productive capital of cognac industry enterprises of Ukraine
title_full_unstemmed Management of productive capital of cognac industry enterprises of Ukraine
title_sort management of productive capital of cognac industry enterprises of ukraine
author Mohylova, A.Y.
author_facet Mohylova, A.Y.
topic Problems of industrial enterprises’ and production complexes’ economics
topic_facet Problems of industrial enterprises’ and production complexes’ economics
publishDate 2014
language English
container_title Економіка промисловості
publisher Інститут економіки промисловості НАН України
format Article
title_alt Управління виробничим капіталом підприємств коньячної галузі України
Управление производственным капиталом предприятий коньячной отрасли Украины
description Substantiated that the structure of capital involved is the determining factor for predicting capitalization Odessa Cognac Factory. For this reason, to ensure capitalization of the enterprise of cognac industry in Ukraine should focus on the management of development and utilization of productive capital, which is based on planting grapes. In the article the new approach to assessing capitalization of enterprise complete cycle of cognac through organizational and economic transformation of the production capital as a resource base for future capitalization. Focusing on the importance of the sugar content of grapes figure for the volume of alcohol, all calculations are carried out for reasons of ensuring the most collected large amounts of sugar. On this basis concluded that the possible optimization potential distribution area of land under vine particular brand. Given the optimal allocation structure planting grapes for the production of cognac alcohol at Odessa Cognac Factory «Shustov» medium duty sugar harvest grapes can be increased by 3,7%. However, EBITDA increased by 27,8%. Growth of EBITDA ratio can be interpreted as increased capitalization of the test plant. Thus, the redistribution of land area between the grape varieties are output by improving operational performance through better use of the available productive capacity. Доведено, що для забезпечення капіталізації підприємства коньячної галузі України варто зосередити увагу на управлінні процесом формування та використання виробничого капіталу. Обґрунтовано новий підхід до оцінки капіталізації підприємства повного циклу виробництва коньяку через організаційно-економічні трансформації виробничого капіталу як ресурсної основи майбутньої капіталізації. Доказано, что для обеспечения капитализации предприятия коньячной отрасли Украины следует сосредоточить внимание на управлении процессом формирования и использования производственного капитала. Обоснован новый подход к оценке капитализации предприятия полного цикла производства коньяка через организационно-экономические трансформации производственного капитала как ресурсной основы будущей капитализации.
issn 1562-109Х
url https://nasplib.isofts.kiev.ua/handle/123456789/64031
citation_txt Management of productive capital of cognac industry enterprises of Ukraine / A.Y. Mohylova // Економіка промисловості. — 2014. — № 1 (65). — С. 127-135. — Бібліогр.: 25 назв. — англ.
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fulltext –––––––––––––––––––––– Економіка промисловості Экономика промышленности –––––––––––––––––––––– ISSN 1562-109X 127 2014, № 1 (65) UDC: 658.14:663.241(477) Anastasia Yurievna Mohylova, PhD in Economics Oles Honchar Dnipropetrovsk National University MANAGEMENT OF PRODUCTIVE CAPITAL OF COGNAC INDUSTRY ENTERPRISES OF UKRAINE The current economic situation in Ukraine is marked by uncertainty and inconsistency, which is why arise scientific discussions on ad- vanced concepts of economic development of domestic enterprises. Even under conditions of sufficient elaboration of theoretical and metho- dological approaches to the assessment of de- velopment of enterprises and forecasting future trends of the external and internal environment, scientific problems of justification of the con- cepts of enterprise management in the aspect of its growth strategy are actual. The methodologi- cal basis of modern management concepts should be formed taking into account accumu- lated practical experience in strategic manage- ment. At the present stage of development of the methodology of the financial analysis the capita- lization of the enterprise is the indicator of eco- nomic efficiency of its activity. The lack of a single approach to the management of the process of capitalization of enterprises compli- cates the justification of effective administrative decisions concerning the growth of its cost and increase its capitalization. For these reasons, particularly relevant are the works of scientists, aimed at solution of the problems of develop- ment and implementation of specific mechan- isms to control the process of capitalization of the enterprise. The above mentioned implicitly indicates the timeliness and the scientific impor- tance of the chosen theme for research. The effectiveness of the enterprise activi- ty in any industry is largely determined by its capital value and dynamics which determine the size of an enterprise and stability of its opera- tions. Therefore, an important characteristic of an enterprise quality management system is its capital. Kirsanova T. and Koljada I. solve the problem of effective management of an enter- prise capital by determining the optimal capital structure, which refers to a ratio of equity and debt that maximizes the market value [1, p. 61]. However, these researchers hold positions of importance of preserving and enhancing equity. Some problems of managing enterprise capital structure, namely the optimization of capital structure, described in the writings of many other researchers: Korzh R. worked out the capital structure of companies in the current economic conditions based on systematic guidelines static and dy- namic theories of capital structure optimization [2]; Chyzh N. compared to previous scholars, narrowing a range of analyzed companies, high- lights the problems of forming the optimal struc- ture of its own enterprise capital [3]; Piletska S. for the grant of recommenda- tions in relation to the construction of equity structure proves feasibility of controlling the structure of equity and debt businesses on a de- finition of subordinated capital by providing opportunities to use additional capital as a part of its own and a bill of credit, a bond is as a part of a debt [4]; Shevchenko N. offers to determine the optimal capital structures of stock companies by minimizing debt values guards and increase the values of their own, and proves that effective methods of optimizing the capital structure is to use a loan and lease issuance of preferred shares [5]; Obuschak T. focuses on the optimization of the equity and debt capital on a multi- objective basis, but emphasizes the need to en- sure the lowest possible cost of capital compo- nents [6]; Shpak N. and Rudnytska A. support the partaking of new capitals at the obligatory condition of development of the system of indexes of the status and use of enterprise capital, and they emphasize that there is an op- timal capital structure, which will help to mi- nimize the weighted average cost of capital and at the same time support the credit reputation of an enterprise [7]; © A.Yu. Mohylova, 2014 –––––––––––––––––––––––––– Економіка промисловості Economy of Industry –––––––––––––––––––––––––– 128 ISSN 1562-109X 2014, № 1 (65) Semenov G. and Peleshko A. offered an approach to determine the optimal capital struc- ture according to method of the combined effect of maximizing the return on equity growth and the level of financial stability that, in their opi- nion, enables rapid and optimal capital structure, and predict the maximum increase in return on equity and financial viability in the future [8]. The results of research done by Semenov G. and Korol S. a set of criteria for return on equity and the level of financial stability criterion is added to minimize the level of financial risk on the basis of which the stages of optimization capital structure have been determined [9]; Perederiyenko N. and Lespuh A. solve the problem of optimizing the capital structure and conclude that the structure of equity and loan capital «не є сталою, може змінюватись у від- повідь на зміну умов виробництва і реаліза- ції, але в кожний момент менеджери повинні мати чітке уявлення про цільову структуру і всі фінансові рішення підпорядковувати за- вданню досягнення такої структури капі- талу»1 [10, p. 184]. It is very important to con- sider the comments of these authors concerning the variability index of the target capital struc- ture dynamics, that is why it is necessary to identify the factors of index changes to ground its periodic adjustment; Grinkevich S., Saldan P. and Melnichen- ko I. consider approaches to determine the na- ture of capital structure and optimal capital structure and focus their research on the groun- ding for the choice of financial development strategy based on the model of the structure of its capital. Because of different economic condi- tions different industries in the economy of vari- ous countries agree with the conclusion of these scholars about the impossibility to find a single approach to determine the optimal ratio of capi- tal items, which proves the necessity of deploy- ing other areas of study of conditions for com- panies’ capitalization we consider one of the most original search conditions is formation of capital and industrial – enterprises separately formation of productive capital [11]. 1 «is not constant, can change in response to changing conditions of production and sales, but managers should always be clear about the target structure and all financial solutions to subordinate the task of achieving such a capital structure» The problem of managing its capital structure is observed in the works of national scientists-classical Afanasiev A. [12], Balitska V. [13] and Blanc I. [14]. But they are focused on the invention of the optimal ratio of equity and debt capital. However, according to the ob- tained results of during research, it is the finan- cial capital is not a significant factor in the capi- talization of the companies of some branches of economy, which is why there is the need to ana- lyze the contribution of other types of capital. Management of capital structure is in the focus of researches of leading foreign scientists. Kehinde James Sunday, PhD of Lagos State University Ojo (Nigeria), by examining the cha- racteristics of Small and Medium Scale Enter- prises (SMEs), concluded, that it was capital management ensures continuous operation of the enterprise in the market, its growth and solvency [15, p. 271]. Romano C. A., Tanewski G. A. and Smyrnios K. X. invented the relationship be- tween firm size and the importance of managing its capital, namely: managing capital is a signifi- cant factor in the growth of the effectiveness of large and medium-sized enterprises than of small ones [16]. Baral J. K. as a result of constructing re- gression models found that the size, growth rate and earnings of the enterprise are significant determinants of its capital structure [17]. Khrawish H. A. and Khraiwesh A. H. A. focused attention on the invention of impact the ratio of short-term and long-term debt in the capital structure on its profitability [18]. Given a large number of scientific papers on managing capital structure it is possible to make a remark that the formation of an effective mechanism for managing the capitalization of industrial enterprises should be based on consid- eration of mandatory industry-specific require- ments for raw materials, technologies, machines of all logistics and personnel, especially the spe- cialization, a process of manufacturing and pro- duction technology. Semenov A., Plaksiuk A. and Jaroszewska O. support the positions which deal with the formation of aggregate enterprise capital and argue that «this issue requires only an individual approach. It is impossible to de- termine a single optimal approach of capital ra- tio of structural elements for different compa- –––––––––––––––––––––– Економіка промисловості Экономика промышленности –––––––––––––––––––––– ISSN 1562-109X 129 2014, № 1 (65) nies or one company for the entire period of its operation» [19, p. 140]. The optimal capital structure of the enter- prise is usually achieved through the attainment of the chosen optimization criterion. Research- ers usually choose one out of the three criteria of optimizing the capital structure of the enterprise [9, p. 140]: 1. value of the enterprise as a whole; 2. maximum share price of the company; 3. optimal ratio of return on equity and fi- nancial viability. Thus, it is evident that much of the atten- tion of researchers focused on studying the im- pact of the management financial capital of en- terprise on its economic efficient. But at the same time the question arises: is it sufficient to choose one of the above criteria and how to en- sure a more rational choice of optimality crite- rion by defining the specific features of the in- vestigated companies. Also need to determine whether enough only solution to the problem of optimization of capital structure. The purpose of this article is to determine the impact of capital structure on the company capitalization rate of the enterprise of the full- cycle production of cognac in Ukraine and to evaluate the possible directions of improving the management of their own productive capital. Some results of the research were represented in the article [20]. Table 1 shows the amount of capital in- volved in the production process of Odessa Cognac Factory, and some financial indicators of its activity. Table 1 The volume of capital and results of operation at Odessa Cognac Factory * Years Non-current assets (f.1, line 080), ths UAH Long-term liabilities (f.1, line 480), ths UAH Share of non- current assets The share of long- term com- mitments Net Profit, ths UAH EBITDA, ths UAH EVA, ths UAH 2004 136,047 28334 0,83 0,17 1302 20732 2005 129,587 30667 0,80 0,20 6173 28862 17056,38 2006 152,769 83548 0,65 0,35 490 23962 13819,04 2007 122620 34539 0,78 0,22 2256 26996,6 13357,02 2008 122,978 106,171 0,54 0,46 2126 34164 7322,479 2009 112,602 35185 0,76 0,24 2024 26306 4943,463 2010 103,259 0 1 0 2215 20585 8608,442 2011 96465 362,513 0,21 0,79 1476 25133 13844,3 2012 93425 362,443 0,20 0,80 6489 28939 13316,97 * Composed and calculated by the author according to the Financial Statements of Odessa Cognac Facto- ry «Shustov». EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization. EVA - Economic Value Added. Velnampy T. and Aloy Niresh J., Profes- sors from Sri Lanka, on the basis of correlation analysis revealed relationships between a capital structure and profitability - namely, between the ratio of borrowed and equity and return on equi- ty [21]. As it can be seen from the data given in table 1, there is a chaotic dynamics of the finan- cial results of operating capital in Odessa Cog- nac Factory and the tendency of development of indicators EBITDA and EVA is not clear. For this situation, there is an assumption that it is the result of unstable capital structure. The lack of stable tendency to attract long-term bank loans can be attributed to two factors: 1. Odessa Cognac Factory uses bank loans to purchase foreign cognac required for blending. But determining the required amount of loan capital, should take into account in an agreement between the plant and the Bank on especially favorable credit conditions at 10% per annum. –––––––––––––––––––––––––– Економіка промисловості Economy of Industry –––––––––––––––––––––––––– 130 ISSN 1562-109X 2014, № 1 (65) 2. Fall of credit used in 2008 to zero in 2010, after which the revival of lending is seen, due to the overall situation in the banking sector of Ukraine, when banks stopped lending alto- gether individuals and businesses due to the fi- nancial crisis, but in 2011 they restored it. To justify recommendations for the man- agement of its capital structure, the relationship between the financial capital operating results (EBITDA and EVA) and the share of long-term liabilities of Odessa Cognac Factory was in- vented. However, the relationship between EBITDA and the share of long-term debt in the capital structure of the enterprise is very weak (coefficient of determination 0,1826), and as far as the rate of EVA is concerned such a relation- ship is absent (coefficient of determination is almost zero – 0,0588). In this respect, the relationship between EVA and the share of long-term liabilities at Odessa Cognac Factory was checked; as a resalt, it was found that the dependence with lag 2 (coefficient of determination 0,4677) is a bit bigger, but still there is no reason to argue that at the studied enterprise the financial results are determined by the structure of capital involved. To test this assumption we checked the depen- dence of net income on the capital structure of the plant and it has found that the relationship between the net profit of the plant and the per- centage of a long-term debt (even lags) are vir- tually absent. According to the results of finding the relationships between the key financial indi- cators of enterprise performance and the share of long-term liabilities a final conclusion can be made: the structure of the capital involved is not the determining factor for predicting capitaliza- tion of Odessa Cognac Factory. So it is possible to formulate the following hypothesis: factory capitalization is determined by its productive capital. In other words: for the capitalization of Odessa Cognac Factory «Shustov» it is neces- sary to focus on the management of formation and utilization of productive capital, which is based on grapes planting. Areas of land occupied by grape bushes in Odessa Cognac Factory during 2000-2012 years can be described as unsteady. Climatic features and characteristics of the soil near the town Feodosiia led to the fact that to produce cognac of Odessa Cognac Facto- ry «Shustov» such sorts of grapes as Rkatsiteli, Silvaner, Aliquot, Sukholimansky White, Char- donnay, Riesling, Sauvignon Blanc, Pinot Blanc are grown. As can be seen from the data given in ta- ble 2, the acidity of grapes and its sugariness, the range of values is determined by the variety and actual values – by weather conditions and sunlight access to vines, the company keeps these factors constant by controlling the density of vines planting. The dynamics of areas of a particular grape variety depends on weather conditions and pests, namely: 1. due to a very cold winter (below 30 ͦ C) vineyards can die out, which took place in 2010; 2. Feodosiia soil isn’t resistant to the main pest of grapes - phylloxera. The main characteristics of the varieties of white grapes that are grown for the produc- tion of cognac of TM «Shustov» are as follows: acidity (over 6-6,5 g / l), which deter- mines the taste and after taste of the finished drink - cognac; sugar content (usually more than 20 %), which determines the potential amount of cog- nac spirit. Sugar content of grapes and cognac spirit are proportionally dependent parameters, that’s why white grapes with high sugar content index are used to produce large amounts of al- cohol. Gross harvest of grapes for making cog- nac of TM «Shustov» for the same period can also be characterized as an uncertain size, which firstly depends on the area of vineyards, and secondly, competent preparation of vines when cutting vines after harvest in the fall. Even if there is a close connection between indicators of vineyard area and total grape harvest (coeffi- cient of determination is very high - R 2 = 0,9237), it can be argued that the analyzed parameters are random variables. Peculiarities of cognac production mean pressing of harvested grapes rather than pressing of each type separately, the white grape varieties are interchangeable, and therefore we can fore- cast the potentially optimized distribution of a land area under vineyards of any particular type. Based on the importance of the sugar content of grapes for the volume of spirit production, it is reasonable to carry out further calculations, based on getting the maximum amount of har- vested sugar. Index of gross yield of sugar from the grape harvest of Odessa Cognac Factory (Ta- ble 2) is characterized by an accident. It does not reflect the dynamics of the fluctuations in the –––––––––––––––––––––– Економіка промисловості Экономика промышленности –––––––––––––––––––––– ISSN 1562-109X 131 2014, № 1 (65) overall yield rate of 1 ha (figure for all grades). It is obvious that a constant yield of 1 hectare at the factory reaches at the expense of proper pruning of grapes in autumn and adjusting the density of planted vines (at a distance of 2,5 - 3 m between them). Table 2 Yield of sugar from 1 hectares, fi / ha Years Chardonnay Riesling Rkatsiteli Silvaner Aliquot Suholymansky White Sauvignon Blanc Pinot B lanc 2000 14 16,9 19,4 16,3 23,8 20,5 8,7 12,0 2001 16 17,4 20,4 15,9 23,9 20,8 10,3 11,0 2002 14 18,0 20,8 16,7 22,6 21,0 10,0 12,8 2003 15 16,8 21,4 17,4 24,5 20,9 10,1 11,7 2004 16 16,8 19,9 17,5 22,6 19,4 10,6 12,1 2005 15 15,9 20,7 16,6 24,3 20,8 9,4 11,8 2006 15 17,4 21,5 17,1 23,4 20,3 8,9 11,4 2007 15 17,2 21,0 17,4 23,1 18,9 10,4 11,6 2008 15 17,1 20,6 17,1 24,9 20,1 9,5 12,4 2009 16 17,1 19,7 17,1 25,9 19,8 9,0 11,4 2010 15 17,8 20,5 17,2 25,3 19,6 9,7 11,1 2011 16 17,8 20,6 17,7 22,5 21,2 9,0 12,3 2012 15 18,4 21,7 17,3 23,2 19,5 10,0 12,1 During the research by the following laws were revealed: First, the dynamics of the gross harvest almost follows the dynamics of the total vi- neyard area. For this reason, reaching the planned gross crop values determine the impor- tance of managing the total area of vineyards. Secondly, 2010 was characterized by a sharp reduction in the total area of vineyards due to their freezing after winter. In the same year there was a significant decrease in grape harvest. Thirdly, even in periods 2000-2003 and 2005-2008 when the vineyard area was almost constant, fluctuations in gross harvest of grapes were observed, which confirms the fact that the harvest of grapes is also determined by weather conditions, such as special features of the sum- mer months, when berries ripen. The distribution of vineyards by types of grapes in Odessa Cognac Factory has historical- ly background. It’s possible to increase the volume of har- vested sugar by redistribution of areas between different grape varieties. For this purpose, we recommend to use sach mathematical tool of cal- culation as «efficient portfolio theory» [22-25]. While solving the problem, the structure of vineyards used for Odessa Cognac Factory was determined (Table 3, Fig. 1). Changes that will occur in the structure of the distribution area between grape varieties are reproduced in Fig. 2. Table 3 Structure of planted grapes of Odessa Cognac Factory Chardonnay Riesling Rkatsiteli Silvaner Aliquot Suholymansky White Sauvignon Blanc Pinot B lanc for the minimum risk portfolio (in Fig. 1 - the lowest point) 0,188 0,122 0,076 0,000 0,133 0,099 0,126 0,256 to maximize the value of gross yield of sugar from all areas of vineyards without limitation of risk (in Fig. 1 - This is an extreme point of the upper area, which corresponds to only one sort -Aliquot № 6) 0 0 0 0 1 0 0 0 for the distribution of areas between grape varieties that is currently present at the factory (in Fig. 3 - a yellow dot is inside the area) 0.171 0,165 0.157 0,144 0,123 0.114 0,080 0,048 to ensure maximum efficiency in existing (actual) risk levels (average volume of sugar yield from 1 ha) 0,128 0,155 0.122 0,140 0,156 0,202 0,030 0,067 –––––––––––––––––––––––––– Економіка промисловості Economy of Industry –––––––––––––––––––––––––– 132 ISSN 1562-109X 2014, № 1 (65) 0 0,2 0,4 0,6 0,8 1 1,2 0 5 10 15 20 25 30 ris k ( sta nd ar d d ev iat io n) Yield of sugar from 1 ha sorts of vineyard alone portfolio of minimal risk factual situation in 2012 maximum sugar efficient portfolios optimal portfolio with fact risk portfolios of the previous periods Fig. 1. Portfolios of distribution of areas between grape types Chardonnay Riesling Rkatsiteli Silvaner Aliquot Suholymansky White Sauvignon Pinot B lanc factual structure 0,170632436 0,164996869 0,156856606 0,143706951 0,122730119 0,113650595 0,079524108 0,047902317 optimal structure 0,127762752 0,155319015 0,122433423 0,139586175 0,155640656 0,201564115 0,03033743 0,067356434 0 0,05 0,1 0,15 0,2 0,25 sh ar e of th e vi ne ya rd s or t i n th e ov er al g ra de transition to the optimal structure of plantings while keeping the actual level of risk Fig. 2. Changes in distribution of areas between the grape types under the actual level of risk –––––––––––––––––––––– Економіка промисловості Экономика промышленности –––––––––––––––––––––– ISSN 1562-109X 133 2014, № 1 (65) If you agree to the increase in risk, you can get any of the points of the right lower limit (shown by the dotted line in Fig. 1). Each higher point is reached by the corresponding changes in the structure of the distribution area. The dy- namics of these changes is shown in Fig. 3. However, EBITDA would increase from 33,903 thousand UAH to 43,330 thousand UAH, by 27,8 % (Fig. 4). The growth of EBIT- DA can be interpreted as the increase in capita- lization of the factory under research. Fig. 3. Dynamics of structure of vineyard areas with the increase in maximum average volume of sugar yield from 1 ha According to the calculations, it was de- termined that under optimal distribution of the structure of planted grapes to the produce of cognac alcohol at Odessa Cognac Factory «Shustov», the average volume of sugar har- vested from the grape can be increased by 3,7 %. Thus, the redistribution of land between the grape varieties is the initial condition to im- prove operational performance through the bet- ter use of the available production capacity. But it should be noted that it will be observed in 4 years (lag = 4 while assessing the impact of gross volume of sugar from the harvested grapes on EBITDA). The plant management should accept recommendations on the optimal alloca- tion of land area between the grape varieties while planning future business strategies to pro- duce maximum yield of grapes. Thus, by results of research, the impact of productive capital in the financial performance of the enterprise capitalization was found and the structure of productive capital was optimized. This article validates a new approach to the increase in the capitalization of an enter- prise of a complete cycle of cognac production through organizational and economic transfor- mations of the production capital as a resource base for the future capitalization when the indus- try characteristics and peculiarities of the pro- duction process are taken into account. 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 15 17 19 21 23 25 th e gr ap e sh ar e in th e st ru ct ur e of v in ey ar d average yield of sugar from 1 ha dinamics of the structure area provided maximum grows of sugar Chardonnay Riesling Rkatsiteli Silvaner Aliquot Suholymansky White Sauvignon Pinot B lanc –––––––––––––––––––––––––– Економіка промисловості Economy of Industry –––––––––––––––––––––––––– 134 ISSN 1562-109X 2014, № 1 (65) Further research is seen to be appropriate towards the invention of the influence of other factors on the enterprise capitalization. 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