Academic journal article European Research Studies

Enterprise Development Factors' Control

Academic journal article European Research Studies

Enterprise Development Factors' Control

Article excerpt

1. Introduction

Increasing the competitiveness is a key task of an enterprise, requiring not only the modernization and commissioning of new facilities, but also the formation of an innovative policy, based on an assessment of its own achievements in comparison with the achievements of the best enterprises in the research-engineering, technological, environmental, financial, marketing, and other areas. In this regard, it requires developing a controlling mechanism that would take into account the experience and the achievements of the best enterprises (Pavlenkov, 2009; Savitskaya, 2013; Simons, 2000; Breckova, 2016; Epifanova et al., 2015; Havlicek et al., 2013).

The proposed mechanism will give the opportunity, taking into consideration the experience and the achievements of leader enterprises, to improve the control of enterprise development factors, to ensure its efficient operation in the operational and the prospective period, and to increase its competitiveness.

Today, many of the issues related to the control of enterprise development factors remain insufficiently developed. This problem remains understudied in the national and foreign literature and requires theoretical and practical application. The external environment has a strong influence on the operation of an enterprise. Environmental factors do not only influence, but can also create a variety of problematic situations for an enterprise (Kaplan, 2000; Coricelli, 1998; Kolchanova and Kolchanova, 2016; Setyawan et al., 2014; Theriou, 2015; Theriou et al., 2014).

Early detection and consideration of changes in the external environment is the most important task of the enterprise management. The effectiveness of solving these tasks consists in the ability to identify hazards and achievements of other enterprises and in due course to prevent them or to use them for the purposes of its development. A control mechanism for enterprise development factors, which does not only allow identifying hazards, but also assessing the achievements of other enterprises, on the basis of which introducing changes in certain areas of the enterprise development, has been elaborated.

2. Research Methods

An enterprise operates in the market economy environment, so its performance indicators should be compared with those of the best enterprises. Such indicators characterize the economic, technical, organizational, managerial, and other areas of activity (Savitskaya, 2013; Trifonov, 2013; Charles, 1992). To solve these problems, a control mechanism for enterprise factors development has been proposed.

2.1. The Choice of Indicators

1. Definition of indicators: The enterprise performance is evaluated with a multitude of indicators(i = 1,2, ..., n). To make an expert assessment of the indicators, an expert commission of the enterprise is appointed, using, for example, the following influence indicator rating gradation: 5-determinant; 4-essential; 3-average; 2-weak; 1-minor; 0-none (Orlov, 2004). The enterprise can also use other gradations to rate the indicators. The result of the expert assessment is the matrix A, whose elements [a.sub.ij] are the grade allotted by an expert.

According to the formula (1), the grade [F.sub.i] of each indicator is determined:

[F.sub.i] = [mn.summation over (j=1)] [a.sub.ij]/m, (1)

where i is the index of an indicator (i = 1,2, ..., n);

j is the index of an expert (j = 1,2, ... m).

2. Ranking: According to the formula (1), the values of the indicators have been determined, which are then arranged in ascending order. The result is a ranked set of indicators

{F}= [F.sub.1],[F.sub.2], ..., [F.sub.n]. (2)

3. Defining a set of indicators: In practice, the comparison and evaluation of a large number of indicators does not always produce the desired results because of the analysis complexity, so the expert commission selects the most significant indicators. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.