Assessment Of The Level Of Vulnerability To Protect Property Interests

The definition of the term “property interests protection”

It is necessary to give the author's definition of the concept of property interests protection based on the analysis of elements comprising the protection mechanism and the relationship of protection and vulnerability.

Assessment of the vulnerability level of alcoholic beverages production process

To identify the vulnerability level of alcoholic beverages production process it is necessary:

• To define the basic criteria of assessing of the production process vulnerability level.

• To determine the content of each criterion.

• To set the criteria significance for the assessment of the production process vulnerability level.

Assessment of sales vulnerability level

To identify the manufactured alcoholic beverages products sales vulnerability level, it is necessary:

• To define the basic criteria of assessing the sales vulnerability level.

• To determine the content of each criterion.

• To determine the criteria significance for the assessment of the manufactured alcoholic beverages sales vulnerability.

The special status of the alcoholic beverages market regulation

To determine the status of the alcoholic beverages market regulation it is necessary:

• To identify the basic elements of alcoholic beverages producers’ activities.

• To determine the features of state regulation influence on the alcoholic beverages producers’ activities.

The concept of property interests’ protection

Protection of property interests is a combination of tools for identifying and evaluating weaknesses and vulnerabilities of an enterprise’s property complex, as well as evaluating measures taken to protect it.

Vulnerability assessment allows to identify problems in various areas of an enterprise, as well as assess the sufficiency and necessity of using existing protection tools. Thus, we have identified the inextricable relationship of vulnerability and protection.

From the perspective of expanding the conceptual framework and introducing scientific knowledge, in our opinion, the concept of property interests protection may look like a set of measures to preserve property from internal and external threats and risks, its effective use, as well as the use of tools to assess the vulnerability level and protect property interests of enterprises.

Assessment of the alcoholic beverages production process vulnerability level

The production process is fundamental to making a demand for finished product sale, so the vulnerability of production has a direct impact on implementation. Identification and assessment of weaknesses contributes to the formation of a competitive product.

We propose to assess the production process vulnerability using the following list of criteria:

• the quantitative sufficiency agricultural raw materials and materials of high-quality (hereinafter referred to as R&M);

• provision with qualitatively prepared production facilities;

• provision with qualified personnel;

• current regulation of the production process.

The first criterion for assessing the level of vulnerability includes three elements: the quantity, quality and preparation of R&M included in the finished product. Such R$Ms include bottle, etiquette, cap, federal special brand (hereinafter FSB), water, alcohol, water-alcohol liquid (hereinafter referred to as WAL).

To produce the finished product, one must make sure that each element is in sufficient quantity. Otherwise, this criterion will indicate a high vulnerability of the production process and, as a result, it will be impossible to produce the required amount of the finished product.

Quality assessment allows us to determine the availability of R&M to the production process, namely, the ability to use them to produce the finished product. The quality of R&M affects the quality of the finished product, production speed, productivity and, thus, the cost.

Preparation includes R&M processing, storage and transportation. Violation of the procedures for the preparation of R&M will indicate the presence of a vulnerability in the production process, namely the inability to produce high-quality goods in the required quantity.

Thus, the quantitative sufficiency of well-prepared R&M is a necessary criterion for assessing the property interest vulnerability level. The effective use of R&M, including the preservation and improvement of their properties, allows for stable functioning, unhindered production and products marketing (Shiyanov, 2016) as well as to offer the consumer quality goods in the required quantity.

The second evaluation criterion involves determining the availability of quality-prepared production facilities. Security means the availability of high-tech equipment to produce finished products. High technology involves the production of greater quantity of finished products with minimal economic costs, which affect the productivity and cost of the finished product.

An important element in the efficient use of the equipment is its pre-production. At this stage, the technical staff sets up the equipment to produce a product of a particular type. Therefore, the inability of equipment to produce different types of finished products in the required quantity with high productivity is an indicator of the property interest vulnerability.

The third criterion for assessing the vulnerability level is the provision of well-trained personnel. By well-trained personnel, we mean employees whose knowledge, skills and abilities are sufficient and suitable to perform a labor function. It should be noted that it is necessary to have well-trained personnel at all stages of production, from management of the production process to service personnel.

The fourth criterion for assessing the vulnerability level is the actual regulation of the production process. It implies, firstly, the existence of regulations and rules for each stage of production, and secondly, their timely updating. Regulations should be accessible, easy to understand and apply, as well as required for each stage of production.

Thus, the assessment of the production process vulnerability level is a paramount task for preserving the property potential that contributes to the implementation of highly profitable activities for the alcoholic beverages producer.

Assessment of the sales vulnerability level of manufactured products

We propose to assess the vulnerability of the finished product sales process using the following list of criteria:

• the quantitative sufficiency of the sought-after quality product;

• the availability of reliable distribution channels;

• provision with high-quality system-organized personnel;

• current regulation of the product sales process.

The quantitative sufficiency of the sought-after quality product is a strategic criterion for assessing the vulnerability level. The products necessary to meet the needs of consumers should be in the quantity for which there is a demand and should also be ready for sale in compliance with quality requirements. This will not only maintain the level of sales achieved, but also attract a new consumer. In this case, the vulnerability assessment should be based on the performance of planned sales indicators of the manufacturer, distributors and end sellers. In addition, it should be noted that in order to maintain stability, it is necessary to coordinate not only manufacturers, sellers, but consumers as well (Kiyashchenko & Mishchenko, 2016).

The second criterion for assessing the implementation process vulnerability level is the availability of reliable distribution channels. This is the most unstable criterion, the value of which is always probabilistic in nature and must be evaluated constantly. A reliable sales channel ensures the return of receivables, maintains the level of sales and profitability. Lack of reliable partners can put the alcohol beverages producer in a position in which he cannot exist. Thus, this criterion is both life-supporting and the most difficult to analyze the level of vulnerability.

The third evaluation criterion implies the availability of high-quality system-organized personnel. The sales system assumes the presence of a strictly built hierarchy of personnel with the distribution of functions to make offers to distributors, retail chains, retail stores and to ensure accessibility for the final consumer. It should also be noted that each employee should have special knowledge, skills and abilities in order not only to maintain the level of sales, but also to develop them.

Relevant regulation of the finished products sales process is the fourth criterion for assessing the vulnerability level. This criterion is the need for sales procedures, as well as their timely updating. The lack of regulations for the implementation of sales at all levels of sales and their actual application shows the vulnerability of sales, including the creation of irrevocable receivables.

Thus, an assessment of the finished product sales process vulnerability is an indicator of the ability of an alcohol beverages producer to exist in modern economic conditions.

Special status of the alcoholic beverages market regulation

To determine the role of licensing requirements and the possible consequences of their non-fulfillment, we propose to consider the following elements of the enterprise activities producing the alcoholic and alcohol-containing products:

• the purchase of alcohol;

• alcohol preparation;

• production of alcohol-containing products;

• storage of alcohol-containing products;

• sale of alcohol-containing products.

Each stage of alcohol turnover associated with the activities of the producer of alcoholic and alcohol-containing products is regulated. The requirements of normative acts are binding on all market participants, such as producers of alcohol, alcohol products, federal networks and distributors, retailers (Latyntseva, 2017). Failure to comply with licensing requirements will entail punishment by state authorities, including cancellation or suspension of a license. All this will stop the production and sale of products, which means it will stop the life of the enterprise.

But one should not forget that the current legislation, in addition to the punitive function, protects the entrepreneur’s property rights and interests, for example, sets the minimum price for the sale of manufactured products. Thus, the state guarantees the enterprise's business activities on the basis of its property (Pavlov, 2014). In this case, the guarantee is expressed in establishing a competitive minimum price, the increase of which allows the enterprise to receive additional income.

The concept of property interests protection

Based on the analysis of the elements that make up the protection mechanism and interrelation between protection and vulnerability, the authors determined that the protection of property interests may look like a set of measures to preserve property from internal and external threats and risks, its effective use, as well as the use of tools to assess the level of vulnerability and protection of property interests of organizations.

Assessment of the level of vulnerability of the process of alcohol production

Based on the results of the selected criteria analysis, in Table 01 we determined the significance of each criterion for assessing the alcoholic beverages production process vulnerability level, its content and its impact.

The table is based on the authors’ research.

Thus, we determined that the most important criteria are the quantitative sufficiency of well-prepared agricultural raw materials and supplies with well-prepared production facilities. These criteria determine the ability of the enterprise to produce products and, as a result, show the current level of the enterprise vulnerability.

Assessment of the manufactured products sales vulnerability level

Based on the results of the selected criteria analysis, in Table 02 we determined the significance of each criterion for assessing the alcoholic beverages products selling process vulnerability, its content and its impact.

The table is based on the authors’ research.

Thus, we determined that the most important criterion is the availability of reliable distribution channels. This criterion determines the ability of the enterprise to sell its products and, as a result, shows the level of competitiveness, as well as the prospects for its activities in the alcoholic beverages market. In addition, the reliability of sales channels is expressed in the repayment of receivables, which is an important element in maintaining the viability of an enterrise, in the form of obtaining financial benefits as well (Dyakonova & Konovalova, 2019).

Special status of the alcoholic beverages market regulation

A special place in the alcoholic beverages market is held by issues of compliance with licensing requirements. Compliance with the requirements of current legislation in the field of production and turnover of alcoholic and alcohol-containing products plays a significant role in the activities of the enterprise involved in the production of such products. Each stage of the functioning of the alcoholic beverages producer is based on compliance with mandatory licensing requirements. The increased attention on the part of the state is due to special control over the turnover of agricultural raw materials such as alcohol obtained by grain processing. This fact is a separate criterion for assessing the vulnerability level of protection of an enterprise of an alcoholic beverages producer, which confirms its special status as a state regulation of the alcohol market.