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Journal section "Socio-economic development strategy"

Theory and Methodology of Appraisal of Enterprise Economic Potential

Nadvornaya G.G., Klimchuk S.V., Oborin M.S., Gvarliani T.E.

6 (48), 2016

Theory and Methodology of Appraisal of Enterprise Economic Potential / Nadvornaya G.G., Klimchuk S.V., Oborin M.S., Gvarliani T.E.. Economic and Social Changes: Facts, Trends, Forecast, 2016, no. 6 (48), pp. 70-90. DOI: 10.15838/esc.2016.6.48.4

DOI: 10.15838/esc.2016.6.48.4

Abstract   |   Authors   |   References
The functioning of an enterprise is based on building and use of its economic potential. The company’s performance depends on the quality of these processes. Modern conditions of highly dynamic operating environment put demands on the search and application of new approaches to the building and use of economic potential of enterprises which provide opportunities for identifying and using internal economic growth reserves. An important economic parameter of the enterprise operation is the appraisal of economic potential formation and use effectiveness. Lack of economic control mechanisms scientifically proved for market management conditions and appraisal of the enterprises’ state in terms of efficiency of economic resources formation and use diminish investment activity and the competitiveness of economic entities. This necessitates the search for new methods and models for appraising economic potential, which defines economic independence as a system of management impacts on the economic state and development of an enterprise. All these factors indicate the relevance of further studies of enterprise economic potential, the mechanism of its functioning, the development of a system of management decisions aimed at effective formation and use of the enterprise economic potential. The aim of the study is to evaluate theoretical and methodological approaches to the enterprise economic potential and form methodological principles for its appraisal and effective functioning. During the study, the authors carried out a retrospective evaluation and systematization of theoretical and methodological approaches to the appraisal of enterprise economic potential. It has been determined that properties of enterprise economic potential, namely, consistency, which implies the study of interaction and mutual influence of system elements, were understudied. The study presents a methodical approach to appraising enterprise economic potential and its effective formation and use, which, unlike the previously suggested approaches, considers the economic potential of the enterprise as a system of interconnected processes of inclusion, use and implementation (upgrades, supplies) of economic resources which interact closely and are aimed at addressing the existing contradictions of sufficiency and reproduction of economic resources. The proposed methodological approach to appraising enterprise economic potential is based on identifying the synergy and reciprocal influence effects and the main structural components of economic potential of an enterprise – resources and performance results

Keywords

enterprise economic potential; building and use of enterprise economic potential; economic performance; enterprise resources; appraisal of enterprise economic potential

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