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Regional Economics: Theory and Practice
 

Conceptual approaches to consumer cooperation procurement activity development of the Voronezh region

Vol. 13, Iss. 1, JANUARY 2015

PDF  Article PDF Version

Available online: 8 January 2015

Subject Heading: DEVELOPMENT STRATEGY

JEL Classification: 

Pages: 26-35

Syroizhko V.V. Voronezh Cooperative Institute, Branch of Belgorod University of Cooperation, Economics and Law, Voronezh, Russian Federation
valentina_syroizhko@mail.ru

Golikova G.V. Voronezh State University, Voronezh, Russian Federation
ggalina123@yandex.ru

Importance The article aims at searching for the ways to strengthen the operating efficiency of consumer cooperation organizations that serve to fulfil national tasks related to increasing the population's living standard, solving the issues of the country's food security, and performing social mission in rural areas.
     Objectives The target of the research is the system of consumer cooperation. The scope of the research includes the policy implementation in the sphere of field of procurement regulation.
     Methods The methodological and theoretical framework encompasses regulations, concepts, opinions and conclusions presented in the works of national scientists on consumer cooperation system development. Observation, comparison, synthesis, statistical and system analyses and scientific abstraction served as a methodological procedure of the study. We present a program for consumer cooperation system development. Its implementation will improve the situation in procurement and take it to a new qualitative level. This implies improving institutional and socio-economic relationships within the system, modernizing procurement activities and the entire consumer cooperation, as well as optimizing management structure. The development program for each sector includes strategies of individual entities. Each entity seeks for its particular benefits. We have considered strategies of economic development: growth on existing product markets, new product development, market expansion and diversification, strategy of vertical and horizontal integration. The paper states that strategic market management of procurement activities is closely linked to accelerating management decision-making.
     Results We believe that the key policy provisions should include the transfer of procurement sector organizations to intensive path of development, search for non-deficient forms of operation, ensuring interaction of agricultural producers and processing enterprises. In addition, the key policy provisions should include flexible pricing policy, as well as relations with processing plants and enterprises, establishing a single logistics system of consumer cooperation, developing instruments of lending and risk insurance.
     Conclusions and Relevance We conclude that the need for State support to consumer cooperation in general and procurement in particular stresses the importance of implementing these provisions.

Keywords: regional budget, region population, consumer cooperation, procurement, activity development strategy, economic growth

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