Model of Effective Business Formation

Abstract

The task of improving business performance always raises the problem of choosing the most effective ways to ensure it. The article is devoted to the substantiation of the business efficiency criterion, in accordance with the requirements of which those areas of business development that provide it with the greatest efficiency should be determined. The article puts forward and confirms the hypothesis that, according to the selected criterion the greatest efficiency can be provided not only by the variant of the simultaneous implementation of all possible directions for increasing efficiency, but also by the variant of their implementation in parts — in the form of sets of directions. The authors propose a model for the formation of an effective business, using Pareto optimality and implemented on the basis of two developed Algorithms, which is illustrated by a numerical example.

Keywords

• efficient business
• directions for improving business efficiency
• pareto optimality
• algorithms
• sets for business efficiency improving