The system of a market economy implies economic relations that are based on the economic freedom of activity of enterprises and their economic responsibility, free and transparent competition, pricing (with the exception of monopolies), and openness of market relations.
Organization as a subject of a market economy
The economic system means by itself. on the one hand, the production of goods or services, the performance of certain works, on the other hand, the consumption of manufactured products. In the current economy, production is formed in the form of an enterprise.
An enterprise is a commercial organization that owns a property complex, tools of labor, production technology, trained staff, and carries out activities with the aim of producing a certain product that is useful to society. The legal basis of the enterprise is the system of legislative acts that regulate the social and legal relations of partners in the organization, and its relations with other subjects of the economic and social system.
For the conduct of the main activity of the organization, such features are characteristic as: the presence of its own property; expenses characterizing the work of the enterprise; income showing economic efficiency; investment capital investments. The enterprise itself has a rather complex system of relations both within the organization and outside.
External and internal environment of the enterprise
The interaction of all departments and divisions of the enterprise creates the internal environment of the enterprise. Interaction in the internal environment is aimed at the uninterrupted and profitable activities of the entire organization, while the external environment is a set of active business entities, social, natural and economic conditions, political factors that affect the work of the organization.
There are two categories of the external environment of the enterprise: microenvironment, which consists of suppliers, consumers, competitors and other entities that have a direct impact on the enterprise; macroenvironment, which includes the political and international situation, natural factors, the demographic situation in the region, the economic development of the state and the region. The macro environment has a large impact on the micro environment and, as a result, directly on the organization.
A significant factor affecting the stable operation of an enterprise in the system of a market economy is called STP (technical progress). New technologies are of decisive importance in the development of an industrial enterprise. It influences the entire reproduction process. The development of the latest technologies, the creation of new equipment for the introduction of these technologies into production can increase labor productivity, increase production efficiency, and reduce the consumption of energy resources and natural raw materials. All these factors have a positive effect on the economic performance of the organization.
