Management of export operations of an enterprise

Abstract

Relevance of the Research Topic In the contemporary architecture of the global economy, the agricultural sector of Ukraine occupies a pivotal position, acting not merely as a segment of the national industrial complex but as a critical guarantor of global food security. For decades, Ukraine has been recognized internationally as the "breadbasket of Europe," holding leading positions in the export of sunflower oil, corn, wheat, and rapeseed. However, the operational environment for domestic agricultural enterprises has undergone a radical and traumatic transformation in recent years. The onset of full-scale geopolitical instability, characterized by the blockade of deep-sea ports in the Black Sea region, the destruction of traditional supply chains, and the fundamental restructuring of logistics routes towards the western borders, has created an unprecedented crisis for the industry. Under these conditions, the traditional management models that served Ukrainian farmers for thirty years have become obsolete. Previously, export management was a passive process characterized by low logistics costs and high margins. Today, this model is no longer viable as logistics costs have skyrocketed, often consuming up to half of the final selling price. Furthermore, regulatory requirements in the European Union—now the primary market for Ukrainian goods—have become increasingly stringent, demanding compliance with complex "Green Deal" standards. Consequently, the survival of an agricultural enterprise depends not on its ability to produce, but on its ability to manage the export process effectively. This thesis addresses this urgent problem, arguing that export operations must be transformed into a sophisticated strategic function involving risk management and direct integration into European supply chains. Object and Subject of the Study The object of the study is the process of managing the foreign economic activity (FEA) of agricultural enterprises under conditions of logistical and geopolitical uncertainty. The subject of the study is the theoretical, methodological, and practical aspects of improving the efficiency of export operations at LLC "AGRO STAR UKRAINE", specifically focusing on logistics optimization and sales channel diversification. Purpose and Tasks of the Study The purpose of the work is to substantiate theoretical provisions and develop practical recommendations for improving the management of export operations at LLC "AGRO STAR UKRAINE" to ensure sustainable development and economic efficiency. To achieve this purpose, the following tasks were defined and solved in the thesis: - to clarify the theoretical foundations: To reveal the essence, forms, and types of export operations in the agricultural sector and analyze the specific features of managing agricultural exports, such as seasonality, perishability, and price volatility. - to develop a methodological approach: To substantiate a system of indicators for assessing export efficiency, distinguishing between economic effect and economic efficiency, and introducing metrics such as "Logistics Intensity" and "Export Profitability". - to conduct a comprehensive diagnostic: To analyze the organizational and economic condition of LLC "AGRO STAR UKRAINE" and diagnose the efficiency of its current export operations for the period 2021–2023. - to identify bottlenecks: To determine the structural weaknesses in the enterprise's current export model, specifically the reliance on intermediaries and high logistics costs. - to forecast market trends: To develop a forecast for the European agricultural market and construct scenarios (Pessimistic, Inertial, Optimistic) for the enterprise's development. - to propose strategic improvements: To justify the transition to an "Active Export Strategy" involving the creation of an FEA department, direct contracting, and logistics optimization. Summary of Main Findings The study establishes that standard management practices cannot be blindly applied to agriculture due to unique risks like biological seasonality and the status of the exporter as a "price taker". The practical analysis of LLC "AGRO STAR UKRAINE" reveals a contradictory picture: while production volumes remain stable and export volumes have recovered to pre-war levels, the financial efficiency of these operations has collapsed. The primary cause is identified as the "Logistics Intensity Index," which has risen to 38%, and a heavy reliance on indirect exports (selling to traders), which results in a loss of 15–20% of potential value. To address these challenges, the thesis proposes a comprehensive strategy for upgrading export management. This includes transitioning to direct contractual relationships with European processing plants to capture the "trader's margin," optimizing logistics through long-term forwarding contracts, and diversifying the export portfolio to include value-added products. Practical Value The final section provides an economic justification for these measures. Through scenario modeling, it is demonstrated that by implementing the proposed "Optimistic Scenario," LLC "AGRO STAR UKRAINE" can significantly increase its net export profitability. The recommendations outlined in this work offer a concrete roadmap for transforming export operations from a passive sales function into a core competitive advantage