Bìznes Inform (Sep 2023)
The Basic Models of Enterprise Development Management
Abstract
In the context of permanent changes caused by instability due to the ongoing war and an increased uncertainty in the business environment, the conditions for the development of enterprises are changing dramatically. The article elaborates an interpretation of enterprise development as a process of quantitative, qualitative, and structural changes in its status (potential) and functional activity to achieve the established vision and goal (effectiveness), which are caused by an immanent tendency to improvement. The concept of development of a socioeconomic system is considered. The interaction of the main elements of the development of the socioeconomic system is analyzed. Both the conceptual and the basic models of enterprise development management have been elaborated. Studies have shown that in the current economic conditions, business activity is a decisive factor in the economic performance of an enterprise. At the same time, business activity is a defining characteristic of the company’s position in the market. Thus, the growth of business activity of an economic entity in the capital, goods, and labor markets, aimed at improving the effectiveness of its activities, becomes the primary task of the economic development of the enterprise. It is determined that the results of activity characterize the degree of achievement of the goal of development of enterprise, which is described by an aggregate of indicators. Changes that may occur during the implementation of a certain conception of development primarily affect such functional characteristics as capital, sufficient costs of production, output. Estimates of such changes can be obtained based on the results of experimentation with the corresponding searching (working) models. On the basis of the above and taking into account the best practices of project management, strategies and models of enterprise development are considered, including strategies for growth, activation, transformation and creation. These strategies provide elemental, mixed, and system types of development.
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