1st ICAI 2020

International Conference on Automotive Industry 2020

Mladá Boleslav, Czech Republic

Depending on the current level of enterprise development, such transformations can be carried out in one of two ways. If an enterprise is oriented to the full cycle or uses vertical segmentation of the production process (i.e., has a consistent structure according to the authors’ terminology), the main activity is duplicated and the horizontal process segmentation is carried out with the separation of some divisions (i.e., it turns to parallel structure). If the enterprise already uses a parallel structure, then further development is carried out by extending the production chain within one larger structure, i.e. a vertically integrated structure starts developing. The organizational characteristics of each level of enterprise development within the authors’ theoretical model of the evolution of production structure of industrial enterprises adapted for investigated industry, are presented in Table 1. Table 1: The model of development of the production structure of industrial enterprises Level of evolution Type of industrial enterprise Type of production structure 1 industrial enterprise sequential 2 industrial network parallel 3 vertically integrated company sequential 4 horizontally integrated company parallel 5* transnational corporation sequential * not been analyzed in this article Source: own calculations To confirm the authors’ theoretical model for the evolution of production structure of industrial enterprises, they conducted a study using the methodology described above. As mentioned above, information on the studied enterprises was obtained by downloading it from the Albertina Gold Edition database. Further, before conducting cluster analysis, two groups of variables characterizing both the structure of the enterprise (first group) and the results of its business activities (second group) (see Table 2) were selected. Table 2: Designation and list of indicators used in conducting cluster analysis The first group of indicators The second group of indicators Designation Name Designation Name X 1 Number of workplaces X 4 Total assets ( тыс . CZK) X 2 Number of employees ( чел .) X 5 Annual turnover ( млн . CZK) X 3 Employees per workplaces ( чел .) X 6 Production ( тыс . CZK) X 7 Added value ( тыс . CZK) X 8 Personnel costs ( тыс. CZK) Source: own calculations

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