c.ph.s, docent Moiseeva F.A., Kolotii V.A.

Donetsk national university of economics and trade

 

Enterprise Sustainable Development Strategy,

Contemporary Aspect

 

 

Research findings of development dynamics of domestic enterprises in various industries, including trade, indicate that the operating effect of enterprises directly depends on their capability to prevent and remove losses from internal and external threats. Whereas particular dangers for an enterprise are posed by threats, which are able to destabilize its financial activities up to bankruptcy.

An upcoming trend for tasks solution and enterprise’s financial security alerts is an implementation of the complex of management models into the enterprise management system, which will ensure sustainable development. The main units of the complex are a unit for the financial analysis of an enterprise, a unit for the assessment of threats and possible insolvency, a unit for the prevention of crisis financial situations, a unit for the creation of investment appeal and innovation activities.

The main tasks of the first unit are the financial analysis of an enterprise and identification of crisis financial situations. The solution of the tasks allows to form a bank of data on crisis severity levels at the enterprise during former periods and to define the ranges of indicator values, which correspond to different classes of financial situations. It should be noted, that the ranges will vary for each particular enterprise, since they will reflect specific structures, relationships and business environment. Such an individual approach enhances the value of the obtained results and allows to synthesize the results by industry and territory in an appropriate way.

The unit consists of the following models:

The model for scoring system development, indicating the enterprise’s financial condition.

The model for integral estimate of the enterprise’s financial condition.

The model for the change analysis of the integral index values.

The model for development of classes of financial situations.

The model for identification of enterprise’s financial condition by crisis development level.

The model for investment and innovation appeal.

The second unit of the proposed complex of models consists of the assessment of how threats impact the enterprise’s financial condition. Within the frameworks of the unit retrospective information serves as the basis for creation of the list of the top-priority internal and external threats, which have the most significant effect on the enterprise’s financial condition. Afterwards the threat or set of threats is identified, the neutralization or localization of which prevents the enterprise from moving from one crisis class to another. The obtained information is used to identify the top-priority directions for spending of the limited investment and resource potential of the enterprise.

The main models of the unit are:

The model for the development of internal and external threats set of an enterprise.

The model for selection of dominant threats.

The model for identification of dominant threats indicators.

The model for the choice of representing indices by financial performance groups.

The model for assessment of the closeness between financial performance systems and priority threats.

The model for the cutting down of enterprise’s threats space.

The model for synergy evaluation of threats combination.

The third unit of the complex is the prevention of crisis financial situations. Within this unit the information on the retrospective threats effect and the classes of financial losses, caused by the threats, serves as a ground for the forecast of destabilizing effects and the amount of the financial loss. The forecast results undergo the selection of those threats, the localization of which allows to prevent the transition of a financial condition from one crisis class to another. Then the set of actions on the threats locating is developed and probable expenditures on the execution of the actions are calculated. In the final phase the set of actions is optimized by expenses and prevented losses.

The main models of the unit are:

The model for the forecast of enterprise’s financial condition by the set of threats.

The model for the forecast of threats indicators values.

The model for the identification of predicted financial conditions of an enterprise.

The model for threats ranking by locating priority.

The model for locating of critical threats.

So, the execution of the developed complex of models for sustainable development of enterprise financial activities allows to increase the level of financial security and to ensure its sustained operation when optimally using the limited investment and resource potential.

The achievement of the sustainable development is based on three approaches, i.e. economic prosperity ensuring, ecological and social progress. But economic welfare, created without regard to ecological factors, cannot be sustainable in the long term. In essence, the business has the task to develop also an ecology-oriented model of entrepreneurial activity during the period of transition to the sustainable development. Obsolete though still widespread opinion about the relationships between entrepreneurship and ecology is based on the fact that environmental protection and commercial activities are opposite by nature. The improvement of environmental conditions is considered to reduce entrepreneurs’ profit and to increase consumer prices, while profitability is connected with the necessity of ruthless exploitation and destruction of natural resources. The achievement of sustainable development needs the reorientation of business activities towards stable environment and prosperous economy simultaneously. This means that ecology and economy are interconnected and do not exclude but supplement each other towards the improvement of life quality in the whole. Consequently, the base for the ecology-oriented entrepreneurship should be the concept of innovative ecological efficiency, combining the improvement of economic indicators of an enterprise on the one hand and higher productivity of resources, less waste and prevention of emissions on the other.

The main components of the innovative ecological efficiency are:

- decrease of material consumption for goods and services;

- decrease of power consumption for the manufactured products;

- decrease of toxic agents spread;

- increase of opportunities for materials recycling;

- increase of sustained usage of renewable resources;

- increase of the operating life of the manufactures products;

- accumulation of after-sales service of goods and services.