Theoretic Prerequisites for Creating Organizational and Economic Support for Business Entities to Reshape Their Activities

Abstract

The main theoretic approaches to defining the concept of «reshaping a business entity» are considered. The study of modern tools and approaches to reforming socio-economic systems (reengineering, restructuring, modernization, optimization, etc.) has shown their limitation and concentration on certain components of their activities or management systems. A theoretical and morphological study of related definitions that characterize the transformation and reform of economic entities is carried out, their interrelation and interdependence are determined. The theoretical and methodological basis and stages of reshaping a business entity are substantiated, taking into account the peculiarities of its technological network structure, consumer value chains, management system, financial flows and key competencies within its activity. The key components of organizational and economic support for reshaping the activity of a business entity in terms of profile determination are identified, namely: management, main and auxillary activities, diagnosis and evaluation, the formation of the means and tools used for reshaping. Given the key parameter of business entities, i.e. the return on capital brought in by investors, it is proved necessary to use the indicator of economic value added as a target criterion for assessing the functioning and development of such entities and, consequently, necessary to reshape its activity. In addition, this approach allows predicting the consequences of introducing tools of reshaping, thus making it possible to assess its feasibility and set up the most effective organizational and economic measures

Keywords

• reshaping of a business entity
• organizational and economic support for reshaping
• economic value added.