Bìznes Inform (Aug 2019)
The Model of Management of Enterprise's Financial Potential: the Functional Approach
Abstract
The study is aimed at substantiating the model of managing the financial potential of enterprise in accordance with the functional approach, directions and mechanisms for its implementation, taking into account peculiarities of the activities of domestic enterprises of the real sectorof the economy. The relevance of modification of the model of management of the enterprise's financial potential in order to ensure development and restoration of production potential is substantiated. The nature and directions of the relationship between the components of the economic potential of enterprise in accordance with the functional approach to its structuring are determined as follows: financial, production, marketing, and operational. In order to ensure the accounting of the existing and prospective opportunities for financing the operation and investment activities, relevance of determination of the financial potential of enterprise as a capability of financial service of enterprise of creating sufficient amount of resources to ensure their operating and investment activities in accordance with the principle of their balance and effective use is proved. Contradictions in the use of the common method of integrated coefficients to assess the financial potential of enterprise are defined, related to: inconsistency of the goals of external and internal subjects of analysis; lack of detail between active and passive articles of reporting on the financial condition of enterprise; difficulty of substantiating the regulatory indicators; imperfection and disunity of the economic and accounting approaches to managing the enterprise's financial potential and resources. The theoretical model of managing the financial potential of enterprise is substantiated, which includes taking into account the factors of the formation and use of the enterprise's potential, the structure of potential; indicators of its use, hierarchical and network management models, methods of management and potential assessment. It is substantiated that the use of the model will help to activate all functionally interrelated components of the economic potential of enterprise.
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