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PhD in Economics, associate Professor of Accounting Department

Lytvynenko A. O.

 S. Kuznets Kharkiv National University of Economics, Ukraine

 

THE FORMATION OF CONCEPT OF THE ENTERPRISE’S POTENTIAL EFFECTIVE USAGE

 

The article presents guidelines as for the formation of the concept aimed to improve the efficiency of the mechanism of controlling the industrial enterprise potential and forming the programs of the industrial enterprise potential development. It is proposed the understanding of the enterprise potential development and the grouping of controlled parameters considering the level of the enterprises innovative capabilities is grounded. The concept of the enterprise’s potential effective usage in activation cycles of innovation is presented.

Keywords: innovative development, potential of the enterprise, concept, management mechanism.

 

Statement of the problem. The conditions of the modern enterprises activities are characterized by the uncertainty and the dynamic of socio-economic environment. The effective opposition to changes in the environment may be possible only because of the mechanism aimed to preserve the viability and improve the efficiency of the enterprise activity.

Among the necessary reforms it is important to allocate the further fiscal consolidation, strengthening the financial sector and supporting the flexible exchange rate regime as well as the development of the country's infrastructure, improving the business climate, improving the quality of the administrative services.

According to the present macro-economic forecast for Ukraine, the World Bank expects the growth of the budget deficit to 3 % this year after that the deficit declines to 2 % of GDP in 2017 and to 1.5 % in 2018.

The public and publicly guaranteed debt, according to the World Bank forecast, reaches to 80.4 % of GDP in the current year after that declines to 79.8 % of GDP in 2017 and to 78.2 % of GDP in 2018 [1].

The main feature of the current stage of the national economy development is the necessity to overcome the negative effects of the global financial crisis and the deep systemic imbalances in the livelihood of individual entities and the country as a whole. The economy of Ukraine and its GDP fell by 10% in 2015 due to the unprecedented shocks, the impacts of the situation in eastern regions of Ukraine, the falling prices of commodities in the world markets, the fiscal deficit and inflation. The key factors of the economic growth of Ukraine in the medium term, if there is no conflict escalation in the eastern regions of Ukraine, are the resumption of domestic and foreign investment inflows [2].

Analysis of recent research and publications. The issue of organizing the efficient usage of the enterprise potential is closely submitted in the economic literature. In the present economic studies different approaches to the term "potential" and its nature are considered. Scientists generally [3, 5] consider the "potential" due to a certain type of the enterprise resources and opportunities to use them. For example, V. S. Ponomarenko [4, p. 90-92] considers "potential" as one of the main characteristics of the system efficiency of the enterprise. M. V. Novikova [6] shifts the focus of attention on the management of potential development; its high level is the basis of the sustainable enterprise development. Accordingly, the potential development can be considered as the improvement of the elements of the enterprise material and technical base (EMTB). It has been proved by the author of this article [7]. The researchers examine the "potential" as well as an important lever of guiding the management impacts from the enterprise management. These studies confirm the relevance of forming the outlines to manage the enterprise potential focused on optimizing the usage of its elements.

The adoption of this interpretation requires some expansion, firstly in the direction of detail tracking the enterprise innovative transformations [8]. Secondly, to create a structure of controlled parameters it is necessary to predict the possible to track innovative transformations that must accompany the development processes [9]. Thirdly,  the  structure of indicators should disclose the enterprise ability to realize its

own potential.

Emphasis on the unsolved aspects of the problem. In the process of introducing the concept of efficient usage of the enterprise potential the organizational and methodological adaptation of innovative products into general technical, organizational, financial and informative structure of the enterprise is made. At functioning the concept of efficient usage of the enterprise potential the evolutionary selection is carried out reject for any reason not viable methods of influence and their parametric adaptation to more rational way of usage in terms of internal and external environment that is changing. The concept of efficient usage of the enterprise potential is considered as a series of structured means of influence and methods of their application selectively involved in the management activities to achieve the necessary socio-economic performance and to ensure the balance and coordination of the whole complex of interrelated causal relationships that affect the enterprise performance.

Moreover, the innovative activity of national industrial enterprises focused on the development of their material and technical base should create the forming of such adaptive concept of efficient usage of the enterprise potential and compensatory mechanisms to overcome the negative trends.

The purpose of the article is to ground the features to form and use the concept of efficient usage of the enterprise potential in the processes of the enterprise development.

Presenting the main material. The relevance of the research is confirmed the objective necessity of overcoming the crisis in the country's economic situation, related both to macroeconomic imbalances and numerous problems of the individual entities functioning. The solution to such problems as rapid aging and increase in depreciation of labour, reduction of industrial production, limited funding programs to modernize production, high cost of used in the production goods and labour and reducing obtained from their usage value added is only possible by creating the appropriate resources and technical support. It should be taken into account that the basis to increase the efficiency of industrial enterprises is to promote the programs to save resources and mobilize the reserves to improve product quality, to increase susceptibility to innovations and anticipatory adaptation to technological changes, to attract investment in technological innovation and optimization of structure of resources used in the production.

Focusing on figure 1, the industrial production index should be taken into account, so it can be emphasized on the necessity to form an adoptive concept of effective usage of the enterprise potential that allows to the state as a whole and individual entities resist negative challenges of globalized environment, namely to form the mechanism to improve adaptability of enterprises. To form the draft of mechanism to increase the adaptability it is necessary to choose means and methods of influence based on their financial, technical and information availability according to the limited enterprise capacities that allows not only to minimize the negative impact of the world crisis trends but to create a framework to implement adequate opportunities to develop Ukraine's economy as a whole.

 

 

Fig. 1. Industrial production indices (a percentage of the previous year) [2]

 

Transformation conditions to function the national economic systems require from the industrial enterprises to increase their adaptive capacity, to transfer management on the strategic framework and to improve the validity of programmes of development, the essential part of which is the strategy of maximizing the available potential. The only constant support of development processes and ensuring their management can provide domestic producers the success in the competition and improve the sustainability of their market positions. However, there are a number of obstacles to this objective. Firstly, the programs development should focus on innovative basis. Secondly, it is very difficult to control the implementation of development programs, even though the quality of its implementation depends on the future success of the enterprise in the area of its own potential implementation. So, the issue to form such a concept of efficient potential usage is relevant and provide the implementation of the program of innovative development of the enterprise potential and help to establish the most rational parameters.

Conclusions. The article presents guidelines as for the formation of the concept of efficient usage of the enterprise potential in activation cycles of innovation and the understanding of the enterprise potential development is grounded. However, it calls for further research to develop specific indicators within groups of controlled parameters involved in the mechanism of the enterprise development.

 

REFERENCES

 

1. UNIAN News [electronic resource]. – Access mode: http://economics.unian.net /finance/1306490-vsemirnyiy-bank-otsenil-padenie-ekonomiki-ukrainyi-v-10-prognoz-na-2016-god-1-rosta.html

2. State Statistics Service of Ukraine [electronic resource]. – Access mode: http://www.ukrstat.gov.ua

3. Voronkov A. E. Strategic management of competitive potential of the enterprise. – Lugansk: VNU, 2000. – 315 p.

4. Ponomarenko V. S. The structure determination of integral index of the system efficiency of the enterprise / V. S. Ponomarenko, I. V. Gontareva // The Economy of Development. – 2012. – ¹ 1 (61). – Pp. 86-94.

5. Otenko I. P. The mechanism of management of the enterprise potential: scientific edition / I. P. Otenko, L. M. Malyarets. – Kharkiv: Publishing House KSUE, 2003. –  220 p.

6. Novikova M. V. The formalization of methodological approaches to evaluating strategic potential of the enterprises of Ukraine / M. V. Novikov // Economic Journal –

XXI. –  2013. –   ¹3-4 (1). –   Pp. 34-38.

7. Voronkov A. E. Strategic management of competitive potential of the enterprise. – Lugansk: VNU, 2000. – 315 p.

8. Pylypenko A. A., Lótvónenko A. A. The enterprise competitive capacity realization through the definition of the parameters of its strategic behavior // Scientific Bulletin of Kherson State University. – "Economics". –  Issue 14. – Part 1. – Pp. 84-88.

9. Pylypenko A. A., Lytvynenko A. A. The integration basis of the management of the industrial enterprises potential development management development // The Economy of Development. – 2015. – ¹ 3. – Pp. 102-108.