THE DEVELOPMENT CORE OF ENTERPRISE: THEORETICAL ASPECT

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  Viktoriia Hrosul

  Serhii Zubkov

  Tatul Mkrtchyan

Abstract

Relevance. The result of the effective functioning of the enterprise is its development and growth. Modern economic conditions are characterized by high dynamism and uncertainty, tough competition, which requires from trade enterprise to form the development strategy taking into account market environment changes and adaptation of the internal parameters of functioning to them. The practical solution of problems, which are related to the necessity to provide enterprises with efficiency and competitiveness, depends on the methodological principles of elaboration for their development. Aim. The aim of the study is to substantiate the concept of development core of the trade enterprise as the new view of its development process. Methodology. In the process of substantiating the concept of development core of the enterprise, the historical method and the content analysis method were used to study the enterprise development theory; system analysis method was used for substantiation of the development conceptual vision of the trade enterprise; formalization method was used for creating development core model of the enterprise. Results. On the base of the development of the concept of economic core with the aim to take into account the most important determinants of the enterprise development, the concept of development core of the enterprise is elaborated; it provides interaction of three components: the strategic component determines development directions and measures for their achieving; the resource potential component provides the necessary resources mobilization; the business model component promotes the chosen activity effectiveness. Support of efficiency of development core of the enterprise is carried out through the supporting and resulting subsystems. The supporting subsystem necessitates the formation of special methodological support for implementation of the key formation processes and interaction of components of development core of the enterprise. The purpose of core resulting subsystem is to summarize the enterprise activity, exchange information with the internal and external environment. Practical value. The identified components of development core of the enterprise cover key areas of management at the enterprise; it provides comprehensive coverage of its development determinants and application of the concept of development core in the trade enterprises activity will help create conditions for their harmonious development. Value/originality. The concept of development core of the enterprise is elaborated; it is based on the process approach of intra-component functioning of strategic, resource potential and business model components and serves as theoretical and methodological support for the choice of strategic priorities of development of the enterprise.

How to Cite

Hrosul, V., Zubkov, S., & Mkrtchyan, T. (2021). THE DEVELOPMENT CORE OF ENTERPRISE: THEORETICAL ASPECT. Baltic Journal of Economic Studies, 7(3), 73-81. https://doi.org/10.30525/2256-0742/2021-7-3-73-81
Article views: 121 | PDF Downloads: 57

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Keywords

development, development core, trade enterprise, resource potential, business model, strategy

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